"Real Estate Bits - 2"

March 2005

Money Matters ... & ... Much More

Presented By: Nino Pasquariello - Manager - Scotiabank

(416) 932-3034

E-Mail: nino.pasquariello@scotiabank.com

Spring Cleaning "To-Do List For Your Finances"

Touching up the scratched paint in the hallway. Replacing those missing tiles in the bathroom. Refinishing the kitchen cupboards. Raking the yard. Turning out your closets. You no doubt have your own list of special tasks on your spring cleaning agenda.

But what about your personal finances? They deserve at least as much attention as the duvet cover in the guest bedroom.
Below are some timely tips on making your finances sparkle:

Sweep away high-interest debt:
Are you in the habit of carrying an outstanding balance on your credit card? Typically, the interest charges can be quite high. Department store or retail cards may charge even higher rates of interest.

To reduce your total interest costs, consider taking out a line of credit to pay off your outstanding card balances. You'll be left with just one monthly payment, at a significantly lower rate. If the line of credit is secured - by your home, for example - you'll get an even better rate.

Tip: If you are carrying loans where the interest is deductible (such as loans taken out to earn taxable investment or business income), remember that the interest rate you're paying is reduced by your marginal tax rate.

For example, if you're in a 40% tax bracket, a 5% loan where the interest is deductible costs you only 3% after tax. It may be to your advantage to let these loans ride while you focus on reducing non-deductible debt.

• Your will
• Powers of attorney
• Health care directives
• Life insurance policies

Spruce up your home insurance:

If you purchased your home insurance more than five years ago, double-check to make sure your coverage is sufficient. Chances are you've added to the contents in your home, and you may need to increase your coverage accordingly.

Tip: Many insurers will offer you a discount on one or both policies if you have both homeowner's and automobile coverage with the same company.

Polish your portfolio:
This is an ideal time to conduct a mini-review of how your investments are doing. After all, you need to gather all your information together anyway so that you can complete your personal income tax return by the end of April.

• Interest income. Your mutual fund statements, bank statements, and investment account statements will record any interest you've earned during the year. Outside a registered plan, this income is fully taxable at your marginal tax rate.
• Dividends. Dividend payments from taxable Canadian corporations qualify for the federal Dividend Tax Credit. Your investment company will send you a form detailing any dividends received.
• Capital gains. If you sold or transferred mutual funds during the year, you may have a capital gain (or loss) to report. You may also have to report capital gains earned by mutual funds and passed through to you as a unitholder. Your fund company will provide you with a record of capital gains or losses in your account for the 2002 taxation year.

Tip: If you have both registered and non-registered accounts, it can be advantageous, from a tax-perspective, to hold fully taxable interest-earning assets in the registered account, where their compound growth will be completely tax-deferred until withdrawn. Investments that generate Canadian dividends and capital gains should be held in the non-registered account, since the tax benefits are effectively lost when the assets are in a registered plan.

Clear out the clutter in your financial records:
It's a good idea to hang on to several years of income tax and business records, in case you ever have to verify a claim with the tax department or satisfy a query from a lender or insurer. Other items, however, such as credit card receipts, household bills, and interim statements for your investment accounts can be disposed of once you've checked them for accuracy.

To guard against identity theft - Be sure to dispose of these items appropriately - by shredding them or tearing them up. They contain important personal information that you don't want to fall into the wrong hands

Regards,

Nino.

"Tricks Of The Trade"

"Lighting"

Lighting is one aspect of home decoratin where small changes can produce a dramatic effect. Depending on your budget you can go to one of Toronto's expensive lighting companies and have a lighting plan designed for your entire home, or you can go to Home Depot, Rona or Canadian Tire and purchase contemporary, relatively inexpensive fixtures and have an electrician install them for you.

There are also dozens of small, idependent stores that specialize in antique or antique reproduction fixtures that suit an older home. This is especially helpful if you're trying to maintian a "period" feeling in your home restoration or renovation. Following are a few ideas that may be helpful for you when you're planning lighting changes or additions to your home.

• Wall sconces - can be used effectively in almost any room.
• Consider undercounter lighting in kitchens and bathrooms.
• Track lighting - straight or curved.
• Colour - don't be afraid to incorporate coloured heads in track lighting.
• Traditional or contemporary chandeliers in dining rooms. (Candle chandeliers can be a fun item in a casual setting).
• Chandeliers can also be an interestimg item for an entrance hallways or second floor landing.
• Pot lighting for a clean, uncluttered look and directional halogens to highlight art or sculpture.
• Torch floor lamps that cast a beautiful glow and can highlight ceiling details and mouldings.
• Table lamps that match or accent a room's decor are always a welcome addition.
• Exterior and garden lighting is another way to add character and drama to decks, patios, gazebos, verandahs and porches and also an ideal way to enhance the effect of beautiful landscaping.
• Lighting can also highlight an outdoor pond or pool very effectively.

Rosemary ...

Okay, Okay - Here's "The Joke"

A couple went on vacation to a fishing resort in Northern Minnesota. Ray liked to fish each day at the crack of dawn and his wife Eileen liked to read. One morning Ray returned after several hours of fishing and decided to take a nap. Although not familiar with the lake Eileen decided to take the boat out. She enjoyed the sunshine as she motored out into the lake, then she anchored and continued to read her book. Along came a game warden in his boat. He pulled up along side Eileen and said, "Good morning Ma'am. What are you doing"? "Reading a book" replied Eileen (thinking - isn't this obvious?) "You're in a restricted fishing area" he informed her. Eileen looked at him and said, "That may be, but I'm reading, I'm not fishing". "Yes I see that" said the warden, "But you have all the equipment in your boat and you could start to fish at any time and then you'd be breaking the law. I'm going to have to ask you to follow me to shore where I'm going to write this up". Eileen looked at him and said, "If you do that, I'll charge you with sexual assault". The warden was dumbfounded. He responded, "Don't be ridiculous I haven't so much as touched you". Eileen smiled sweetly and said, "That may be true, but you have all the equipment and you could start at any time and then you'd be breaking the law". The warden tipped his hat to Eileen and said, "Have a nice day Ma'am", and left.

The Moral - Never argue with a woman who reads - She also thinks!

Guest Columnist

Paul Schuster - "The Fire Guy"

"An independent specialist who can explain Fire Code Retrofit & the Requirements of the Ontario Fire Code"

WebSite: www.pcfirecode.com E-Mail: paul@pcfirecode.com

(905) 884-4423

Watch For Wiring Warnings:

If your home has aluminum wiring, you could be in for a shock.

Many insurers are now refusing to provide or renew coverage on such properties unless the wiring is checked, repaired as necessary, and then inspected by the Electrical Safety Authority. The ESA is the agency responsible for public electrical safety in the province.

According to the Fire Marshall's Office, faulty aluminum wiring causes an average of 15 building fires each year in Ontario. Danger signs include flickering lights, warm cover plates, discolored outlets, frequent blown fuses, or a burning smell.

Aluminum wiring is most commonly found in homes built in the late 1960s and early 1970s. This type of wire itself is not dangerous and is, to this day, approved for household use.

The problem with older installations is that they were often secured to devices with brass or copper terminals. Because exposed aluminum oxidizes rapidly, and it expands and contracts at a different rate than these other metals when under electrical load, the connections can loosen over time - leading to a fire hazard from arcing (sparking).

The problem seems most pronounced where devices with push-in connectors - no longer permitted for use with aluminum wire under current regulations - were originally installed. Here, it's almost certain that a malfunctioning outlet will show burned wires, and often evidence of fire, when pulled from the wall.

Whether or not damage is evident, you should upgrade all push-in wired devices (which typically don't have screw terminals) throughout your home for safety.

When replacing faulty or obsolete outlets and switches, homeowners may use aluminum-approved devices marked CO/ALR (or AL-CU for stove and dryer outlets). This option, however, is costly at $6 and up, per item.

To save money, many connect aluminum wiring directly to inexpensive copper wiring devices, which is extremely dangerous.

A safe and economical solution does exist. Simply attach some solid copper wire leader to a standard (60-cent) outlet or switch, marked CU-only, then join the wire ends using a (25-cent) Marrette twist-cap connector rated for both aluminum and copper wire.

Because a spring in the connector keeps the wires tightly bound, regardless of expansion, the danger of arcing is virtually eliminated.

Ted Olechna, a provincial code engineer with the ESA, confirms that this is an approved wiring method meeting code requirements.

Use copper wire of equal gauge (thickness) as existing aluminum wire. Clean wire ends of oxidation and apply anti-oxidant compound, available at electrical stores, before installing connector.

Also, cover exposed side terminals on outlets/switches with electrical tape before installation. You need not add leader when securing ground wires to the device box screw. While it's best to hire a licensed electrician for repairs, many home centre chains do offer free wiring classes to help do-it-yourselfers do it right.

For electrical inspection and safety information, call 1-877-372-7233 or visit : http://www.esasafe.com
REMEMBER - Only WORKING smoke alarms save lives !
Test YOUR smoke alarms and carbon monoxide detectors to-day.

Regards,

Paul.

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.

• Ask A Lawyer?
• Ask A Painter?
• Ask A Surveyor?
• Ask A Designer?
• Ask An Accountant?
• Ask A Tradesperson?
• Ask A Home Inspector?
• Ask A Financial Adviser?
• Ask A Colour Specialist?
• Ask An Insurance Broker?
• Ask An Interior Decorator?
• Ask A Web-Site Designer?
• Ask A Kitchenware Retailer?
• Ask A Landscape Designer?
• Ask An Employment Lawyer?
• Ask A Banker/Mortgage Broker?
• Ask A Firecode/Retrofit Specialist?
• Ask A Garden Sculpture Specialist?
• Ask A Basement Waterproofing Specialist?

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.

Business Referrals:

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

This newsletter is never sent unsolicited. If you wish to be removed, please reply to this e-mail with the words: "Remove from Newsletter" in the subject line or call me at (416) 483-8000 to request removal.

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.