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Picking a Financial Adviser
No Commission Rule:
The first rule to follow in every real estate deal should look for an adviser who does not charge commissions. A financial adviser will trouble you more if there is a commission involved.
Don’t confuse a fee-only adviser with a fee-based adviser because a fee-based advisor will include multiple fees in a deal. A list of advisers that work without commissions can be found in National Association of Personal Advisors.
Some of the fee-only advisers and brokers set a yearly percentage on your deal if they manage the asset long term.
Learn the Jargons:
It is important that you get a knowledge of all the main jargons used in an industry before stepping.
Before hiring a financial adviser to manage your deals, get to know the terms for better communication.
Terms like a buyer’s market, appreciation, and seller’s market are used often in real estate meetings. While a CPA (Certified Public Accountant) is someone that may help you out with your tax management.
It is important to search for reviews of someone you’re about to work with. If the adviser you’re searching for is also registered as a broker, it will get easier to search for his profile on the web.
Meet Several Candidates:
You need to be picky about choosing someone to handle your sensitive matters. Meet different candidates for you decide on one.
Personal chemistry matters the most in this kind of relationships. You cannot spend your money on advice that does not satisfy you.
Why would that happen? Because when you’re not at ease with someone as a person, you’ll not like what they have to say about your financial matters.
Almost all advisers offer an intro session for free in which they tell you about their expectations and how they’ll fulfill your needs and at what cost.
Take full advantage of these sessions before arranging a formal meeting with the paperwork. Spend at least 60 minutes with the person and ask different questions about what strategy they’ll follow, etc.
Ask Straight Question:
Talk to the point when you discuss how things will shape up in the future. Ask the adviser about his background, fee patterns and where would he want you to invest.
Before you get into a formal deal, make sure the adviser understands what you require of him or her and for how long.
Contrasting Real Estate Market Conditions
When it comes to the real estate market in British Columbia there is no shortage of praise about how this market, although having it’s ups and downs, appears to always return with a vengence.
We set out to compare this market, particularly the lower mainland of British Columbia with the real estate market in Tallahassee Florida.
Stop right there you say…why would you be comparing these two drastically different markets to one another? And you’re probably right in doing so.
It’s to shed light on the differences between a market that has repeatedly been hit with taxes to help minimize the effects of a real estate bubble and another that has been repeatedly propped up and assisted by local government to help stimulate the market there.
Tallahassee is a small but quaint city with southern charm. Homes here are priced modestly around $220k to $300k on average and even at those prices, can take weeks to sell.
On the other hand we have Vancouver. With average home prices here at $1.5million+ we can see that alone makes investing there difficult for the average person.
Tallahassee realtor Suzanne McGhee claims that currently in the area, even after hurricane season, they are seeing a sharp trend upwards with respect to homes for sale with pools but also lakefront homes around Buck Lack and Lake Talquin.
But no matter where you look, even in the most depressed areas of Vancouver, even though hard to find, you don’t see that sort of variation when it comes to your money/investment.
What this boils down to is this…quite simply when investing in real estate it is best practice to research the history of the local real estate market and also reference projections for the future. In Vancouver it appears that the bubble will likely pop and home prices there could see a sharp decline. However the opposite is the case with respect to Tallahassee homes for sale. There we see projections for a rise in home prices despite natural weather concerns.
The Need For Government Intervention In B.C. Housing Market
Top banks in Canada are seeking government intervention in addressing the current state of its housing market.
Officials of the Royal Bank expressed continued confidence in their mortgage loan portfolio but would like the government to enter the picture as early as now to help cool the housing market.
Bank officials reminded that prices of houses have soared, triggered by unhealthy supply and demand in housing, over speculation, and low interest rates offered by banks.
On the average, a single detached home in Vancouver area sells for about $1.5 million nowadays. This represents an 11 percent increase. Meanwhile across the pond on Vancouver Island you can find a similar home priced comfortably at about $400,000 says realtor.
The problem of soaring prices among residential properties in Vancouver (and Toronto as well) is a complex one. It thus requires the combined efforts of government sector (federal, provincial, and local) to work it out, bank officials stressed.
Prices have drastically increased over the last 12 months and Canada’s lawmakers should be focusing on these red flags. Prices have jumped in double digits and this isn’t going to be feasible.
Soaring prices have been challenging the housing landscape for some time now and sooner or later this would come to a landing. The problem is how it’s going to correct. Everyone wants to see a smooth landing and for this to happen, government sector must act collectively now.
Some sectors have expressed their two-cents worth on how to taper the surging prices – from imposing levies to curb unhealthy speculation to charging taxes on foreigners investing in the housing market.
Last year, B.C. had implemented tax charges on foreigners buying real estate properties in Vancouver. Property prices have reportedly gone down after a few months.
Banks are willing to support relevant government action plans that would help correct the drastic price increases.
Why Investing Now Is Your Best Move
Time isn’t always in your favor so start investing now. A lot of young adults hesitate to invest because they feel that it takes a ton of money to start and grow an investment. This fear is unfounded and shouldn’t stop you from doing it now.
Saving vs Investing
But before taking the leap, be aware that investing is totally different from saving. Saving won’t bring you wealth, but anytime you need funding, savings are a ready source of cash. Savings account, checking account, and time deposit are examples of this category. Meanwhile, investing is riskier but the higher the risk the greater the return. Mutual funds, stocks, and bonds are some investment vehicles you can avail of.
The beauty of investing now
Why start now? The earlier you do it, the sooner you’ll realize the power of compounding. Say you are 30 years of age right now and at 8% yield you were convinced to start investing $10.00 weekly without fail. By the time you reach 65, your money would have ballooned to about $99,000. Now that’s a sound investment. But what if you had started a decade earlier. At 20 years of age, you have invested the same amount weekly at the same expected yield. By age 65, your money would have been close to $229,000!
Seeking the help of an expert
If you have decided to invest now, it is wise to seek the expertise of a financial adviser. While not really necessary, a financial coach can help you map out a plan towards your financial objectives, research for good investments, and help you earn profits from them.
When you’ve found a potential financial adviser, do not hesitate to raise questions. Start with asking about his work and experience in the field. Ask how he charges fees. Currently, advisers would either charge based on the aggregate assets he is managing for you or simply ask for a commission.
Investing while still young gives you an edge over the others who opt to start later in life. You gain financial freedom earlier than the others. You can even retire early because you’ve started investing at a time when others are still taking th
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