- The True Power of Today's Interest Rates when purchasing a home!
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There always tends to be one major factor that buyer's consider when purchasing a home and that's price. The truth is, there are 2 main factors that they should be looking at: Price and Interest Rates. Jean-Guy Turcotte, an accredited Mortgage Professional with his partner's at Regional Mortgage Corporation created the chart below to show you the benefit's of today's market. There are still many home buyer's out there with interest rate pre-approvals lower than 4% that aren’t taking advantage of the rates. The chart shows a depiction between the 10 year average 5 year fixed interest rate (from the bank of Canada website) and the current 5 year fixed interest rate.
Yes, I’m sure that a lot of people are aware that the market is saturated with listings at this time, BUT doesn’t this mean it’s an excellent opportunity to buy! A great deal on the house, PLUS a great interest rate means double dipping on the savings!
Savings and Comparison Chart
Purchase Price | 10 year Average (5 year fixed Discounted) 5.35% Column 2 | Today’s Best Rate (5 year Fixed) 4.25% | Savings per month between today and the average discounted rate | Total Savings between today’s best rate and the 10 yr average rate | Today’s buying power of 4.25% interest rate to match payments in Column 2 |
$200,000.00 | $1046 | $911 | $135/month | $8100 | $229,750.00 |
$250,000.00 | $1308 | $1139 | $169/month | $10140 | $287,000.00 |
$300,000.00 | $1570 | $1366 | $204/month | $12240 | $344,500.00 |
$350,000.00 | $1831 | $1593 | $238/month | $14280 | $402,000.00 |
$400,000.00 | $2093 | $1822 | $271/month | $16260 | $459,500.00 |
$450,000.00 | $2355 | $2050 | $305/month | $18300 | $516,500.00 |
$500,000.00 | $2617 | $2278 | $339/month | $20340 | $574,500.00 |
$550,000.00 | $2878 | $2505 | $373/month | $22380 | $631,500.00 |
$600,000.00 | $3140 | $2733 | $407/month | $24450 | $689,000.00 |
*All payments based on 5 year fixed as of June 15th, and with a 35 year amortization. Savings table is based on monthly payments only and there is additional savings if you go with weekly or bi-weekly payments. Compare column 1 to the last column to show the buying power of today’s rates! The 4.25% is a quick close rate, meaning that your deal has to close 30 days from submission date, unfortunately no pre-approvals.
Jean-Guy Turcotte, an Accredited Mortgage Professional with his partners at Regional Mortgage Corporation created this chart to show you the benefits of today’s market. For more information on Jean-Guy’s programs call him at 403-343-1125 or text him to 403-391-2552 or email jturcotte@regionalmortgage.ca.
- Tips on cleaning up your debt, using a mortgage broker and understanding your credit score!
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Clean up your debt before you leave on summer holidays!
Yes we're in the busy season! Lots of preparation for your summer vacation! For many though, pesky debt responsibilities can dampen their planning and holiday enjoyment. Others may not worry about their debts, thinking they can always get their financial house in order after the holiday.
But if you’re concerned about your debt obligations, consider adding one more task to your pre-holiday to-do list! See if you can use your home equity to consolidate your high-interest debt into a new or existing mortgage. You’ll lower your payments, save on interest and can power down your debt faster. In almost every case, you’re better off holding your debt in a mortgage than in any other lending vehicle. Why? Because Canadian homeowners are benefiting from mortgage rates that are still among the lowest in decades. Most debt obligations compound monthly where as a mortgage compounds semi-annually and at a lower interest rate in most cases!
Worried about penalties to break your current mortgage? Have your situation assessed; there’s a good chance that the savings each month will far outweigh any penalties.
What is a Mortgage Broker?
Many Canadians still figure that – if you need a mortgage – you stop by your banker’s office and take the best deal they say they can give you. But there are many other options for getting a mortgage in Canada. Your bank represents only one lender, and the person on the other side of the desk from you is working for that bank – not for you. In today’s economy – and with so much of your financial life tied up in your mortgage – it doesn’t always make sense to restrict yourself to a single lender.
That’s where a mortgage broker comes in. They don’t work for any particular lender. They work for the homebuyer.
What many Canadians don’t realize is that there are about 50 different lenders out there – including the major banks, of course – with a huge range of different mortgage products and rates. Mortgage Brokers can shop around and compare rates and features to get you the best mortgage deal: whether you’re buying your first home or your tenth, whether you’re thinking about an investment property, a cottage, a home reno, or a debt-reduction plan.
Maybe a lender has just announced a special deal on a mortgage that’s perfectly suited to your needs. Your bank doesn’t carry it, and the only way you would learn about it is through a broker. The difference could be worth thousands of dollars to you.
What are ‘Closing Costs’?
You found your house, you were approved for your mortgage, and you’re flushed with success. But before you pop the cork on that champagne, you may want to get an accurate read on the closing costs for your house. Remember… you don’t have the mortgage funding until the day you close. Canadian homebuyers are often shocked in the last few days – when they realize just how much money they need before they can walk through their new front door.
In short, “closing costs” are all of those extra costs that come with buying a home. They’re not typically built into the mortgage, so you’ll be expected to have some extra funds set aside to cover these costs. How much are you looking at? Generally, you can expect to fork out between 1.5% and 4% of the home’s selling price in total closing costs.
For a transaction of this size and the lender documentation required, you’ll need to use a lawyer. You’re responsible for the legal fees and any disbursements – and these fees can vary. Your lawyer or lender may also recommend or even require title insurance, which can save the trouble and expense of surveys or unexpected issues with the property title in the future, and protect you from title fraud. You will be required to obtain fire insurance on your home.
Other “money up front” costs can include utility hookups, and reimbursement of any bills pre-paid by the previous owner: property tax or utility bills for example. Similarly, there may be an interest adjustment, depending what day of the month you close. Finally, make a realistic assessment of your moving costs and what you’ll need in the way of furnishings or appliances.
If you’re working with an experienced mortgage broker, you’re probably ahead of the game as these types of costs will have already been discussed.
How are mortgage rates set?
The chartered banks set the prime lending rate (the rate they offer their best customers). They base their decisions on the Bank of Canada’s overnight rate because that’s the rate that influences their own borrowing. There are approxi mately eight times a year the Bank of Canada makes rate announcements. Variable mortgage rates and lines of credit move in conjunction with the prime lending rate.
Fixed-rate mortgages are a little different. Banks use Government of Canada bonds to raise money
for fixed-rate mortgages. In the bond market, interest rates can fluctuate more often, since they’re
subject to the changing moods of traders and bond investors, which try to figure out how fast the
economy will grow and where inflation is headed. As a result, watch the bond market for clues on
where fixed mortgage rates will go next.
What is a credit score?
As mortgage planners, it’s our business to help you get you the best possible rate for your situation. Unfortunately, a less-than-stellar credit rating can affect your ability to get the best mortgage rates. You may not realize how much money your credit situation is costing you. If you have large credit card balances, too many credit accounts and have missed making some of your payments, you’ll probably have some strikes against your credit score.
Known as a FICO score – with a range from 300 to 900 – your credit score tells lenders what kind of a risk you are likely to be as a borrower. Your score is based on the following five attributes, with some attributes weighted more heavily than others.
· Previous payment history (approx. 35% of score)
· Current level of indebtedness (approx. 30% of score)
· Length of credit history (approx. 15% of score)
· Pursuit of new credit (approx 10% of score)
· Types of credit accounts you hold (approx. 10% of score)
At high credit scores (750 and up), lenders offer a quick approval at the best possible rates. This score says the person is reliable and responsible with debt. At lower scores (below 620), you could pay a premium on your borrowing rate and possibly even find it difficult to qualify.
Your credit score captures your perceived lending risk at a moment in time: your score can change from month to month. The companies that hold your credit accounts and loans report transactions to credit bureaus regularly. That’s a great opportunity for you, because it means you can improve your score with the right credit “behaviors”.
Are you finding it difficult to get the financing you need because of your credit record? An experienced mortgage planner can often help you get out of a not-so-perfect credit situation. With access to more than 50 different lenders, including most of the major banks, they have become specialists in helping Canadians restructure debt and improve their credit. It’s a great way to get started on the pathway to credit repair.
Get Started on Your Home Buying journey today with Realty Experts Group Ltd.! Take advantage of our monthly incentive and receive a 'kick back' of $250 on your possession date! Offer valid until July 31, 2010!
- Open House in Anders on Sunday
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Anders, Red Deer - We invite everyone to visit our open house at 17,103 Addington Drive on June 20 from 2:00 PM to 3:30 PM.
Property information
Take advantage of our monthly incentive in the spirit of the 2010 FIFA World Cup and receive $250 'kick back' on your possession date!
Hurry fast, offer valid until July 31, 2010 go to http://monthlyincentive.realtyexpertsgroup.com for full details
- Open House in Pine Lake on Saturday June 19th from 1-3 Pm!
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Pine Lake, Red Deer County - We invite everyone to visit our open house at 50 Whispering Pines Phase 4 on June 19 from 1:00 PM to 3:00 PM.
Property information
- Open House in Anders on Sunday
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Anders, Red Deer - We invite everyone to visit our open house at 19,103 Addington Drive on June 20 from 2:00 PM to 3:30 PM.
Property information
Take advantage of our montly incentive in the spirit of the 2010 FIFA World Cup and receive a 'kick back' of $250 on your possession date!
Hurry Fast! Offer only valid until July 31, 2010 for full details go to: http://monthlyincentive.realtyexpertsgroup.com
- Summer Activities & Events in Red Deer, Alberta!
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Discover the Red Deer Constituency!
Bower Ponds
The Bower Ponds Recreation area in Waskasoo Park is home to an extensive trail system, interconnecting ponds, trout fishing and skating in the winter. Various seasonal rentals are available for a small fee on site. Located in Red Deer at 4707 Fountain Drive call for more information 403-347-9777
Market @ Red Deer
Every Saturday at 8 am - 12 pm from May Long weekend to Thanksgiving, the market offers fresh foods, homemade items, yummy treats and so much more. Located downtown in front of the Red Deer Arena, admission is free. For more information call 403-346-6443
Sunnybrook Farm Museum
Sunnybrook Farm Museum's mission is to promote learning about rural life in Central Alberta through historical stories, and a living farm community. With interactive tours and events, Sunnybrook Farm Museum will keep everyone entertained.
CentreFest
For 2 days, July 31st & Aug 1st Downtown Red Deer at the intersection of Gaetz Avenue and Ross Street is transformed into a community of street entertainment and dazzling sights for all to partake in.
Westerner Days Fair & Exposition
Central Alberta's largest summer celebration July 21st to 25th is located at Westerner Park Red Deer. There is something for everyone at the Westerner Days Fair & Exposition. You'll find thrilling midway rides, free entertainment, nightly Pony Chuckwagon Races, and so much more. Call 403-343-780. Realty Experts Group Ltd. is excited to be a part of the Red Deer parade, July 21 in downtown Red Deer. Parade starts at 9:30 Am, see you there!
Central Music Festival
This annual music festival offers a family oriented weekend of outdoor entertainment and activities August 13th & 14th. Tickets available at the Black Knight Ticket Centre online at www.bkticketcentre.ca or through Valhalla Pure Outfitters 403-343-3658
Country Drive
Your invitation to explore the Country, discover year round rural attractions, events, history, markets and local cuisine. The Spring Time Country Drive is May 29th & 30th and the Summer Time Country Drive is Aug 7th & 8th.
Innisfail Professional Rodeo
The 50th Annual Innisfail Professional Rodeo takes place June 16th to 20th at the Daines' Rodeo Grounds 4 miles north of Innisfail. For schedules of events call 403-227-3166
Asparagus Festival
Join Edgar Farms for their annual "Get into the 'SPEAR IT' of Spring!!" Asparagus Festival May 29th & 30th. Edgar Farms grows asparagus, peas and beans, they also farm traditional crops and raise beef cattle. For more information call 403-227-2443
Innisfail Historical Village
Step back in time and visit the small village of 17 buildings where artifacts and memorabilia relating to the history and people of Innisfail and District are on display. For more information call 403-227-2906
Discovery Wildlife Park
This is not just any ordinary zoo, you're sure to gain an education on the exotic animals, and be entertained as you watch their trainers at work with the animals during their daily presentations. For more information call 403-227-3211
RCMP Dog Training Facility
In 1965 the facility was established in Innisfail Alberta. Purebred German Shepherds as well as Belgian Shepherds are trained here to work in conjunction with the RCMP. Public demonstrations are available for viewing. Contact 403-227-3346 for information.
Sylvan Lake Provincial Park
With an expansive lake bordered by 1.6 km of grass and sandy beaches many people are drawn to the vast variety of activities that take place at the lake all seasons of the year.
1913 Days
The anniversary of the founding of the town is celebrated every year in Sylvan Lake. Join in the festivities June 11th to 13th for a busy weekend of fun, food and entertainment.
Jazz Festival
Jazz at the Lake, August 19th to 22nd features a line up of world class headlining artists as well as local Alberta talent. Good music and more is to be found during this festival in the buzzing town of Sylvan Lake.
Historic Markerville Creamery Museum
Nestled in the peaceful hamlet of Markerville you can relax on a picnic table on the Creamery grounds after a guided tour of the museum. Enjoy a treat from their Kaffistofa (coffee shop) or try traditional Icelandic dessert or a delicious ice cream cone from their Creamery parlor.
The Bowden SunMaze
Home to Alberta's only Sunflower Maze, you can challenge your senses and find your way through their Sunflower Maze, Corn Maze, Rope Maze or Bale Maze. Visitors are welcome to enjoy the u-pick flowers, u-pick vegetables and picnic area during a visit as well. For more information call 403-224-3995
Dry Island Buffalo Jump Provincial Park
A flat-topped mesa called a "dry island" rises 200 metres above the Red Deer River. Just beyond that you can see the grassy cliff tops of an ancient buffalo jump where the Cree Indians hunted bison. Camping is available near by.
Anthony Henday Museum
Located on main street Delburne, the Anthony Henday Museum preserves artifacts from housekeeping, farming, education, businesses, coal mining and railway. A replica pioneer cabin, the CNR water tower with 4 floors of exhibits, a caboose and an open front machine shed have been added to the collection.
Pine Lake
The long narrow lake is popular for recreational fishing, in both summer and winter and for various family water activities. Take part in swimming, boating, sailing, waterskiing and fishing or enjoy a break from every day living and enjoy the outdoors with a camping trip.
Harvard Historical Aviation Society
The Harvard Historical Aviation Society is a non-profit organization that provides interactive and educational programming to comemorate and celebrate the unique history of the Penhold Military Base.
Medicine River Wildlife Centre
See a variety of displays dedicated to wildlife and natural history at the Medicine River Wildlife Centre. As well there is an outdoor interpretive trail with an observation tower overlooking a large wetland where a wide variety of wildlife can be observed in their natural habitat. For more information call 403-728-3467
Dickson Store Museum
The Dickson Store Museum was a 1930's style General Store that sold groceries, hardware, dry goods and included a post office. You can take a walk through the past and view the restored building, and stop in the gift shop to purchase crafts by local artists, souvenirs, old fashioned candy or some Foothills Ice Cream. For more information call 403-728-3355
Danish Canadian National Museum & Gardens
Open May 21st to the public, the Danish Canadian National Museum & Gardens is located on 13 acres of traditional Danish gardens and features exciting attractions. They welcome and will cater to tours and private group coffee times, luncheons and dinners. For more information call 1-888-443-4114
Tourism Red Deer Visitor Information Centre
Open 364 days a year, located on Hwy 2 just north of the 32 Street overpass and staffed by friendly, knowledgeable information counselors. The Visitor Information Centre is a rich resource of things to see and do in the Red Deer area. Visit them if you are planning a vacation in Central Alberta or are hosting visitors to the area. For more information visit call 403-346-0180
- Realty Experts Group Ltd. celebrates the FIFA World Cup!
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Kick Start Your Summer... With Realty Experts Group Ltd.!
In the spirit of the 2010 FIFA World Cup, when you Buy or Sell a home with Realty Experts Group Ltd. during the World Cup soccer you will receive a $250 "Kick Back"
Use the Kick Back however you choose!
Imagine....
On your possession date, Realty Experts Group Ltd. will provide you with a cheque in the amount of $250! You can use this money for your own personal needs or sponsor your own sports team or contribute the amount towards your favorite charity or organization!
Refer your Friends & Family to us, and they will receive the 'kick back' benefit as well!
Get started today! This promotion is valid from June 11 and runs until July 31, 2010!
Call or email us and get started with your real estate journey!
403-505-SOLD(7653) or email: info@RealtyExpertsGroup.com
www.RealtyExpertsGroup.com
- CMHC Mortgage Rule Changes Clarified
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There have been some interesting updates over the weekend. The bond rates have increased and there is a lot of speculation that rates are on the increase. Of course, we are not sure how soon this will happen, but if you are considering purchasing a home within the next 3-4 months, it would be wise for you to have a mortgage broker do a pre-approval and rate hold at this time. Some of these changes may seem confusing and overwhelming especially for a first time home buyer. Rather then get lost in all of these changes, we recommend that you book an appointment with a mortgage broker and discuss the changes which may or may not affect your personal situation. Sometimes a one-on-one consultation will help to answer any questions you may have and elevate any doubts of being able to quality for a mortgage.
What the rule changes are and who they are going to affect:
Changes to ‘Business for self’ (BFS) stated income product
Canada Mortgage and Housing Corporation (CMHC) will no longer be accepting stated income for those who have been BFS longer than 3 years or are commissioned sales. So what does this mean? You must have been in business for more than 2 years to use the ‘stated income’ but not longer than 3 years. Once you hit the 3 year mark, you must quality on ‘provable income’ (NOA’s). They have also reduced the Loan to Value (LTV) from 95% to 90% on the stated product. 10% down payment now required unless you use proven income (claimed on your income tax submission)
More Mortgage Rule Changes Clarified
The speculation from the governments February 16th mortgage rule changes is over. They finally ruled on which interest rate consumers are to qualify, based on fixed terms less than 5 years and variable rate mortgages after April 19th, 2010 but only if you require an insured mortgage, meaning less than 20% down.
The changes are as follows:
*Fixed term mortgages less than 5 years and Variable Rate Mortgages (VRM’s) all have to qualify at the Bank of Canada’s posted rate (which today is 5.39%). These will be posted by the Bank of Canada every Monday morning. The rate can be found at Bank of Canada’s website.
*If you have a 5 year fixed or longer interest rate term, then you can qualify based on that lenders’ discounted interest rate, if they offer one (Mortgage Brokers and Agents all deal with easily available and the best discounted interest rates). For example, if you choose the 5 year fixed rate mortgage, and if the Bank of Canada posted five year fixed rate is 5.39%, and you want the 5 year fixed but have chosen a lender that offers a lower discounted rate of 3.79%, the 3.79% is the rate the lender can qualify your mortgage on.
During the average year, approximately two thirds of Canadians choose a 5 year fixed rate term anyway, so this only affects those that want less than five year terms, and VRM’s. During 2009 and up to today, with the super low emergency interest rates, 92% of Canadians taking out a new mortgage chose the 5 year option, telling us that this new government program wouldn’t have affected that many consumers during the past 14 months.
Going forward, it’s going to affect consumers that choose the shorter terms and those that chose the VRM’s in the coming years as lenders come out with the discounts they had previous to September 2008.
To put this into perspective, if you had to qualify based on the current system of most responsible lenders’ systems and used the 3 year discounted rate as the qualifying measure (for mortgages with less than a 3 year term) then the qualifying difference between the two programs is only about $10,000.00 in mortgage amounts comparing it to a lender that today has a 3.69% 5 year fixed rate, which would be the new mandated qualifying criteria.
However, the qualifying difference is huge if you wanted the VRM or less than 5 year term on the new program and have to qualify based on the posted rate. In effect this is going to make the 5 year fixed discounted program even more popular going forward.
Simply put, these new measures aren’t going to affect a huge qualifying change for the average Canadian buying a home, as most of us opt for the 5 year fixed rate mortgage anyway as we enjoy the safety and security of the 5 year fixed program. So it’s a great thing that the government essentially left the 5 year fixed program alone.
And those that want the VRM or shorter term mortgages usually have more than 20% equity in their property anyway as they can afford and want to take that little extra risk with their mortgage.
Some of the above information has been brought to you by:
Jean-Guy Turcotte is a Mortgage Professional with Regional Mortgage Corporation and can be reached at 403-343-1125 or jturcotte@regionalmortgage.ca
- Michael Godard in person at Editions Gallery, Bower Place Mall in Red Deer, Alberta
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I first learned about the “Rock Star of the Art World”, Michael Godard by watching an episode of A&E’s Criss Angel’s Mind Freak. Since then, the ‘olive’ artist has been making appearances at different locations, including Editions Gallery, at the Bower Place Mall in Red Deer, Alberta. I had the opportunity of meeting Godard in Red Deer, in November of 2009. I happened to be in the mall, and noticed a line-up of people standing out front of the gallery, and because I recognized who he was, I quickly joined in to the line for the opportunity to meet the artist.
I purchased his amazing book entitled Don’t Drink & Draw- The Art and Life of Michael Godard, which was awarded Art Book of the year. The book is full of dynamic graphics of his paintings, along with Godard’s insertions of what inspired him to create a particular art piece. He inserts a personal poem that he wrote to his daughter Paige, during her battle with brain cancer, signed and dated- Daddy, August 23,2005. Beautiful Paige passed away in 2006 at the young age of 16, and Godard has dedicated himself to raising money for charities to help cure cancer.
Godard is currently the #1 best selling artist in the U.S, and it’s not hard to figure out why. His creative twist of using olives, martini glasses, strawberries and animals to depict human beings in different social settings, is nothing short of pure brilliance. Godard also creates some amazing surrealistic paintings which often displays a young child , representing the innocence of youth and taps into the idea of being in a child’s world, full of color, vibrancy, and ‘dream land’.
Godard will be making an appearance once again, at Editions Gallery, at the Bower Place Mall in Red Deer, Alberta on Thursday March 4th from 5-9Pm. If you have the opportunity to come out and attend this event, it is a great chance to be in the presence of a truly inspirational artist. When I last met Godard, I purchased a martini glass, along with his book and he graciously signed both items for me. His book can be purchased on site at Editions Gallery, or at local book stores such as Chapters or Coles Books. Security may be tight, due to a recent incident when a man ran into the Editions Gallery and stole a pricy art print titled ‘Busted’! He was later arrested and charges are pending against a 31-year old Red Deer man. I must admit that the irony of the incident is well…priceless or in this case, $1,750 Canadian dollars.
- New changes to mortgage insurance rules for purchasing revenue property
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MORTGAGE INSURANCE RULES ANNOUNCEMENT
Thinking about purchasing a revenue property? Now is the time!
This morning, Federal Finance Minister Jim Flaherty announced prudent changes to mortgage insurance rules intended to come into force on April 19, 2010. CAAMP was actively engaged in the discussions around these changes which are as follows:
- All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term; this then will make it even MORE important that they qualify then on BROKER rates not posted rates.
- The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one's home; So, if you have clients wanting to refinance to purchase a second/another property, they cannot pull 95% of the value any longer.
- Non-owner occupied properties will require a minimum down payment of 20%. No more high ratio financing for rental properties.
There were no changes to down payment requirements or length of amortizations for owner-occupied residences.
For further details click on the link below
http://www.reddeerrealestateexperts.com/HomesAuthenticated.aspx?tabid=2336742&response=ed03a257-4907-4cb9-91a0-77afd77b86a9
- Money, Marketing & Management with HubSpot Founders- Webinar
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Hubspot.com – Webinar
Information for small business entrepreneurs to help you get started
"Money, Marketing & Management with HubSpot Founders".
On Wednesday morning as I was sipping on my hot mocha coffee, by Organo Gold, I logged onto the webinar hosted by Brian Halligan, the CEO & Founder of HubSpot. The webinar was an hour long, followed by a half hour of open questions and answers. I took notes of the session and have provided them for you to review, in the event that you were unable to attend at the required time. The information was helpful and shed some light on basic elements to focus on as an entreprener looking to start your own business. So, grab a warm beverage and read the highlights of the webinar.. on your own time 
* Hubspot has marketing software for small businesses
* They used 'VCall' for the Webinar
* Watch your competition, and then do not follow them
* New, interesting business models are winning these days.
* Think about who your competition is, and then be different.
Don’t burn time on extensive business plans. There are 3 keys to focus on:
- You can create a Power Point document
- Do an Executive Summary
- Create a 3 year proforma document (projecting expected revenue, capital, expenses etc.)
‘The Start-Up journey is long and windy’. Quote
Blog about your business ideas and get feedback from people to help you get started. Don’t try to figure it out on your own, instead ask people what they want and build your business ideas around that.
Create a team to help you; it’s lonely at the top all by yourself.
Start with one founder in a business, rather than 3, 4 etc.; otherwise you divide your profit pie right up front. 2 co-founders are good, and use two people with very different strengths 
When starting a new business, ensure that each department of your business is balanced.
The Specialist VS The Generalist
To start with, you are better off hiring a generalist, until you know exactly what it is you need. Generalist employees are people who have a variety of skills and that can do several different functions, rather then someone who specializes and does very specific job tasks. Hire people as each department of the business demands it.
‘Convince really smart people to do irrational things.’ -Quote
With new employees, you will want to offer some sort of incentive for them, other than money, in order for them to want to come over to your business and help you grow and develop it. You can offer incentives such as opportunities for them to grow within the business, learn and grow and be a part of an exciting new journey!
Inexperienced employees are great for a start up business. Hire younger employees, people who are ‘hungry’, go getters, people with great ideas and the desire to learn and grow within the business.
The CEO’s Priorities in a new business:
#1. Don’t run out of cash! Ensure that you have enough cash flow to keep the business running, pay employees, fixed costs, marketing, office supplies, utilities and so on.
Convertible Debt- Take a loan from investors, and the loan then converts into shares. (Angel Investors)
- Talk to a lawyer about this option. There are different benefits to this option.
Venture Capitalists- Are large firms, with partners that invest money in businesses in exchange for shares. They put a good chunk of money into and business and they ‘swing for the fences.’ These firms are known as Venture Capital Firms.
- Venture capital is much harder to raise. It is time consuming to convince VC’s to put money into your business. It usually involves a lot of meeting etc.
- Do not syndicate your deal. Syndicating means that you are allowing more than one VC to invest in your company. This will dilute your profit right up front. Make the VC firms compete with each other, rather then have them bring in their own VC firms.
- Make it clear up front that you are not interested in syndicating your deal.
Management:
‘Don’t wear rose-colored glasses.’ Quote
- Keep your eye on the prize and stay pumped up about your business and stay focused.
- ‘In God we Trust. All others bring data.’ Quote
- Use data to help you make decisions in your business. Graphs are great, stats etc.
Helpful Books to get you started in a small business-
* Founders at Work
* Inbound Marketing- Social Media, Blogs, Websites etc.
* The Art of the Start
* The Innovators Dilemma
* Blue Ocean Strategy
Make sure that each department of your business is well balanced and well developed. Example: Marketing, Sales, Administration. Avoid ‘traffic jams in your business, by having each department flowing well and managed efficiently. Hire people who have strengths where you have weaknesses and so on.
Depending on the type of business you have, it is a great idea to have a weekly meeting in order to keep everyone updated with current issues, changes, news etc. If the business has several different CEO’s and management, then having a board meeting every 2 months for 3 hours is a great idea to keep ideas flowing and the business growing. A lot can come from collaborating ideas with each other.
Business Model
‘Old’ Model ‘New’ Model
-Pyramid Organization Chart - Flat Organization
-Open door policy - No door policy
- Vacation policies - We trust you
- Command-And-Control - Agile Scrum
- Knowledge is power - Transparency
- Scripted - Authentic
- Business Casual - Up to you
Business Model description:
The business model descriptions are in my own words and interpretations and are not necessarily those of Hubspot.com.. I just sounded like a lawyer 
Pyramid Organization Chart- This business model was designed with the concept that CEO’s of the business were at the top of the pyramid, followed by managers, employees etc. The new model recognizes that everyone is equal in the business and plays and important role to the success of the company.
Open door policy- This concept has each individual placed within their own office space in the business, which is still quite common today. The no door policy is a business that has a large open space, where everyone sits out in the open. The idea is to have the staff rotate throughout the office space every 3 months. This concept may or may not work even in today’s businesses depending on privacy issues and the nature of the business.
Vacation Policies- In the ‘old’ model, vacation time is aloted to an employee based on how long they have worked for the company and is often scheduled according to the businesses structure. The new model leaves flexibility for employees to choose their vacation time wisely and how much and how often is up to the employee to decide. It’s a ‘we trust you’ concept, saying ‘hay, we trust that you will choose your vacation time wisely.”
Command-And-Control- When it comes to handling projects or tasks, this structure is made up of team members such as a project sponsor, project manager, analysts, designer etc. Each team member has specific duties which normally do not over lap. The Agile Scrum model is different in that the project is made up of self-organized teams, with collaborate together to get the task done and that hold each other accountable for their actions.
Knowledge is Power- The old model has the idea that the people within the organization with the most knowledge are the most powerful. Often, their ideas are not shared, instead they are kept a secret in order for that person to up hold a higher standard or authority to others. The new model of transparency means that all information, ideas, tips etc. are shared with everyone within the business. People collaborate with each other and recognize that everyone has ways of contributing to each others success and the business.
Scripted- The old model of business had people using scripts to make phone calls etc. Often, employees would spend countless hours memorizing ‘come backs’ or answers to objections. Authentic, is the idea of each individual being themselves, creating natural flowing conversation, and trusting that what they say in that moment will better serve a customer than some scripted material.
Business Casual- The old model would allow employees to dress in casual cloths, let’s say every Friday. The new model says, ‘hay, as long the attire is appropriate if customers are seeing you, then you choose what you would like to wear and when…no casual Friday’s in this model!
** Do things as modern as you can!
Marketing-
- Direct mailing, cold calls, radio, T.V, newspaper ads, these techniques are all the ‘old’ way of doing business marketing. With everyone having caller I.D, people are blocking calls in the hopes to eliminate telemarketing. Quite often, people are interrupted at the time of a call, and quickly become annoyed with the caller. Rather than bringing the marketing to people, let them come to the information on their own.
- People are referring to Blogs and online information to find what they are looking for. More and more people are using social media sites and search engines such as Google and Bing to find their information. Pull people from these tools, and your business will spread like wild fire!
- Use the internet and turn your website into a hub, and draw people into your website through links, social media, blogs etc. Make your website like New York city, which has a variety of different ways that connect people to one location.
- Create remarkable content on your website and Blogs. Make it interesting, authentic and informative and people will keep coming back for more!
- The width of your brain VS The Width of your wallet : With the internet as a fantastic marketing tool, businesses can now market to hundreds of thousands of different people, all over the world, night and day and not break their bank account doing it. Put you’re marketing dollars into internet marketing rather than mail outs etc. and you will achieve better results for much less!
This concludes my personal notes about the webinar. I sure hope that you found it helpful and gained at least one piece of useful information!
On the internet; nobody knows you're a dog! Cute cartoon post
- Why would you buy a property this year?
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Where We Were….Where We Are…
Where We Could Go
SO WHAT IS THE BENEFIT IN A WAIT AND SEE APPROACH
Home Value 5 Year Rate Payment
Past: $342,746 5.94% $1,886.
Present: $297,826 3.79% $1,276.
What if this happens?
Future: $282,934 5.94% $1,557.
In January 2008 the average single family home sale on the MLS was $342,746 in Red Deer. In the same month for 2009, the value decreased to $297,826. The interest rates used in this example are based on a 5 year fixed term mortgage amortized over 35 years.
The present mortgage rate is as at January 8, 2010.
If property values decrease by another 5% and if the rates rise in the later part of 2010 early 2011, then you would have been better off to purchase at the prices today when you are guaranteed the lowest rate in history (based on the Bank of Canada average residential mortgage lending rate). We are not predicting the future, merely giving you an idea of what could happen if property values drop and interest rates go up. The question to ask yourself is “would it be beneficial to purchase now when interest rates are at a record low or wait for property values to decrease more”?
- RD Olympic Torch Relay
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Note that this information is outdated.
Red Deer has been selected to host the Olympic Torch as it makes its way across Canada to Vancouver for the 2010 Olympic Games. The Community Celebration will be a free eclectic interactive festival that all of Red Deer is invited to attend. Red Deer will be showcased on the national stage with displays of community culture and sporting spirit. There will be something for all ages from the young to the young at heart. Bundle up and bring your Canadian pride - it promises to be an event that will create memories and ignite the Olympic spirit in our community.
Read More
- Real Estate Market in Red Deer
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Real Estate Market in Red Deer
In a season when pocket books are tightening and wise spenders are picking up deals, the housing market in Red Deer continues to fluctuate. Buying a house for the first time, or the tenth, can be both exhilarating and frightening. The smell of freshly laid carpet, painted walls and a welcome basket to greet you is the start of one of the many major experiences of life.
2009 saw a dip in housing purchases and the dollar amount being paid out. Most popular to move into, or build, is still the single family home, usually ranging around the $350,000 mark for new.
CMHC stats for September 2009 state that in Red Deer 87 single family homes sold with the average listing price at $344,847 and the average sale price going for $336,052. Clearly, home owners looking to sell are having to be flexible if they want to downsize or upgrade to something different.
According to Nicole Maurier, Realtor for Century 21-Advantage, “With prices adjusting downwards, and with fantastic interest rates, right now is a great time to buy! The difference we see now, is that buyers have a lot more homes to choose from, they are able to get more home for their dollar, and mortgage brokers are working hard at seeking out the best rates and terms for their clients.”
A local mortgage-broker company, Get ‘Er Done Girls, is seeing such a dramatic variety in clientele that there is no easy way to predict who can qualify for a mortgage or who is seeking for one.
“We are seeing all types of clients entering the housing market from first time buyers to seniors wanting to downsize, but keep funds available through lines of credit. Of particular interest is the investor who has re-emerged who wants to leverage current properties to buy new rentals,” says Alyson Thiessen, a broker for over 10 years at Get ‘Er Done Girls.
The process to get a mortgage can be confusing and frustrating for many, especially first-time homeowners, but Get Èr Done Girls helps alleviate the confusion, answer questions and secure the best rate they can with the banks.
“I can say that people are continuing to qualify for houses for several reasons. First of all, with houses having come down in price, mortgage amounts are lower and easier to qualify for. Secondly, rates are at all time lows. Couple a very low rate with a 35 year amortization and that makes for an attractive payment for any buyer!” says Alyson.
According to a study done by MacKay et al (2008) the labour market trend has propelled housing demand and investment in housing, thus home ownership has increased. Another factor that has influenced home ownership is education. Education levels have improved among Red Deer residents with a greater percentage of the population having some form of post-secondary education and being in occupations that have higher incomes. The government has assisted in helping the community get their first home through programs designed to make it easier for young families to purchase their first home, such as sales tax rebates for new homes, access to mortgage loans for up to 100% of the value of the home, and loans and subsidies for first-time buyers and young families.
Marie Oro, Co-Owner and Associate of MaxWell Real Estate Solutions shares, “It’s the biggest purchase people will likely ever make. People have been on the internet and researched when they come in – they are a lot more educated. There’s definitely not as many people doing the fix and flip from the boom. It’s just not happening. The attitude of get rich quick has disappeared,” she laughs, “People are more wise.”
And why not take the time to educate yourself when you have it in today buyers’ market. And you get variety. Condos and apartments. Townhouses and bi-level splits. Acreages and mansions exist for buyers’ pleasures.
“Obviously single family homes are clearly what buyers are purchasing. Why? Again, with price adjustments, and great interest rates, buyers can purchase more house for their bucks!!” says Nicole Maurier from Century 21-Advantage.
Everyone from Realtors to brokers to builders are having to get creative to remain competitive in the Red Deer market.
Over the last decade central Alberta has easily been in the top five hottest new home markets in Canada. Abbey Master Builders has been the recipient of many local and provincial awards, including the Award of Excellence, Customer Choice Award, and Best of the Best. The most recent award is Builder of the Year for 2009. Earning the distinction of “Master Builder” status requires ongoing training and certification.
Carla Sonnenberg, Executive Administrator at Abbey Master Builder states, “A lot of the homes we’re building today were only dreamed of when we started in 1976. The revolution in ideas and materials over the last ten years has resulted in higher quality, more energy efficient homes. Today’s consumers are very environmentally conscience and appreciate the extra work Abbey Master Builder does to make our new homes “greener” such as energy efficient furnaces, windows, low flush toilets etc. As a `Built Green` member we have many options available to the new home buyer.”
Carla sees the market showing positive indicating factors of strength such as historically low interest rates, the strong Canadian dollar, oil prices and the steady growth in the stock market. The central Alberta corridor between Edmonton and Calgary has always shown strength and stability even in the toughest markets.
The phrase “this too shall pass” seems to ring true. Recession. Economic slump. Downturn. Whatever name you put on it, people are still succeeding. It is clear that the strong economy of central Alberta will once again rise up, though no one knows exactly when. For now, opportunity abounds to make one dream after another come true.
Article written by Lani Ledingham
October 2009
- In Real Estate the numbers never lie
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The explosive and unpredictable highs and lows of the real estate market in the past five years have left some 
confused while others excited in Central Alberta.
Some made massive amounts of money akin to winning the lottery, while others have literally lost their life savings.
As a realtor I’m frequently asked the question “How is the market?”. Since I’m a glass half-full kind of guy, I always instinctively reply, “It’s great!” 
We all know how hard it is to find out the truth in the real estate market. We get bombarded with conflicting information from friends and the media. One day the market’s “booming”, and the next day it’s “crashing”! But what is really going on and how do you know who and what to believe?
Real estate goes through major cycles about every 18 years, but it can also go through several mini cycles within a single year and sometimes even within a month.
With that said, let’s take a look at the market statistics, so you can understand for yourself what’s been happening. The following sales stats are from Jan. 1 to Nov. 1 for single family dwellings. This is to give readers an accurate comparison for the most recent boom/bust cycle of 2005 to 2009:
Red Deer Single Family Dwellings January 1st to November 1st
Red Deer Single Family Dwellings January 1st to November 1st |
YEAR | # SOLD | AVG LISTED PRICE | AVG SOLD PRICE | EXPIRED LISTINGS (all property types) |
2005 | 1028 | $218,382 | $215,007 | 165 |
2006 | 1026 | $293,870 | $290,956 | 47 |
2007 | 1197 | $363,907 | $358,150 | 219 |
2008 | 1184 | $358,708 | $350,366 | 717 |
2009 | 984 | $345,918 | $336,142 | 640 |
In only two years, from 2005 to 2007, the average sale price of single family homes increased by a whopping $145,555 or 66.5%. 
From 2007 to 2009, the average sale prices have decreased by $18,000 or 5%, which shows that although prices are slightly down, our market is still unbelievably strong.
When looking at the expired listing stats, you must first understand the theory of supply and demand.
Supply is the number of houses available at a given time. Demand is how many buyers desire the houses that are in supply at that given time. When supply is low, and demand increases, the prices are driven up. When supply is high and demand decreases, the prices are driven down.
A listing expires when a house doesn’t sell within the contracted time period and the seller decides not to move forward and takes it off the market.
In 2006 there were only 47 expired listings, which meant that in 2006 the supply was too low for the demand, and almost every house listed for sale was sold. This drove up the prices in 2007 and many people saw this as an opportunity to jump on the metaphorical “money train” and listed their houses for sale, thus increasing the supply.
The demand increased a little in 2007, probably for the fear that if you didn’t buy right away, the home would be $10,000 more next month. More homes were sold in 2007, again due to people wanting to cash in on the high prices, but as the expired homes almost quadrupled, this showed a sign that not all the supply was going to sell at these over valued prices! At this point the money train was leaving the station.
Amazingly from 2007 to 2008 the number of expired listings almost quadrupled again to 717! This meant that a massive number of people were still hoping to catch the money train and houses were flooding the market. Prices were driven downwards and only those that were serious and motivated to sell were successful.
Clearly the train is long gone, but still there are those that linger. In 2009 the expired listings decreased by only 77.
Interestingly you will notice that throughout all this the number of houses sold per year has remained essentially the same. This means that the demand has remained consistent through all five years, and the supply has been the only changing factor.
In the middle of November 2009, the total number of listings in Red Deer was 510, whereas in 2008 there were more than 650 listings. This is a good sign that we are slowly adjusting back to normal. There are three main reasons for this:
Sellers are getting educated on the market, and they are selling because they need to, not just to make unrealistic profits like in 2007.
Some people that bought in the peak of 2007 are seeking out other alternatives rather than selling at a loss. Some simply can’t sell because the mortgage amount is greater than what the selling price would be.
Most sellers are back to pricing based on what the home is worth in today’s market, and in turn the homes are selling. Bottom line is, no matter what the asking price is, buyers are only willing to pay the fair market value of a home.
In 2006/2007 the market boomed and it really didn’t matter what you did, your home sold! At the end of 2008 the recession hit and money was lost. 
Now, only two years after the boom, we’re already settling back into a market that’s both strong and reliable. If it’s priced for today’s market, it will undoubtedly sell.
Realtors understand the market as we eat and breathe real estate. It is time to start trusting the numbers and if the realtor can show you at least three comparable homes to yours that have sold, trust it!
In today’s world both sellers and buyers have access to the same information, so both sides truly know what the home is worth.
For a more extensive look, breaking down these statistics for all property types, condominiums, and single family homes, visit us at www.RedDeerRealEstateExperts.com