Friday, August 18, 2023

Your stomach dropped. How quickly your dream had become a nightmare!

Two years ago, you viewed a model home in your area and signed a purchase agreement in the subdivision. You put the 5% down and felt confident financially. It was a great decision. Your university buddy did the same thing several years ago. He bought a new build, and by the time the structure was ready two years later, the home’s value had already increased by $25,000! On someone else’s borrowed money! Your friend called it the power of Leverage.

Unfortunately, what you thought would be a good decision on your part turned into a mess. During the last two years, interest rates have gone up a lot! 3%, to be exact. Not only this, but the prices of homes have dropped! You went to a REALTOR® your dad recommended. He explained that your home is now worth $50,000 less than when you signed the purchase agreement! You’ve lost money before you even moved in!

How could this happen?!

Unfortunately, our team sees it happen. We often have people call us in this situation who didn’t use us to buy the new build or seek our counsel, and now, in the same position, are calling us for help. Most of the time, the people visit the builder’s site, their email is lead captured, and they go right to the dealer to find out more. If they had seen an experienced, trustworthy REALTOR ®, oh the heartache they could save saved or at least made a well-informed decision!

The exciting story about the university friend definitely does happen. Some people do make a good lump of cash very quickly if the market goes up between the purchase agreement and closing. Unfortunately, the opposite can happen as well. In these cases, without a solid margin, some buyers find themselves stuck between a rock and a hard place.

There is so much more to navigating buying a new build than meets the eye. Here are some things all potential buyers need to consider before checking out local new builds.

Call Your Guide FIRST!

Call an experienced real estate agent you trust! You need a guide on a big journey like this, who has your back, will help you know if the numbers make sense, and who won’t let you sign something you’ll regret later. Once you go on the website or visit a model home, you are considered the building company’s real estate client. At that point, a REALTOR® won’t be welcome to help negotiate on your behalf and is very limited in their capacity to help you. The best time to call us as your REALTOR® guide is before you login in online to start looking. Have us do the work on the front end to save you on the back end.

Interest Rate Lock-Ins

Buying a new build is different than a pre-owned home because your closing date is much longer than the purchase date. Typically one to three years later. Since people often worry about interest rates going up, with a new build, you may lock in the current interest rate, usually for 150 to 180 days. This means if the house closes during that time, that is the interest rate you can have on your mortgage, even if the lender rate has gone up during that time. In some cases, the builds are delayed for various reasons. I’ve heard of delays over a year longer than anticipated. If this happens, you may be past the 180-day mark, and suddenly you are paying a much higher interest rate. I’ve just seen a case like this when someone came to me for help. She now faces 3% higher interest rates and can no longer qualify for her mortgage.

Lowering Property Values

Like the university friend, in many cases, the property goes up in value between purchase and closing. Ottawa averages about a 5% yearly increase on average over the last 20 years; however, note that these are averages over decades. They are always speculative when you’re talking about a short period of time, like two years. If your interest rate changes before you close, you may be unable to afford the mortgage. So, what do you do? You decide to sell the property before you close. If the property sells at a lower amount than when you purchased it, you are now owing money even after selling the home! Someone I’ve met had a rude awakening when the house she bought at 620K was now only worth 585K when she tried to sell.

No Assignment Clause

You’ll want your REALTOR® to help you read through the fine print of the purchase agreement. You want an exit strategy if things go south between the purchase and closing dates! This would be the ability to sell the property before you close in case you can’t close on it after all! Some people in this situation are horrified to find out that a no-assignment clause was written into their contract. They hadn’t considered the risks in advance, and now their hands were tied until after they closed. Some condos even prevent reselling until the condo is registered or until the builder has sold their inventory or a certain date.

HST

If you buy a pre-owned home, you almost always don’t pay HST on the property. When you buy a newly built home, you do. If you’re buying a home valued at 698K, you pay 13% HST on top of that amount. Bringing the total to just over $788K. Usually, the builder builds in the HST, so they would list the price at $788,000, but not always, and missing that little clause could be a $90,000 error!

The good news here is the government offers HST rebates if your situation meets certain criteria. These rebates are not guaranteed and can be tricky to navigate. If you are buying a home to move into as your personal residence, most builders help you out by applying for the HST rebate on your behalf. Since they are going to be repaid by the government, they subtract the rebate amount from the purchase price of your home. They also typically include the remaining HST in the purchase price, so it’s no ugly surprise on closing day.

What you need to know then is the price you pay is not necessarily what the house is actually worth. You’re paying what it’s worth PLUS HST. If the total price of the home is 788K, just over 90K of that is HST. This means your house is valued at 698K. The resale value could be higher or lower than this based on what the market has done since you purchased.

If you decide to purchase the new build as an investment property, YOU must apply for the HST rebate yourself. The builder cannot apply for it on your behalf. Again this can be tricky to navigate, and it’s often difficult to meet the criteria. In either case, on closing, you’ll have an extra 70-90k that you need to be prepared to shell over the day you close. Make sure you know how much the builder is going to increase the price if you are not occupying the property for yourself or a family member. Really the price should only be higher by the amount of the rebate, but this is not typically what the builder will charge extra, so be aware.

A new build can be a great option for some people depending on the market, the interest rates, and their circumstances. In other cases, it is not a wise option at all. Before you begin looking, make sure you call your trusted real estate agent so that they can help you navigate the contracts, the pricing, the closing process, and a host of other things to consider to protect your interests.

If you’re interested in a new build, reach out to us before you hop online or visit the site to view the model homes. We want to make sure you have someone vying for your best interests rather than depending on someone who just wants to sell you a home. We want to make sure you get the clarity you need to make the best decision for you and your loved ones.

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.

  1. 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?’” 

  1. 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. 

March 17, 2023

If you played Monopoly as a kid, you quickly learned there is only one way to win: owning property. If you were like me, you coveted the two blue lots, Park Place and Boardwalk. I still recall feeling the thick, colourful wads of cash between my fingers and the glee I felt when someone landed on my properties and paid me rent.

The great news is that as adults, you have your entire life to play Monopoly with real money and properties. And unlike the game, everyone has the opportunity to win.

If you already own your residence, that’s fantastic. It’s the beginning of developing an investment mindset. When you are ready to refinance and invest in your next property, you’ll want to consider what type of rental property suits your goals and needs. Here are a few options you’ll want to consider in your decision-making.

Long Term vs. Short Term Rentals

Long Term Rentals

A property rented to tenants for a year or more is called a long-term rental. Commercial spaces are typically long-term rentals rather than short-term ones. Apartments and homes are also commonly rented with one-year leases. Long-term rentals are governed in Ontario by the Landlord Tenant Act, which has different guidelines than short-term rentals. A pro is that with a signed lease, you have a stable amount coming in each month that you can count on.

The cons relate to provincial regulations, making removing long-term tenants difficult. These regulations are a problem if a tenant isn’t paying you or causing problems with your other tenants. The restrictions also prevent landlords from raising the rent above a certain percentage each year. If the market shifts, you could be stuck with more expenses than cash flow.

Short Term Rentals

These rentals are properties that, like long-term rentals, you may own for a few months or decades. They differ from long-term rentals in that your tenants stay anywhere between a night and one year. This category includes properties you rent out as vacation rentals. In Ontario, the Hotel Act governs these types of properties. Before buying a property to rent it this way, check your local legislation. Some types of properties, such as condominiums, and some zones restrict short-term rentals. Others may require licensing. Location is essential to consider and must be desirable enough for someone to search out.

If you want a national vacation property, with the four very different seasons we have in Canada, you’ll be working with a seasonal rental. These can vary from a yurt, where your rental income outweighs the purchase price of the canvas structure, to a cottage on a lake. If your zoning allows it and your lot is large enough, you can place one of these on your land as an additional dwelling.

A great thing about short-term rentals is that you make more money per night than a long-term rental and can earn much more quickly. You can also raise the rate whenever you want to match market shifts. If your property is a vacation rental, you can book times to enjoy it throughout the year. If it is a three-season cabin, you will have a busy season and a winter break.

A con is that you will likely have many more vacancies throughout the year, so you may only make a little money overall than a long-term rental. Insurance may be significantly higher on these types of properties.

Short-term rentals typically require a lot more maintenance in that you need to keep collecting good reviews and have someone clean the unit between each tenant, and there is more wear and tear with so many more people using the space. Seasonal short-term rentals, in particular, tend to have unique challenges. They may require wood stoves and a steady fuel supply, creative plumbing, solar panels for electricity, guest rides by a four-wheeler or boat to the dwelling, and opening/closing work as the seasons change.

Local vs. National vs. International Real Estate Rentals

Local Rentals

These are properties close to where you live that you rent out. They may be in your city or a short distance from your home. It’s easier to understand the market because you already experience it with your primary residence. It’s also easier to arrange maintenance as you already may have a team of people you work with, such as a property manager, contractor, snow-blowing company, etc. It’s also easier to care for because you may hire a grass cutter while you hire one for your residence. Because you are so close, you can monitor the property by driving by, and you’ll see if there are maintenance issues.

A con is that if your local market isn’t doing well, you have more than one egg in the same basket. Because you live so close, tenants may also request things they might not otherwise do, such as frequently asking you for minor maintenance, such as changing a lightbulb.

National Rentals

National rentals aren’t geographically close to you; they may be in a different province but still in the same country. A pro with this is that you’re still operating with the same currency, laws, regulations, etc. These areas may be more desirable than where you live, such as where prices are low but rents are high. Your eggs are not all in the same basket geographically if the market where you live goes down.

A con of this location is that now you have to hire a property manager, and it’s not as easy to monitor. This might be worth it if the property appreciation is higher there than where you live.

International Rentals

Properties you buy outside your country and rent out have exciting opportunities and challenges. We recently purchased our first in Mexico, which we rent out as an Airbnb; it has two sides that face the most incredible beach with sailboats. We love this option because it offers us all the comfort of home since we know it’s our place. Unlike our guests, we can use it for a fraction of the price while still gaining equity. It primarily pays for itself due to the rental income. You’ll also have a diverse portfolio since your investments will be in two different real estate markets.

The cons of a property like this are higher carrying costs, maintenance, and management costs. It’s also riskier than a national investment because there may be laws you don’t know about, and ownership is not as straightforward as ownership here. You’re also dealing with a different currency, exchange rate that you don’t see coming, and language barriers.

Whatever rental strategy you choose, it’s worth selecting the type that best suits your lifestyle, needs, and goals. If you’re unsure and would like more information, contact us for a clarity call. We’d be glad to go over the options for your specific situation. We have made many real estate investments and can guide you around common pitfalls and dilemmas. Reach out to find guides who have gone before you and can help lead your way.

Friday, Mar. 3, 2023

It’s easy to feel restless in February when you feel spring coming, but it’s not yet here. Have you caught yourself gazing out the window, daydreaming of warmer weather? Many of us are tired of being cooped up in our homes all winter and are looking for a change! Maybe you look around you with new eyes and notice many valid reasons to sell your home.

If you’ve decided to sell, it can feel intimidating. For many, it’s like jumping into a world of unknowns. There is one question you’ll want to ask yourself. Do you have the capacity to increase the value of your home before you list it? Clarity on this will guide your next steps.

I don’t have the Capacity

You may feel like you’re done with the property. You need more funds, energy, and emotional bandwidth to make any repairs. We sometimes see these situations with a divorce or death in the family. In a case like this, getting the most money from the home in the state it’s in can be worth it.

When you list, it’s important to adjust your price to reflect the home’s current condition. You may also go with a shorter closing date.

I have the Capacity

If you have the time and headspace to put in some elbow grease to get the highest value for your home, your best strategy might be to focus on some renovation details. Details can make all the difference in getting the most out of your investment. Most of the time, these are simple changes that aren’t too expensive, yet make a massive difference in the price your home sells for. These will be specific to your property.

For example, if you have a beautiful 1972 bungalow that has been carefully maintained and is simply in an outdated style, it’s often best not to make any upgrades. In a case like this, there’s no point in replacing the kitchen, the bathrooms, or the floors. Why? You won’t get the full return on your investment.

If you have upgraded most of your home except the kitchen, in a case like this, it’s probably worth re-doing that room since it brings the whole property together. People won’t notice how wonderful the upgrades are; they’ll instead wonder why the kitchen was left out. Finishing the last room will give you the value of a finished package.

Since every situation differs, consider contacting us for a 15-minute clarity call. Clarity will move you forward with confidence and understanding, giving you direction as to what to do for your next step. 

Friday, Feb. 24, 2023

Do you recall a time when you made an instant connection with someone? It may have felt like you became immediate friends. You just seemed to “get” each other. If only all our relationships with people in our community could begin so easily!

As small business owners, it can be a lot more challenging to connect with those in our community because we don’t want to seem “salesy”. You may have met someone like that; you feel like they talk to you only because they want to remind you of their product. When I began my journey as a REALTOR®, I knew I didn’t want to just “sell” homes. I wanted to bring consistent value to those around me. I wanted people to see my name as someone they could depend on and who would enrich their lives.

In a competitive business environment, I’ve also learned that consistency is key when connecting with those you care about and outlasting those who try the business for a few years and then drop out. The integrity behind the consistency builds a framework of trust. Trust is invaluable, particularly when helping people with their greatest financial asset.

Over the last 35 years, the Dekker Team found three key ways to connect with our community. It was so successful we became a “by referral only” team. Here are a few ways we brought value to our area.

  1. Community Newsletter

One of the first things Yetta did was take on a newsletter. She didn’t realize at the time how much value it would bring. A couple at our real estate brokerage had a newsletter they used to make for our area called The Osgoode Bearer. They understood that a community develops over time. They were leaving the industry and so began looking at the 35 agents in our office. Yetta was new and doing well as a REALTOR®.

They chose her because they were watching her behaviour in the industry. They knew she would stick with it and continue the tradition. And we did. But, boy, was it a commitment! Back in the 1980’s, we didn’t have all the beautiful graphic design programs that people have today. We had to print pieces and then cut and paste them onto a larger paper. We used colouring book images for graphics. We spent about 40 hours a month designing the layout, printing it, and then folding it. It had great articles, real estate tips, fun stories, upcoming events, birthdays, classifieds, and a colouring section. Content we knew would bring people together.

It began as a monthly publication mailed to thousands of homes each month. At one point, we were printing 10,000 copies a onth. With green initiatives in the 2000’s and the cost of printing going up, we realized we’d need to switch to email. Also, by the time The Bearer was printed, many classifieds and properties for sale were outdated. Now, our newsletters are emailed with weekly themes, giving real estate updates, investing news, and more.

If you’d like to receive our Bearer, you can message us at together@dekkerteam.com or visit https://dekkerteam.com/the-bearer-submission-form/ to promote your business with us.

We have had many people come up to us and mention something they saw in The Bearer or tell us how much they enjoyed receiving it each month. Our daughter in love once surprised us when she shared how she remembers me dropping off a gift basket to her when she was seven. She had entered The Bearer’s colouring contest and won! She says this was the first time she had ever won anything and counts it as a special childhood memory. She says she still remembers seeing the smile on my face as I handed it to her, and she still recalls what was in the basket. How cool is that?

2 Radio Show

If you could speak to your community as a whole each week, what would you say? I used to feel I didn’t have a voice worth listening to and was terrified of public speaking. With experience, I’ve learned that as valued members of society, we each bring our unique voice to the group with our own needed creative perspectives. Our voices connect us together.

Ken and I took on was a weekly radio show called Life’s Inside Track on our local family radio station, CHRI.FM. To date, we’ve created over 587 episodes where we get to explore so much more than just real estate. It’s amazing.

This show is also a hefty commitment. Because we were totally new to making a radio show, initially, it took us over 10 hours to produce approximately 30 minutes of content. With four shows every month, it basically took us a full work week to complete one month of shows. We have streamlined the process over the years, and even still, it is a major commitment.

Why spend this time and money on it? We don’t have the ability to connect personally with everyone. There’s just not enough time in the day. With the shows, we can connect with people at a deeper level. We see this as an investment in our relationships because people can consider whether the information and experiences we’ve lived and learned from can bring value to them. We discuss how to live your best life. Things like building a great marriage, improving our health, creating stronger relationships, and how to grow generational wealth. We go deep into how to forgive, live wholeheartedly in relationships with others, and be present with the people around us. We have listeners often coming to us with stories of how they have been able to implement the content to enrich their lives. It’s also a great way to find people who align with us, and for people to find out if we align with them. For us, it’s great too because it makes us vulnerable. If I’m going to talk about something next week on the radio, I’d better live it out, right? Otherwise I’ll feel hypocritical. So it actually enhances our personal lives as well.

Our mentor, John Maxwell, once told us to do for one what we wish we could do for everyone. We do this in our daily relationships. We love how the radio show is one way we can do this for many.

If you’d like to get plugged in to our weekly Life’s Inside Track, you can listen every Friday at 9:30 EST on CHRI.FM, or you can visit our YouTube channel here:

https://www.youtube.com/@DekkerTeam/videos

3 Family Gatherings

Have you ever received a personalized note from a local business? Maybe it was a letter in the mail or a gift basket celebrating a special event in your life, like a new baby or a new home. It feels wonderful to be recognized and cared for by those we entrust our business with, doesn’t it?

We have found a small gift as a thank you gift for trusting us to help you buy your first home… well it’s just not enough. We don’t want to give a parting gift. Why? Because we don’t want to part! We see those as more of a breakup. We want to stay in our clients’ lives. We want our message to be, “Welcome to the family!”

At the beginning of her career, Yetta would visit people at their houses on a consistent basis. Eventually, exhaustion took over, and she began getting into car accidents. As she connected with more and more people, she stopped having the capacity from a time perspective to invest in staying connected one-on-one. It was hard to stop because Yetta knew the relationships were valuable. Our family began getting invites for dinner at our clients’ homes, along with invitations to birthdays, weddings, and baptisms. We felt like we were part of peoples’ families.

That was when we created the Dekker Team Family Events. We consider all our clients and people who support us through referrals as part of our Dekker Team family. And as we experienced, they viewed us as family as well. The idea began as a chance to meet with everyone once a year to mingle and enjoy an experience. Celebrate life, have fun, build relationships, and make memories together. People enjoyed the event so much that we began building confidence and now have four events each year. First, we committed, and then after the commitment, we developed our confidence.

We have had great success with these events, along with some busts. Sometimes we would budget for a certain number of people, and the group that would show up was much smaller. We would think, “Ahhh, we just spent hundreds of dollars per person!” After one event, I remember lying under a table and crying until they kicked me out of the event hall. Through trial and error, we’ve found four that work well for our community.

Our first event each year is sharing a meal together. We used to do a great chilli and pie cook-off. We recently switched to bringing chilli and dessert that we could all share while offering our client family the opportunity to get professional photos by local photographers. The second event is strawberry picking, where families meet up with us and pick complimentary baskets of berries. The third is similar in the fall, where we pick apples together, go on hayrides, pet rabbits and sheep at the farm’s petting zoo, and our clients take home a free bushel of Macintosh or Lobos. The winter experience we have together is a horse drawn sleigh ride out to find their complimentary Christmas tree, and then share hot chocolate and cookies around an open fire.

It’s funny, people tell us things like, “We’ve never picked strawberries before.” It’s fun to be part of making new family memories. You may already be part of the Dekker Team family and if not that is OK because we want to welcome you in. Of course you could buy, sell or invest in real estate and that would get you in. The other way is to consider us your go-to Real Estate family by referring family, coworkers or friends to us. We look forward to welcoming you to the family.

Friday, Feb. 17, 2023

Did you know journeying to wealth is like hopping on a train? So many of us feel we have to be holding the golden ticket of guaranteed success in order to have the confidence to climb on. Happily, as we’ll discover, confidence is not the place to start! Let’s take a close look at 3C’s needed for a successful trip on the real estate investment train. With this understanding, we can choose significant strategies to build each of the three on our journey to wealth.

  1. Confidence Belongs in the Caboose!

Almost everyone who begins investing in real estate starts with some fear and trepidation. After all, if you’ve never done something before, why would you feel confident? Should you even feel confident? Many of us worry that if we aren’t confident, then we must be acting recklessly.

I, Ken, have built my confidence over the decades through investing. I didn’t start with that feeling. And even now, I still sometimes feel nervous; this happens when I take on a larger project than I’ve done before, or if it’s a different type of project or a different situation. Like the first time I bought an apartment complex when I had previously worked on singles or duplexes. Or the first time I began working with a partner.

If we use the analogy of a train, confidence is actually the caboose. It comes at the end. If we assume we need confidence to start, we’ll never begin. And really, if we have confidence with something we’ve never done, it’s possible we are living in delusion. We’re likely putting the cart before the horse.

  1. Commitment is the Engine!

If confidence is the caboose, then what is the engine? Commitment. I must be committed to do the thing before I can ever hope to build confidence. I’d like to suggest that being committed to something is different than being interested in something. We all have things we’d like to see in our lives: our ideal weight, a large investment portfolio, or a new habit. If we are just wishing and not taking the steps to make it happen, we’re not actually committed.

What does commitment look like? It means we don’t give up when we hit an obstacle or someone tells us it’s a bad idea. Or when we are tired or afraid. Commitment moves us beyond our comfort zone and through the desert until the task is complete.

How do I gain this kind of dedication to something? We’ll find this behind our why and our motive. Why do I really want this? Why is it worth striving for? What’s my motive in doing this? What is so essential about accomplishing it?

Investing in real estate has moments that are hardand discouraging. You won’t get there until your mindset has the stick-to-it-ness to push through.

  1. Next Up: Courage!

Courage is key to investing in real estate. You need the will to act despite not knowing exactly what is going to happen. Not knowing all the elements that are involved. Even if I have a great strategy and a great plan, I don’t have a crystal ball; I have to have the courage to execute the plan.

Let’s say I have fear. Does that mean I don’t have courage? Actually, you can act in spite of fear, so courage doesn’t mean you aren’t afraid. Courage is moving towards a worthwhile goal despite your trepidation. This doesn’t mean running out and buying a property tomorrow. Courage means taking the next logical step.

If you are stuck wondering what the next step is, reach out to us and let’s book a 15 minute investment clarity call. Just starting the conversation takes courage. Leave us a message and say you’d like to get some clarity on your situation when it comes to investing. There you go, that’s your first step. We’ll lay out some next steps for you, and you may take the courage to do them soon or at some point. Or maybe you’ll realise it’s not for you. And that’s great because if you don’t start the journey, if you don’t hop on the train, you’ll never know.

When Yetta and I bought our first investment property, I was petrified. Petrified, and we did it. What was my motivation? We had a client who couldn’t sell his property and we wanted to help bail this person out. In fact, our first four investment properties were all based on helping our clients. Because I wanted to help them, that helped me fight through my fear. My why was bigger than my worry.

Another thing that helped Yetta and I build our courage was finding and modelling what worked for others. We read books, went to seminars, and talked to a lot of people. Over the years we’ve also had role models and mentors who have gone before us. In your case, maybe the Dekker Team might be a great place to start. We’ve done it right many times and we’ve also done it wrong a few times. We probably understand all the things you would be contending with.

Another thing Yetta and I have found so helpful is affirmations. I don’t mean ones that aren’t actually true yet, like, “I’m a great investor,” or, “I own 50 investment properties,” because your brain knows those aren’t true. You’re not fooling anyone. I love to say things like, “I’m a courageous investor,” or, “I love the idea that I’m building wealth by investing in real estate.”  Telling myself this daily moves my mind in the position to help me build my courage and navigate obstacles.

Some people say, “Fake it until you make it.” In this case, I’d recommend telling yourself, “Do it in spite of your fear.” Take the next step. Give us a call. Send us an email at together@dekkerteam.com to find out your next step.

For the fourth C on your investment journey, watch our Life’s Inside Track episode, All Aboard the Investment Train. 

February 10, 2023

Ditch Your Overwhelm with the Powerful 4D Approach

A few years ago, a coach of mine encouraged me to look at my sense of overwhelm differently. She suggested that I use the word “fascinated” to put a positive spin on the situation. Instead of looking at things with hopelessness, she pushed me to see them as interesting puzzles for me to solve or to find the answers to. I have found it so helpful that I now use this vocabulary all the time! If you ever hear me saying I am in a “fascinating” situation, you can bet I am working through a state of overwhelm!

Is it possible to plan or organize our way out of feeling overcome by all the to-do’s in our lives? You bet! Now, we can’t avoid it completely as our vehicles will inevitably break down at some point, a loved one will have to go to the hospital, and we will eventually fail at something that will create a mess we have to clean up. And yet we can still plan for what we know we do have on our plates. With what we know we have going on a daily, weekly, monthly, and yearly basis, we most definitely pave the way for a more peaceful day to day state of clarity and focus.

Well, what’s this powerful system, you ask?

Step 1: Brain Dump Onto A List

Go ahead! Grab a piece of paper and a pen. Write down everything you think of onto one huge list. I recommend walking around the house to do this as each room will probably trigger things that you might otherwise not think of. The birthday party you want to plan for Grandma? Jot that down! The groceries you have to buy? The passport you need to update? The book outline you’ve been planning to write? The Go Pro you received for Christmas and haven’t had a chance to try yet? Put it all down on the list. You’ll find there is a combination of things that are halfway done, things you want to start, things you need to do, and things you want to do.

Expect a list of 40 to 60 items if you are anything like me.

Step 2: Categorize the list

This is an important step because it helps you wrap your brain around what you are really looking at. You’ll want categories such as Maintenance, Relationships, Work, Health, Financial, Kids, Spiritual, Fun, etc. These categories will help you prioritize what’s most important to you.

Step 3: DELETE

Ask yourself, what can you delete? What is really not that important? What can you actually say, “I really don’t ever have to do that.” If the task isn’t going to make that big a difference in your life, maybe just delete it. It’s nice, but it’s really not that important. Considering the other things on your list, this one really isn’t that much of a priority. You wrote in the list because you’d like to do it eventually, but you’re not committed enough to ever actually make the time for it. We all have several of those floating around in our minds. Save yourself the mental bandwidth and just delete it.

Step 4: DELEGATE

What can you hand off to someone else? Do you have a team who works for you who has the space to take this item on? Are you already paying others to do what you are taking on yourself? Or maybe you can contract this item or hire it out to someone else? If you own rental properties, maybe it’s time to hire a property manager. If your house is dirty and you can’t stay on top of it, maybe you need to hire a cleaner. Or, can you divide and conquer some of the household chores or maintenance with others in your home? Perhaps it’s worth hiring a lawn mowing or snow blowing company.

Step 5: DELAY

What are the items I can delay? What things have been on my list for a while that I still really want to do – I’m not willing to delete them – but I don’t need to do them right now. The scrapbook I’ve wanted to start. The class I want to take. Maybe you want to dig a new garden out back and you think it can wait until next spring. Identify the things that would make more sense to do when you have more free time. You’ll find that if you intentionally delay them, they won’t weigh so heavily on you than if you are delaying them because you feel powerless to find the time. Intention brings a sense of control. And feeling out of control is a big piece of becoming overwhelmed.

Step 6: DO

Find the things you are going to do. Just do it, like Nike says.

This is a 2 pronged approach. First pick the things that are fast to accomplish. These are things that are done once they’re done! They can be done in a day, and they’ll give you a sense of completion and success. These things can free up a great deal of head space and remove your sense of urgency and panic. Each day you will pick 1-3 of these items, depending on how long each will take. This way, you experience a sense of accomplishment in knocking at least one item off your list. And make sure to celebrate that!

Next, identify one or two of the most important things that will take some time to accomplish. Add one or 2 of these to your list each day. Then, if you complete these things, great. If you don’t, you still made progress on one of the most important things.

So that’s it! Use this list to plan your day the night before. Eliminate the stress and chaos. Drop the feeling of powerlessness. Say no to overwhelm. Choose what is most important to you.This clarity and intentionality is a key stepping stone to creating the life of your dreams.

For more incredible insight on designing a LIFExponential, one LIFEstep at a time, email us at together@dekkerteam.com. We’ll send you more information about our upcoming book, Lifex : Simple Steps to Achieve Exponential Living. If you are looking to take your enjoyment, happiness, and personal fulfillment to even greater heights, whether you need to take one step or many, you are looking for Lifex

home equity analysis Dekker Team real estate ottawa

February 3, 2023

With the shift in the market, inflation, and changing interest rates, pinning down an accurate view of your current equity can feel challenging. You might be concerned about inflation, rising interest rates, fewer multiple bids and prices dropping. We have many people asking, “Am I okay?” “Are my finances going to be okay?” “Am I going to lose even more?” “Did I make a mistake by buying in 2022?”

First, we need to consider what equity is in its simplest form. Equity is what your home is worth, minus what you owe on it. For example, if you bought a house for $250,000 and had a mortgage balance of $200,000, then your equity would be $50,000. Usually what you owe is your mortgage, unless you have a line of credit. If you have both, you would owe the sum of your mortgage and line of credit.

How Does Equity Grow?

Equity grows when the value of the asset increases over time, or when you pay down your mortgage balance over time. If both of these things happen simultaneously—meaning that the value of the asset goes up while you are paying down the mortgage—then your equity will grow even faster. However, if values in your area decrease, then your equity may appear to go down. This could happen if the property has been owned for less than 10 months since values could have gone down in that time period. And that is what we think is the major cause of frustration for many people this year. Since the Ottawa market is traditionally so stable, many people I have spoken with who bought in 2021 and 2022 are looking at the situation with fear and trepidation.

Great News #1

A key factor many people are forgetting about is interest rates. If you bought a few months ago, you probably purchased at a very low interest rate. Hopefully you went with a locked rate.

If you’re locked in, your payment is still a little less than someone who buys at a lower amount now with the current higher interest rates. This makes a great difference over the long run, even if your house were to sell for $150,000 less today than it would have last February or March.

This means that although you purchased at a higher price, your monthly payment is actually lower than someone who is buying now. Isn’t that interesting? If you bought the same property at a lower price today, you would have higher payments each month. Over the next five years the difference will be minimal.  Prices typically go up over time and I suspect we will be over our high price of 2022 before 2030.

Great News #2

This is another important factor to consider: you don’t buy a house for a one year term, you buy it for the long haul. If you consider the last 10 years, 20 years, or 30 years, home increases have held strong at about 4-5%. It’s unlikely that this will change over the long term, even with the Covid blip. Since we spent so much time in the last three years where home increases were higher than 5%, and actually in the double digits, it’s likely that the market will correct itself.

What has changed is that the market now has a new normal high that someone is willing to pay for a property. This means that there is the potential for a quick rise in the market during February and March, given the higher threshold we have become accustomed to.

The Dekker Team is here to offer you hope. If you are concerned about your situation, just pick up the phone, or send us an e-mail at together@dekkerteam.com. We can provide you with an annual equity review to accurately assess your current financial status.

Ken is the President of the Ottawa Real Estate Board and has up to date, expert advice. Who better to talk to for a clarity call? Don’t get your advice from sensationalized media, your neighbours, or random websites. We’ll sit down with you and go over the structured program that we have devised for our clients. You’ll know where you stand with accurate information.

Whether you have been a Dekker Team client in the past or not, we’re glad to sit down with you. The worst part is not knowing. So, let’s get you the answer. Clarity is a major piece of your overall financial health.

January 27, 2023

A survey in 2021 found that 1 in 10 Canadians aged 15 and older reported that they “always” or “often” felt lonely. Most of us agree that healthy, fulfilling relationships are critical to our mental wellbeing. So, what’s the secret to building new friendships and developing the ones we already have? Let’s look closely at 3 key factors you can utilize to create meaning and depth with others in your life.

1. Frequency

Frequency means how often we’re connecting with another person. At a basic level, you may have encountered someone often, such as a person at the post office. The first 5, 10, maybe even 15 visits, you may not share more than the most basic pleasantries. By your fiftieth trip to the post office, more than likely you know the employee’s first name, how many kids they have, definitely where they work, and you have connected in a friendly way.

Do you recall the 1980’s show Cheers? The intro song’s lyrics were, “You want to go/ Where everybody knows/ Your name.” Ken has sometimes spoken about a life changing book he read called, The Like Switch: An Ex-FBI Agent’s Guide to Influencing, Attracting, and Winning People Over by Jack Schafer. At one point, the author’s nephew went to him for advice and said, “I’m moving to a new town. What do I need to do to meet people?” The spy’s advice was, “Be intriguing and be frequent.” So the nephew began frequenting a bar at the same time each day. He got to know the bartender because bartenders always connect with you while serving you. The nephew knew he needed to be intriguing and happened to be a collector, so he brought his collection of whatever that was. The bartender soon began introducing him to other patrons, and he began building relationships with others. Because the other patrons didn’t come in regularly at the same time, the bartender was the common denominator who connected them when they did. Without this, the nephew wouldn’t have gotten to know the others.

Frequency is particularly important at the beginning of a new relationship. When I, Yetta, met Virginia, one of my current best friends, we knew we wanted to get to know each other more. We found we needed to connect in some way every couple of days, even if it wasn’t a long conversation, for our friendship to grow and develop. Now, even though we are close, we still find this important. We set aside a regular time each week to talk.

Intentional frequency is so important because it demonstrates commitment. It shows that you are interested enough in pursuing the relationship with the other person. Think of dating. If your date wants to get together once a month, that gives you a very different message than someone who wants to get together with you every other day. My husband Ken and I are together because we sat together in math class every day in our 1979-80 year together in high school. Ken actually decided this wasn’t enough time to get to know me and started showing up at school early each morning in the library where I sat with my friends. This frequency created opportunity for something more.

Well, what about close friends we may only connect with every few years? But when you do get together, you reconnect quickly. I have an awesome sister who lives in Barrie, several hours away. When we get together, it’s like no time has passed. And yet our friendship isn’t continuing to grow or develop beyond where it is because our connections are infrequent. Our relationship is good; it’s not bad, and there is no dysfunction between us. We’re just not that close, definitely not like we could be, because we don’t see each other frequently enough. You may have a friend like this, where when you see each other, it’s like you connect where you left off. And, maybe ask yourself, was there relationship growth in the interim? Or is it only when you make time to see each other that your relationship actually develops and gets deeper?

2. Duration

When I say duration, I basically mean the quantity of hours or time in with a person. Wait, you’re thinking, isn’t quality more important than quantity? Well, let’s test that theory.

I think we can all agree kids want quality time with their parents. In my experience with relationships, quality comes from quantity. Imagine you are at a restaurant and the waiter encourages you to get the filet mignon. He insists it is the most juicy, best quality steak on the menu. It arrives, and it’s the size of a dime. And you are left thinking, “Yes it’s delicious, but so what? I should have ordered the t-bone because now I’m still hungry!”

Your children don’t want the best quality of 30 seconds with you a day. They need quantity with their quality. I’ve found that with our kids and grandchildren, the quantity often allowed the quality to show up. If I ask my grandson Greysen, “What is the best thing that happened to you today?”, I’ll usually get the standard, “I don’t know,” response. Whereas if we’ve spent the afternoon building a puzzle together, playing a game, or doing something that makes them laugh – and then I ask him the question, he has a very different answer. He’s already engaged. The quantity gave room for quality.

This concept really hit home for me during the epidemic. I had a single friend Ken and I met at a conference. After covid hit, we included her in our bubble, since the government guidelines allowed for this in our area. She lived over an hour away from us, and since she couldn’t travel and had to work from home, she often stayed at our place, sometimes for up to 7 days at a time. This went on for the duration of the pandemic.

At one point last year, we were out together and somebody asked, “How long have you known each other?” I started saying, “18..” Before I could finish my next word, the woman interrupted saying, “Years? Yes, I can tell you guys have known each other forever.” And I said, “No, 18 months.” That is what concentrated lengths of time will do in any relationship that’s worth the effort.

3. Depth

Depth in this case means shared experience. This can mean making memories together or learning more about the other person by tapping into what’s important to them.

For example, my daughter Candice went to Denmark with my father last year. As they walked through his hometown and saw the home where he was born, the place where he worked his first job, the route he used to take coming home from school, it brought their relationship to a new depth. My father is a man of very few words, and yet he so appreciated Candice taking the time and interest in him and his life. The things he endured and the things he enjoyed. The shared experience of traveling together. When they returned home, they even got matching tattoos in memory of their time together.

Another example of developing depth through shared experience can be moving towards a common goal with someone, or working on a project together. Maybe it’s a male thing, but a man working side by side, shoulder to shoulder with other guys creates meaning in those relationships. Many times Ken has volunteered assisting a widow or elderly person with a group of men to help fix their house. Changing a window or putting in drywall, the guys don’t typically talk a lot, except for, “Help me move this piece of plywood” and “pass me that hammer.” When Ken sees these men again in the community, he has more respect and appreciation for them because of what he saw during their time together.

Another way of building that depth is being interested in the other person. I remember our coach Joe Stumpf, a real estate guru, sharing that it’s more important to be interested in another person than to be interesting yourself when building relationships. While on a business trip, Joe and a friend tested the theory in a hotel lobby. They chose two ladies who were sitting by themselves. Both Joe and his friend were married; they had no interest in picking them up. But they did want to test their theory. So, they went over.

Joe and his friend started asking them questions about them, such as where they worked, what they did for a living, their hobbies, about their families, their dreams, about things that mattered to them. The conversation went deep quite quickly. And each time one of the ladies said, “Well tell us about you,” the men would say, “Oh, we’re not really interesting. But what about this?” and continued asking more about them. This was all in a very polite, kind, pleasant manner. At the end of the conversation, one of the women said, “You guys are the most interesting men we’ve ever met.” And they knew next to nothing about the men. So, whether they were actually interesting or not didn’t matter, because their interest in what was important to the women made the men worth getting to know.

Frequency, duration, and depth. If your relationships aren’t developing the way you’d like them to, I hope this has given you a clearer understanding of a way forward. Relationships gain value as we bring time, effort, and meaning. What action step will you take today?

If you’re interested in hearing more relational wisdom, email us at together@dekkerteam.com for your advance copy of our newest book, LIFEx: Simple Steps to Achieving Exponential Living. 

January 20, 2023

Need more money in order to invest? 

Many people we speak to would love to sink their teeth into a rental property – but need more money each month to help them save for their first. If you do shiftwork, picking up an extra shift may be a great idea. For those on salary, options are a little more limited. 

Happily, with more and more opportunities to work from home, you can find ways to cut costs and put those savings into building a downpayment. Here are a few that might make the most sense for you: 

1. Maintain Your Work Hours

Did you previously spend two hours a day commuting to and from work? Don’t use those additional hours to sleep in after binge watching Netflix; maintain your schedule and invest that time in leveling up. Ask your employer or manager what courses would benefit the company the most or move you to a higher pay bracket. Perhaps it’s upgrading your degree or gaining a specialized skill.

2. Downgrade Your Cell Phone Data

Now that you are spending more time at home, you are much closer to your own wifi for most, if not all, day. This change makes a big difference if you’re used to browsing data sucking social media platforms like Instagram, Twitter, Facebook, and YouTube while commuting to work. Call your phone provider to see if a drop in data might save you $20 or more a month. 

3. Rethink Your Vehicles

Whether we’re on a new hybrid work schedule or are completely working from a home office, we’re not putting the mileage on our car like we used to when commuting to work each day. Continue to set aside the same amount you would spend on gas and maintenance and transfer it to a savings account. If you live with your spouse, working from home might mean you can now do with just one vehicle. Perhaps you can carpool or work alternate days. If you live alone but are close to the city, it might make sense to sell your vehicle and begin taking the bus. This change saves you expensive car payments, insurance, and maintenance costs. 

4. Ask for a Reduction in Your Auto Insurance Premiums 

If you aren’t using your car for work, you may qualify for a better rate on your car insurance. You can search through online platforms to compare rates. Make sure to talk to your insurance provider representative on the phone to see what kind of deals he or she can give you. 

5. Consider Relocating

Yes, the most dramatic we kept for the end. This might be a feasible option for you depending on your personal relationships and prior commitments. Perhaps you can move ten or twenty minutes further from the city where you live, or even to another city or province where the cost of living is less. House prices can drop considerably the further out you go. This move might free you up with more than you realized for a downpayment on a rental. If this sounds crazy, consider whether it would be crazier to stay where you are if a move meant retiring ten years sooner!

It’s critical in all this that you make plans for your savings! Tabulate all the savings you now generate each month and follow through with moving these savings to a separate account. This ensures you don’t raise your standard of living and do get that much closer to your next investment property. 

Want to watch the video instead? Check out Part 1 on our YouTube channel: https://youtu.be/KPs8MAOB8dU

How to Thrive While Working Remotely

Saturday, January 14, 2023

Working from home can be a great way to remain productive and efficient in your job, but it’s not without its challenges. One of the biggest drawbacks of remote work is the lack of human interaction and the potential for feelings of isolation. Additionally, virtual meetings can take a toll on your energy and motivation, leading to online meeting fatigue. To ensure you stay productive and engaged while working remotely, follow these tips to combat isolation and tackle online meeting fatigue.

Establish an Ideal Work Environment

One of the first steps to tackling isolation while working from home is to create an ideal work environment. You may not be able to change where you work, but you can change how you work by creating an ideal work environment. This includes separation from other living spaces if possible so when you go in that area you are at work and when you leave you are at home. In order to get the most out of your remote work experience, make sure you have everything you need to work comfortably and productively.

Connect with Colleagues

One of the biggest drawbacks of remote work is the lack of human connection. To combat this feeling of isolation, make a point of connecting with colleagues regularly. This can be as simple as participating in a daily stand-up meeting (or perhaps virtual scrum) with your team. When you connect regularly with colleagues, you’ll feel more engaged and connected, and you’ll be able to tackle challenges together and celebrate successes. On top of connecting with your colleagues regularly, make sure you are building a strong support network. This can include coaches, mentors, and peers with whom you can share challenges and celebrate successes. This support network can help you stay motivated and engaged while working remotely, especially after celebration and collaboration with colleagues has waned.

Take Breaks

Working from home can be a very long day if you don’t take breaks. One of the biggest issues with working remotely is that it’s easy to become immersed in work for long periods of time, and that can lead to burnout. To combat this, make sure to take breaks throughout the day. On top of this, take time to celebrate your wins. If you are struggling with isolation or online meeting fatigue and need to take time away from work, it’s important to take a break from work.

Change Your Perspective

Working from home can be a very isolating experience, especially if you live in a rural area with few other working professionals nearby. To help you change your perspective and not feel so isolated, make a point of immersing yourself in the online communities surrounding your work. Engaging with these communities will help you feel more connected and less isolated, will help you stay informed about industry trends, and can provide you with opportunities to network and collaborate with other professionals.

Take Time for Fun

Working from home can be a very rewarding experience, but if you don’t take time for fun, you may find it hard to stay motivated. Make sure to take time for activities you enjoy, whether that be going to the movies with friends, hitting the gym, or hanging out with your family. When you take time for fun and engage in activities you enjoy, you’ll feel more motivated and engaged in your work. These tips can help you overcome isolation and tackle online meeting fatigue while working from home. When you follow these tips, you’ll feel more connected, more energetic, and more productive.

Want to watch the blog instead? Check out Part 1 on our YouTube channel: https://www.youtube.com/watch?v=TgP6p_LIxR0

Ottawa Real Estate: Tortoise or Hare?

Friday, January 6, 2023

If you were to describe Ottawa’s real estate market, would you say it is more like the tortoise or the hare? What does it matter, you ask? Well, if the market acts like a hare, the strategy for investing is likely a get in and get out quick method. If it is like a tortoise, the buy and hold strategy makes more sense. So which situation are we in?

Let’s set the context by getting historical. Between 1960’s and the early 2000’s, positive and negative shifts in the market were pretty negligible as it never took too long for the numbers to readjust and balance. Year over year brought a fairly consistent 4 to 5% increase. There were moments when the market acted like a hare, such as during the early and late 1990’s when increases went into the double digits. However, each time the market soon balanced out; the overall the experience was very much like watching the tortoise plodding down the race track.

Next thing you know, it felt like we grew big feet and long ears and began sprinting down the race track. A lot of people assume the real market increase began during the pandemic. In actuality, we were on the move before then as we were almost at double digit increases in 2019. However, the pandemic threw the market into a real sprint when in 2020 property sales hit an increase of 19.9%. And then even more so when 2021 brought a 22% gain on average. It is noteworthy that this was not a localized event but rather a global trend. Ottawa buyers, sellers, and investors really felt out of their comfort zone with the instability.

The year 2022 cooled the market down and brought us back to around 5 to 7% increases. It’s important when considering this year in particular that this is an average trend. It is misleading if taken as a monthly measure. We saw very high increases in February and March with high sales volumes in the hot spring market. Values of homes went up an average of almost $100,000 during this time. The last half of 2022 saw interest rates rising with prices and volume falling from what we had in 2021. The reason we sat at a positive number during the year as a whole 2022 was because of the extreme volume of business and the hike in prices in the first half of the year.

Again, are we in a tortoise or hare situation? The reality is, we’re in a bit of both. However, over the long run, we’re in a marathon, and slow and steady does eventually win the race. When you interpret the market this way, the concepts become a lot less confusing. If you look at the overall trend, the last 60 years brought us about 4-5% increases, with relatively minor adjustments year over year. If you look only at the last 20 years, those averaged about 6.9%.

And so, I project there will be an overall correction in 2023 of about minus -10% over the whole year once the dust settles. Don’t worry though, the sky isn’t falling. Because it actually already fell in the last half of 2022. While values did go up to 7% in 2022, they really only did, as we just explained, in the spring of 2022. Since then, the market already began to correct.

You may have already noticed that statistics themselves can be confusing and sometimes quite concerning when they aren’t partnered with a responsible interpretation. While you are listening to market updates, remember that sensationalizing market trends is quite commonplace in most forms of media. News reports tend to state only the stats that work to sell newspapers or other media content. We strongly recommend that you go to the source. Call the Dekker Team to assess how this all affects you wanting to buy or sell. Averages are fine, but the truth is Ottawa and surrounding areas are made up of hyperlocal small markets that need to be considered as well.

So, understand that when we look at the high season months during February and March of 2023, and we compare it to where we are now, it will feel like we’re looking at a loss of 20%, maybe 30% or even possibly worse. Interest rate hikes will be a key factor in the first half of 2023.

Our government has been increasing interest rates in order to combat inflation. It will be a balance because if rates rise too much, the economy can stall, jobs will be lost, and we would slip into a recession. At this stage, they are slowing down in rate increases, like the USA. It will probably take two Bank of Canada announcements where they don’t change the rate for the buyers to stop waiting.

There is still a high demand, but many buyers are waiting. We have more houses now and are a larger city; yet, we are still lower in inventory than what is typical. The average number of days a residential property sits on the market is 30 days, which really isn’t bad. Actually the higher interest rates have stabilized the market.

The three factors that really drove those increases were high demand, short supply, and extraordinarily, historically low interest rates. The affordability is similar now compared to Feb of 2022. Interest rates are up, but prices are down. So the cost to move into a particular property is really only about a $50 to $100 difference per month than Feb of 2022.

In February, homes sold like hotcakes. Now, if you bought a property in February, don’t panic. Yes, some of the value has gone down. But like I said, real estate ownership is a marathon, not a sprint, right? And recognize that if you had chosen to rent in those months, you would likely have been paying the equivalent to a mortgage, except that it would have been someone else’s mortgage!

If you’re concerned and don’t understand how the market shift will affect your real estate assets, your ability to buy a different house, sell what you have, or even buy an investment property, a 15 minute clarity call with us is probably a great move. Give us a call at 613-860-4663. We’ll be delighted to help you explore your particular situation.

So, what’s going to happen in the next few years? Well, we’re not going to pull out our crystal ball because we don’t have one. Clarity as to why you are buying or selling is powerful.

The most important question to ask yourself when considering your real estate future is to ask what your motive is. Why do you want to make a move? Why do you want to invest? Because, what we’ve seen in almost 35 years in the Ottawa real estate market, is that people are always moving. There has never been a market, whether it was during an upturn or a serious downturn where people stopped buying and selling because life still happens. People still get married, babies are still born, people still relocate jobs, and unfortunately, there are still deaths and divorces. There are always enough reasons; empty nesting, new graduates with their debt finally paid off, you name it, it happens. And so, in a way, the market is always stable because there will always be reasons for people to sell and buy.

There is a great saying, “Time your life, not the market.” It’s true, you need to time your life because the market will always balance out. Or, as we like to say, “Time your life, commit to the house and date the rate.” Because the reality is, interest rates will change, and ultimately over the long haul, property values increase.

Currently, the Ottawa market is a balanced market, even though it doesn’t necessarily feel like it. Right now, Ottawa has about 3.6 months of inventory. Between 2 and 4 months worth is considered a balanced market. At this stage, there isn’t a lot of extra pressure on sellers or buyers.

If we look at the lower teens of the 2000’s, most of those years were a reasonably balanced market. They were not an extreme seller’s market, nor were they an extreme buyer’s market. At that point, sellers were sitting with their properties for about 45 to 50 days. Right now, sellers are sitting with a little over 30 days. That tells us there’s still demand when the right house comes up at the right price. It still sells in a fairly expedient manner.

A lot of this sense of imbalance comes from the fact that we’re still reeling from the shifts in 2020. Thirty days on the market is fast, and yet after what we just went through, it feels slow. During the pandemic, it was normal to sell a house in one or two days. The only reason documentation is recorded as being on average 7 or 8 days on the market is because people were holding offers for those 7 before accepting one of the multiple bids. So, technically it was a one day market, even though the stats don’t reflect this.

This yet again is why it’s so important that we are not taking data and making it mean something it doesn’t. So, time your life, which is just looking at what makes sense for you and your particular situation.

And if you’re thinking, “Well, I need more data”, “I need more information”, “I need to consider more things,” then a 15 minute clarity call will help you move forward with confidence and understanding. Moving forward might mean you decide to sit down with us for an hour and we come over and see your property or it could be you do nothing further. But, the clarity call will give you direction as to what the next step is. And that’s really all we’re looking for. What’s the one next step? Because we can’t take two at once. I tend to fall flat on my face when I try to take two steps at the same time.

The beauty with our experience is that we’ve worked in down markets, we’ve worked in up markets, and we’ve worked in flat markets. We can tell you with confidence that as long as you have a down payment, as long as you still have equity in your house, if you are moving within the same market, it actually doesn’t really matter whether it’s an up market or a down market. That’s because if your house has gone down in value, so has the price of the house that you want to buy. If your house has gone up, the house you want to buy has gone up in price as well. If you are upsizing or downsizing, percentages will change things and a conversation in this case is very beneficial.

Some situations are quite interesting. During the pandemic, some people refinanced their properties, but they didn’t move because there was so little inventory. Now that prices have dropped, they are in a great state of affairs because they locked in a low interest rate. In this case, it’s really an ideal time to move, especially if your mortgage is portable. A portable mortgage means you can take it with you. So, if you’ve got an extremely low mortgage rate, you could buy the house that you wanted to buy two years ago but you put off because the market was too crazy. And you can bring your rate with you. So you take advantage of both the lower prices and the low rate. If you might be in this situation, call your mortgage agent, call your lender, and find out if your mortgage is portable.

Finally, although many people feel hesitation in this market, maybe there doesn’t need to be hesitation for you. Maybe it’s just a matter of looking at your specific community and situation. We can do a custom search for you after we have that clarity call. You’ll know what to watch for and feel in the know, because when we’re in the know, we make wise decisions.

Clarity is essential to create success and achieve the goals that are meaningful. We’re honored to be on this journey with you of building wealth through real estate and living a life exponential.

Want to watch the video of this blog? Check out Part 1 on YouTube: https://www.youtube.com/watch?v=em57fRVLot0

Are Rates Getting To You?

Wednesday, October 12, 2022

Right now in the real estate market, you might be asking yourself, “Is the sky falling?”

My response would be: “It’s not falling, and it is a bit cloudy out there!” Right now, with the real estate market all over the place and the rising interest rates, people are getting a little concerned.

We’re going to consider the true impact of our situation, particularly here in Ontario. The great news is, we are heading in a good direction! So far since 2020, sellers have had a bit of a sprint and buyers have been shaking their heads. The trend is changing. Let’s look at the numbers and see how.

1. Inventory levels are rising 

During the pandemic, buyers had a tough go with only 1900 properties for sale in August 2021. This was between half and one month of inventory in most areas in Ottawa, and in most price ranges. This August, we had 3000 properties on the market, bringing us closer to our pre-pandemic days of August of 2019 when we had 3200 listings.

2. Inventory levels indicate that we are still in a strong seller’s market.

While inventory levels are much closer to where we were in 2019, sellers continue to have more options than buyers. This summer, we had 2.7 months of inventory on the market. It is helpful to understand that:

  • 1-3 months of inventory – buyer’s market
  • 4-6 months of inventory – balanced market
  • 7-9 months of inventory – buyer’s market
  • 10+ months of inventory – a depressed market

To realize how bad things were back in 2020, some months sellers had half a month to 1 month of inventory in most areas in Ottawa and in most price ranges. In August 2021, we were sitting with 1.2 months of inventory. This means we currently have twice as much inventory than we did last year. In the pre-pandemic time of August 2019, we were sitting with 1.8 months’ worth of inventory. This is a much larger increase with our current state at 2.7, getting much closer to a balanced market.

3. The seller’s market is still strong, but it’s no longer out of control

Sales dropped to 1100 in August, compared to 1550 in August of last year. This means buyers now have many more options and are no longer scrambling for the first house they think they can afford. Previously, the attitude was, “Oh that’s a house? I’d better put in an offer!” The worst story we had heard was of a buyer who put in 55 offers before finally getting a home.

Recently, we had a beautiful, young couple come to us to buy their first home in a fairly sought after neighborhood. After finding one they liked, we put in an early offer over asking with no conditions. The seller received a second offer and still decided to wait for a few more days, following the strategy sellers were using in 2021. In the meantime, there was enough inventory that our client found another home that they liked just as much, put in an offer, and bought it. That earlier seller may have been left with a lower offer, or no offer at all. Previously, buyers had to sit tight and wait because nothing else was available on the market. Now, a buyer even has the option to put in conditions.

4. The market is still strong for sellers who are pricing properly

Things are, in some ways, becoming better for sellers as well. While the increased prices were appreciated by sellers in 2021, we noticed many really didn’t enjoy the selling experience the way they normally did. The sense of desperation in the extreme marked (market)influenced many to either move out for a week, or even spend the week living in their car. This closer move to a balanced market is benefiting both buyers and sellers.

5. The price drop is counteracting the rising interest rates

So many people have been panicking about rising interest rates. Let’s look at the math to see that the news really isn’t so grim. In a stable market like Ottawa, the market should never increase 25% a year. This quickly outpaces people’s affordability, a factor which inevitably drives prices down.

Let’s look at the numbers. In Feb. and March of 2022, the average price for a home was $800K. Now in August, it’s down to $675K. That is a $125,000 decrease in price! Since March, interest rates have gone up about 2%. So, if you had a 2.59% mortgage back in the spring, now you are looking at a 4.59% fixed rate. Previously, if you wanted to buy that average $800K home and you saved up 10% to put down, which is $80D (K), your mortgage was about $742K. Your monthly payment would be $3,358 on a 25 year amortization period.

Now, in August, let’s imagine you want to buy the same house. In the current market, it would be listed at $675K. If you have the same 80K to put down as in the previous scenario, your mortgage would be $613K due to the price drop. With the interest rate of 4.59%, your monthly payment would be $3,426.

This is a $68 difference. For many, $68 a month is not the difference between being able to afford a house or not. More likely, it means skipping dinner out once a month. Or bringing your own coffee rather than stopping at Tim Hortons. If you really can’t afford that extra amount, the great news is, you only need to buy a house that is $12K less, at $663K. You may lose some element you would like, or require some DIY work around the house. However, you won’t have to change the type of house you want for that amount.

It’s good to know too that you can always find a motivated seller, and it’s possible to negotiate that $12K off the asking price. Recently, we helped another client submit an offer on a property with multiple offers. We went in under asking with no conditions, and got the house. It’s always key to remember, “What is the asking price based on?” We always look into whether the number is realistic and accurate.

The great news for current buyers is that your mortgage and downpayment amounts will both be less than they would have been if you had purchased at the height of the seller’s market in 202.

Overall, interest rates and dropping prices mean that housing affordability hasn’t shifted that much over the last year.

Our numbers are based on the Ottawa market on average and should be treated as such. If you would like to know about your specific area, book a 15 minute clarity call with us! It’s so important to have someone go through your situation with you and ask the questions you need to consider to make your best decision.

market update market quote ottawa real estate realtor myottawa
Want to watch the video of this blog? Check out Part 1 on YouTube: https://www.youtube.com/watch?v=2du1UfYOKSg&t=5s

Buyers’ Remorse is Real

Wednesday, October 5, 2022

Recently we purchased a new condo in Mexico. I, Yetta, needed to go for a week to get it ready for turning it into an Airbnb, so I gathered four of my girlfriends to come with me and turn it into a fun holiday. We were all so excited to see the new place. The condo is a stone’s throw from the beach, with three balconies and spectacular views. You’d think I’d have the vacation of my dreams, right?

Like most buyers, I had a few pictures to help me remember what the home looked like – and like most buyers, the strongest impression I had of the condo was the wonderful FEELING I got when I first viewed the property. As a realtor, you’d think I’d know better than to assume the feeling would stay – and I didn’t.

After the girls arrived, they were all walking around going, “This is awesome!” I, on the other hand, became increasingly upset as the first day went on. Technically, it’s called “buyers’ remorse.” For me, it felt more like frustration and agitation.

I think what got me into this day was I didn’t expect it. Even though we’ve had many properties over the years, I’d never actually experienced buyer’s remorse. As a RealtorⓇ, I have the conversation with my clients to set them up so they don’t experience it. So I assumed I wouldn’t either.

What made things worse was I had never actually been IN the condo. I had seen the property and pictures of the condo, but I’d never seen it with my own eyes. And so, while the girls saw the spacious interior and stunning views, my hyper critical eagle eye noticed the peeling paint, broken appliances, and electrical issues. Not only that, but as a RealtorⓇ, I saw everything professionally that wasn’t right with the house or the property. It was the most expensive property I’d ever purchased for myself. It was the perfect storm to hit my emotions, and I began to spiral.

I kept thinking, “I just want my money back!” I felt overwhelmed with doubt and uncertainty. You know that queasy feeling in your gut? I was sick to my stomach. So while the girls were exclaiming over everything, the negative comments stood out to me and what was intended to be good comments I interpreted badly. All my feelings were playing in and cluttering my perception of what was really going on.

I forgot until later that the awful feelings that came next can be a normal part of the home purchasing experience. It was the sense that I bought something really, really big. And that I made a huge mistake. Did I really make a mistake? At the time, I would have very boldly insisted, “Yes, I did!”

My friends were very confused because nothing actually happened out of the ordinary. They were wondering, “What is going on? Why on earth isn’t she happy?” What had happened was simply a perspective switch in my own mind.

So what causes buyers’ remorse exactly?

It’s commonly one of two reasons.

  1. You viewed the property with rose coloured glasses.
    Many homeowners can experience this because when they purchase the property, it is fully staged. Nobody’s lived there for a week, they vacate, they make it perfect, they vacuum their way out of rooms, and then just make it perfect, right? No finger marks on the windows, nothing.

Then you get your final walk through when the previous owners haven’t cleaned the house for a few weeks. And you’re unpacking, and everything’s everywhere. And it will destroy your memory of what was there.

Or even, maybe you don’t have a final walkthrough and now it’s close in time and you move, you go there, you get your keys, you’re all excited. And you got the memory of a stage, magazine quality property, you move in and all their gorgeous furniture is gone, the lines might be gone, the paintings are gone. There’s holes in the walls and you can now see the grime and stains hidden by paintings, furniture, and rugs. Or you see every mark on the cabinets, because there’s nothing to take your eye away from every little issue.

  1. The finality and financial cost feel hefty.
    Maybe you can’t sleep because you know you’ve made one of the biggest decisions of your life. Perhaps you are becoming hyper aware of the financial aspect and you don’t feel prepared. And you go oh, did we do the right thing?

So what do we do when we have buyers’ remorse?

We’ve talked many clients through the process. The first thing is just to recognize that could happen, right, as we talked about in the earlier segment, and that is kind of natural.

The next thing I would do is, ask yourself, what would you ask someone to ask themselves if buyer’s remorse happened to them? It really makes less sense to basically turn the question on yourself. Ask yourself “what is good about this decision? What caused you to make the decision in the first place? Why did you make this decision?

When I asked myself, I thought, “Oh, well, because of proximity to town and you can walk to, like 50 restaurants. Because the beach is in front of your face, and you can reach out and touch it. The pool is right there. It’s got its own hot tub. It’s a two storey so when we have guests, or even my parents, they can be on one level. We can be on another so we have privacy, even if all the grandkids come.” The reasons for us were huge.

And when I began focusing on that, I was able to put the 13 years of deferred maintenance into perspective. The more I thought about it, the more I realized how small those issues were compared to the benefits of the property. It was much easier to feel calm after that.

So, if you are caught in the snare of buyer’s regret, ask yourself, what was your reasoning in the first place? What was your motivation? And does the property still meet that motivation? Yes, there might be some extra elbow grease and sweat labor or money’s gotta be invested to bring it up to your expectation level. But do the original reasons that motivated you to buy it still apply?

Here is another interesting thing to consider about buyer’s regret. Often property purchasing is a team effort, particularly between significant others. What do you do when you are the one excited, and your spouse is the one upset?

It can be an ugly situation. There can be tension because both people are in two different emotional states. It can be hard for you not to go into problem solving mode because you want to convince your partner to feel the same way. And you don’t want them to break your bubble of bliss.

We strongly recommend that in this case, you allow the person to feel what they feel and to be where they are. And to allow them the space to talk it through. Actively listen and respond to where they are at, such as, “Yeah, that’s tough.” Then, when the person feels heard, begin asking them what motivated them to make the purchase in the first place, as a gentle reminder.

It is key to remember that there’s a process and the emotion will pass and it does not mean that it’s a mistake.

If you have bought a property and are experiencing buyers’ remorse; or if you are about to make a purchase and would like to prepare yourself for the roller coaster of emotions you may experience, book a consultation with us. We’d love to help you navigate the process. We’re in this together!

Want to watch the video of this blog? Check out Part 1 on YouTube: https://www.youtube.com/watch?v=em57fRVLot0

Are Rates Getting To You?

Wednesday, October 12, 2022

Right now in the real estate market, you might be asking yourself, “Is the sky falling?”

My response would be: “It’s not falling, and it is a bit cloudy out there!” Right now, with the real estate market all over the place and the rising interest rates, people are getting a little concerned.

We’re going to consider the true impact of our situation, particularly here in Ontario. The great news is, we are heading in a good direction! So far since 2020, sellers have had a bit of a sprint and buyers have been shaking their heads. The trend is changing. Let’s look at the numbers and see how.

1. Inventory levels are rising 

During the pandemic, buyers had a tough go with only 1900 properties for sale in August 2021. This was between half and one month of inventory in most areas in Ottawa, and in most price ranges. This August, we had 3000 properties on the market, bringing us closer to our pre-pandemic days of August of 2019 when we had 3200 listings.

2. Inventory levels indicate that we are still in a strong seller’s market.

While inventory levels are much closer to where we were in 2019, sellers continue to have more options than buyers. This summer, we had 2.7 months of inventory on the market. It is helpful to understand that:

  • 1-3 months of inventory – buyer’s market
  • 4-6 months of inventory – balanced market
  • 7-9 months of inventory – buyer’s market
  • 10+ months of inventory – a depressed market

To realize how bad things were back in 2020, some months sellers had half a month to 1 month of inventory in most areas in Ottawa and in most price ranges. In August 2021, we were sitting with 1.2 months of inventory. This means we currently have twice as much inventory than we did last year. In the pre-pandemic time of August 2019, we were sitting with 1.8 months’ worth of inventory. This is a much larger increase with our current state at 2.7, getting much closer to a balanced market.

3. The seller’s market is still strong, but it’s no longer out of control

Sales dropped to 1100 in August, compared to 1550 in August of last year. This means buyers now have many more options and are no longer scrambling for the first house they think they can afford. Previously, the attitude was, “Oh that’s a house? I’d better put in an offer!” The worst story we had heard was of a buyer who put in 55 offers before finally getting a home.

Recently, we had a beautiful, young couple come to us to buy their first home in a fairly sought after neighborhood. After finding one they liked, we put in an early offer over asking with no conditions. The seller received a second offer and still decided to wait for a few more days, following the strategy sellers were using in 2021. In the meantime, there was enough inventory that our client found another home that they liked just as much, put in an offer, and bought it. That earlier seller may have been left with a lower offer, or no offer at all. Previously, buyers had to sit tight and wait because nothing else was available on the market. Now, a buyer even has the option to put in conditions.

4. The market is still strong for sellers who are pricing properly

Things are, in some ways, becoming better for sellers as well. While the increased prices were appreciated by sellers in 2021, we noticed many really didn’t enjoy the selling experience the way they normally did. The sense of desperation in the extreme marked (market)influenced many to either move out for a week, or even spend the week living in their car. This closer move to a balanced market is benefiting both buyers and sellers.

5. The price drop is counteracting the rising interest rates

So many people have been panicking about rising interest rates. Let’s look at the math to see that the news really isn’t so grim. In a stable market like Ottawa, the market should never increase 25% a year. This quickly outpaces people’s affordability, a factor which inevitably drives prices down.

Let’s look at the numbers. In Feb. and March of 2022, the average price for a home was $800K. Now in August, it’s down to $675K. That is a $125,000 decrease in price! Since March, interest rates have gone up about 2%. So, if you had a 2.59% mortgage back in the spring, now you are looking at a 4.59% fixed rate. Previously, if you wanted to buy that average $800K home and you saved up 10% to put down, which is $80D (K), your mortgage was about $742K. Your monthly payment would be $3,358 on a 25 year amortization period.

Now, in August, let’s imagine you want to buy the same house. In the current market, it would be listed at $675K. If you have the same 80K to put down as in the previous scenario, your mortgage would be $613K due to the price drop. With the interest rate of 4.59%, your monthly payment would be $3,426.

This is a $68 difference. For many, $68 a month is not the difference between being able to afford a house or not. More likely, it means skipping dinner out once a month. Or bringing your own coffee rather than stopping at Tim Hortons. If you really can’t afford that extra amount, the great news is, you only need to buy a house that is $12K less, at $663K. You may lose some element you would like, or require some DIY work around the house. However, you won’t have to change the type of house you want for that amount.

It’s good to know too that you can always find a motivated seller, and it’s possible to negotiate that $12K off the asking price. Recently, we helped another client submit an offer on a property with multiple offers. We went in under asking with no conditions, and got the house. It’s always key to remember, “What is the asking price based on?” We always look into whether the number is realistic and accurate.

The great news for current buyers is that your mortgage and downpayment amounts will both be less than they would have been if you had purchased at the height of the seller’s market in 202.

Overall, interest rates and dropping prices mean that housing affordability hasn’t shifted that much over the last year.

Our numbers are based on the Ottawa market on average and should be treated as such. If you would like to know about your specific area, book a 15 minute clarity call with us! It’s so important to have someone go through your situation with you and ask the questions you need to consider to make your best decision.

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Want to watch the video of this blog? Check out Part 1 on YouTube: https://www.youtube.com/watch?v=2du1UfYOKSg&t=5s

Buyers’ Remorse is Real

Wednesday, October 5, 2022

Recently we purchased a new condo in Mexico. I, Yetta, needed to go for a week to get it ready for turning it into an Airbnb, so I gathered four of my girlfriends to come with me and turn it into a fun holiday. We were all so excited to see the new place. The condo is a stone’s throw from the beach, with three balconies and spectacular views. You’d think I’d have the vacation of my dreams, right?

Like most buyers, I had a few pictures to help me remember what the home looked like – and like most buyers, the strongest impression I had of the condo was the wonderful FEELING I got when I first viewed the property. As a realtor, you’d think I’d know better than to assume the feeling would stay – and I didn’t.

After the girls arrived, they were all walking around going, “This is awesome!” I, on the other hand, became increasingly upset as the first day went on. Technically, it’s called “buyers’ remorse.” For me, it felt more like frustration and agitation.

I think what got me into this day was I didn’t expect it. Even though we’ve had many properties over the years, I’d never actually experienced buyer’s remorse. As a RealtorⓇ, I have the conversation with my clients to set them up so they don’t experience it. So I assumed I wouldn’t either.

What made things worse was I had never actually been IN the condo. I had seen the property and pictures of the condo, but I’d never seen it with my own eyes. And so, while the girls saw the spacious interior and stunning views, my hyper critical eagle eye noticed the peeling paint, broken appliances, and electrical issues. Not only that, but as a RealtorⓇ, I saw everything professionally that wasn’t right with the house or the property. It was the most expensive property I’d ever purchased for myself. It was the perfect storm to hit my emotions, and I began to spiral.

I kept thinking, “I just want my money back!” I felt overwhelmed with doubt and uncertainty. You know that queasy feeling in your gut? I was sick to my stomach. So while the girls were exclaiming over everything, the negative comments stood out to me and what was intended to be good comments I interpreted badly. All my feelings were playing in and cluttering my perception of what was really going on.

I forgot until later that the awful feelings that came next can be a normal part of the home purchasing experience. It was the sense that I bought something really, really big. And that I made a huge mistake. Did I really make a mistake? At the time, I would have very boldly insisted, “Yes, I did!”

My friends were very confused because nothing actually happened out of the ordinary. They were wondering, “What is going on? Why on earth isn’t she happy?” What had happened was simply a perspective switch in my own mind.

So what causes buyers’ remorse exactly?

It’s commonly one of two reasons.

  1. You viewed the property with rose coloured glasses.
    Many homeowners can experience this because when they purchase the property, it is fully staged. Nobody’s lived there for a week, they vacate, they make it perfect, they vacuum their way out of rooms, and then just make it perfect, right? No finger marks on the windows, nothing.

Then you get your final walk through when the previous owners haven’t cleaned the house for a few weeks. And you’re unpacking, and everything’s everywhere. And it will destroy your memory of what was there.

Or even, maybe you don’t have a final walkthrough and now it’s close in time and you move, you go there, you get your keys, you’re all excited. And you got the memory of a stage, magazine quality property, you move in and all their gorgeous furniture is gone, the lines might be gone, the paintings are gone. There’s holes in the walls and you can now see the grime and stains hidden by paintings, furniture, and rugs. Or you see every mark on the cabinets, because there’s nothing to take your eye away from every little issue.

  1. The finality and financial cost feel hefty.
    Maybe you can’t sleep because you know you’ve made one of the biggest decisions of your life. Perhaps you are becoming hyper aware of the financial aspect and you don’t feel prepared. And you go oh, did we do the right thing?

So what do we do when we have buyers’ remorse?

We’ve talked many clients through the process. The first thing is just to recognize that could happen, right, as we talked about in the earlier segment, and that is kind of natural.

The next thing I would do is, ask yourself, what would you ask someone to ask themselves if buyer’s remorse happened to them? It really makes less sense to basically turn the question on yourself. Ask yourself “what is good about this decision? What caused you to make the decision in the first place? Why did you make this decision?

When I asked myself, I thought, “Oh, well, because of proximity to town and you can walk to, like 50 restaurants. Because the beach is in front of your face, and you can reach out and touch it. The pool is right there. It’s got its own hot tub. It’s a two storey so when we have guests, or even my parents, they can be on one level. We can be on another so we have privacy, even if all the grandkids come.” The reasons for us were huge.

And when I began focusing on that, I was able to put the 13 years of deferred maintenance into perspective. The more I thought about it, the more I realized how small those issues were compared to the benefits of the property. It was much easier to feel calm after that.

So, if you are caught in the snare of buyer’s regret, ask yourself, what was your reasoning in the first place? What was your motivation? And does the property still meet that motivation? Yes, there might be some extra elbow grease and sweat labor or money’s gotta be invested to bring it up to your expectation level. But do the original reasons that motivated you to buy it still apply?

Here is another interesting thing to consider about buyer’s regret. Often property purchasing is a team effort, particularly between significant others. What do you do when you are the one excited, and your spouse is the one upset?

It can be an ugly situation. There can be tension because both people are in two different emotional states. It can be hard for you not to go into problem solving mode because you want to convince your partner to feel the same way. And you don’t want them to break your bubble of bliss.

We strongly recommend that in this case, you allow the person to feel what they feel and to be where they are. And to allow them the space to talk it through. Actively listen and respond to where they are at, such as, “Yeah, that’s tough.” Then, when the person feels heard, begin asking them what motivated them to make the purchase in the first place, as a gentle reminder.

It is key to remember that there’s a process and the emotion will pass and it does not mean that it’s a mistake.

If you have bought a property and are experiencing buyers’ remorse; or if you are about to make a purchase and would like to prepare yourself for the roller coaster of emotions you may experience, book a consultation with us. We’d love to help you navigate the process. We’re in this together!

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