Real Estate Exam number 2

A couple of Saturdays ago, I wrote exam #2 of 3 for Real Estate. I was a little worried that I hadn't studied enough because I had just returned from a week long trip to Holguin, Cuba.

My apprehensions were unwarranted. I got 88% on my exam and now I just have one more exam to write before I can buy and sell real estate. Unfortunately, the next session there is a classroom component that is required. Due to my status as a Chartered Accountant, I will not be able to attend these classes until late spring/early summer. I don't anticipate too many problems, so I expect to have a license to trade sometime in May.

How the budget yesterday affects you...

Incentives! Incentives! Incentives!

As a future real estate agent/chartered accountant, I feel as if it's my duty to report to everyone the items that were offered in the most recent federal budget for real estate participants. Now, the incentives that have been offered are not for everyone. There is a targeted market for the incentives and you should speak to an accountant or a knowledgeable real estate agent for more information for your particular situation.

First, the maximum under the Home Buyer's Plan has increased from $20,000 to $25,000. This means that you may withdraw up to $25,000 tax free (repayments are required over 15 years) from your RRSP to purchase your first home. RRSP contributions reduce your taxable income, so that your taxes owing are much lower. As a result, you may be entitled to a nice refund. If done properly, you can save yourself a lot of money when purchasing your first home. You should speak to an accountant to find out the details of how to best take advantage of the tax implications of your purchase.

Now, the importance of the $5000 increase can be significant in some circumstances. The Canadian mortgage system requires mortgage insurance when purchasing a home for under a 25% down payment. This means that more of your down payment can come from taking advantage of this plan. Please plan your home purchase with a knowledgeable salesperson.

Next, there is a new credit being offered for first time home buyer's. This is separate from the home buyer's plan. You really do not have to do anything to earn this credit other than purchase your first home, and have an acccountant that knows what they are doing. This is a non-refundable credit of 15% based on $5,000. This credit is available to first-tiime home buyers after January 27, 2009.

I realize that I may have spoken a foreign language to you. Basically, the point I want to get across is that if you are thinking of purchasing a home is to think of me. I have the required knowledge to make sure the purchase is done properly, saving your hundreds and possibly thousands of $$$. I have extensive knowledge of the Ottawa market having lived in Ottawa for 25 years, and I have been working in accounting since 2004.

Updates...

Well, it looks like I've been doing a terrible job at updating this blog. I'd like to keep this thing up to date, but there is really a lot of things that have happened in the last month. I actually had to look at the last post to know where to start off.

In my last post, I wrote that I was getting my results for my chartered accounting exam. Of course, I've left everyone in suspense for about a month and a half. Now, given the time lapse, you might think that I have jumped off a bridge, or in front of a car. In fact, I passed my exam; and now, I'm just waiting to receive the official piece of paper at my February convocation.

Again, I don't have that much time, but hopefully tomorrow I will post some stuff about my real estate endeavors. I also have a trip to Cuba that I should talk a little about.