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Mar 20 2017

Preparing for homeownership in 4 steps

It’s the end of the month and your rent has gone through like it has for many years. You’ve never had an issue paying your rent on time and perhaps you’ve thought about owning a home, but don’t know if you could afford it or don’t know where to start. Purchasing real estate can be a great long term investment putting you on a path to financial success and is attainable if the right steps are put in place.

When considering becoming a homeowner preparation is key and more so when it comes to getting approved for a mortgage. It is a process with several key factors to consider.

 

Here are 4 things you should be doing:

  • First, monitor your credit score. Banks and lenders use your credit score to determine the level of risk lending money to you will be. Having a higher credit score and clean credit history, ideally above 680, demonstrates you to be a good candidate.
  • Second, evaluate your income and employment situation. Your income level and debts will determine how much will be approved for. You also want to consider affordability. After paying your mortgage, monthly bills and other necessities is there any savings?
  • Third, saving a downpayment. At minimum you will need 5% of your purchase price to use as a down payment on an owner occupied property. Steadily saving for this in your bank account and having it ready a few months before making an offer will put you in a good position.
  • Fourth, seek expert advice. Speaking to a mortgage professional will put you on the right path to getting approved the first time. They will evaluate your individual situation and develop a plan with you towards becoming a home owner. Brokers work with several lenders including banks, credit unions, monoline and private lenders to make sure you are getting a good mortgage product at the best available rate.

The process does not need to be overwhelming and will be stress free if you work with a professional in the field who can answer all your questions and provide you with the information you need to make smart financial decisions.

 

Ericka Kodituwakku is a mortgage agent in Ottawa specializing in first time home buyers. Contact her today for a FREE Homebuyers Guide and with any questions on the mortgage process.

Ericka Kodituwakku, Mortgage Agent
Mortgage Alliance Licence # 10530

(613) 413-2781
www.mortgagealliance.com/ErickaKodituwakku
ekodituwakku@mortgagealliance.com
https://www.facebook.com/KodiMortgage/

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Written by Dwania Peele · Categorized: Ericka Kodituwakku · Tagged: credit score, credit union, downpayment, employment, Ericka, Ericka Kodituwakku, expert advice, homeowner, Investment, mortgage, mortgage professional, new home owners, paying rent, private lender, Real Estate

Jun 26 2015

Top tax tips for business owners

gms final logo

  • Sole Proprietors should ensure that funds set aside aside for taxes include an amount for CPP, everyone has to pay CPP . Sole Proprietors pay their CPP at tax time, as opposed to salaried persons who pay theirs each pay period. A good estimate in year 1 is to set aside 25 to 30% of gross revenue to cover income taxes and CPP. After that the payments to be set aside will be determined based on your previous year’s filing
  • File on time, and pay installments on time. This saves on interest and penalties. Penalty is 5% of taxes owing. Ensure you discuss with your accountant your filing deadlines and the implications.
  • Keep business bank account separate from personal bank account.
  • Provide invoices for all work done and keep record of actual receipts for expenses incurred
  • Remember to maintain a mileage log – for shareholders, you can be paid mileage tax free from the corporation, as opposed to sole proprietors where the total mileage travelled is apportioned and then used as a deduction in calculating your taxes. In either case, a mileage log is important
  • HST input tax credit can be claimed on home office expenses and mileage reimbursements
  • Designate one credit card for business expenses (even if it is one you got in your name). That way the interest can be claimed easily
  • Wait until you have are just about to reach $30,000 in sales before you get a HST number. Once you have the HST number , you must start collecting taxes, and if your register too early, this might push forward a lot of administration that you didn’t bargin for
  • When signing up for HST, please ensure that the reporting period lines up with your business fiscal year. This makes record keeping much easier. So if your fiscal year end is Dec 31, then your HST should be Dec 31 st as well, or if quarterly, it should be calendar quarters, so that it will line up with the fiscal year end and recordkeeping
  • Ask your accountant if you qualify for using the Quick method to prepare your HST returns
  • Stay on top of your recordkeeping
  • Ensure you discuss the various compensation structure options (and implications) available to you as the business owner, with your accountant
  • Compensation via dividend is treated as investment income (as opposed to earned income), as such no CPP, EI, or health tax is payable on these. This compensation method can therefore result in good tax savings, however, the taxpayer will have no contributions to the CPP.

CRA Audit triggers (personal and business taxes)

 

  • Small business losses for more than 3 years
  • Specific targeted industries, which change from time to time – CRA is currently focussing on cash based businesses (eg., restaurants and tradespersons) and the underground economy, where money is passed “under the table”.
  • Certain personal tax deductions are often scrutinized – Moving expenses, tuition transfers, large medical expense claims, childcare expenses and donation receipts

Green Meikle & Smith Chartered Professional Accountants

Authorized to practice public accounting by the Chartered Professional Accountants of Ontario

 

1020 Matheson Blvd. E. Unit 10

Mississauga, ON L4W 4J9

905-919-3543 Ext 101

647-338-5306 (cell)

www.greenmeiklesmith.com

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Written by Dwania Peele · Categorized: Green Meikle & Smith · Tagged: bank account, business expenses, business owner, Canadian Small Business Women, compensation, CPP, CRA, credit card, deductions, economy, EI, Green Meikle and Smith, gross revenue, HST, income taxes, Investment, invoices, penalty, personal bank account, salary, Sole Proprietors, tax, tax credit, tax deductions, tax tips

Jun 18 2015

PLANTING ONE SEED (INVESTMENT) AT A TIME!

Amina

This past weekend the weather was finally amazing to get out in the garden, dig through the earth with my fingers and pull out all the weeds before planting my vegetable garden. It got me thinking that it takes one seed at a time to harvest your garden.

What if we took the same view on our investments?

When we first start we are so keen to learn and invest in anything that comes our way – but that can be foolhardy – especially when it comes to investing!  WHY?

Ask any successful real estate investor and he or she she will tell you that the secret to their success was knowledge.  They learned everything they could before investing in their first property.  They planted one seed at a time!  Did they stop there? No they keep learning and applying that knowledge to build on their portfolio.

As an investor you must take your time to learn, which strategy suits you best. Is it student rentals, multi-family, rent to own, buy & hold, flipping, just to name a few?  Or is it lending your money for a great return or investing in syndicated mortgages or even 2nd mortgages?

Lending your money or investing in 2nd mortgages, may not provide as big returns as a bricks and mortar property, but you also don’t have the hassle of being a landlord and dealing with tenant issues.

I was recently approached by a financial advisor, who only believed that the road to wealth was paved on people investing in the stock market.  I have nothing against financial advisors, but being a person who lost a lot in the 2009 crash, I did not want to repeat past mistakes, which included investing in the stock market.  Does that mean I don’t invest in the stock market at all? NO – I do but I self-direct my investmetns and don’t leave it to somebody else to do it for me – thus I don’t incur huge MER (management expense ratio) fees, which can cut into the growth of my investments.  He could not understand why I would not recommend him to my clients.

Taking charge of your financial future should not be left up to somebody else – burrying your head in the sand and hoping your money will be taken care of is also foolhardy!  Does it take work to look after your finances? YES, but isn’t it more rewarding to see your garden grow when you have planted those initial seeds yourself?

Planting those seeds takes time but when that garden (investment portfolio) starts to grow, you will reap the rewards!

To your Wealth!

Amina

Please “like” my facebook page here Please follow me on twitter here

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Written by Dwania Peele · Categorized: Amina Mohamed · Tagged: 2nd mortgages, Accomplishments, business, business growth, business owner, Business Woman, Canadian Imperial Business Network, Content strategy, finances, financial, Investment, money, morgage, portfolio, Real Estate, stock market, vegetable garden, wealth

Dec 11 2014

Is Engagement On Social Media A Return On Your Investment?

Malene Jorgensen

When people talk about social media marketing, there seems to be a focus on what you are getting in return. How is your timely investment measured? How is that investment related to sales? Some people tend to believe that just because you start sharing links on Facebook and Twitter, you will make money. Sure, there are success stories of people making lots of money online with their businesses, but this is far from the norm.

In other words, just because you are sharing links to your e-commerce store or your online products doesn’t mean you will see any returns on this investment. Instead, you may need to change your view of social media marketing all together to see just how useful it can be.

It really isn’t about how many products you sell every time you share a link. Instead, it is about the relationships you create on the network and about how you continue to nurture them. The investment really comes down to the engagement you have on these networks. If you start conversations, chances are that you will gain some loyal customers. So, when you do end up releasing a new product or service, people are more likely to invest in them if they are suited for their needs.

If you have thousands of followers who are excited about your business and you aren’t seeing any purchases, the problem may not be with your social media marketing. One common problem I stumble upon often is that people will disregard their Twitter or Facebook followers because they aren’t seeing any sales. But your social media marketing efforts may be paying off. The followers may be coming to your website – which is the goal of social media marketing – but they are turned off by your website. Then, they leave again without making a purchase.

You can find out whether this is a problem by implementing an analytics system to your business website, so you can see how many people are coming from Twitter or Facebook. You need to analyze all the steps in your social media strategies to determine what isn’t working. Only then can you find your social media success – and see the returns on your timely investments.

 

Malene Jorgensen is an entrepreneur, author and speaker. Jorgensen is passionate about online content, blogging, online business development and e-commerce. She owns an international media publishing company and a design studio. Jorgensen has written several books that are sold in over 50 countries. She is also obsessed with coffee and Twitter. You can reach Malene Jorgensen at Website | LinkedIn | Twitter | Instagram 

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Written by Dwania Peele · Categorized: Malene Jorgensen · Tagged: analytics, business development, business website, Business Woman, Canadian Small Business Women, e-commerce, engagement, entrepreneur, Facebook, Investment, Malene Jorgensen, marketing, Return on Investment, small business, small business development, social media, Social Media Marketing, time, Twitter, websites

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