Real Estate Bits

Most investors understand the importance of building a diversified portfolio - one that includes stocks for growth potential, bonds for stable returns, and cash for security. But that's just the first step.

Having some exposure to global markets can help to reduce risk and increase potential returns - two of the main reasons for diversifying an investment portfolio.

You can invest up to 30% of the book value of your registered Retirement Savings Plan (RSP) in foreign investments.

Holding investments in just one small corner of the world means that your portfolio is tied to that market's performance. When the trend is up - as it has been in Canada over the past year or so - that's great. But, as history has shown, market leadership tends to change from one year to the next.

The most effective way to protect against declines in Canada's market is to diversify into other geographic areas. After all, Canada represents just a small portion of the world's investment opportunities - most estimates put the number between 2% and 3%.

Some of the world's largest and fastest-growing companies are based outside our borders. In addition, certain sectors have their largest centres outside Canada - high-tech in the U.S., consumer products in Europe, and electronics in Asia.

Many Canadian investors diversify their portfolios with U.S. stocks and U.S.- based mutual funds. While U.S. exposure certainly has merit, it is important to remember that the U.S. and Canadian markets are highly correlated. In other words, they often move in the same direction at the same time.

For truly effective diversification, consider investments in markets that aren't highly correlated with Canada's. Markets outside North America - in Europe, Asia, and Japan, for example - are less correlated with U.S. stocks than are Canadian stocks. This can help to reduce the overall risk in your portfolio.

As the past year has shown, fluctuating currencies are another reason to look beyond the U.S. for diversification. The loonie has been soaring, relative to the U.S. dollar. So, even though U.S. markets performed well, some of those gains were eaten away when converted back into Canadian dollars.

By holding investments based on a variety of currencies, you reduce the negative impact that a decline in any one currency can have on your portfolio.

So diversifying your portfolio internationally looks like a sound strategy. But how do you actually go global?

The fund route. For most investors, the easiest and most convenient way to add some international flavour is with professionally managed mutual funds. The Canadian market offers hundreds of mutual funds that invest outside of Canada. Global mutual funds can provide your portfolio with foreign exposure, growth potential, and the diversification appropriate for conservative and more aggressive investors.

Do it yourself. Many companies that are listed on Canadian or U.S. exchanges have sizeable interests outside of North America. You'll need to do some research into the company's activities to find out how much foreign activity is involved and where it's located.

Self-directed investors can purchase foreign shares directly from foreign exchanges. With U.S. shares, the process is straightforward and the shares can be held in a Canadian account. For exchanges in other countries, however, you may need to open an account with a foreign brokerage. Bear in mind that getting information on foreign companies and dealing with foreign trading rules and regulations can be cumbersome and expensive.

An easier way to purchase foreign shares is to buy companies that are available as American Depositary Receipts. These are shares of non-North American companies that are held on deposit in the U.S. and trade on a U.S. exchange in U.S. dollars.

Exchange-traded funds (ETFs) are another way for self-directed investors to add global diversification. ETFs are index-based investments that offer exposure to a basket of stocks from a number of regions around the world.

Speak to your financial advisor or your broker about strategies to enhance the global reach of your portfolio.

Regards,

Nino.

"Tricks Of The Trade"

Have you ever gone into a paint store and found the "perfect" paint chip colour for your living room - strode right up to the counter and slapped that little paint chip down on the counter and with great confidence said, "I'll have a gallon of this please". Sounds easy doesn't it? Then the questions start:

Do you need a primer?
Do you want the primer tinted?
Will you be washing the walls?
Is this being used in a high traffic area?
Do you want latex or oil based paint?
Are you painting yourself or have you hired a professional?
How will you be applying the paint?
What finish would you like?
What colour is the ceiling? Are you using flat paint on the ceiling?
What finish is the trim?
Will you be living in the house as it's being painted?

Wow! What started out as a simple trip to the local paint store has become an interrogation of extraordinary proportions! Who knew that paint was so complicated? We all realize that there are different qualities to paint - from the "run right off the wall types" to the high end "designer"paints. There is a budget for everything. Most people decide on a paint with a solid reputation such as Benjamin Moore or Para - hire a painter and get on with the job. If you paint yourself then you will be familiar with the paint you like and the results it brings to your home.

Painting is a relatively inexpensive and fun way to change the feeling of the rooms in your home and also the exterior doors, trim, porches, decks and out-buildings. You can create different moods in your home, add flair and colourful accents, change a room from bright and bold to calm and relaxing - all with a brush and roller, a ladder and a little can of paint. To help you manoeuvre through the maze of paints and finishes the following may be helpful:

Oil based paints are often (not always) used in kitchens, bathrooms and play rooms for kids.
Oil based paints are also used frequently on trim and doors.
Latex based paints are usually used in the principal living areas of a home. They dry quickly and don't have the heavy "fumes" scent of most oil based paints.
Paints come in a variety of finishes and you may use any number of them throughout your home.

Flat: A very matte finish - no sheen. A great choice for ceilings or low traffic areas of your home where you want to diminish fault lines or imperfections.
Ceiling Paint: Specific for use on ceilings - the matte finish doesn't reflect light and surface imperfections almost disappear.
Velvet: A tiny step up the ladder from Flat with minimal sheen.
Eggshell: Used extensively used on walls. It can be wiped down (not aggressively washed) and has a slight sheen.
Semi-Gloss: This paint has a slight shine and is used extensively on trim, doors and higher traffic areas where there may be moisture from the outside such as mudrooms. Some people like a semi-gloss for trim and doors.
Satin & Pearl: These 2 finishes are very similar - a bit more sheen than Eggshell and a wonderful choice for kitchens, bathrooms and trim.
Primer: A must have over newly installed drywall, repaired areas and a good base for your finish coats. Primer can also be tinted the colour of your finish coat. Some painters will use tinted primer and a top of the line single finish coat. It can be a little less expensive than plain primer and 2 finish coats.
High-Gloss: Some people still use this finish on exteriors, decks etc.

Always speak to your painter about your requirements but at least you now know some of the right questions to ask as you navigate through the madcap world of paint!

Okay, Okay - Here's "The Joke"

Libby was sitting at a bar enjoying an after work cocktail with her girlfriends when an exceptionally tall, handsome, extremely sexy middle-aged man entered. He was so striking that Libby couldn't take her eyes off him. The young-at-heart man noticed her overly attentive stare and walked directly toward her. Before she could offer her apologies for staring at him so rudely, he leaned over and whispered to her, "I'll do anything, absolutely anything, that you want me to do, for $20.00 on one condition." Flabbergasted, Libby asked what the condition was. The man replied, "You have to tell me what you want me to do in just three words. " Libby considered his proposition for a moment, then slowly removed a $20 bill from her wallet. She pressed the money into the man's hand along with her address. She looked deeply into his eyes, and slowly purred ...

"Clean my house."

Guest Columnist

Gene and Maureen Logel - Your Hosts

"Kildonan House - Bed & Breakfast"

WebSite: www.kildonanhouse.com

E-Mail: logel @kildonanhouse.com

Bus: 1- (519) 482-1163 Fax: 1 - (519) 482-1143

71 Kirk Street, Clinton Ontario N0M 1L0

It was love at first sight when Toronto residents, Gene and Maureen Logel, saw Kildonan House. The majestic Italian-style villa, a heritage home in Clinton, was built in 1867 by Richard Irwin, a local grain merchant. The magnificent home has a grand ballroom, parlour, library, formal dining room, original fireplaces, wide hallways and spacious bedrooms, each with a private bath. At the turn of the twentieth century, Dr. William Gunn who owned the house, renamed it after his home town in Scotland and Kildonan House became the site of many social events.

Maureen and Gene decided to make Kildonan their retirement home and to re-open it as a Bed and Breakfast. They have filled the home with comfortable and functional antiques, some dating back to the late 1700s. Guest amenities include a heated pool, air conditioned bedrooms, a common Butler's pantry with fridge, sink and kettle. A full cooked breakfast or lighter fare is available every morning. The ballroom and parlour can accommodate small receptions and seminars. The gardens are beautiful, quiet places to sit and read or engage in conversations.

Clinton is a beautiful small town with businesses that include a spa, a slot casino and horse racing. On the outskirts of the town there is the Hullett Marsh and Conservation Area, as well as biking and hiking trails, the Woodlands Golf Course and fly fishing. Kildonan House is a 15 minute drive from the Blythe festival, Bayfield and Goderich. It is only 35 minutes west of Stratford.

Kildonan House is perfect week end getaway, or a home base for theatre going and country excursions. Guests are encouraged to make themselves feel at home and enjoy the whole house and gardens.

Regards,

Gene & Maureen.

Ask An Expert?

These are just some of the professionals who can help you with your home ownership concerns. If you subsequently choose to establish a business relationship with any person/company then you should be sure to define the specific details of the relationship or business contract before you proceed.

The above article(s) provide information that is of a general nature only and is never intended to be a substitute for advice specific to your particular concern. No one should act upon such information without appropriate advice and/or consultation.

Client & Networking referrals are the foundation of a successful real estate agent’s career. Over many years in this industry I have enjoyed the confidence & repeat business of my clients. I appreciate your on-going support and want you to know that I will always look after friends & colleagues you refer to me with professionalism, care and respect.

Please Call Me With Any Real Estate Questions.
I'm Always Here To Help!

Rosemary Wright

Sales Representative - Sutton Group-Bayview Realty Inc.

Bus: (416) 483-8000 Fax: (416) 463-0159

Web-Site: www.rosemarywright.com

E-mail: mail@rosemarywright.com

Direct Page: (416) 582-1216

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The intent of the newsletters - "Real Estate Bits " & "Real Estate Bits -2" is to provide information to you regarding real estate. Personal details such as your name, contact information and address are never revealed to anyone without your consent. In accordance with the new Privacy Act, your consent must be given (either implicitly or explicitly) to receive these newsletters. If you do not want to receive my newsletters - please notify me. My newsletters are not intended to solicit Buyers or Sellers who are currently under contract with any Broker.

The information and opinions contained, statistics and articles are courtesy of TREB, CMHC or other individuals or companies and are believed to be reliable, but their accuracy is not guaranteed. Sutton Group-Bayview Realty Inc. and Rosemary Wright accept no responsibility whatsoever for any loss arising from any use or reliance on the accuracy and timeliness of the information contained herein. Every endeavour is made to ensure accuracy. These newsletters do not render financial, legal, accounting, home inspection or professional advice. They are for general educational purposes only. They do not offer do-it-yourself advice. We encourage you to always contact the appropriate professionals or specialists to address your individual needs.

"Real Estate Bits - 2"

June 2005

Money Matters...

"Tricks Of The Trade"

Okay, Okay - Here's "The Joke"

Guest Columnist

Ask An Expert?