Brent Horrill & Associates

03/09/2023

03/05/2023

One Major Benefit of Investing in a Home
Monday February 27th, 2023 For Buyers, First Time Home Buyers, Move-Up Buyers, Housing Market Updates

One of the many reasons to buy a home is that it’s a major way to build wealth and gain financial stability. According to Freddie Mac:

“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”
With spring approaching, now’s a great time to consider if buying a home makes sense for you. The best way to figure that out is to talk with a trusted real estate professional.

The Largest Part of Most Homeowners’ Net Worth Is Their Equity
You may be surprised to learn just how much of a homeowner’s net worth actually comes from owning their home. The National Association of Realtors (NAR) shares:

“Homeownership is the largest source of wealth among families, with the median value of a primary residence worth about ten times the median value of financial assets held by families. Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”
In other words, home equity does more to build the average household’s wealth than anything else. And according to data from First American, this holds true across different income levels (see graph below):

One Major Benefit of Investing in a Home | Simplifying The Market

Bottom Line
One of the biggest benefits of owning a home, regardless of your income level, is that it provides financial stability and an avenue to build wealth. Let’s connect today so you can start investing in homeownership.

02/17/2023

Definition of “Principal Residence”

We spoke a few weeks back about the changes to the principal residence exemption for capital gains on sales of homes in Canada. While still exempt from capital gains tax, principal residence will be assessed the tax if the occupants lived there less than a year. The discussion has given rise to a legal discussion on what exactly constitutes a “principal residence” for a person? The importance of a seller being able to define a house for sale as their “principal residence” is that if it is, then they can avoid the capital gains tax on the profit achieved on sale when they file their income tax return. If the client is wrong (according to CRA) with their assumption that the property is their principal residence, it could be expensive for them. Clients (and us) should be aware that if CRA characterizes the sale of the house as “an adventure in the nature of trade”, they do not consider this a principal residence and then they will classify the sale profits as business income to the seller. If there is a disagreement on whether a sale is a capital gain between a taxpayer and the CRA, and it cannot be resolved then it can go to the relevant courts for a decision. When deciding if a property is in fact a person’s principal residence, they look at things like the nature of the property (historically a rental?). How long did the person own and live there? Was the taxpayer involved in house transactions on a frequent basis up to that point? how much work was put into the property? And the circumstances that dictated the reason for sale of the property. Effectively the court wants to see a true intent to make the house a person’s main home, the place they truly lived in and kept as such. You could imagine how, when a person is challenged on this it could be complicated for them.

02/10/2023

New on the market. Gorgeous. Ready to move in.

202 175 Ronald Street, Winnipeg, Manitoba R3J3J5

01/07/2023

Supper at The Cheesecake Factory.

06/11/2022

You’re invited to join us tomorrow morning at church! We’re continuing in our message series “Frustrated with God”, and we’ve got services at 9:30am and 11:15am, in-person or online.

06/06/2022

***Remembering D-Day ***

During World War II (1939-1945), the Battle of Normandy, which lasted from June 1944 to August 1944, resulted in the Allied liberation of Western Europe from N**i Germany’s control. Codenamed Operation Overlord, the battle began on June 6, 1944, also known as D-Day, when some 156,000 American, British and Canadian forces landed on five beaches along a 50-mile stretch of the heavily fortified coast of France’s Normandy region. The invasion was one of the largest amphibious military assaults in history and required extensive planning. Prior to D-Day, the Allies conducted a large-scale deception campaign designed to mislead the Germans about the intended invasion target. By late August 1944, all of northern France had been liberated, and by the following spring the Allies had defeated the Germans. The Normandy landings have been called the beginning of the end of war in Europe.