Page 16 - Sports Energy News, Cornwall, Issue No 111

16 Issue #111 April 2022 www.sportsenergynews.com

Neighbourly
Neighbourly Advice From Our Local Professionals
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also delivered a fresh round of rate increases. by approximately 48 basis points [over the
By Brian Johnston same period].”
Mortgage Specialist The latest move comes after the 5-year
Government of Canada bond yield, which Fixed rates above 4% are on the way!
leads 5-year fixed rates, closed at a nearly 11-
MORTGAGE RATES ARE Other mortgage observers increasingly
year high of 2.49% on Friday.
MOVING….AND FAST! expect 5-year fixed rates to hit 4% in the
Rate analyst Rob McLister noted that coming weeks if current economic and
he run-up in fixed mortgage rates isn’t
yields are up an “astounding” 100+ basis geopolitical conditions persist.
Tfinished yet, with mortgage lenders points in just 15 days. “Looking through
delivering a fresh round of hikes over the 22 years of daily bond data, I’m unable to Five-year fixed-rate mortgages with 30-
past week. That includes most of the Big 6 find another Treasuries move in the same year amortizations were available at about
banks, which had already raised rates a week 2.50% in January and are now offered at
timeframe that was this dramatic,” Rob rates about 1% higher. If they continue to
ago. The latest rate increases to the big banks’ 5-year terms were 20- wrote in his weekly Mortgage Logic bulletin. rise at their current pace, 5-year fixed rates
30 basis points. All the non-bank mortgage lenders and credit unions “That’s driven up average 5-year fixed rates
Continued on page 17

Purchase Price: $100,000 you the expected tax based on your current
By Michael VanderMeer Sale Price: $220,000 income.
Real Estate Agent
Selling Expenses: $20,000 This is the current formula for capital gains
Capital Gain $100,000 tax. Our government has been trying to raise
CAPITAL GAINS TAX IN REAL ESTATE Taxable part of capital gain: $50,000 the amount of capital gains tax but so far, our

apital gains tax applies to any property you In the above scenario, $50,000 would be real estate associations have been successfully
Csell that is not your principal residence. added to your taxable income and will be taxed blocking these increases. It has also been
The capital gains tax is based on 50% of the based on what tax bracket you end up in that rumoured that the government would like to
difference of what you paid for the property and year. By adding the $50,000 to your taxable extend the capital gains tax to our personal
what you sold it for. The amount of tax you pay on that 50% will depend income it may put you in a higher tax bracket homes but be assured real estate organizations
on what tax bracket you are in that year. You are allowed to deduct any meaning you pay more tax on all your income across the country will fight against this tooth
costs associated with selling the property. I have a brief example below: that year. Your accountant will be able to tell and nail.

the media’s constant focus on price and tech bubble that sent technology stocks
Max Ming P.Eng. CFP ®
Financial Planner its daily fluctuations with news geared crashing, he had this to say:
towards capturing your attention and “Ouch. As of writing this, our shares are
Focus on You emotions. It is those emotions that are down more than 80% from when I wrote
the primary culprit in causing investors to
As we talk to investors, we find that to you last year. Nevertheless, by almost
many of them behave the same way. deviate from their long-term investment any measure, Amazon is in a stronger
That is, they behave like speculators and philosophy. position now than at any time in its past.
primarily focus on the price of what they For over 20 years, Jeff Bezos wrote a We served 20 million customers in 2000,
own. They forget to look “under the letter to Amazon shareholders highlighting up from 14 million in 1999… So, if the
hood” to understand the value of what the state of the company and its outlook
they own. This seems to be because of for the future. In 2000, during the dot.com Continued on page 17

With our 2021 “Just Homes Listing Program”, Homeowners will never pay more than

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“Not intented to solicit properties already listed for sale”