Control is a very, very important part of wealth-building. There are lessons all over right now about what happens when you don't control your investments. We all read or have heard of different Ponzi schemes and Bay and Wall Street ‘hand in your pocket’ plans.

Let’s start out with my definition of control:

Investing Control: The ability to influence or impact the future value and net income of your investment.

Investing control is important for almost any type of investment.

For the stock market, this means controlling a majority of a company’s shares. Now, this is extremely difficult for average people, like you and me. This is why we should invest a smaller portion of our money into the stock market.

For real estate, the best investors want active control over their properties. Active control can be obtained in partnerships and individual investments alike. Most people would rather be passive real estate investors. The tiny few who grow wealthy prefer to be active investors.

The majority of families focus their investments into assets they do not control. This is why they struggle to accumulate “real” wealth. This is also why many people will not have enough money accumulated when they retire.

In fact, it boggles my mind that most people prefer not to be in control of their investments. They would much rather have mutual fund planners, stockbroker or someone else control their money. “Done for you” wealth is not available. You are going to have to do much of it yourself. You do it by controlling assets.

It is perfectly fine to invest a small portion of your money into investments you do not control. But I would be very careful investing large sums of your money into uncontrollable investments.

If you study wealthy people, you’ll quickly see that they do the exact opposite of everyone else. They desire, fight for and cherish control. Everyone else desires, cherishes and pays big money to have no control. Notice the difference.

I remember reading a biography on Kirk Kerkorian, a billionaire. In every single investment Kerkorian made, he fought for control. When he didn’t have control over an investment, he quickly divested himself of the investment. Same goes for Wayne Huzienga, who built three separate billion-dollar companies (Waste Management, Blockbuster and Republic Industries).

I believe most people prefer passive investments because they are easier. Passive investments allow the investor to invest without having to take any responsibility. Passive investments do not require the investor to be decisive. Passive investments do not require the investor get his hands dirty.

Control requires that you take responsibility for your investments. Control requires you to be active. Control requires that you pay attention. Control requires that you be decisive. Control requires you to roll up your sleeves and get dirty every once in awhile. Some believe control is risky. I believe lack of control is risky.

Once you have control of your investment, you should work hard to increase its value. You increase value by increasing its income.

One of the most valuable wealth-building skills you can have in life is the ability to increase the net income of your investments. With this skill, you can literally write your own ticket.

You must strive for control over your investments. Control is critical for true wealth. Don’t be lazy. Don’t copy the masses and happily turn over control to your hard earned money.

Summerside Neighbourhood in South East London  -  Ty Lacroix sold the home at  644 North Leaksdale Circle.

Property information

The oversupply of condominiums in Canada is becoming a concern as two-thirds of all housing starts are condos and the supply of completed but unoccupied condominiums is high.

Vancouver & Toronto lead the way in new construction and as an example; Toronto has 132 high-rise buildings under construction compared to 17 in Chicago or 86 in New York City.

In a report by Bank of America Merrill Lynch, if Toronto condo developers stopped developing and completed their existing projects, there would be enough to supply the market for five years! The report also stated that between 40-60% of the sales of pre-construction units are to investors!

What is going to happen when units are on the market longer, are not selling and supply out paces demand? Yes, prices tumble and turmoil accelerates the uncertainty of real estate which in turn can affect all of Canada.

In London Ontario, we too have many new condo projects under way but the majority of units being built are one floor townhomes with amenities that are attracting the Boomers and the high-rise buildings are actually attracting the Boomers with very few investors on the scene.

As I wrote yesterday in my blog about why London Ontario will not experience a real estate bubble burst, the stability in London and the new demographic changes for the fore seeable future are quite positive.

  Ingersoll

• 4 bath, 4 bdrm 2 story "Granny Suite" - MLS® $369,000 -

  Ingersoll  -  Looking for a great place to raise your family. Looking for a large lot yet want to know where everyone is? Want some privacy? This 2 storey home is an n oasis in the city of Ingersoll with a 320` deep lot, triple car garage, 4 bedrooms, 3 1/2 baths, a granny suite or self contained unit in lower.

Magnificent 24` X 24` covered patio w/ BBQ hook up. Patio door to sunken Florida room w/free standing gas fireplace with fabulous windows & skylight.

Hardwood & ceramic floors, separate dining & living rooms.Huge master with ensuite & Jacuzzi style tub. All interior doors are solid oak.

The lower has a granny suite or can be used as a 4th bedroom or entertainment.

Roof 2004, reverse/osmosis system, water softener , garburator and on and on. Laundry on 2nd floor.
3 Garden sheds included.

Easy access 401

Please contact Seller direct at 226-228-0567 or email fdouglas63@live.com for appointments to view.

Property information

Some are even predicting gloomier thoughts, such as a real estate bubble ready to burst. That may be so for cities like Toronto, Montreal, Calgary or Vancouver where new home and condo construction is at an all time high.

I don’t think we will see this decrease in prices in London Ontario for the following reasons:

•         The average selling price for a home in Canada at December 31, 2011 was $347, 801 while in London the average price was $244,430 which shows that London has not seen the influx of investors, speculators or the herd mentality which believe if prices are rising, that they should jump in and buy a home so that they do not miss out and benefit from those soaring prices. So as a result, housing is perceived as an asset that can only rise in value and the herd just keeps on going in debt and piles it on.
•          It is believed that median house prices should be no more than three times larger than the median household income. Today, prices stand at 4.6 times the median income across the major cities in Canada yet London is a little under that 3 times the median income level!
•         Interest rates are at their all time low which usually means a real boom for home buyers but with debt ratios for the average Canadian rising, inflation being curbed to a minimum and tighter lending rules, London historically has stayed the course with real estate prices being less than the Canadian median.
•         I am seeing more and more Baby Boomers moving to London because of lower housing costs, London’s great medical facilities, the resurgence of downtown London, the multitude of recreational facilities, golf courses and situated between two of the Great Lakes, Lake Huron and Lake Erie. These folks have cash or little debt, are leaving the larger centres and are cashing out on the rising prices in their communities.

   Is London Ontario immune to the rest of Canada? Of course not but the influx of middle class newcomers to London with money will keep our real estate market stable for years. By no means should we ignore the global economy either but as demographics change, a house or a condo changes from bricks and mortar to a home.

Grenfell Village, London  -  The apartment at 202-1600 Adelaide Street N has been sold.

Property information

The proposed Healthy Homes Renovation Tax Credit in the Province of Ontario would be a new permanent, refundable Personal Income Tax credit to assist with the cost of permanent home modifications that improve accessibility or help a senior be more functional or mobile at home.

The credit would be worth up to $1,500 each year, calculated as 15 per cent of up to $10,000 in eligible home renovation expenses that would help seniors stay safely in their homes. It could be claimed by senior homeowners and tenants, and people who share a home with a senior relative.

Some examples of eligible expenses would include:

• certain renovations to permit a first-floor occupancy or secondary suite for a senior
• grab bars and related reinforcements around the toilet, tub and shower
• hand rails in corridors
• wheelchair ramps, stair/wheelchair lifts and elevators
• walk-in bathtubs
• wheel-in showers
• widening passage doors
• lowering existing counters/cupboards
• installing adjustable counters/cupboards
• light switches and electrical outlets placed in accessible locations
• door locks that are easy to operate
• lever handles on doors and taps, instead of knobs
• pull-out shelves under counter to enable work from a seated position
• non-slip flooring in the bathroom
• a hand-held shower on an adjustable rod or high-low mounting brackets
• additional light fixtures throughout the home and exterior entrances
• swing clear hinges on doors to widen doorways
• creation of knee space under the basin to enable use from a seated position (and insulation of any hot-water pipes)
• relocation of tap to front or side for easier access
• hands-free taps
• motion-activated lighting
• touch-and-release drawers and cupboards

What expenses would not be eligible?

Expenses would not be eligible if their primary purpose were to increase the value of the home. Examples of ineligible expenses would include:

• general maintenance – such as plumbing or electrical repairs
• repairs to a roof
• aesthetic enhancements such as landscaping or redecorating
• installing new windows or regular flooring
• installing heating or air conditioning systems
• replacing insulation

For more information go tohttp://www.rev.gov.on.ca/en/credit/hhrtc/index.html

As with all municipalities in Canada and the US, officials are finding innovative ways to save taxpayers money! As well, with obesity levels rising across North America, a group of top level economists, legislators, gurus and academics have come up with a way to combat both.

As a picture is worth a thousand words, here is what they have come up with.

   Komoka is less than 15 minutes west of London with easy access to Highways 402 and 401. Komoka is between Mt.Brydges and Kilworth and from London, head west on Oxford Street.

Komoka is a crossing point for many railway lines and was formerly a railway hot spot featuring various hotels and development. Today, the Komoka Railway museum keeps the local railway history alive and features unique artifacts such as a 1913 Shay Steam Engine and a 1972 Grand Trunk & Western caboose. Go to http://www.komokarailmuseum.ca/ for more information,

There is an elementary school, Parkview Public School, and Providence Reformed Collegiate, a private Christian high school in the village. The village also supports a number of youth sports teams, including baseball and soccer.

Komoka is currently experiencing a population growth due to a new subdivision developments. Consequently, the elementary school's enrolment has rapidly increased resulting in substantial renovations.For a list of available homes for sale in Komoka and surrounding area, just drop me a quick email.

One of the most famous spots in Komoka is the Little Beaver Restaurant, always crowded and a meeting place or stop off point for those heading to or from London.

In partnership with Delaware and Mount Brydges, the three communities rotate responsibilities of hosting Canada Day celebrations. The partnership is called "Del-Ko-Bridge". The celebrations feature a free pancake breakfast, morning parade, events and competitions throughout the day, a baseball game at night with fireworks following the game.

City of London renews commitment to make homeownership easier

The City of London has announced the renewal of a program offering affordable homeownership. This very successful program, previously known as the Affordable Homeownership Program has been renamed Investment in Affordable Housing Homeownership Program and has been improved to offer more Londoners the opportunity to own their own home.

The program consists of an interest free loan for qualifying home buyers to assist with down payment and closing costs.

To be eligible, households must have a gross household income of $55,000 or less, and must qualify for and be pre-approved for a mortgage at a recognized financial institution. The selling price of the home must be no higher than $145,000. In addition to receiving 5% down payment assistance, qualifying home buyers will receive closing cost assistance of 3%.
 
The Investment in Affordable Housing Homeownership Program is a partnership between the Government of Canada, the Province of Ontario and the City of London through the Canada-Ontario Investment in Affordable Housing Program (IAH) which offers low-to-moderate income earners the opportunity to purchase a home in London and Middlesex County.

The federal and provincial governments have set a deadline of March 31, 2012 to expend the funding allocated to the City of London.

                                   About the Program

The Homeownership Assistance Program is an interest free loan providing 5% in down payment assistance to interested eligible applicants in London and Middlesex County only. Qualifying home buyers can also receive another 3% of the cost of the home to assist in paying closing costs including legal fees, disbursements and registration on title.

Applicants must be renters, at least 18 years old, must not currently own a home or a residential property in whole or in part (including recreation or cottage property). Post secondary graduate students may qualify to deduct their annual Canada-Ontario Integrated Student Loan payments from their gross annual income.

Eligible applicants can select a home of their choice in the open market in London or Middlesex County only.  Eligible applicants must meet all the specified requirements, income criteria and must be qualified for a mortgage at a recognized financial institution. A home inspection by a Registered Home Inspector or an Associate/Applicant Member of the Canadian Association of Home and Property Inspectors is also required.

Applications are accepted on a first-come, first-served basis. Those selected purchasers must find a suitable home priced up to $145,000 by the provincial deadline of March 31, 2012 (the actual closing date of the sale may be after that date).
For full details on the program or an application package please visit www.housing.london.ca or call 519-661-2500 ext. 5523.

This is a story that is being repeated all over the country.  Boomers want to downsize.  This is hardly a surprise.   The surprise or even shock is that it is going to cost them money to live in less space.  To some, it is so appalling that they have decided to stay in their current home.  

Boomers own their home in the suburbs.  Most are mortgage free.  The home has four bedrooms, three baths, a family room, a rec room in the basement, two or three car garage and a huge yard full of trees and shrubs and maybe a pool.  Okay, there may be variations of this but the essence is - the boomers own family friendly property.  Now......  The kids have finished school and left the nest.  The Boomers are rattling around a big house and find that they live in the kitchen - family room space and their bedroom.  It seems that it is time to move to something smaller.

Here is the rub.  The new home or condo may cost more than the proceeds from the sale of the big home in the suburbs. What?  

1. The market has reacted to the demand for large condos and retirement homes by placing a premium on the sales price.  Remember, the Boomers are a tidal wave moving through demographic data.  If you, a Boomer, are thinking of downsizing then so are millions of your fellow 1946-1964 birthday buddies. Simple supply and demand economics at work.
2. Your lovely home is a wee bit tired.  Forty plus years of the same kitchen, with the wrought iron railings, pink carpet, parquet flooring and paneled rec room is telling the story.  Although you have house size you have a house waiting for updating and renovations.  Your home is not competitive.  It is not giving Buyers what they want in updates.
3. You want to move but you are certainly not going to settle for apples to apples.  Your tastes are now refined and you want granite and a bungalow backing on a golf course with grounds keepers or the whole top floor of a condo in the downtown area.  You are selling a MacIntosh apple to buy an organically grown Star Fruit.   Would you be happy buying the little bungalow down the block from your current home with the need for the same updates as your current home?  Would you be happy with the location?   No?  

After finding out that their home is not the gold mine that they hoped for, many potential Boomer Sellers make the decision to stay in their current home. In some cases, the Boomer will update the family home, adjust the buying expectations and make the move at a later time. 

Valerie Zinger, a real estate representative in Ottawa wrote this blog that I thought I would pass along. Last year alone I had 9 clients decide to stay in their existing home or extensively upgrade the home instead of downsizing.

They too had "bumper shock" or should I say "door shock" when they saw what their 'dream' home would cost and what their existing home was worth.

Ty

Kilworth is a quiet enclave of new and mature homes nestled in a village 8 km west of London. It meanders along the Thames River and offers all the amenities that you would expect.

The Municipality is situated at the north, northwest and westerly limits of the City of London, and therefore enjoys both urban and rural amenities. The municipal offices are located in the Hamlet of Coldstream, approximately 15 km northwest of the City of London.

The homes in Kilworth are situated on large lots and easy access to all a small village offers. Close to great golf courses like Fire Rock, Riverbend, The Oaks, Oxbow Glen and  Hickory Ridge

Beautiful Komoka Provincial Park is less than 2 km away and offers great walking and hiking trails.

For a list of current homes for sale in Kilworth feel free to contact me.

31 Houses in Kilworth, a short drive from London  sold in 2011. On average these were on the market for 43 days and they sold for on average of $397,810 which was 97% of the asking price of $409,533.

Currently there are 7 homes for sale in Kilworth with an average asking price of $411,736. As you can see, Kilworth remains a neighbourhood in demand because of its beauty, quaint small community charm and of course, nature.

For more details or other information concerning Kilworth, fire away. If we don't know , we know whom or where we can get that information for you.

Summerside, London  -  We invite everyone to visit our open house at 644 North Leaksdale Circle on January 15 from 2:00 PM to 4:00 PM.

Property information