Friday, August 11, 2023

I used to believe getting physically fit had to be complicated. I envisioned grueling hours at a gym and complex workout routines. When I think of it, no wonder I held off on exercising for decades! What about you? Has something been holding you back? 

One lesson I think we all learned during the pandemic was how to adjust to extended time at home. We can achieve simple and effective workouts from the comfort of our homes. All you need are some everyday items like stairs, chairs, floors, couches, and counters, and you’re good to go! No need for fancy equipment or complicated routines. By incorporating these exercises into your daily life and breaking them up throughout the day, you can create healthy habits that stick. 

1. Stair Workouts:

Your staircase is one of your home’s most versatile and practical pieces of “hidden gym” equipment. Going up and down the stairs can be great cardiovascular exercise, elevating your heart rate and burning calories. You can also use the stairs for step-ups, calf raises, or tricep dips.

Every time I go up the stairs during the day, I stop at the landing at the top and do five lunges. Then later, when I go back down, I do five pushups at the bottom. By the end of the day, I’ve done at least 25 of each, which I would be doing with a home workout routine without blocking the half hour of my day. 

2. Chair Exercises:

You can turn a dining room chair into another excellent workout tool. Use it for seated leg lifts, tricep dips by supporting your weight with your hands on the edge of the chair, or incline pushups to target your chest and arms. The chair’s stability makes it suitable for various bodyweight exercises, making it easier to work on strength and toning. Challenge yourself with different variations and gradually increase the intensity to build strength and endurance.

3. Utilize the Floor:

The floor is your playground when it comes to bodyweight exercises. Classic exercises like pushups, planks, squats, and lunges can effectively target different muscle groups. With minimal equipment required, the floor is an accessible and versatile platform for your home workouts.

4. Couch Challenges:

Your couch can do more than provide comfort while watching TV. Use it to elevate your workouts and add resistance. Bulgarian split squats with one foot on the sofa, inclined pushups, or decline mountain climbers are just a few examples of how you can incorporate your couch into your fitness routine. 

5. Countertop Workouts:

Your kitchen or bathroom countertop can be helpful for several exercises. Use it for standing pushups, incline planks, or calf raises to work on your core strength. The sturdy surface of the counter provides stability, making it suitable for balance and stability exercises as well.

With the lessons learned during the COVID-19 pandemic, we have discovered that we don’t need a gym membership or fancy equipment to stay fit. Everyday items like stairs, chairs, floors, couches, and counters can be our personal gym equipment so we can cheaply and efficiently meet our movement goals. By integrating these simple exercises into our daily lives and creating lasting habits, we can unleash our hidden potential and take charge of our fitness journey right from the comfort of our homes. 

Consistency is critical to achieving our fitness goals. Incorporate these simple exercises into your daily routine, even just for a few minutes. Break up your workouts throughout the day to make them more manageable and less overwhelming. Set achievable goals and track your progress to stay motivated. So, let’s get creative, stay fit, and embrace using the resources we have been blessed with!

August 4, 2023

Selling your home? Likely, you’re wondering what are today’s best practices to get your home sold for the most money. Are open houses the way to go? Or should we be investing in Google ads? 

Here are a few things you might be asking yourself: 

• Do I put a “Coming Soon” sign on my lawn? 
• My agent wants to do an open house for 6 hours EVERY weekend. Is this really necessary? 
• When is it worth paying $1800 for professional photography, or is the iPhone 15 Pro Max just as good? 
• Should I push for a virtual tour? Does it make a difference?
• Should the listing description be traditional or creative? What sells nowadays?
• Is everyone expecting turn-key homes? Or is Pinterest and Home Sense making people more excited to turn it into their dream home?
• Should I go all out upgrading my home? Will I make more money in the end by doing this? What are people expecting? 
• Should I delay offers for a week? Everyone started doing that during COVID. 
• A friend suggested we create Google ads for our property?
• Someone on the street is selling the same build, but my property has a fenced yard and a pool! Should I price it more? 
• Is the inconvenience of an open house worth doing? 
• Should we bring in agents to tour the property? 
• Do we invest in colour brochures to leave on the counter for showings? 
• Do we mass email electronic brochures of our property to agents around the city? 
• My agent takes 24 hours to get back to me. Is this reasonable in an age of cell phones? 
• Should I ask my agent to give a presentation of my property to all the other agents at their office? 
• Should we pay for aerial drone photos? What about videos? Will that make a difference?
• Do I put an ad for the home in a newspaper? 
• Should I put flyers about my home around the neighbourhood? 
• Should I mail everyone in the neighbourhood my home listing? 
• An interested buyer wants to see the home in a week. That is a long time nowadays. Does that mean the home is overpriced? 
• Is giving 24 hours for the seller to decide on an offer standard, or should it be 48? 
• Are people dropping the prices of homes in this market when there is so little inventory? Will that bring in a lot more interested people? 
• $599,000 or $600,000? How will that affect people’s search criteria? What are the algorithms nowadays?
• Using AI to answer my questions such as “What should I look for in a building inspection” – can I trust this information is accurate? Or not? 
• Should I leave my house with character, or is it best to make everything generic and “cookie cutter” looking? What do people prefer nowadays?
• Is it worth upgrading my kitchen? Does everyone today expect the perfect kitchen? Will it make my house exponentially worth more?
• Should we advertise on Kijiji and other platforms like Facebook? 
• Is Twitter the way to go with property descriptions?
• Are there certain documents I need to prepare in advance that I didn’t need when I sold ten years ago? 
• What are the tax regulations? I need a certain amount to close on my next home. Are there any unhappy surprises ahead? 
• Do I overprice it in case we have to negotiate? Or should I underprice it so I can start a bidding war? What’s the best strategy after COVID?
• Will I get more money if I wait for the spring market? What if I need to sell in the fall? Am I going to lose tens of thousands of dollars?
• Do I drop everything even if it’s inconvenient for a quick showing, or should I ask for 24 hours’ notice. What are buyers’ expectations? 
• Interested buyers have requested an appraisal. Is this normal? Will they share this information publicly?
• I heard I should leave fresh cookies in the oven or lemons on the counter? Is this a gimmick now that people see through, and that turns them off? 
• Do I drop everything even if it’s inconvenient for a quick showing, or should I ask for 24 hours’ notice? What are buyers’ expectations? 
• Do the walls need a fresh coat of paint, or can I get away without it? What difference would that make financially? 
• Do I turn the office into a bedroom when I go to sell? Do people care more about the extra bedroom or having an office nowadays? 
• What are the most popular paint colours? Or is it best to avoid the trendy ones and go traditional neutral? 
• Should I buy new couches? Mine has some cat scratches on the arms. 
• I have two older cars; should I move them when people come for showings? I have nice cars; should I move both of them for showings? 
• What should I do during the showings? Should I wait next door and spy to get inside info? Will that help my negotiation power?
• Someone told me the terms and conditions in the offers are just as important as the price? What terms and conditions should I be looking for? 
• Is having a septic system going to work for or against me? Do people prefer city services? Will this affect the price?
• Should I hire a professional gardener for $3,000 for curb appeal? Or would buyers prefer space for their vision? 
• An interested buyer wants a really short closing date. Is this done nowadays? Or are they bullying me? 
• Should we warn people on the listing that we live on a busy street? Or should we not tell them, let them come see it, and hope they fall in love with the house first? 
• Should the photos show everything – or should we leave something as a surprise when buyers come to view the property? 
• What about a pool? Since COVID will my house sell for much more if I can put in an above-ground pool? Or if I include a trampoline with my property? 
• What paperwork am I supposed to use? 
• What closing fees should I prepare to pay in 2023?
• How do I find a mortgage broker I can trust to buy my next property? I know some get much better rates than others. How can I tell what’s best? 
• Some agents charge more than others, and some charge less. Will the one with higher commission rates make it worth it? 
• How do I know if my real estate agent is trustworthy?
• What am I missing? 

Whether you are selling a home for the first time or buying and selling for the 12th time, how do you know the best strategies in today’s rapidly changing real estate climate? Do the tried and true strategies of the past still work today? 

When choosing a real estate agent, do your due diligence. Many use strategies that are outdated, ineffective, and expensive. Some methods even turn potential buyers off! In the same way, don’t insist your agent create brochures just because people did in the 1990s and you like seeing them. Nowadays, 95% of property searches happen online, so the agent’s promotion should aim to help buyers decide if they want to visit your property in person. Online resources play a heavy role in the decision-making process. 

I’d also encourage you to select a REALTOR® who is more concerned about having the hard conversations you need to hear rather than someone who prioritizes being liked. Your agent’s role is to help you distinguish between fact, fiction, and opinion and to help you read the data to make the most informed, up-to-date decision. 

Not sure where to turn? Email us at together@dekkerteam.com, asking to join the Dekker Team Community. Ken is the President of the Ottawa Real Estate Board and knows where organized real estate is headed. Our team will be able to guide you on the most effective strategies in today’s market and the impact future changes will have on you as a buyer or seller. Stay in the know so you can make the best decision moving forward.

Friday, July 28, 2023

Regina and Paul were ecstatic to move into their new home. They had been watching for a four-bedroom to become available in their dream subdivision for years. When one finally did, they jumped on it and got the house! They knew they paid a little more than the home was probably worth, but they agreed it was worth it to secure the property. 

When moving day arrived, the couple ensured their old home was spotless for the new homeowners. Regina even left the family a nice note with a bottle of wine and fresh-cut flowers to welcome them into their new home. 

Around two in the afternoon, Paul drove to get the keys from the lawyer, and the couple headed to their new home with friends and family. The first thing they did was gather in the new kitchen, where they opened a bottle of wine to celebrate. Although moving is normally chaotic, Regina had everything so well organized that the moving process that day was a breeze. 

When Paul poured the leftovers down the sink that evening, he noticed red liquid on the patio. Two days later, a heavy summer rain flooded three rooms in the house. There was a roof leak, and the porch had been shoddily enclosed without a permit, causing a roof valley that didn’t drain properly. During the repairs, they found a cut truss in the attic, adding to the problems. Unfortunately, none of this was caught during the inspection. 

Fixing the roof, damaged baseboards, drywall, and flooring cost the couple over $40,000. And that didn’t include the plumbing repairs for the sink, which had a poorly constructed drain leading to the patio. It was weeks of chaos in the home before they could properly move in. While the couple had money set aside for emergencies like this, Regina couldn’t get over the fact that she felt the sellers knew there were issues with the home and hid them from the them. 

The whole process was such a disruptive mess that Regina seethed whenever she thought about it. She no longer saw the beautiful backyard view and stopped caring about the community they had waited so long to join. All Regina saw were more potential problems. She blasted the sellers on Facebook and often caught herself mouthing what she wished she could say to them in person. Paul wished she would let it go, insisting it was ruining the enjoyment of their home. “I would rather we stayed where we were than see you so frustrated from what happened. Just let it go, and let’s move on,” he’d say. 

Unforgiveness can be a nasty business. As REALTORS®, we often see it in real estate. It can stem from an unfortunate conflict between buyers and sellers or one spouse holding a grudge against the other for a past financial blunder. 

Ken and I have had our share of financial disagreements that cost our bank accounts and relationship. There is a reason conflict over finances is one of the leading causes of relational breakups. 

What is Forgiveness?

It’s important to know that forgiveness doesn’t mean you excuse away the person’s behavior or decide that what they did is okay. It does not mean becoming friends with them or letting them hurt you again. It means you have decided to no longer focus on them and how they’ve wronged you. It’s you choosing to release the pain and the negative energy. You know they still deserve judgment, but you release that to a higher power. You tell yourself you no longer have to sit on the judgment panel against them. You refuse to drink the emotional poison they have handed you. You give yourself the freedom to walk away. 

In the case of real estate, it might mean deciding, “The situation in buying this house wasn’t what I wanted. And I am deciding to let it go. I will not let this spoil my enjoyment of my home.” It might mean choosing to stop focusing on how much the financial decision your spouse costs you. To stop thinking, “If she hadn’t lost the money, we could have…”

The Cost of Unforgiveness

One of the most unfortunate aspects of a lack of forgiveness is that it is like a plant that grows roots. It perpetuates the original pain, like a growing plant on the surface, and it also grows deep-seated roots that affect other areas of your life. 

Bitterness impacts us physically. I know I have left an open loop when a thought about the situation I was upset over pops into my head, and I feel my energy drop. Or I realize I’m holding my breath. When that happens, I know my body is still harboring those feelings of hurt and despair or resentment. 

I have had some clients who were so bitter toward their neighbors that they left a home they loved to escape. When we are upset emotionally, our house isn’t very homey. When we are fighting with our spouse, our house is not the peaceful sanctuary we want it to be. 

Unfortunately, when we hang onto resentment over bad financial decisions, our emotional stress puts us in a state to make more unwise choices, including financial ones. For years I struggled with an investment that I urged Ken not to buy, that he bought anyways, and that went south. Really, really far south. I’m talking South Pole South. The relational stress accumulated so much that we began making more unwise decisions with our money because we weren’t in the right headspace. In some cases, unforgiveness can drag you down so much that it financially costs you more than the original loss. 

How? It’s easier to make a poor decision on top of a poor decision. And it’s even easier to make a poor decision on top of a poor decision on top of a poor decision. Also, when I’m holding onto resentment or angst, I’m not as clear-headed, and I’m unlikely to have learned through the experience. I might repeat history. When a great investment opportunity comes, you might not trust yourself or your spouse to go for it. 

If you are dealing with this and want to know the practical steps you can take to forgive someone (or yourself! Because you’re a person, too!), email us at together@dekkerteam.com with the subject line: Forgiveness. We’ll send you our 5 Steps to Wholehearted Forgiveness process. We spent over 20 years developing it out of hard experience. It’s done wonders in our relationship and many others we know. We find it pivotal in restoring relationships with both ourselves and others. Reach out; we’d love to connect!

July 21, 2023

I recently heard an unfortunate joke: “Parker Brothers has changed their version of Monopoly for millennials. Instead of buying properties, you move around the board paying rent.” Unfortunately, a lot of students are leaving formal education with a lot of debt and are not necessarily finding great jobs in their fields. This debt can slow them down, especially considering the rising housing costs and interest rates!

What is the best way to save for your kids’ or grandkids’ post-secondary education? Is it the traditional model of RESP’s? How can we help our loved ones get a head start at building a family or career without debt dragging them down?

RESPs have some advantages that might work for your situation. What if there was a much more lucrative solution? We help many families launch into a new growing trend that pays for their kids’ education and passes over a significant amount of wealth when they graduate! Sounds too good to be true? Believe it or not, this is possible! Our son graduated college, not only debt-free but with a $100,000 net worth!

RESP’s

What exactly are RESP’s and why is it the traditional savings model for post-secondary education? A Canadian Registered Education Savings Plan (RESP) is a tax-advantaged investment account designed to help parents and guardians save for their child’s post-secondary education. Here’s how it works: The parent or guardian (the “subscriber”) opens an RESP account with a financial institution such as a bank, credit union, or investment firm.

The subscriber can make contributions to the RESP account. There is no annual contribution limit, but a lifetime contribution limit of $50,000 per child. Contributions are not tax-deductible but are made with after-tax dollars.

One of the primary benefits of an RESP is the availability of government grants. The Canadian government provides two types of grants: the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB). The CESG matches a portion of contributions made to the RESP. The basic CESG provides a 20% match on the first $2,500 contributed annually, up to a maximum grant of $500 per year ($7,200 lifetime limit). The CLB is a grant provided to families with lower incomes. It offers an initial $500 grant and up to $100 annually until the beneficiary turns 15, with a maximum lifetime limit of $2,000.

The funds in the RESP account can be invested in various investment options, such as mutual funds, stocks, bonds, or guaranteed investment certificates (GICs). The growth and income generated within the account are tax-deferred, meaning they are subject to tax once withdrawn.

When the beneficiary enrolls in a qualifying post-secondary education program, they can begin to withdraw funds from the RESP account to pay for their educational expenses. The original contributions made to the RESP can be withdrawn tax-free as they were made with after-tax dollars. The accumulated earnings portion of the withdrawals is subject to tax in the hands of the beneficiary. However, since most students have low or no income while attending post-secondary education, they may be in a lower tax bracket or even be able to eliminate the tax owing on the accumulated earnings.

Something to consider is that you can create a pool if you have more than one child. The $500 contribution by the government each year after the first $2500 works as one contribution, per year, per child. If you put $5,000 in each year for two kids for 10 years, the government would contribute a total of $5,000 per child. Or $10,000 over 10 years.

RESP withdrawals are primarily intended for post-secondary education expenses. They can only be used for qualifying educational programs at designated institutions. These include universities, colleges, trade schools, and other eligible educational institutions recognized by the government. If the beneficiary chooses a program that does not meet these criteria, there may be limitations on using the RESP funds. There may be limitations and tax implications if the funds are not used for qualifying educational purposes. While unused contributions can be returned to the subscriber tax-free, the accumulated earnings portion (Educational Assistance Payments or EAPs) may be subject to taxes and potential penalties if not used for education.

Another thing to be aware of is what happens if your loved one decides not to pursue post-secondary education. I’ve heard of cases where somebody has one child, they put the money in, and that child chooses to not to further their education past high school. And now the parent needs to pull that money out. In a case like this, when they pull it out, the government will claw back their gifts of $500 on the first $2500 per year. And then, you will add all that money earned in the RESP onto your income. That might put you into an even higher tax bracket, which will cause some real pain. However, you could still keep the gains on the yearly government contribution.

If the intended beneficiary doesn’t pursue higher education, or there are changes in the family’s circumstances, it can be challenging to redirect the funds to another beneficiary. Certain options, such as transferring money to a sibling’s RESP, may be available, but reviewing the specific rules and limitations is important before buying into the program.

RESPs have a lifetime contribution limit of $50,000 per child. Once this limit is reached, you can no longer make additional contributions. While this limit provides substantial room for savings, it’s doubtful to cover tuition, let alone boarding, books, and other fees. Your child will likely still leave school with some form of debt.

A Growing Trend to Graduate Debt-free with Additional Wealth!

What if there was a better way to give the next generation a head start? I think of RESP’s like putting your kids in a 1998 Neon with awful brake pads. Your kid will hopefully reach their destination, but they’ll still face many challenges along the way. Traditionally, people have said, “Well, at least they don’t have to walk. It’s the best we can do!”

The next strategy I’m going to suggest is like putting your kid in the front seat of a Ferrari. Instead of just scratching by, your kids could begin their early 20s, or even late teens, as LANDLORDS building wealth in their sleep.

The reality is when your child pays rent for an apartment, they will end up spending almost as much money as a monthly mortgage for a small home. Like we say all the time in the Dekker Team, “You can’t get away from paying a mortgage; the question is whose mortgage are you paying?”

Consider the financial strategies of our son, Ryan, and our daughter-in-love, his wife, Amber. Amber worked hard babysitting and at various jobs and managed to save, back in 2001, around $10,000 for her education as a teenager. She says she felt sick as that money covered the first half of her first year’s tuition and board. She says she panicked as she handed the money over, realizing she would fully live in debt from then on out. She got a part-time job and a job at the university to access free boarding for several years to help with the rapidly increasing debt.

Ryan went tree planting in BC for two summers and managed to save $20,000 for his future. He opted for college, and so his tuition was less. We had saved some money through RESPs and paid for his tuition while he paid for his books, which was about $500 per term. Ryan used that $20,000 for a down payment on a house within walking distance of the college. We didn’t pull any equity to gift him, but we did offer to co-sign since he would need help to qualify. We also gave him a short-term $40,000 loan to escape CMHC fees.

The house was a three-bedroom with a tiny basement apartment. Happily, it also had a sunroom. Ryan converted the sunroom into a bedroom and rented all four bedrooms to other students. Then, he rented the basement out as well. Where did he live? Many kids would claim the main bedroom for themselves. Not our Ryan! He tucked his bed into the boiler room to get as much rent as possible from the home. He began college as a landlord.

Amber chose a longer educational route than Ryan. She completed an undergrad and then a teacher’s education. She left university with $60,000 of debt at an interest rate of 8%. She didn’t qualify for an Ontario Student Loan and had to pay the bank’s interest the minute she accessed the money, so she was in school while borrowing to pay the interest. She says she was blessed. She found a job in China that paid very well and became debt-free within several years. She says others like her remained in Canada, and some were still paying their debt off for ten-plus years.

Ryan lived with his tenants and collected rent for two years. He learned all about home ownership and became quite handy around the house. After paying his expenses, he collected about $3,000 a month in pure profit. Outside of this, he didn’t get a part-time job, letting the house do the heavy lifting for him. After graduating from college, the house had increased quite a bit in value. The year he graduated, not only did he have zero debt, but with equity paydown, equity increase, and his downpayment, Ryan could pay us back the $40,000 loan and was sitting at a comfortable net worth of around $100,000!

How is this model possible for you? We have helped many clients do the same thing or something similar. They have been in their homes for ten years and have a fair chunk of equity. They can pull that to buy a rental property. Some we work with even buy two, one per child. If they don’t have that kind of money when the kids are little, they might buy one when they are young and then use that equity increase to buy a second rental when they are teens.

When their kids are ready for post-secondary schooling, the parents often do one of two things. 1. They might sell the property and use a portion of it to pay for their child’s schooling. In this case, they must pay capital gains tax on the income because it isn’t their primary dwelling. 2. They refinance the property up to 80%, leaving the 20% down. They take that money to pay for their child’s education, continue to rent the property (often with the son or daughter as the landlord), the property grows in value, and the mortgage continues to be paid down again.

Who, then is paying for your child’s education? The tenants. Not the parents. It’s an amazing plan. And the extra beautiful thing is, when it comes time for them to graduate, money is sitting there to help them get started. Some families gift their kids the house; the kids may live there or live somewhere else and rent it or sell it to buy their starter home in a new location.

Warren Buffett famously said, “”Someone’s sitting in the shade today because someone planted a tree a long time ago.” It’s never too early to think about saving for your children’s education, and it’s also important to know there are many options available for you. For more options, connect with us or join the Dekker Team Community by emailing us with the subject line, “Community.” Together, we’re clarifying your options so wisdom will flow.

Friday, July 14, 2023

There is a story about a First Nations elder who gave his son a lesson in gratitude. He described how two wolves live inside each of us. The good wolf and the bad wolf. The bad wolf will destroy you, cause you to do wrong things, and make you feel bad about yourself and others. 

The good wolf is the one that speaks life. It reminds you of the good things in your life, the blessings, and how you can impact others for good.  

The little boy exclaimed, “Yes! These two wolves live inside me, and they are always fighting!” 

The grandfather said, “Yes, they always fight inside your head and body.” 

The little boy said, “Which wolf wins?

The grandfather smiled at him and said, “Whichever one you feed.” 

We all have dual inner voices, one that points out all the hardships we go through and that pulls us down. The other lifts us up by focusing on the good around us. 

A friend of mine, Julie Caldwell from Country Jewel Retreats & Conferences, found both wolves battling in her heart several years after her divorce. She and her kids knew it was time to find their next home. Unfortunately, this happened during COVID, when homebuyers had no time to make informed decisions about the properties they wanted to buy. 

In the beginning, Julie says she and her kids were so excited. After they failed to get the first and second houses they wanted, they knew the right one would come up. The fourth and the fifth were harder. Losing the offer on the sixth was even worse. But, the 7th! Julie figured it was worth losing out on the others to get this house because it was the best. 

As almost every property back then had multiple offers, Julie waited in suspense for the call. She lost that house too. 

She and the kids had had enough. She felt vulnerable enough being a single mom and felt even more awful bringing them on this roller coaster ride. She says the negative wolf in her head whispered, “Enough. I’m tired. I can’t do this anymore. I’ll stay stuck where I am.” 

At first, Julie gave in to the discouragement and chose to stop looking. Then, she turned it into a pause, resolving that it would show itself when the right house was ready for her. So the family took a break from house hunting and focused on enjoying where they were. 

Two months later, Julie browsed a real estate site and noticed a house in an area of town that was different from where she had been looking. Intrigued, she set up an appointment. Literally, on the way out the door, Julie got a call with the unfortunate news that an offer had already been put on the house. She decided it was still worth a look.

Julie’s first thought was, “Oh, here we go again.” But, a little voice in her said, “You know what? I’m already out the door. Let’s just go have a look.” 

Appointments back then were limited to 15 to 20 minutes. It was not nearly enough time for Julie, and she went with her gut. She knew it was the perfect house for them in that season.   

She and the kids got the house : ) 

If you are battling to keep your head up in a difficult situation, know that there is natural discomfort in taking a leap into the unknown of a challenge. It is an opportunity to pause, recalibrate, and choose to sit in gratitude at that moment. 

Looking back, Julie is grateful for the dropped offers because she would never have found the place that she and her kids now see as perfect for them.  She also knows that had she not seen the other 7, she would have had more trouble making the decision for the 8th under such a short timeline. 

I’d love to ask, what situation, dream, or aspect of your life do you need to simply press pause on rather than a complete stop?

Friday, July 7, 2023

Life’s tragedies can strike when we least expect them, leaving us grappling with unforeseen financial challenges. Amidst the chaos, our homes become vulnerable to the power of sale process. In situations like this, taking proactive measures to protect your home is crucial. 

As REALTORS®, we have helped many people in these situations. If you are entering a situation like this, we’d urge you to read the writing on the wall and get help immediately. By taking timely action, you can avoid a power of sale and salvage your finances before it’s too late. 

Understanding Power of Sale:

The term “power of sale” refers to a situation where a lender has lent you money with your home as collateral. In such cases, if you fail to make mortgage payments, any creditor with a loan against your property can initiate a power of sale process. 

Canadian Power of Sale

It’s important to distinguish the foreclosure differences between Canada and the United States. I find the Canadian system fairer to the homeowner. 

In the United States, foreclosure is a process that goes through the courts. The lender has to take legal action by suing the homeowner to get permission to foreclose. The court oversees the process, and the property is usually sold at an auction. The lender keeps all the money from the sale. If the sale price exceeds the amount owed, the homeowner may get some extra cash, but this rarely happens.

In Canada, foreclosure is less common, and we call our process a power of sale. This process doesn’t involve going to court. Instead, the lender can sell the property without going through the legal system. However, there are specific rules they have to follow. During power of sale, the homeowner still has some rights, and there may be chances to fix the situation or work things out with the lender. In Canada, the power of sale process is more favorable to homeowners regarding the money. If the property sells for more than the debt to the lender and the costs of the sale, the extra money goes back to the homeowner. However, if the sale price is insufficient to cover the debt and expenses, the homeowner may still have to pay the remaining balance to the lender. Unless you file for bankruptcy, the lender can pursue you for this amount.

The Consequences of Inaction:

If you allow the power of sale process to progress without taking action, several implications can worsen your situation. Firstly, the selling price of the property is almost certainly lower than its market value, as it is often vacant and poorly maintained due to financial constraints. 

Secondly, when a home sells through the power of sale process in Canada, there are several fees and expenses that the homeowner may incur. These fees can vary depending on the specific circumstances and the terms outlined in the mortgage agreement. The homeowner may be responsible for paying the legal fees associated with the power of sale process. This includes fees for legal representation, document preparation, and court-related costs. 

If a real estate agent is involved in the sale, the homeowner may need to pay the agent’s commission fees. Before the property is listed for sale, an appraisal or valuation may be conducted to determine its market value. Sometimes, the homeowner may be responsible for addressing any necessary repairs or maintenance issues to prepare the property for sale. This can include repairs, cleaning, staging, and general upkeep expenses. The lender or selling party may need to advertise and market the property to attract potential buyers. The homeowner may be expected to contribute to these costs. If there are outstanding mortgage payments or arrears, the homeowner will be responsible for paying these amounts, including any accrued interest, as part of the power of sale process.

While this is happening, the homeowner almost always has additional high-interest credit card and line of credit fees simultaneously. You can avoid all this by proactively selling the home sooner rather than later. 

Recognizing the Writing on the Wall:

It is crucial to be aware of the signs indicating that you may face difficulty making future mortgage payments. If you find it challenging to pay other bills or your financial situation is deteriorating, it may be an early warning that mortgage payments could become unmanageable. Borrowing more money against your property to cover expenses is another red flag, suggesting you cannot afford your current home. Recognizing these signs enables you to take timely action.

Take Action Right Away!

1. Call us!: Reach out to someone you trust, such as a financial advisor or a real estate professional, who can guide you through the process. Sharing your concerns and discussing your options with them will help you understand the situation better.
2. Take Action: Contact your lender and explain your circumstances. If you anticipate short-term financial difficulties, you may request a temporary reprieve from mortgage payments without affecting your credit or initiating the power of sale process. Selling your home before the bank takes action can resolve many issues, and some lenders may even cooperate and delay their proceedings if they know you are actively trying to sell.
3. Price Your Home Strategically: If you decide to sell your property, consider pricing it slightly below market value to attract potential buyers quickly. This can help expedite the selling process and ensure you maximize the financial outcome.

Facing a power of sale situation can be overwhelming, especially during challenging times. However, you can significantly mitigate its impact by taking prompt and informed action. Moving forward, renting a new home can provide a fresh start. Although it may feel challenging, having a good credit rating gives you an advantage in securing a rental property. With a stable rental history, you can demonstrate your ability to meet financial obligations.

On the other hand, if you allow the situation to worsen and your credit rating suffers, finding a place to rent becomes increasingly difficult. It’s essential to address the issue before it reaches that point. We understand that life can be unpredictable and tragic events can occur. That’s why we are here to assist in navigating these difficult circumstances.

By reaching out for help early on, we can guide you through the process and explore available options together. We can help you gain clarity on your situation and options so that you can make wise choices. Taking action sooner rather than later can significantly affect your overall outcome.

Friday, June 30, 2023 

Ever heard the saying “Poor as a churchmouse”? It’s a whimsical expression used to describe someone who is incredibly impoverished. Picture a little mouse scurrying about, seeking shelter in a grand old church, and barely scraping by. A key aspect of being a clergyman has traditionally involved financial poverty and a lack of material possessions. As Christians, is this something we should emulate as well? And if we should give away our material wealth and possessions, does that mean owning these things is immoral?

What Are Your Beliefs About Money?  

The Bible actually makes over 2000 references to money. Many scholars suggest it is mentioned more than any other topic in Scripture. Why? I’m convinced it’s because God knew we would struggle with it. It is an area that can trap us and trip us up, causing a world of grief. The Bible gives general directives on how we are to treat and view money, although God gives different individuals in Scripture a different focus concerning money and wealth. 

King Solomon, for instance, was the wealthiest man of his time. Where did he get his wealth? From God. When he requested wisdom, it says in 2 Chronicles 1:11-12 that God chose to grant him wealth along with wisdom. Was King Solomon immoral for keeping this money?

We joined Sean and Roz Woodland from Woodland Realty Investments to explore our responsibility with the good things we’ve been given. They have a unique story. When they became engaged, they had very different views on wealth. Sean had never owned a home and was 40K in debt. His dream was to own as many properties as he could. Roz, on the other hand, had owned a home and been bankrupt twice. She just wanted to pay her rent and bills and spend the rest. Investing and wealth in her mind was a nightmare concept. 

During pre-marriage counseling, their pastor broke the bad news to them. While the couple had compatible views on most things, their financial perspectives drastically differed. The pastor said he was unwilling to perform their ceremony until they got on the same page. 

Distraught, the couple went to the More Than Enough Financial Fitness Center in Ottawa, where they learned many Biblical principles about money and debt. Roz admits that she realized Sean was actually closer in his beliefs to Biblical truth than she was. She had a tough time accepting this at first. 

One passage that really stood out to her was in Jesus’ parable of the talents in Matthew 25:14-30. While a rich master in the story gave many of his servants money to use wisely, the servant who invested the money was congratulated in the end. The servant who buried the money and didn’t engage with it was severely punished.

Roz says this passage gave her a perspective shift regarding her own finances. “I realized, ‘Oh. We’re supposed to do this. God called us to use what He has given us.'” 

From Little to Much

Roz and Sean moved forward in what they believed was their calling from God: to build wealth through investing and to help and guide others along the way. They went from crippling debt to owning multiple investment properties within a matter of a few years. 

Roz laughingly recounts, “I mentioned Sean was minus 40k when we married. I had declared bankruptcy twice. So our wealth story is all about God. It has nothing to do with us because clearly, we weren’t doing a good job ourselves with any of it.” 

A key here is understanding that we don’t all get the same call. I liken this to the days when each household had one landline for the family. The phone would ring, and someone would answer. The person on the other end would ask for someone else in the household. The call wasn’t for them. And then you’d shout to the person in another room and pass the phone over. Now that we have personal devices, it’s easy to know who the call is for. 

Regarding finances, we don’t all get the same call. God has different plans for each of our lives, and part of that plan involves money. The money God had in mind for King Solomon suited his call to be king of the land. A king without money could not raise armies or help his people in times of trouble. In the same way, Elijah was not called to mountains of shekels. No, his calling was to depend on God for each assignment. The money would likely have hindered his ability to listen. 

Sean and Roz know personally how controversial this concept can be. Sean says some Christians have questioned what they are doing and whether it is Biblical. They are sometimes accused as investors; they are basing their lives on money.

“The truth is,” Sean says, “it’s not truly about the money. It’s about serving people. People don’t understand that God has called us to do this to help improve people’s lives and teach them what was given to us so freely.” He continues with how they provide quality housing for people, hire and buy locally for their projects, and use their knowledge to help people build wealth of their own. He and Roz seek to follow Proverbs 3:9 in honoring God with their wealth and the first fruits of their produce. 

“If we weren’t investing and helping others in the process, we would feel disobedient. This is our calling.” Sean recalls that one day when he was working at his day job, he looked outside and heard God say, “Behold, your view from prison. This is not what I created you for.” He says some people are called to work every day in an office. In his case, this is not what God had for him. Sean says, “God called us to be investors and to show others how to invest. Our wealth is His story; it’s His wealth.” 

I hope we’re good for you. Because you’re good for us. We learn so much when we’re preparing our LIFE’s Inside Track episodes and blogs for you. And if you’d like to stay better connected with us the way we would with you, we would love you to send us an email at together@dekkerteam.com. Just say we’d like to stay connected. You will receive newsletters, articles, and first access to workshops. We’d love for you to join the Dekker Team Community so that we can journey together.

Friday, June 23, 2023

Has anyone ever approached you with a real estate opportunity, hoping you might know an investor? This approach is a common one many people take, and unfortunately, it doesn’t often lead to a partnership. Why? Let’s talk to Sean and Roz Woodland from Woodland Realty Investments. They have the opposite problem, so to speak. They frequently have people approach them who are wanting to invest, before Sean and Roz have the right opportunities available. They reveal how until you build relationships, the prospects don’t matter. With the right strategy, you can assemble a formidable team for real estate investments and foster a culture of trust and reliability. 

1. Building Credibility

A distraught mother dragged her daughter to the family doctor’s office one day for a special appointment. When the doctor asked the mother what the problem was, she blurted out that she needed him to tell her daughter to stop eating sugar. The doctor paused in thought and said, “Keep doing what you are doing. We will meet back in two weeks.” Perturbed, the mother brought her daughter home and returned two weeks later. At the appointment, the doctor looked the daughter in the eyes and said, “Stop eating sugar.” Confused, the mother asked why he hadn’t simply said this at the first appointment. The doctor smiled and replied, “Two weeks ago, I was still eating sugar.” 

It’s amazing how walking the walk builds credibility, particularly when working with other people’s money! Sean and Roz clearly state that the first step in securing money for investments is building credibility. “We had to understand our finances and how the process works.” Sean realized early on the importance of building his confidence as well. They needed to build their nest egg to have an emergency fund ready for anything that went wrong. He laughs that he calls those events “surprises and adventures.” He notes that not only is it a more positive way to look at things, and it’s accurate because “It really is an incredible adventure that we’re on.” These surprises and adventures played a significant role in leading Sean and Roz through the process. 

Sean and Roz also found great value in mentors and coaches who had already paved the way. Sean notes that the journey of learning from mentors had its own ups and downs. “When we saw investment gurus onstage, it’s easy to idolize them, thinking, ‘Oh, they’re so amazing; they know so much!’ Imagine having 12,000 doors (rental units) or something like that. And when you actually get to know them, they’re not like their stage persona. And then they’ve been knocked off their pedestal. And I know for myself that when I’m disappointed, it feels like everything I believed wasn’t true.” 

Roz notes that while they were guilty of idolizing some mentors, they recognize the role of social media and the way people present themselves. “We try not to put ourselves on a pedestal. We make sure not to just show the sizzle reels, the good times. When we post and tell our stories, we make sure to also show the hard times, the mistakes, and the difficulties we encounter. We are real people and need people to know we aren’t perfect.” 

“Right,” Sean chimes in, “We don’t just show the highlights. We share the challenges we face along the way and the financial side of it in some cases just to show people that it’s not all wins. There are challenges, and in the end, we come out ahead. There are always more opportunities to learn.” This learning process was the foundation for becoming people others could trust and learn from.

2. Who You Know

Our long-time mentor, leadership expert John Maxwell, introduced us to a fascinating question that has guided the Dekker Team business ever since. It’s one of the most powerful questions we’ve ever heard. “Who do you know who I need to know?” This is a cornerstone in personal development and partnership. 

Finding the right partners is pivotal to wise investing. If your team isn’t lined up in advance, you’re not ready to move on the rare investment opportunities that come your way. Scrambling to find people in a short time usually leads to weak or ineffective work. 

John used to say to us, “Who you know is more important than what you know.” Sean wholeheartedly agrees. He emphasizes the importance of experience with the partners he works with. His electrician is a master electrician with 50 years of experience, and his contractor has 15. With his and Roz’s six years of experience, they have grown their six to 61. “Our team makes us so much more than we are alone. They bring additional credibility that we’ve selected the right people for the job.” 

He and Roz freely express the trials and errors they experienced while selecting their partners. He shares how their electrician saved the day during an early investment property. The seasoned technician was working on their building and saw how Sean’s contractor operated. Sean says the electrician approached him privately and warned, “Sean, I think you need to change contractors.” He gave them a laundry list of why and referred them to someone he trusted. It made all the difference in that and future projects. Sean emphasizes that it was one of their many great learning experiences over the years.  

“We learned to approach those we trusted for referrals. When we’d work with a great contractor, electrician, plumber, or whatever, we’d say, ‘Who do you know in the industry who I should work with?’” 

3. Building Relationships First

Have you ever entered a relationship or partnership with someone and realized they or their values weren’t what you thought they were? It doesn’t end well, does it? The relationship either terminates or it’s a long, hard road ahead. Sean and Roz explain that a major key to their success has been creating partnerships before investing. 

“You need the right people in place before the opportunities present themselves. Money is always abundant for the right property. But first, you have to know others and be known by them.” Having key investors lined up enables you to move further than you could on your own. 

“All the time, people come up to me and say, ‘I have this opportunity. Who do you know who will invest?’ Unfortunately, that’s the wrong order. Build the relationships, and you’ll have your money lined up. Then you are ready to move when you find the right opportunity. Without the trust already in place, no one will invest with you.”   

Yetta and I use the Know, Like, and Trust system when working with our teams. If you don’t know someone, you can’t work with them. If you don’t like them, you won’t work with them. And if you don’t trust them, you are going to run away. 

How does one build these relationships? “It’s like dating,” says Roz. “This is a long-term contract. We need to understand them in a similar way as when looking for a romantic partner. We need to know their morals, values, and long-term goals.” 

Since Sean and Roz are passionate about helping their tenants and their community, values are particularly important. “Are they the type of investor who wants an instant return on their money? If they are comfortable going into a non-rent-regulated province and upping people’s rent by hundreds of dollars a month that they can’t afford to make them move out so they can move somebody else in? It’s legal. It’s allowed. But it’s not the type of investment we do. It goes against who we are and our vision for the business.” 

Sean notes that it is a long-term process. “We make sure our players are in it for the long run. They can’t be interested in it one year and want to sell the property the next. That’s not the way our model makes money. We need to know what their long game is.” 

 As a result of their partnership building, Sean and Roz have people always coming up to them asking when they can “get in” on the next project. “I have to keep telling them, ‘The next one. I don’t have an opportunity yet.’” It’s a great problem to have and not one familiar to many who are in the business. When they find the opportunity, the money is already lined up. 

What is the process Sean and Roz use? “You can’t fast-track a relationship,” Sean says, “Relationships take time to develop.” They spend time with potential partners to really get to know them. “I sit down with people, like going for coffee, and I never even bring up the business.” He says there are occasions when he needs to leave, and people say, ‘But we haven’t talked business yet!’ and Sean will reply, ‘I guess we’ll have to do that next time.’ 

“We don’t bring the business up. We let people bring it to us first. We don’t want people to think we’re only after their money. We have a presence on social media. People see what we’re doing. If they want to invest, they’ll tell us.” 

If you want to learn more about doing good and building wealth, ask us and we will help you get started. 613-860-4663 (HOME) or email us at together@dekkerteam.com

Friday, June 16, 2023

Would you agree that along with wealth comes responsibility? As real estate investors, giving back to one’s community is essential. Fortunately, many landlords today no longer embody the selfishness associated with the character “Scrooge McDuck” from Disney. Modern landlords are learning how to help give their communities a hand up while benefiting the local economy.

This week it was our pleasure meeting with Sean and Roz Woodland from Woodland Realty Investments. They are an Ottawa-based investment company with a particular interest in their tenants. It’s incredible how they demonstrate that you can do good and build wealth simultaneously when you invest in real estate. 

Ken: Roz and Sean have created a company, really over the last six years – called Woodland Realty Investments, where the purpose of it is to do good while they build wealth for themselves and others. 

So we’re going to look at how you go about doing both at the same time. Please give us a few ideas of how you do good while building wealth.

Sean: One of the ways we do good and build wealth is by helping tenants. One of our measures of success is making tenants homeowners. We come alongside them by guiding them through the process. If they have bad credit, we help guide them on how to repair their credit and then help them move into a position with a plan so that they can save for a down payment on a house. And then eventually move to their own home.

Ken: Why in the world would you do that? Because you have a good tenant, and if they go and buy a house, you have to find another to replace them.

Sean: Yes, we must get more tenants, but we want people to live great lives. We’re not solely about making money. We want to use our experience to help improve people’s lives and our broader community.  

Ken: So you talk to them about credit scores and different things. How do you go about that? Because I’m sure not everybody is open to that.

Yetta: Right, Ken! Credit scores are often a pretty sensitive topic! Do you and Roz want to wander that path with potential strangers? 

Sean: Surprisingly, people are very open because some people don’t know how to get there. So, you bring it up and explain why you’re asking these questions. And they often say, “Wow, I never thought about buying a home.” They need the education for this to even be on their radar. They don’t know how much money they need. They don’t know the process. There are a lot of people out there in this situation. And it’s sad because we should all know how to do this. We should all have the opportunity to improve our lives.

Yetta: It is ironic, too, because when they live in a home or an apartment, they are paying a mortgage. Paying rent is paying a mortgage – except it isn’t their own. It’s their landlord’s. And unfortunately, in some cases, it can even cost more to rent than to pay for a mortgage.

 Sean: In some cases, renting can be significantly cheaper if they’ve been in a run-down property for ten or fifteen years and the landlord wasn’t increasing the rent. The issue for these tenants isn’t that they aren’t getting a good deal because they are. The problem is that the landlord will eventually get tired of this and want to sell that property because it needs to make more money. Then the tenant suddenly has to find money to afford the rent for another rental at market value, or higher, somewhere else. It’s tough to make that kind of financial shift so suddenly.  

Yetta: So Roz, how does Woodland Realty Investments help position tenants for buying a home in the future? 

Roz: We work with people who are interested in helping them develop a better credit score. We teach them the principles and how to implement them. Like all landlords, we run a credit check on our potential tenants. So we have their credit history and what they owe. We say, “It might be a good idea if you do this or that.” If they are interested, we sit with them at a coffee shop and go through it. 

I share with them that I have declared bankruptcy twice. So, I can relate to that. We’re not just these mysterious, wealthy landlords. I say, “You know, I’ve been where you are. And I am evidence proof that this is possible. And this is the journey we took to get us where we are. Someone shared this information with us, and we want to share it with you. If you want it.”

If they are interested, the next step is we send them a link to the same financial fitness seminar that we took. It’s online now. It’s two hours of their time. And we’re able to have that conversation with them later to say, “What did you learn?”, “Are you applying the principles of this?” We would then send them an Amazon link to buy The Wealth Formula. That is the book we found so helpful on our journey.  

Ken: I love this because this is actually the book I wrote! And it’s funny because Sean, you told me before about this book and your favorite birthday gift you ever received. Can you share that story?  

Sean: Yes! I’m very passionate about helping people. And Ken gave me, for my birthday, a bag full of copies of Ken’s book, The Wealth Formula. And I got so excited because I got to share these books with people. I thought, “I get to help more people!” And that was so exciting. I was so happy. 

Ken: It’s funny, too, because when Yetta told me we were giving you a bag of books for your birthday, I thought, “What in the world does he need a bunch more books for?” I was delighted when you were so happy.

Sean: I was ecstatic. I loved it.

Yetta: Now, you’ve mentioned, Sean, that another way Woodland Realty Investments helps others is by improving the local community. Can you tell us about that? How do you make that happen? 

Sean: We employ local contractors, electricians, and other tradespeople. We get them involved in the projects. We build a relationship with the town. We go in and employ them to do renovations and build more units within existing properties. And we use that to help so everybody can spend more money at the stores, restaurants, etc. 

Ken: So while building wealth for yourself, you’re also creating wealth for the local community even just by buying things locally. Such as building supplies? 

Sean: That’s right. We purchase from local hardware stores. 

Ken: And I think they probably even give you good value because you’re a volume shopper now.

Sean: Yes. Yesterday, for example, we picked up flooring from our local floor guy. Whenever they see us come in, they go right to the cashier to give us a discount and lower our delivery cost. It’s a nice bonus because they see the value that we bring in. They know what we’re doing in the community as well.

Ken: You also mentioned officials in the town or the city. Why are you in their good books, so to speak?

Sean: They know we’re helping solve the housing shortage. We’re creating new units in the area so people have wonderful homes to move into. And when we work on pre-existing units, we turn them into better quality ones. So the city appreciates that. They also know that the better the property, the more property taxes go up on that unit. 

The whole process helps the economy in so many different ways. In the past, when we began, we never thought about the various things that we helped facilitate when we started investing. Our focus was on seeing our tenants and us doing well. I wasn’t aware of the bigger picture. Now that I am, I love to be part of a more holistic approach. 

Ken: Yes, it actually gets even more significant. As more people move to those units, those businesses get busier because more people are spending more money locally, like yourselves. That must also improve the number and quality of jobs. Then those people must need to hire more people.

Sean: Absolutely. And around and around that circle goes. 

Ken: They say a good economy is an expanding economy. And how do you expand an economy? Job creation, more people, and more spending. If your town has nothing to offer, the economy goes in the opposite direction. People start leaving. Then you have an oversupply of housing. House prices go down. And nobody has worked. There are layoffs. 

Sean: Absolutely. I like to tell a quick story about when we bought an underperforming property. This term means it’s a property that doesn’t carry itself financially. It’s in rough shape. In this case, it was a fourplex, and one of the units was so bad it was uninhabitable. The other three were lower than market rent. It was a bit of a slumlord situation. 

Yetta: A slumlord – meaning the landlord cared more about profit than the tenant’s well-being and comfort. 

Sean: Yes, and I mean, it’s a complex issue. In cases like this, a landlord usually doesn’t start planning to be a slumlord. But when the money runs out, it’s impossible to keep up with the capital expenses, the roofs, the deck, and whatnot. Especially if you need to charge more and aren’t raising rent. So it becomes a spiraling downward cycle. 

So we bought the ugly baby. And we did a lot of work. We made the fourth unit habitable and began renting that one at market rent. Then we finished the deck, changed the roof, and put siding on it. When things were looking much better, we did another appraisal of it. We bought it for $230,000, and the review after the work came in at $575,000. We didn’t invest anywhere near that much money in improving it, so we made a good profit. 

However, we quickly realized we had improved the whole street by enhancing the building. Neighbors were coming by, thanking us for what we’d done. And that was incredible. It wasn’t an outcome we planned on when we started. And it was an exceptionally eye-opening thing for us to say, like, we are doing good here. 

Roz: Yes, incredibly rewarding. 

Ken: That is so awesome. Thank you so much for your time today. 

Sean: Thank you. We learned so much from our experiences. As Roz said, we experienced life on the opposite end of the financial spectrum, and we are pleased to give back and share what we’ve learned with people. We want to see others succeed and to help where we can. 

If you want to learn more about investing we’d love to chat with you. 613-860-4663 (HOME)  

Friday, June 9, 2023

Our homes are more than just four walls; they are our sanctuaries, our safe havens. As a REALTOR®, I have seen how well-tended homes create places of safety and tranquility for their homeowners. I’ve also seen how in some cases, they can do the opposite. I have seen people going from loving their homes to wanting to move over differing interpretations of bi-laws with a neighbor. The homeowner no longer felt comfortable going in their backyard because of the mental stress they thought they couldn’t escape. I’ve also seen other cases where minor maintenance issues created long-term health issues. It’s amazing how anything from hidden allergens and mold to impractical layouts that hinder physical well-being can impact our health. Let’s consider how your home may be compromising your health and what you can do to improve your well-being.

Location and Environmental Factors:

My son and daughter-in-love recently bought a hobby farm outside of the city. When people who haven’t connected with them in a few years heard about this, they were really surprised. As an insider, I know that a significant reason for the lifestyle shift was not because they are desperate to become farmers! A lot of the decision was based on their experience at their previous home, which was on a busy highway. Both the couple and their kids found the noise of the road stressful. Even when they were in their bedrooms, they couldn’t escape the whooshing sound of cars rushing by day and night. They said it made for tightness in their chests. For the five years they lived there, they tried several things to accommodate this issue. They built an eight-foot fence around the property and added more insulation to the home, but it didn’t help much. They love to be outdoors, and when the opportunity to buy an 18-acre property came up, they jumped on it. 

If you are feeling stressed, consider the impact of external factors on your health. Living near busy roads or industrial areas can expose you to high levels of pollution and noise, contributing to respiratory problems and stress. Other situations I have seen are people feeling unsafe in their neighborhoods. In cases like this, some families adjust by switching their kids to different schools, putting up a backyard fence, or installing lights and security cameras. In other cases, homeowners feel a move is their best option. 

In some cases, your situation might be a matter of personal preference, and you feel worth the move for the joy you’ll have. Assess your surrounding environment and determine if it aligns with your health goals and priorities. 

Accessibility and Physical Well-being:

Stairs, narrow doorways, and cramped spaces can pose challenges for individuals with mobility issues or physical disabilities. I have helped one elderly lady who loves her home; everything about it suits her lifestyle, except for her laundry room. Her health prevents her from going up and down stairs easily, so when she does laundry, she must wait several hours for the load to finish before heading back down. Generally, in a situation like this, a closet on the main floor can often be converted into a laundry room, and the homeowner leaves all upstairs rooms for visitors’ use. 

Evaluate whether your home’s layout accommodates your specific needs. In some cases, handrails along staircases or in the bathroom can provide much-needed support and stability, reducing the risk of falls and injuries. Ramps can be added to eliminate the need to navigate steps, making it easier to enter and exit the home for wheelchair users or individuals with mobility aids. One family near and dear to my heart faced a major mobility issue due to a dramatic decline in health. With the help of specialized handrails, they could retain the home’s functionality and stay in their much-loved home. 

Additionally, consider the placement of essential items and fixtures within the home. Are frequently used items within easy reach? Rearranging shelves, cabinets, or countertops can minimize the need for stretching or bending, reducing strain on your body. Ensuring that light switches, thermostats, and electrical outlets are conveniently located can also enhance ease of use for everyone in the household, including those with mobility challenges. 

Allergens, Mold, and Air Quality:

Allergens such as dust mites, pet dander, and pollen can easily find their way into our homes, leading to allergies and respiratory issues for susceptible individuals. Allergens such as dust mites, pet dander, and pollen can trigger allergies and respiratory problems. These allergens often lurk in common areas like carpets, upholstery, and air ducts. HEPA filters might be a great solution in a case like this since they capture and trap microscopic particles, including allergens, from the air circulating in your home. By removing these allergens from the air, a HEPA filter significantly reduces the risk of allergic reactions. 

Additionally, mold can also cause or worsen existing allergies. People already prone to allergies may experience heightened reactions when exposed to mold spores. The allergic responses can range from mild symptoms like sneezing and itching to more severe reactions such as asthma attacks in susceptible individuals. To protect yourself and your living environment from mold-related health problems, it is important to be vigilant for signs of mold growth. Look for visible mold patches, which often appear discolored, fuzzy, or powdery substances on surfaces like walls, ceilings, or even furniture. Musty odors can also indicate the presence of hidden mold.

If you suspect your health issues might be due to or might be worsened by any of these factors, I recommend having an environmental assessment done on your property by a professional. 

Sometimes, I need to ask my clients, “What are you pretending not to know?” What are you pretending not to know about your home? If the answer doesn’t immediately come to mind, please take a minute to listen to your mind and your body. If you sit quietly for a moment, you may find a quick solution like a more organized pantry, a game-changer in your health journey. 

If you are wondering if your home is posing a health challenge and would like a sounding board to find out how to move forward, connect with us at together@dekkerteam.com. We can set up a 15-minute clarity call to discuss your situation. When we clarify our options, wisdom will follow.

Friday, June 2, 2023

If you had told one of my best friends, Roz, that she would spend $30k on a dress just a few years into her marriage, she would have had a heart attack. Would you believe she spent that much money without even meaning to? How is that even possible, you might ask? Well, believe it or not, many do this without even realizing it! In other cases, it might be a T.V. or dinner at a restaurant. Let me explain how. 

Roz and her husband Sean were recently married. Both had come from low socio-economic backgrounds but were hopeful and actively sought opportunities to build wealth. Roz just got a job at a stock broker’s firm. Seeing how much money flowed in and out of the stock market daily, she was very impressed and hoped to pick up on smart tips from her workplace. 

When all the staff at the office began talking about Nortel, Roz paid attention. Nortel was one of Canada’s most valuable companies; intriguingly, its stock prices started dropping. Everyone at work urgently said, “Now is the time to buy! Now is the time to buy!” Roz assumed they knew what they were talking about. So she and Sean bought it. 

They didn’t have cash, but the way everyone at work talked about the situation, they were guaranteed to make a lot of money back. So they took out a credit card advance of almost $7,000 to buy 100 Nortel stocks. They figured they could easily pay off the premium interest payments within a month or so when they sold the stocks for a profit. 

Unfortunately, if you know what happened to Nortel, you’ll know the stock continued to depreciate to almost nothing. Since they didn’t have the cash for the investment to begin with, the money for the stocks stayed on their credit card, charging a 24.9% interest for 2 years. 

Finally, they could consolidate it into their mortgage for a lower rate. They continued to pay that interest until they sold their home. Because they sold on a closed mortgage, they had to pay a heavy penalty on the borrowed money before finally paying it off. 

Roz received an envelope in the mail. It was to inform her that her stock account had been closed. She stood there holding a check for $67.50. 

She bought a cute 1950’s style black and white dress to cheer herself up.

Roz knows that although she didn’t hand the cashier $30,000 for the dress, she was, in effect, handing over her Nortel investment, which had cost her close to thirty thousand dollars after all the interest and penalties.

Roz recalls that their stock market purchase is a bit like renting an apartment. After years of paying a landlord’s bills, a tenant walks away with nothing to show for it. Happily, Roz and Sean continued to learn on their WEALTH building journey. They began understanding the difference between leveraging and borrowing money. They read The Wealth Formula and saved up a downpayment for their first property, which they later leveraged to buy an investment property. They later leveraged those to buy more investment properties. 

Roz and Sean have become so successful, in fact, that they started Woodlands Realty Investments. Now they help people who are in a similar situation. “We’ve helped several people work through their finances and why their credit card bills are so high. They’ll go out for dinner with the family on the weekend and spend $50 on their credit card. They keep paying interest on the meal until eventually paying it off months or even years later. They don’t realize that that meal cost them $200…$300… or even thousands by the time they finish making the payments.”

One of Roz’s favorite quotes is by Oprah Winfrey: “I will forever believe that buying a home is a great investment. Why? Because you can’t live in a stock certificate. You can’t live in a mutual fund.”

If you want to join a community of like-minded people who want to build wealth and connect with others on the same journey, reach out to us. Email together@dekkerteam.com saying you want to join the Dekker Team Community. You’ll gain exclusive access to real estate market data, secret listings, and valuable market insights. By being a part of this community, you’ll stay ahead of the game, gaining timely information and helpful resources to clarify your options. Join the group to unlock the benefits of moving forward together, because together, we’ve got this!

Friday, May 26, 2023

As a REALTOR®, my favorite contract is the Purchase of Sale agreement because it brings people joy when fulfilled by both parties. It’s wonderful seeing the excitement in a family’s eyes as they are handed the keys to their new home. I love seeing little kids with their little suitcases packed, holding their stuffies, ready to set up their beds in their new rooms. Or the newly married couple just moving into their first home together, and when they are handed that key, they are just bursting with joy at the life they are building together. We all need a place to lay our heads, and our homes are an essential part of our sense of security and direction for our lives. So you can imagine, when the Purchase or Sale contract is broken, it’s devastating to both parties, not just because of the severe legal and logistical consequences but also the emotional ones. 

Did you know we make similar contracts with others and ourselves daily? Most of these won’t have legal repercussions, but they have far-reaching consequences on how we live our lives and our relationships. I call these integrity contracts. 

One of the more painful experiences we all encounter in life is letting others down. If you’re like me, you’ve been late for appointments or forgotten altogether! I can recall when I let someone down on something I believed was trivial, only to learn it was such a big deal to the other person that it broke our connection beyond repair. I’ve learned that each time I make a promise to others or myself, I’m entering an unwritten integrity contract. 

What is Integrity?

Integrity is keeping my word. When I say, I will do something, whether to myself or others, I do it. One way I think of it is like it’s a verbal contract I make with myself and, in some cases, with others. When I decide I will do something, if I don’t do it when I said I would, I’m breaking the contract. Here is a classic example: If I tell my spouse I’ll take out the garbage before I go to work, being in integrity means I keep my word and take the garbage out before I head into the office. 

Oh no! I forgot. Now the garbage bags are rotting in my garage for another 2 weeks. I can no longer fit my car into the garage along with the growing pile of trash, and my spouse is ticked off with me. And get this, flies got into the garbage, and now we have maggots crawling around on the cement floor. Boy, my wife is giving me a dirty look now! At this point, do I ever wish I had kept my word and taken out the trash when I said I would? It strained the relationship I had with my spouse…and myself!

If I take out the garbage when I get home from work instead, am I out of integrity? You bet! I may have still done the action, but my actions didn’t match my words. A key to commitment is being true to one’s word in the timeline one committed to. And unfortunately, there are still consequences even though I did complete the action: the garbage truck has already passed, and my spouse is frustrated with me. And the car can’t fit, and the maggots come, etc. 

Another key to integrity is keeping my word regardless of whether or not anyone sees me doing it. This means commitments I make with myself. If I set the intention that I will work out in my basement gym every weekday morning, if I don’t do it, I’m out of integrity. I may tell myself it doesn’t matter because it doesn’t impact anyone else. In reality, it does! I’m out of integrity with myself. I have eroded trust in myself. We often put less impact on keeping our commitments to ourselves, don’t we? Unfortunately, this lack of integrity can sometimes be just as bad or, in some cases, even worse. 

Why Integrity?

Have you ever promised something but later didn’t deliver? I love going over and above for my clients, and in the past, with the best of intentions, I would promise to do things that I knew were a stretch to accomplish. Such as something beyond my job description or saying I would do something at a timeline well before what was necessary. Despite my heart to help, when I didn’t accomplish these things, I actually caused hurt.

When we keep our word to others, we’re building trust and respect – a lot like a skilled architect constructs a solid foundation for a magnificent building. We become someone others can rely on. People trust us because we are reliable and we do what we say we’ll do. Our words and actions are honest. 

Similarly, when we keep our word to ourselves, we cultivate self-respect, personal growth, and a deep sense of fulfillment. Let’s say I commit that I won’t allow people to treat me a certain way. Maybe in the past, I frequently allowed co-workers to shift my agenda for the day, either with pressure or threats, and I’d go home feeling defeated. This kind of commitment to myself is essentially setting a boundary. If I continue to allow others to hijack my workday, I’m breaking trust with myself. 

When we break trust with ourselves, our subconscious begins to say, “Well, you’re not really committed to that. So, it’s no big deal. It’s okay if we let it happen again and miss future commitments around this area. Or even other areas.” A precedent begins to build, and it’s easier and easier to let it happen again and again. 

When We Break Our Word

I recall several painful times when I let someone down by making a promise I didn’t keep. Can you relate? Sometimes I’ve overestimated the amount of time or energy I can fit into one day. Other times I realize too late that I didn’t organize myself adequately and forgot either a meeting or something I had to do. Unfortunately, as you’ve likely discovered along with me, being out of integrity or not doing what we said we’d do strains and sometimes even ruins relationships. 

So, how do we restore a relationship when we have messed up? Glad you asked! In this week’s Life’s Inside Track episode, we’ll cover an amazing 5 step process to follow when we find ourselves out of integrity. It’s a game-changer for your marriage, relationships with your kids, boss, and even yourself. You can check it out here. 

Friday, May 19, 2023

Aly was a high school student who had never given much thought to financial matters. She spent her money as soon as she received it without considering the long-term consequences. She loved keeping up with the latest trends and often spent much of her allowance on clothes, shoes, and Tim Hortons iced coffees. Aly had no problem dropping $600 on brand-name sneakers, even if it cleared her bank account. She heard her parents talk a bit about money and knew that they wanted her to be more responsible with her money. However, she disagreed at the time. She was hardworking and had a part-time job, so that was great.  

Aly started a co-op placement and was asked to read a wealth-building book the owner of the business had written. Aly was not intrigued or concerned about personal finance and really found herself especially uninterested as she didn’t like reading and didn’t see the point. She reluctantly agreed to read it and found it super hard to start reading the book.  

Once Aly got started, she could barely put it down. It was more like a story disguised as a financial book about a young couple who learns how to manage their money amid crippling debt. The storyline made it easy to get into, and since the book was written at a fifth-grade level, she discovered the principles taught were surprisingly easy to understand. And the ones that were more difficult to wrap her brain around, she moved passed easily as she found even her relationships were getting easier to navigate. 

Within a few weeks, Aly gained a beginner’s understanding of the power of compound interest and the importance of creating a financial plan. She learned about credit scores, the impact of debt, and the benefits of starting to save early. By the time she turned the last page, Aly had realized how little she had known before and how it could significantly impact her future.

Motivated to make a change, Aly started implementing what she had learned. She realized she had been spending her money impulsively without considering the long-term consequences. The teen began by creating a budget that allocated a specific portion of her allowance for clothing while setting aside money for savings and investing. She realized she could still enjoy her passion for fashion while being more mindful of spending. 

As Aly prioritized financial literacy, she noticed changes in her life. She gained confidence in making smart financial decisions and developed increasingly wiser spending habits. When she thought about it, she knew her parents were right, and she became responsible and made informed choices about her future financial goals. 

Like Aly, as teenagers transition into adulthood, they must acquire many skills to thrive in the real world. One important skill often overlooked is money management. Financial literacy is crucial for individuals of all ages. However, for teenagers, learning to manage money becomes even more critical. Learning to handle finances at a young age can profoundly impact their future financial well-being. The teenage years are an ideal time to cultivate responsible financial habits that can set them up for a secure and prosperous future.

Developing Healthy Spending Habits:

As a teenager, how did you spend your pocket money? Were you the type of kid to scrimp and save, rarely spending any because you were saving up for a car? Or perhaps you felt that no matter how much you made, there was never enough money to buy everything you wanted. Learning money management as a teenager allows for developing healthy financial habits that can last a lifetime. By learning to differentiate between needs and wants, they can prioritize their expenses, avoid impulsive purchases, and make more informed choices. This early discipline can prevent the accumulation of excessive debt and foster a mindset of financial responsibility. These habits lay the foundation for a stable financial future. What a gift to learn this before years of accumulated debt!

Cultivating Savings and Goal-Setting:

What was the first life lesson you learned regarding money? One of my earliest memories was feeling desperate as a six-year-old because I wanted a Barbie so badly but believed there was no way I could earn money. As a teenager, I was told to “save my pennies” from all my babysitting jobs, and I felt guilty whenever I spent any money. This helplessness followed me until I learned to sound wealth-building principles as an adult. 

Saving money is an essential skill that teenagers should learn early on; however, managing money involves setting financial goals and creating a plan to achieve them. Simply telling a child to “save” their money does not give them something rewarding to work towards. By teaching teenagers money management, we empower them to set and work towards achieving goals. Whether saving for a dream vacation, buying a car, or starting a business, having financial goals provides focus and motivation. Teenagers who understand the importance of planning are more likely to succeed in achieving their aspirations. Setting financial goals instills discipline, patience, and delayed gratification. By practicing regular savings, teenagers can develop a strong foundation for building wealth and achieving their aspirations in the long run.

Making Informed Financial Decisions:

It’s incredible the number of scams we encounter each day, whether presented through email, texts, voice messages, ads, or direct messages on various social media accounts. Phrases such as “Guaranteed returns with no risk” and “You’ve won a prize, but you need to pay a small fee to claim it” seem silly to us because of our financial literacy. Kids must know some phrases that scammers commonly use to lure unsuspecting individuals. Financial literacy equips teenagers with the knowledge and skills to make informed financial decisions. They learn about interest rates, investments, loans, and credit scores. Armed with this knowledge, teenagers can make more intelligent choices when borrowing, investing, and planning for significant life events like college or buying a home. This early education reduces the risk of falling prey to financial scams or costly mistakes.

Early Financial Independence:

One of the primary reasons teenagers should learn money management skills is to foster financial independence. Understanding how to wisely earn, save, and spend them to take control of their financial future. By mastering these skills early on, they become less reliant on others for financial support and are better equipped to navigate the challenges of adulthood. It teaches them the value of hard work, budgeting, and making informed financial decisions. They also get a head start on learning to take responsibility for their choices. This understanding and experience will help them avoid unnecessary financial struggles and gain a sense of control over their lives.

Building Financial Resilience:

Financial challenges are inevitable, and teenagers learning money management skills are better prepared to face them. They understand that life is unpredictable and circumstances may change. They are open to adjusting their financial plans, cutting expenses when needed, and exploring new opportunities to maintain financial stability. They understand the value of emergency funds, insurance, and saving for unexpected events. They are adaptable and flexible in their approach to finances. This financial resilience helps them navigate tough times, reducing stress and ensuring a quicker recovery from financial setbacks.

Empowering Decision-Making Skills:

Money management skills go beyond handling finances; they develop critical decision-making skills. Teenagers learn to assess trade-offs, evaluate options, and make choices based on their financial priorities. These decision-making skills extend beyond money and become valuable assets in all areas of life, fostering independence and responsibility.

Building Credit and Financial Reputation:

Managing money responsibly as a teenager allows them to build a positive credit history early on. A good credit score opens doors to favorable interest rates on loans, credit cards, and even housing. By being mindful of their financial actions and paying bills on time, teenagers can establish a solid financial reputation, which will benefit them when they need to make significant financial transactions.

Avoiding Debt Traps:

Irresponsible financial behavior can lead to excessive debt and economic hardship. Teaching teenagers about the risks and consequences of debt empowers them to make responsible choices. They learn to differentiate between good and bad debt, understand interest rates, and use credit wisely. This knowledge safeguards them from falling into debt traps and sets them on a path to financial stability.

Equipping teenagers with money management skills is an investment in their future. By teaching them to budget, save, invest, and make informed financial decisions, we empower them to become financially independent and responsible adults. This both benefits them individually and contributes to building an economically accountable society. Empowering the next generation with the knowledge and skills they need to thrive in an increasingly complex financial landscape plays a fundamental role in building generational wealth. 

If you know a teen who needs to read the book Aly did, you can find it here. Prefer to learn in a live workshop environment? Connect with us at together@dekkerteam.com to gain sound knowledge and access a community of like minded learners.  

Friday, May 12, 2023

I recently heard a touching story about a six-year-old boy named Bridger Walker who saved his little sister from a brutal dog attack. The incident occurred when Bridger and his four-year-old sibling visited a friend’s house. A large dog charged at them, and Bridger immediately stepped between the dog and his sister to protect her. The dog latched onto Bridger’s cheek, causing a massive tear across his face. He responded by yelling for his sister to run. 

When the dog finally released him, he raced to his sister and led her inside the house. Despite the pain and fear he must have felt, Bridger did not let go of his sister’s hand until they were both safely inside. The boy was taken to the hospital for a two-hour surgery of over 90 stitches. When asked about the incident, Bridger told his parents, “If someone had to die, I thought it should be me.”

Little Bridger reminds me that although we might not encounter a dramatic situation as he did, most of us are willing to give our lives for causes or beliefs we deeply value. This might include protecting loved ones, defending one’s country, or fighting for justice or freedom. Some people are willing to sacrifice themselves for their religious or spiritual beliefs. In general, what one is willing to give their life for is a deeply personal decision that varies from person to person and depends on individual values, beliefs, and life circumstances.

My question today is: What are you willing to lay your life down for?

I would encourage you to ponder this one for a few minutes. Developing a personal value system is essential in creating a meaningful and fulfilling life. Your values reflect what you believe is most important in life and guide your decisions, behaviors, and relationships. By taking the time to identify and clarify your values, you can make choices that align with your principles and goals and feel a sense of purpose and fulfillment in your life.

As a REALTOR®, I love helping people. It’s a passion in my life to see people move forward to build the life of their dreams. One of our Dekker Team slogans is “Moving forward together because together we’ve got this.” I love coming alongside people and guiding them on the journey of buying or selling their most valuable assets. 

Over the last 13 years, Ken and I have created over 587 Life’s Inside Track episodes. When I add the number of hours we’ve invested in guiding people through our radio show alone, the number is staggering. We’ve been giving our life to helping clients and those in our community for decades, little chunks at a time. 

We all have 24 hours a day, 365 days a year. No matter who we are – whether we’re the Prime Minister or a Tim Hortons cashier. Time is a commodity that we have a limited amount of. It’s a non-renewable resource. And if you think about it, we all give our lives for something every minute of every day. 

As Ken and I pondered this one day in our tranquility room, we thought about how much we argued. We calculated how often we passionately disagree or have “heated fellowship,” as we call it, and for how long each time. We’re blessed in that our core values strongly align with each other. The vast majority of our disagreements are needless arguments based on personal preferences. And wow, it was humbling to realize how much of our lives we gave away last year to something so pointless. The amount is much less than it was when we first married, and we have put a lot of work into learning to resolve conflict healthily. Even still, the number we calculated did not reflect what we wanted for our lives. 

When we’re not cognisant of how we spend our time, it’s easy to waste our time on things that don’t matter. Or even something that harms us! One thing for me that I struggle with periodically is staying away from sugar. I know it doesn’t benefit me; it doesn’t support how I want to look, feel, or how I want to spend my time. If I’m going to take the time to eat, I want it to be something that nourishes my body. I keep this value in mind by changing my language around food. Rather than using the word “eat” in my daily schedule, I call it “fuel” because that’s my goal: to put fuel in my body. I only want to eat what serves me. 

We lay down our lives for the little decisions we make each day. The good news is when your values are clear, it’s easier to choose to use your valuable time on things that move you forward. 

Someone wise once said, “Let me see your checkbook, and I’ll be able to tell you what you value in life.” I would say, “Let me see your agenda” because I believe what you spend your time on provides an even clearer picture. 

Is it possible to be accountable to the minute? If I logged my entire life into a journal, how many minutes would I spend on what I value, and how many would I spend on what I don’t? 

I think the key here is being aware. By understanding how we spend our time, we can identify areas where we may need to spend our time wisely or use it effectively. This can help us make adjustments and prioritize more important or productive activities. 

What about things we enjoy that seem frivolous in the grand scheme? I used to give Ken such a hard time for playing sports. I thought it was a waste of energy and would grumble and moan whenever he packed his hockey bag that he should be doing something more productive than just chasing a puck around with a stick. Now I sheepishly recall this short-sighted attitude because I see the value in movement and mental rejuvenation. Sports for Ken is wonderful stress relief; he comes home more relaxed, clear-headed, and even kinder because he feels refreshed mentally and physically. 

I would encourage you, if you haven’t already, to sit down with a piece of paper and work through these questions: 

1. Reflect on your values: Consider what you believe is most important in life. What do you stand for? What do you want to achieve? What kind of person do you want to be? Take some time to write down your values and reflect on them.
2. Examine your priorities: Consider how you spend your time, energy, and resources. Are these aligned with your values? Are there any areas of your life where you feel you are not living up to your values?
3. Consider your goals: What do you want to achieve in life? What are your short-term and long-term goals? Are these aligned with your values?
4. Think about your relationships: Who are the people most important to you in your life? What kind of relationships do you want to have with them? How can you strengthen those relationships?
5. Assess your lifestyle: What kind of lifestyle do you want to lead? What type of work do you want to do? Where do you want to live? What kind of activities do you want to pursue?
6. Prioritize your choices: Based on your reflections, prioritize your choices and actions. Choose what is most important to you and plan to work towards it.

I heard a story once of a talented concert violinist. One night he put on the performance of his life and left his audience spellbound. Someone from the audience sought him out afterward, saying, “I’d give my life to be able to play like that.” The violinist said, “I did. I did give my life for it.” Time is a finite resource, and once it is gone, you cannot get it back.

Friday, May 5, 2023

As REALTORS®, the team receives frequent questions about conventional housing, like new builds and hobby farms, and unconventional housing, like off-the-grid cabins. Determining your mortgageability on these types of investments is critical before setting up a search to view properties. 

Here are a few points you’ll need to consider for each scenario. Hopefully, it’ll give you clarity so you know what questions to ask as you begin the journey!

I want to buy land and build a cabin!

We often get calls on this: people wanting to buy vacant land to build a cabin. Many people dream of renting out a little cabin since Airbnb’s are becoming increasingly popular. The critical thing to consider here is what the bank can use for security. 

Lenders aren’t going to lend you money based on a dream. They look at what they would have as collateral. Unfortunately, in this case, land doesn’t provide a bank with enough security to give you a loan. It’s near impossible to get a mortgage solely on a piece of land. You might be able to get a note loan directly from a bank, but this would be a very rare case. You may be able to get funding through private lending; this would likely be extremely expensive. 

If you want land for an off-the-grid cabin to get back to nature, you’ll need to save up the money to buy it with cash. 99% of the time, finding a lender for this will be nearly impossible. 

I want to buy a cottage (and maybe rent it out)! 

So, if you can’t get a loan on land, what if you got land with a cabin already on it? The question then becomes, can you live in this building four seasons of the year? Does it have services like hydro, water, and sewage? If you can’t, and it doesn’t, it can’t be considered a real shelter. The bank will consider the building to be a glorified shed with no real value to offer them the security they require. 

As you probably gathered from above, not all cottages are created equal. To a mortgage lender, they are classified into types: A and B. A-level cottages qualify for much lower down payments of only 5%. B level typically requires 10% or more down. For a building to be a type A, it needs to have potable running water, central heating, plumbing, and electricity. It requires a permanent foundation below the frost line and be winterized with 4-season access. 

Lenders consider what any insurance company will look at, such as how close the property is to fire hydrants. Another thing they need to know is if you have deeded access. Many times cottage properties don’t come with actual owned access to roadways. You might assume a property does because a neighbor has let the owner use their roadway for years, but what happens if there is a dispute? A lender needs to know they can always access the property so they will want documentation with access listed in the deed. Water access is a factor as well. If you can only reach the cottage by boat, that’s much harder to finance, and you will need a much higher down payment as it will be considered a B-level property. 

Many people are unaware of a significant fact: if the property meets A-level criteria, you can likely buy it as a second property with only 5% down. That’s right! Most people believe that if they own a principal residence, any other properties will require 20% down. But, if you qualify to carry your mortgage along with this second mortgage, you might be eligible for 5% down. This includes cottages outside your province, as long as it is in Canada. 

Let’s say you want to offset some of the costs of this vacation home, such as taxes and maintenance. Some people think, “Well, I’m not going to use it all the time, so I’d like to rent it out during the winter, for a few weeks a year, etc., as a short-term rental.” If you choose this route, you must cover the full 20% down payment. If you utilize the property as purely a second home or your personal vacation home, you can get away with 5% down. So, this is something to consider. 

I want to buy land and build my dream home!

If you want to buy land and build an actual four-season home immediately, consider qualifying for a construction mortgage. This way, you’d wrap the new build into the land purchase. To be eligible for something like this, you’ll have a lot of homework to do in advance. You’ll need to provide the lender with drawings of the building, proof it will have services like water and hydro, plans by the general contractor, an appraised value of the completed build, plans of costs for each stage of construction, etc. If you can show all these things, you might qualify for a mortgage for 50 to 70% of the costs. 

I want to buy a new build!

A key thing to consider when using a builder is to ensure the property is below what you can afford and that you have liquable cash because many unforeseen factors are at play. 

When working with a prominent builder, you won’t close on the house for 18 to 24 months. There is a much longer window for something to come up than when you buy a pre-built house immediately. With a new build, you have to put in a deposit. Most people go to a builder such as Tartan or Mahogany because they can generally get a new home with less money upfront. A builder might only require a 5-15% deposit, whereas, with a custom build, you’ll need a lot more capital upfront. It’s critical to know that there may be carrying and interest costs during the timeframe while the home is being built. 

It’s also important to understand that many things can happen during those 18-24 months. Let’s say your job changes: you are laid off, you go from a permanent position to a contract position; maybe something happens with your health. Unforeseen factors like this can affect your ability to purchase when it comes time. We’ve seen cases where the government changes rules during those months, such as how a person can qualify. This happened recently when the mortgage qualification stress test went from 2% to 4% higher than what they were months before. What you could afford previously might not be the case later. 

Another thing to consider is the changing value of property. If you sign a purchase agreement at the peak of the market when builders are asking for a top price, and then 18 months later, the market has balanced out, the appraisal might not come in at what you paid. This means you won’t qualify for a mortgage as high as you estimated you’d receive. 

Sound scary? It doesn’t have to be. Just make sure you consider all of these things beforehand and get your ducks in a row before making the purchase. Ensure you have enough wiggle room so that if any of these factors arise in your situation, you’ll still be in a position to qualify to close on the property. 

I want to buy a multi-unit investment!

When you’re looking at buying any investment, the more units you’re buying, the more work it will be for you as the buyer. Surprisingly, it’s easier to qualify for more units (6+) than for 1-5 units. With 1-5 units, you’re qualifying as a residential purchaser. You can use the rental rates towards the property’s income, but a lender will also be factoring in your personal income. They’ll want to know how much you’ve made in the last two years, your mortgages, and all your debt. This makes it harder and harder for people to buy a single rental property. If you don’t get CMHC, you must put 20% down, which is a lot of money for many people’s first investment. 

Once you purchase six units, you’re considered a commercial client. This means your personal numbers are taken out of the equation, and lenders look solely at the numbers of the actual building. There are different programs through CMHC available in this case, so you can put less money down, to the tune of of 5-15%. This is much more attractive as it’s technically easier to qualify, and you can scale your investments more quickly. 

Some people may find a great low-priced rental property that they realize they can fix up and rent for much more. They may not qualify for traditional financing. I’ve seen cases where they get more expensive private financing for 1-2 years. During that time, they renovate the building and bring up the rental values. Then they get the property assessed with these higher rates and qualify for traditional financing. Then they can refinance, pull the capital back out, and get all their money back. Compound rate of return when leveraged is a beautiful thing!

I want to buy a hobby farm!

After the waves of Covid hit, hobby farming has become more popular. People work from home, want more freedom, and appreciate the fresh air. Some people find the additional possible income or extra produce welcome with the rising inflation costs.  

We saved this scenario for last because it has the most hoops you’ll have to jump through. You may love owning 50 acres, but that doesn’t mean your bank is a fan. If you want to buy a working, income-generating farm, you must bypass a mortgage broker and work with a company like Farm Credit. If a residential lender has any sense you are using your hobby farm to generate income, they will back out. 

Hobby farms typically have additional outbuildings. These are very expensive to build, costing between $100K to $150K. However, if you can buy the buildings included in the property sale, you’ll pay far less than that for them. 

When a bank appraises a property, they’re not interested in the outbuildings, the excess acreage, or the farming potential of livestock or crops. When working with your mortgage broker, it’s really important to consider this before applying for a mortgage. Excess acreage means different things depending on the lender. It might be anything from over 5 acres to 15 acres, depending on the lender. Fifteen acres are typically the maximum amount any lender will value with the house. When the bank considers a property to have excess acreage, they view a portion of the purchase as being land value rather than the purchase being value in the house building. As I mentioned earlier, banks want to refrain from lending on land. The amount they are willing to lend you actually decreases with every additional acre. 

This means you’ll need a much higher down payment because the bank’s appraisal will come lower than the actual sale price. What’s vital here is that the bank’s perceived value of the property is not the same as the sale value of the property. If the bank appraises a hobby farm lower than the buyer’s price, it doesn’t mean the buyer overpaid. It just means the bank isn’t willing to lend on the actual sale amount. The outbuildings, similarly, will hold no value to the lender.

When buying a residential property, there are inclusions which are not valued in the mortgage like the appliances. Most lenders turn a blind eye to these inclusions and still lend on the appraised value with your 5% and up down payment. With hobby farms, the lender does not want to see expensive add ons like a tractor, farm machinery, animals, crops etc included in the agreement. These reduce the value of the property and thus the mortgage amount by the value you place on those things. A lender may turn a blind eye to small home appliances, but it won’t on high expense items like a tractor. 

So in conclusion, if you want to buy a property with acreage, you will want to make sure you have somewhere from 20% and above for your down payment. Even if you have 20%, the bank may still value your property much lower than the sale price. Because you are paying cash for the difference in value, you may see your actual percentage drop to 5 or 10% and will then be required to pay insurance fees as it will be a high ratio mortgage.  By having 30-50% down you should be able to avoid those extra fees.  

While these are helpful tips, we recommend you go to a mortgage broker who can give you the most up-to-date information regarding your situation. Reach out if you need an excellent mortgage broker or want to discuss your options. Book a 15-minute clarity call to discover your options so you can make wise choices moving forward. We are honored to be your advocates on the journey of life exponential and building wealth.

Friday, April 28, 2023

When people are in a difficult situation relationally, they tend to go one of two ways: stick their heads in the sand like an ostrich to avoid conflict or plunge headfirst into a situation to deal with it and end up like a bull in a china shop. Both responses are extreme and tend to make the situation worse. 

I’m naturally the huffing, puffing bull in the china shop. I need to come at things head-on. This got me into a lot of trouble until I learned to temper my approach, and it cost me a lot of relationships and pain.

In our approach, we can be a bull in the china shop, even when there isn’t a problem. We may feel too rushed or ambitious, and this style doesn’t work for the other person. I still recall an awful scenario that happened like this in our office with a potential client. A lovely, elderly lady connected with us because we delivered her a local Bearer newsletter for years. We had never met in person, but she knew what we stood for and that we knew the market well. She rang our office for help selling her home so that she could move into a retirement home. One of our former team members spoke with her on the phone to get more information. We have a checklist of questions to guide the conversation so that we can fully understand the situation and find a tailored solution.  

Unfortunately, this team member was new to the process and fired off question after question rather than using them to guide the conversation. It quickly became a bull in the china shop approach, and this poor elderly lady felt bombarded in a very impersonal way. I later got a call from the lady to tell me she was going to call her lawyer. I said, “Whoa! What do you need a lawyer for?” I discovered that she felt the treatment was so forceful that she needed a lawyer to protect her on what to say and not say. I know this was not the intent of the conversation and felt terrible for this poor lady. Needless to say, we didn’t end up helping her. The damage had been done to the relationship, and it was hard to recover from that. 

A few guidelines I have followed over the years when having these conversations have helped. Choosing the right time and place for a conversation can help ensure that both parties are fully present and engaged in the discussion, such as a quiet, appropriate location, a conference room or an office where you won’t be disturbed by noises or other people. I recommend choosing a time that is convenient for both parties. It’s important to respect each other’s schedules and availability. There is nothing worse than sidelining someone into a difficult conversation while they are trying to deal with something else. If you’re having a virtual conversation, make sure to choose a platform that is reliable and user-friendly. Test out the technology beforehand to avoid any technical difficulties during the conversation.

It’s essential to be clear and direct to avoid misunderstandings. While we might think hedging around the bush is kind, ambiguous language can be interpreted differently, leading to confusion or misinterpretation. That may lead to another one of these conversations! Or make the situation worse. By being clear and direct in a kind, respectful way, you can ensure that your message is understood and that the person knows exactly what you mean. 

Allow the other person to speak and listen actively to what they are saying. Show empathy and try to understand their perspective. Avoid interrupting or interjecting with your opinions or experiences unless the other person asks for them. Focus on actively listening and showing empathy for their perspective. Ask open-ended questions to encourage others to expand on their thoughts and feelings. This can help you gain a deeper understanding of their perspective and help the other person feel heard and valued. 

I experienced this in retail; we had a new area director for our franchise. Other leaders have had tough conversations with me through the years, guiding, directing, encouraging, and sometimes admonishing me for different things. I could handle it well because I knew their heart was to see me succeed. Well, this particular fellow just came at me booming with, “You’re doing this wrong,” “You need to do this,” and “You’re not going to make it,” boom, boom, boom. Being direct does not mean being rude and obnoxious. Plus, he didn’t have any rapport with me. So what did I do with that information? I took offense. At the time, I didn’t have the tools to have a difficult conversation with him, and I’m pretty sure he didn’t either! The result was an uncomfortable working relationship for years. 

One way to show empathy is by paraphrasing what they’ve said to you. This has been invaluable to my husband and I in bringing down a heated conversation. By repeating their words back to them in your way, you can confirm that you’ve interpreted their message correctly. Not only does this demonstrate that you’re actively listening, but it also shows that you value their input and want to ensure you’re on the same page. In addition, paraphrasing can help to avoid misunderstandings and miscommunication, which can lead to more productive and effective conversations. This allows you both to keep your emotions in check to stay calm. 

One of the biggest things is to be vulnerable and share your heart. Blaming or focusing on the person’s mistakes is demoralizing and makes it harder for them to move forward. Focus on what you can do to move forward rather than dwelling on the past. Work together to find solutions to the problem. 

Connecting with people when things get messy requires a lot of vulnerability. Brene Brown says vulnerability is a strength. If you have the heart of reconciliation, the other person will often perceive it. It can salvage or build a stronger relationship. We don’t want to be an ostrich in the sand; we want to take the bull by the horn, but we don’t want to be the bull. 

Friday, April 21, 2023

As we launch into the spring market, now is a great time to consider whether you want to buy real estate. With the significant market shifts, rising mortgage rates, and increased interest rates, many people feel their first or an additional property is far out of reach. I’d love to challenge you to move out of what you hear in alarmist media and listen to the experts.

You might find out you already have the funds available from a source you never considered and that you are only a few tweaks away from an excellent credit score.

1. Look for Downpayment Opportunities

Squirreling away money is the traditional method of building a downpayment. It’s a reliable go-to, especially since your lender wants to see money doesn’t magically appear, poof, into your savings account. Lenders like to see your down payment slowly accumulating over time. If you suddenly move the funds from your chequing account to your savings account, they become suspicious. They prefer to see that you’ve been putting $500 a month into your savings account for the last two years. This demonstrates a proven track record of financial stability.

Another way to acquire a downpayment is to borrow it, maybe from family or a lending institution. As mentioned above, this doesn’t build the same credibility with a lender and your repayment of this is calculated when you qualify for your mortgage. This money can’t be secured against the last 5% of the house.

Perhaps you have family who want to give you money. More and more parents are providing their adult kids with a hand up, deciding that since they are leaving money to their kids in their will, they might as well give it sooner to help their children get a start in the market. In a case like this, you would need a gift letter from your relative stating you don’t have to repay the money. This ensures the sudden funds can be used towards your down payment and don’t negatively impact your mortgageability.

Another method to find a downpayment is to use your whole life or universal life policy. Those have a cash value which you can actually borrow on. It reduces future gains, but you don’t pay interest on it. Lenders view it as you borrowing your own money, so it is not calculated against you. This makes it another amazing source for your down payment.

Another place you might find money that you haven’t thought of is any RRSP’s. You can actually remove up to $35,000 per person. If you’re a couple and you each have fifty or sixty thousand in your savings plan, you could already have a combined down payment of $70,000! You have 15 years to pay it back, which is about $195 per month. If you don’t, they tax you on 1/15 of the money.

My favourite way to find a down payment is by using equity on a current home. This can apply to you if you been in your home awhile. If you haven’t been refinancing, which I like to refer to as using your home as an ATM machine, chances are you have enough equity to pull for a down payment on another property. If this makes you nervous, I recommend giving us a call. We’ve seen this done very successfully in the past and we’d love to help you identify if this might be a good fit in your case.

2. Tweak Your Credit Score

Thinking about your credit score likely has you inwardly groaning. It’s intimidating for many people because it seems like there are algorithms that decrease scores that the general public isn’t aware of.

Unfortunately, it’s not something we should bury our heads in the sand about. This score affects how you apply for a mortgage, how much you qualify for, your interest rate, the terms, and the lender.

Some people have said to me, “Well, I’ve got great credit. I’ve never borrowed any money and I pay cash for everything.” I feel badly informing them that their scores are probably terrible because of these great habits. Why? There’s no history, no data, and no information available to show you are reliable with money or have a responsible credit history.

If you need to tweak this area of your financial health, there are a few key things you can do that will make a big difference. First, borrow money for your next vehicle. I know this sounds crazy and some of you may be thinking, “I do the most responsible thing and buy my car with cash.” In this case, your credit rating will improve if you took a loan for the car and pay it back quickly. Tweak Your Credit Score

. You will need to pay a little bit of interest because you need to show a history of making a few payments. Think of this expense as the cost of increasing your score for a longer term gain.

The next thing to consider is your credit cards. If you don’t have a credit card, this might be the sign to get one. If you’re uncomfortable with this, you can set your account to automatically withdrawal the full repayment amount each month. Alternatively, you can prepay the credit card with cash, so you are still using your money rather than borrowing money.

The key to your credit card is to first of all, pay off your credit every month. Even better, pay the full amount back each month. If you can’t do that, at least make your minimum payment and prepare yourself for heavy interest fees. The best way to use your credit card is to avoid spending more than 50% of your available credit. If you spend the full amount or close to the full amount available to you, this hurts your score. If you find it challenging to keep it under 50%, look into increasing the amount available to you.

Let’s say you don’t qualify for a credit card. Perhaps you are a student or you are digging yourself out of a financial pit. In this case, you may be able to get a reverse credit card. You load money onto it, say $500, and then you have the $500 to spend. Just like mentioned above, you’re not borrowing money, and you’re still building your credit rating.

An important thing to note is that longevity creates credit worthiness and recent credit works against you. Don’t apply for any new credit the full year before you plan to get a mortgage. No car loans and no credit cards. Even “Don’t pay a cent” events for furniture at The Brick. These all count against you. Previous long term credit shows you were consistent in paying it off. Recent credit indicates you are not reliable and need more funds.

Too many credit cards also suggests you’ve accumulated too much ability for debt. Before applying for a mortgage, get rid of the most recent credit cards and keep the two that you’ve had the longest. Remember, longevity shows credit history and therefore worthiness.

Each time someone checks your credit score, this will affect your score as well. If you go to three banks, your score will be pulled three times. This is one reason why it’s wise to go to a broker, since they pull your score once.

Not sure how your score is doing? Pull it and check! You can check your own credit without it negatively affecting your score. You’ll be able to check for errors and look for ways to improve it. Awareness creates empowerment! When you position your credit in advance, you won’t run the risk of losing a perfect property when it becomes available. You’ll have the opportunity to move quickly when you find what you are looking for.

3. Get Pre-Approved

Do you know that pre-qualified and pre-approved are two different things? Being pre-qualified for a mortgage means that a lender has reviewed your basic financial information and determined that you are likely to qualify for a mortgage loan up to a certain amount. However, it is not a guarantee of approval.

Pre-approval, on the other hand, involves a more thorough review of your finances and credit history, and gives you a specific loan amount that you are approved for. Pre-approval is generally considered more reliable and is important to get before you go house hunting can give you a competitive edge in the real estate market. It can help you identify your budget, streamline the home-buying process, and give you confidence in making offers on properties. Additionally, pre-approval can help you avoid disappointment and save time by ensuring that you are only looking at homes that are within your price range. It also gives you a stronger negotiating position when making an offer on a home.

To get pre-approved for a mortgage, you typically need to provide your financial information to a lender, such as your income, assets, and credit history. The lender will then review your information and determine how much they are willing to lend you. This is still not fixed in stone, but it is a good 95% indicator that you’ll be able to get the approved mortgage amount when you find the right home.

Something many people don’t realize is that if you’re pre-approved but you have less than 20% of the down payment, a second person needs to approve it. You can’t get the approval either until the specific house is selected. So, you need to wait until you have a conditional sale on the house, which the lender then sends to the insurance company, since you don’t have the full 20%. The insurance company then has to approve the file. Typically, if it’s a good house, they’ll approve it because your lender hopefully is using the right criteria in the pre-approval that the insurance company will agree with. It’s for this reason that so many buyers purchase properties “conditional upon financing.”

Over the past two years, during Covid, we were seeing well over half the properties being sold without conditions on financing. This didn’t mean all those buyers were guaranteed financing by lenders. It just meant the buyers were promising to come up with the money, whether they qualified for the final sale by the insurance company or not. At the time people were willing to risk it because they wouldn’t be likely to get the house since somebody else would drop financing conditions. I worked with my buyers to make sure there were no red flags in the listing. If the phrases “handyman special” or “sold as is” showed, these homes are unlikely to be approved by a lender. In those cases, even if your financing wasn’t an issue, to the lender, the house is still an issue and they wouldn’t be willing to provide the mortgage. This was a very unusual situation, and buyers breathed a huge sigh of relief when the market returned to conditional offers.

I strongly recommend all my buyers find a reliable mortgage broker. A mortgage broker acts as a middleman between borrowers and lenders, helping borrowers find the right mortgage product and lender for their specific needs. They have access to a wide range of lenders and mortgage products, which means they can help you find options that may not be available to you otherwise. They can help you understand the different types of mortgages available and which ones may be the best fit for your financial situation. Because mortgage brokers work with multiple lenders, they can often negotiate better terms on your behalf. They can also help you navigate the application process, which can be time-consuming and confusing. Mortgage brokers are paid on commission by the lender, so there’s typically no cost to the borrower for their services.

Your broker can save you a phenomenal amount of time and money. Not only do they find you the best interest rate, which can mean tens of thousands over the lifetime of your home, but also they find you the best term for your situation. I have a client in a struggle right now because their initial mortgage term was too short. Now, because rates are higher, their investment property is costing rather than paying them.

Something else many people don’t realize is that when it comes to real estate insurance, different insurance companies prefer different types of properties. Some will loan on a multi-unit residential, others a country property, others want it to be on city services; some will loan on a property that’s in a floodplain, and others won’t. I recommend using a real estate insurance broker. They can save you time and effort by shopping around for policies on your behalf and negotiating with insurance companies to get you the best rates. They can also help you assess the risks associated with your property and recommend specific policies to mitigate those risks. In the event of a claim, a real estate insurance broker can act as an advocate for you and help you navigate the claims process.

If you’re in a situation where you are ready to take these steps but need more guidance, such as finding an excellent mortgage broker, insurance broker, or maybe you need coaching on how to improve your credit score – reach out! You can call us at 613-860-4663 or email us at together@dekkerteam.com.

Friday, April 14, 2023

Do you ever feel like you need more hours in the day to accomplish what you need to do? If so, you’ve likely over-committed yourself. “What?” you’re saying, “I just have so much to do and insufficient time.”

When I feel like this, I remind myself I have the same 24 hours as everyone else. The question is, where am I allocating my time?

I know the frantic feeling of juggling too many things at once. I often felt like I was juggling my mother’s china plates, concerned about what would happen if I let someone down or didn’t meet a deadline. It’s hard to disappoint people; if you’re like me, you want to say yes to everyone. I dread the idea of a missed deadline. Smash! Being late for a friend. Smash! Not keeping my word to someone. Smash! Someone will be particularly agitated if I drop more meaningful commitments, such as an anniversary party.

1. Shed the Fear of Commitment

It’s good to take the fear out of the concept of commitment to move to a place of empowerment. Some of us envision them as obligations that lock us in and prevent us from doing what we want. We may have some things to do, like renewing our driver’s license or paying our mortgage. Other commitments are fun because we’re passionate about them, such as planning a party, playing a sport, or going on a date. Remember that many of our commitments are enjoyable ones we choose because we enjoy them.

2. Identify the Rubber Balls

I’ve since realized that some things I’m juggling are rubber balls. I characterize those commitments as moveable or decide dropping them once or twice will be fine. One rubber ball I occasionally drop is going to the gym. I can skip it now and then for a china plate commitment if I don’t have enough time for both. I can skip exercise for a day or even a week, and like all rubber balls, dropping them too many times will turn that ball into a china dish! If I don’t exercise for a month, my body will feel it. That plate will break if I continue to drop it.

Identifying which of our commitments are rubber balls can help you prioritize the most important and let you know which you can safely drop when you’re overwhelmed or in a pinch. When we have too much on the go and overcommit to things, we get frantic and drop balls left and right. It’s better to choose to decline something that doesn’t have the same consequences.

3. Choose Things You Can Control

Occasionally I’ll have a seller who insists they will sell their home only if it sells for a specific amount of money, such as a million dollars. They’ll promise me that they won’t trade it for a penny less. I hear this even when an owner is forced to sell their property for one reason or another and doesn’t have a choice. In these cases, I say, “So, if somebody brings you $995,000, you won’t sell it?” They usually reply, “Nope. I’m only committing to selling if I get a million.”

This decision is interesting because it is committing to something beyond their control. We can’t tell the buyers what to do. I often respond, “I’d like to make that happen. I’ll do everything in my power to make that happen. And I won’t commit to it, and I wish you wouldn’t either. Because we’re not the only ones who determine what your home can sell for. I think you can commit to being available for showing and staging the property in good condition, and we’ll do the marketing and networking with other agents. But ultimately, the price is determined by the market and the buyer who wants to buy it and how much they want to buy it for, right?” We can commit to doing everything in our power, and committing to what we can control only makes sense.

4. Become Comfortable with Saying No

I often remind myself that no is a complete sentence. It is. Many of us willingly plunge ourselves into a state of overcommitment because we’d rather deal with the consequences than the momentary discomfort of saying no to someone. It’s okay to say no! You can say, “You know what? It doesn’t fit in my calendar right now.” “I’d love to say yes, and this time I’m going to say no.” or even, “I have other commitments.”

I’d love to say yes to everyone who needs me. I also love to feel calm rather than frantic. I remind myself that when I overcommit, I start dropping the breakable elements in my life to catch a rubber ball. Learning to say no confidently to rubber balls frees you up for what is most important to you.

5. Create A Margin

Ken and I learned to block off spots in our calendars where we aren’t committed to anything. Just because we can do something doesn’t mean we should do everything. These valuable spaces give us a chance to rest and catch our breath. Another benefit is that we aren’t necessarily moved into a frantic space when an emergency arises because we have a buffer.

6. Know What You’re Committing To

Ken once brought home two brand new guitars – an electric guitar and a bass guitar. I thought, “What on earth is he doing? This is SO not a priority right now.” Ken was thrilled with his purchases and insisted he always wanted to learn to play. Well, it’s been a few years, and they’re still collecting dust in the basement. He sheepishly realizes now that he was committed to the fun of owning the guitars but not to the time and effort of taking lessons.

7. Pause Before You Commit

I’m susceptible to things that develop my growth as a person or a professional. When I hear about a new course, I become excited about learning that thing. I love learning, teaching, and growing, and it’s easy to talk myself into needing more training and envisioning the value it will bring to myself and others. After collecting many courses that I’d later realized I would never take the time to finish, I now encourage myself to pause before signing up for anything. I wait the night and tell myself I can always sign up in the morning. Why? Because when we don’t take immediate action, we likely won’t take action at all. As a result, I’ve signed up for far fewer courses, and I’m thankful for the clarity brought by stepping back. We tend to overcommit when we don’t pause and think of the repercussions.

8. Consider Finding a Partner

We found a great investment property a few years ago – an 18-unit apartment building. While we were excited about it, we had to ask ourselves, are we willing even if we get the financing together? Do we have the capacity, the margin, and the space to put in the time and effort required? It would mean renovations, communicating with tenants, collecting rent, and maintenance. Not to mention a significant learning curve. We realized we didn’t have the capability at the time for something so big. So, we decided to commit to doing it with a partner. This individual brought the expertise and effort to make a commitment that we felt we could honour without dropping our others.

The beauty is that we got the opportunity because we partnered. It paid off because, in two years, the property’s value rose to a 50% increase. This is 25% a year, which is incredible. And we didn’t have to drop any china plates for it!

9. Get the Full Value of Your Commitment By Finishing

Some of my sellers and investors plan on full renovations of their properties. But then, when they are 80% of the way through, they feel too tired and don’t want to do the last little bit. I had one client who was so close to completion and only had about a thousand dollars worth left to do. He decided it was too finicky and stopped. I reminded him that he committed to a completed house and that if he didn’t do the one thing, it would cost him a fair bit when it was time to to sell. These little details would make a $20,000 difference or more in the sale. What a shame not to get the full value for what he’s already done!

10. Remove What You’re Not Fully Committed To

We schedule our calendars in a time block system, and each item we add we view as an intentional time commitment. Our integrity goes out the window whenever we don’t do what’s on our calendar consistently. We become deflated and discouraged.

We’ve since learned to delete things we frequently drop. Those to-do’s that never get accomplished. It’s best to look at what aligns most strongly with our values and decide what we are willing to put our time and effort into. If you’re not ready to truly commit, then it’s best to remove it from your calendar to preserve your integrity. 

Friday, April 7, 2023

Ken and I were thrilled to sit down with Stephen Rolston and Kevin Rankin from Land Ark, a company in the process of building Watercolor, a net zero housing community in Westport, Ontario. They gave us a sneak peek of the concept inside net zero housing: what it is, why it’s the construction of the future, and how to make your current home more energy efficient.

Yetta: So, what exactly is a net zero house? Are there certain specifications to meet? How does this work?

Kevin: The term net zero speaks to the efficiency of the home. It’s a symbol of excellence and quality around the building’s construction, testing, and certification. It means your home can generate as much energy as the habitants use in a given year. So, over the balance of the year, you get to zero.

Yetta: Are we mainly talking about general heating here?

Kevin: No, this isn’t just the heating and cooling factor of the home. It’s electricity for lights, cooking, watching TV, and surfing the net. The house supplies all your electrical needs.

Ken: Now, Stephen, you have been a builder for decades. When did you start this journey with net zero housing, and what led you to it?

Stephen: Five years ago, I was like most people. I didn’t know anything about the subject. I looked into it because I planned to build a unique community in Westport, Ontario, where we own some land. We were trying to develop a pedestrian-focused, walkable neighborhood. The village is over 200 years old and sandwiched between two beautiful lakes. We wanted to stay true to the character of an intimate waterfront village. We called the community Watercolor because the homes are bright, Newfoundland-coloured homes.

I was passionate about the location, but it didn’t have access to natural gas. Electric heat with a traditional building style is so expensive I knew I had to find an alternative. Something with more energy efficiency.

As I was doing my research, I came across information about net zero-ready homes. I got excited because the electrification of cars and houses is critical to saving this planet. I love being part of this because I believe in the creation mandate that we are to care for the earth.

So way back in 1972, some people were using heat pumps. Heat pumps have been around for about 100 years, just air conditioners running in reverse. Only recently, though, have they been a great option.

Ken: Yes, that’s a good point. As a REALTOR®, I find most people shy away from a property if it has electric heat. They want natural gas, and if that’s not available, they may settle for propane.

Stephen: Right, and for the most part, that makes sense. In 1987, we installed a heat pump. And it was horrific. But the bottom line is in a conventional home; the building isn’t enclosed enough to support a heat pump. It’s going to be terribly expensive.

What’s interesting is technology has advanced so much that Natural Resources Canada did a study across the country in 2020 and found across all housing types in all our climates that with energy prices from 2020, we’ve crossed the tipping point. Fossil fuel prices have gone up so much and are going up so much with the carbon tax that electricity is becoming the more cost effective way to heat a home.

Even though research clearly shows one thing, it can take a long time for people’s ideas to catch up. Triple-pane windows have been available for about 40 years now. Why is it that when people are upgrading their windows, they’re still putting in double panes? We’ve had the new technology for forty years – and people are still installing outdated systems. Why? Many people need to realize it saves you a few dollars on the windows, but they are losing out on double the R-value. It’s crazy when you know that 99.9% of homes today are being built with obsolete technology. And it doesn’t have to be this way.

Yetta: So you think education will be a big part of people making the switch?

Kevin: Right; once you understand the implications surrounding it, people will stop asking, “Why net zero?” and start insisting, “Why NOT net zero?”

Stephen: If there’s one thing we’d like to encourage, it’s to have both consumers ask for it and builders choose to build them. There’s no reason not to. It’s all proven technology; it’s not new. Canada has been a leader in construction technology for 50 years. What people don’t realize is that these choices don’t force you to give anything up. You actually gain. Not only do you get a more cost-effective living, but you achieve a more comfortable home.

Ken: Yes, I think most people assume net zero housing is expensive and that they can’t budget much for this type of construction. What would you say to this?

Stephen: I’ve built both regular and highly energy-efficient homes. When you look at the average price of our homes, we’re building semi-detached, thousand-square-foot homes for about $599,000. The cost difference between constructing that and a conventional house of similar specifications is almost negligible.

Yetta: That seems hard to believe. If that’s the case, why aren’t all builders building this way?

Stephen: Exactly. Why aren’t they? There’s no financial or scientific reason not to. It’s a mindset thing. Once you realize the science behind it and what’s at stake with our environment, it comes down to resolve. I think more builders will come around to this style of construction, instead of waiting for the mandated legislation in 2035. They’ll recognize the brilliance of it. It’s overall a much better homeowner experience for not much more money.

Yetta: You’ve mentioned that net zero housing provides a better homeowner experience. Can you tell us more about that? How is the experience better than living in a conventional home?

Stephen: Sure. When people ask, I respond to that question, “Have you ever been in a car with heated seats?”. And sometimes they’ll say, “Yes.” Then we ask, “Have you ever been in a car with a heated steering wheel?”. And if they have, they’ll say yes to that one. And we explain it’s a similar concept, like a better driving experience. In a net zero home, the air is fresh. With triple-pane windows, you can sit comfortably beside a beautiful, large outdoor window in the middle of winter. The windows have double the insulation, and because of the low solar heat gain coefficient in the window, you won’t feel a draft. And in the summertime, you can sit in front of that big window and not feel the heat. It’s fabulous, with so many subtle things adding to the customer experience.

Yetta: So the air really is more fresh?

Kevin: Yes. How often do you want to breathe fresh air? All the time, right? And that is precisely one of the specifications of a net zero home. They allow you to control your environment. Not just heat but also your air quality, rather than having air coming in and out of holes in the house that you didn’t even know existed. Studies have shown that these homes are great for sensitive people with allergies or asthma.

Ken: I’ve noticed you have a different kind of duct system than a conventional home. If you have forced air, you’ve got this big return duct and a big duct that sends air to different parts of the room, with registers on the floor, usually in front of the window, trying to keep the moisture off the window and keep them clear. But you have a different kind of duct system.

Stephen: We do, and it’s called smart ducting. It’s one of the smart features in the home. Since the air is filtered/treated, many people find that their allergies and asthma disappear when they move into these homes.

Another benefit is the air ducts in our homes are up high. You don’t get the loud sound of a furnace turning on or running. In a house with a heat pump, the furnace is so quiet you don’t even notice it. You have a lot less white noise in the background.

You also are protected from noises outside.The average person lives in a home where the air seeping into the home is about the size of a front door. That’s where all the noise comes in. Our homes also have a thermal blanket around them with Styrofoam insulation on the outside. So that, and the triple window panes, deaden much of the noise.

Yetta: No waking up to your neighbour mowing their lawn at six in the morning!

Kevin: It’s remarkable. One of our homeowners in Westport has several houses in construction on either side of her property. She says she only hears the construction noise around her when she opens the door. Otherwise, she doesn’t hear it.

Yetta: Interesting. It’s not something you’d expect because that is not the norm.

Stephen: When you look at heating, it’s not just about heat loss. You also don’t need as much energy to heat the house. So, you’re talking about savings and energy conservation in two ways instead of one. You’re reducing the required heating dramatically because you’re controlling the air and the heat loss through your windows and walls. And it’s great because you don’t get the stratification.

Ken: Stratification, which is why I need blankets on all the chairs in my theater room. Because we’re always cold in the basement!

Stephen: Exactly right. Net zero homes are insulated under the slab and up the walls. With the energy efficiency and the continuous distribution of this conditioned air, you have consistent temperatures in the basement and the main level. We don’t even call them basements in our homes. We call them lower levels because they have huge windows to let in the light. The basement is just as warm as the rest of the house. And if you have a loft or a two-story upstairs, it’s also the same temperature. So you get the cost savings, and you get just a more usable home on all levels.

Yetta: Wow, that’s another great benefit. Some people might think, “That sounds amazing, but I don’t want to leave my current home.” Is there a way a person can retrofit their conventional home to make it net zero?

Stephen: It could never become actual net zero because much of the process happens in the construction phase. However, you can move it toward the mark. For this precise reason, we hired one of North America’s most outstanding energy consultants, a building scientist, Gord Cook, to come to the cove in Westport. Moving towards more efficiency in a conventional home starts with hiring an energy auditor who will look at nine key things. This is a great investment.

Ken: I heard that if you pay for the audit and go through with it, the Canadian federal government will reimburse you for pinpointing those nine steps. They’ll give you up to $5,000 in a grant for particular renovations and for the audit of your home. They also provide up to a $40,000 interest-free loan that a person can repay over the next ten years to retrofit existing homes. Using someone else’s money for a wise investment with an interest-free loan is a good deal!

That’s $4,000 a year that you pay back. And right now, correct me if I’m wrong, but it may be hard to get $4,000 with savings in energy consumption in a year with your $40,000. But with carbon tax going up significantly, year over year until 2030, you will see greater savings in the future.

And as we get closer to 2035, all new construction will be net zero ready. Once we’re moving in that direction, we’ll devalue our homes if we’re not doing the upgrades. Older homes will sell for less than we might like. Solar panels on a roof typically don’t help the value of a home right now. As energy costs continue to rise, people will become more conscious, which will change people’s views. I love math, and so I love the inverse relationship. The cost of heating fuel is rising, and the cost of making your home more efficient is decreasing.

Kevin: We hope people will become more informed about net zero housing. Then they can start to take action, even just one positive step after another.

To learn more, check out Stephen Rolston’s Youtube channel at: https://www.youtube.com/@landarkhomes. You’ll find more about net zero housing and Watercolor, the Westport community.

If you are interested in buying a more efficient home, reach out to us and the Dekker Team can guide you.

Fri. March 31, 2023

There is a Bible verse I’ve always found odd. It’s from Psalm 34:8, which says: Taste and see that the LORD is good; blessed is the one who takes refuge in him. (NIV).

I’m not sure that ordinary Jewish people circa. 200 BC had many opportunities to try new foods. The reference likely nods to tasting a meal or sampling your cooking to see if it’s good. And you get that surprised, delighted feeling when something is better than you expected.

I think the heart of this verse is that when you “taste” God, you are experiencing who He is and learning that He is “Good.” The psalmist makes the direct link to taking “refuge” in God. When we have little tastes of God, we know His goodness and grow by experiencing His protection and strength.

When times are good, it’s pretty easy to be thankful. And while we’d love to stay there, we also encounter Him in the hard times when we need “refuge.” How do we take refuge in Him? The verse tells us: by recognizing He is Good. We build our faith by those little tastes, those little things that increase our faith. The times He speaks to us when we read the Bible, the insights we glean in church, and the encouragement we receive from fellow believers. When the hard times come, we often spend more time in His presence because we depend on His help. The setbacks, the failure, the illness – we are much more thankful, open, and willing to learn from Him during these times because the stakes are higher. As a result, this extended time is often when we gain the most significant insights.

One way I spend time with God is through breath prayers. This type of prayer and meditation dates back to the early church, around 200 AD, and is simple. I find a quiet space and choose a verse from the Bible. Then I meditate on the verse, matching it to my in and out breathing. Two of my favourites are: The joy of the Lord is my strength (Nehemiah 8:10) and Apart from God, I have no good thing (Psalm 16:2). Even when I am struggling and can’t think of anything else, I can get these words out. They reconnect me to Him, and I’m “tasting” Him in the midst of that.

Thessalonians 5:17 encourages us to be constantly in prayer. This concept can be a real challenge as many of us have many things on the go. Several texts from the 15th, 16th, and 19th centuries, such as Abide in Christ by Andrew Murray, helped me understand this concept. Many of these writers were monks or people who spent extended periods in silence with God and explained how they learned to stay continually in His presence.

I’ve learned to own the truth that God sees everything I’m up to; He sees me every moment of every day. I can’t hide or get away from Him. So, in a way, everything I’m doing is in a state of prayer, even if I’m not praying per se at that moment. This translates to me viewing my life as a state of prayer. Because He knows what’s going on in my head, it’s never Him who is not paying attention; it’s me who checks out of the conversation. I believe He’s always speaking, always present with me, whether in my mind or through the things around me, like nature, and when I am not in His presence, it’s because I have stopped listening.

I catch myself when I’m sitting in church or reading my Bible and realize I’m just going through the motions. Awareness of what we’re doing is the first step, isn’t it? I shake my head and tell myself I’m choosing routine over connecting with the Lord. I try to be as humanly aware as possible of Him all the time.

Hebrews 10:25 urges us to “not give up meeting together, as some are in the habit of doing, but encouraging one another” (NIV). I coined an expression about living alone: Going solo takes you so low, and going in community brings you into unity. If you’re naturally independent like me, you may have to discipline yourself to make it a habit.

We gain another perspective of God when we worship in a community. The Bible urges us to keep meeting other believers because when we gather, we move each other forward. The reason is outlined in the verse before: let us consider how we may spur one another on toward love and good deeds (v.24). When you don’t meet together, it’s hard to encourage each other. We experienced this during the pandemic as we realized that while Zoom meetups are great, they aren’t the same as an in-person gathering.

If you’re interested in being part of an additional community to spur you on, we’d love to invite you to join the LIFEˣ community. It’s a Facebook group for people to get together with other like minded people on a growth journey to create a LIFE exponential. Interested in learning more? Reach out to us at together@dekkerteam.com.

Friday, March 24, 2023

At some point in every meaningful relationship, whether a friendship or something romantic, I’ve encountered disagreements that triggered my frustration and dysregulated my emotions. Have you ever argued with someone and felt convinced you were right and the other person was wrong? When our emotions are triggered and we need to prove our perspective, it’s easy to spin out of control, even at the cost of the relationship. After calming down, we realize we’ve treated those we care about as enemies because we let our emotions cloud our vision of what is really important. 

It’s important to know why we lose control of our emotions. Diana, a former mentor of mine, suggested I think of it like keeping my feelings between two lines. Our emotions will always be fluctuating up and down; we don’t want to be flatlined. And yet when our emotions go above or below those lines, we’re in a dysregulated state and aren’t able to think clearly. Maybe you’re like me and feel judged when I believe I am alone in my struggles. We often assume we’re the only one going through dysregulation and wonder what is wrong with us? I’ve learned things we tend to think are unique to us are often universal. 

I experienced this regularly when my strong-willed son, Ryan, was a child. I wanted respect, and when I didn’t receive it, I got louder, I got angrier, and I yelled. The more dysregulated I became, the more irrational my son got as well. In his state of fear and escalation, he couldn’t respond the way I needed him to respond, or even the way he wanted to respond. I think that’s really important to consider when our emotions go out of the lines, no one is acting rationally. After I calmed down, I’d sit on his bed with him, feeling like an absolute failure. My son and I have a beautiful relationship now; he has forgiven me for my past anger and we move forward respectfully in our disagreements now. 

I used to fight so hard to be right even though, in the end, relationally, I lost. I’ve gotten much better at regulating myself more quickly as I’ve matured and sought growth in this area. After 40 years of marriage, I’ve come a long way to learning what a healthy, productive disagreement looks like. Let’s discuss five simple strategies that will help us celebrate our differences with those we love and deepen our relationships. It is so freeing when you can trust yourself to be agreeable even in disagreement. 

1. Gain Awareness of Your Triggers

We carry hurts from our past that trigger emotional reactions we might not be aware of. Consider the last argument you’ve had. What was really going on for you? I carry a sense from my childhood experiences that I can’t get anything right. When I’m corrected, that insecurity bubbles up and my emotions struggle to burst out of the lines. This trigger won’t necessarily ever go away, and now as I’ve dealt with the pain behind the experience, I don’t trigger as quickly or as frequently. 

2. Choose To Put Away Your Racket

We have the choice to act on our triggers or to recognize them for what they are and choose our behaviour. A racket is the way we behave based on the trigger, such as storming off in a huff, going silent, yelling, or making threats to gain the upper hand.  

We naturally go to these behaviours because we get something from it. I used to feel that by storming off, I could protect my self-esteem. From a few experiences in my childhood, I learned losing my confidence was so painful, preserving it felt paramount. The emotional benefit I got from storming off, in that moment, made the negative relational repercussions seem worth it. Our brains say, “Okay, I’ll just continue behaving this way because I get a benefit.” 

3. Understand People Do Things For Themselves 

People don’t generally do things to you; they do things for themselves. In those arguments, I was not intentionally trying to hurt my spouse, I was trying to protect myself. My bad behaviour wasn’t about him, it was my racket from past hurts. It was about me. 

Understanding people you love generally speaking aren’t out to get you, that’s so freeing! Our family loves the saying, “Hurt people hurt others and are easily hurt.” This puts bullying and arguments into perspective, and can help us gain control. 

4. Make the Effort to Break the Habit

Brain scientists are coming to understand that every time we act on a habit, the neural pathways in our brains get thicker and thicker. Eventually, these pathways become super highways. And like a highway, responses to follow that habit can be more frequent and faster. At this stage, we have to work hard to choose a different path. As soon as we are triggered, it’s very easy to act on it the same way we always have – such as storming off. There is no pause, no thinking about it. It’s automatic. 

In these cases, we have to build new stories, choose new thoughts that encourage us to leave our racket, and choose a different response. Decide that that super highway is going to become a footpath that you rarely use. 

5. Choose to View Our Differences As Strengths

I used to live in a place of, “I’m right. You’re wrong.” Over the years, my spouse and I  have discovered that no, we’re just different. We have different perspectives, personalities, and histories. Most times, we can both be right and it’s just a preference that we’re dealing with. And, ultimately I discovered that it really doesn’t matter who is right when we do right by each other. 

I struggled so hard with this concept. It’s embarrassing how much I struggled with it. I viewed compromise as both of us losing. Now, we choose to go to a place of collaboration. We metaphorically put our two perspectives together in a pot and cook a better stew, basically. And we’ve learned we come out with a synergistic solution that was better than one of our perspectives to begin with.  

My spouse and I still disagree. A lot. But we’ve learned we don’t have to be furious and miserable in our disagreements. We can choose to set aside frustration and be gentle and kind. I used to tell myself, “Do I want to be right? Or do I want to be happy?” Being right is not worth the cost of the relationship. Instead, I’ve decided that it’s “fascinating” when my spouse thinks differently. 

If you would like to learn more about this and other ways to develop an exponential life, you might be interested in our soon to be released book, “Lifeˣ: Simple Steps to Achieve Exponential Living.” If you’d like to learn more or pre-order your copy, reach out to us at together@dekkerteam.com. We’d love to make sure you get one of the first copies.