5 Quick Tips for Prospective Homebuyers in Canada

First-time homebuyers in Canada have plenty of pitfalls to be careful of when navigating the minefield of real estate purchasing. Those first-timers looking for an efficient guide for homebuyers in Canada should keep these tips in mind when starting the journey. There’s nothing worse than unexpected expenses and other nasty surprises during the process that results in setbacks and buyer’s remorse.

Know What your Budget Can Afford

The primary cause of the 2008 financial crisis in the United States was subprime mortgages, which are primarily targeting first-time buyers who may not realize how much how they can afford. It’s easy to get stars in your eyes when you see that four-bedroom, three-bathroom dream home, but making purchases based on what you want and not what you can afford is a big no-no. Have a budget in mind before you decide on buying a house, so you know exactly how much you’re spending each month. Be sure to account for credit card payments, student loan repayments, and any other monthly expenses that you may have.

Always Get Pre-Approved for your Loan

What you think your budget can afford and what the bank is willing to loan to you are two vastly different sums. If you don’t get pre-approval for your mortgage before you start looking at houses, you’re wasting the time of everyone involved in the process. Mortgage loan approval is highly dependent on your income and credit score, so be sure there won’t be any changes to those two things while you’re seeking pre-approval for a loan. Mortgage loans have been known to fall through at the last minute if a person’s financial situation changes in any way.

You’re Not Going to Get Everything on your Checklist

First-time homebuyers go into house hunting with a massive checklist of must-haves for their new home, which often results in frustration for the real estate agent and their customer. Be realistic about your expectations and realize short of building your own home to your exact specifications, you’re probably not going to get everything you want on your list. It’s helpful to make a list of the absolute must-haves and then consider everything else you may want as a bonus. Be willing to compromise with your first home buying experience; otherwise you could end up renting for far longer than you anticipated.

Additional Expenses Will Pile Up

Homeownership seems appealing when you consider how much money is “thrown away” by renting, but it comes with more responsibilities and more costs that first-time buyers usually don’t consider. Property taxes, home insurance, house repairs, and other unexpected expenses can add up so consider saving some of your initial mortgage loans to cover these costs during the first few years in your new home.

Never Buy a Home You Haven’t Had Professionally Inspected

This point is pretty simple; if you haven’t had a home professionally inspected by an inspector you’ve hired, do not buy the home. It’s easy to fall in love with the layout and location of a house and ignore the faults it may have. Be able to keep your feelings in check and listen to an inspector. That beach home might be in your dream location, but if it has a cracked foundation, you’re in for a world of financial pain.

The Real Reasons Suppliers Really Matter

Businesses have partnerships and relationships across the industry. Without customers and client, the company isn’t going to be successful. Probably the most important connection is with your suppliers. The reason is obvious, right? They provide you with the resources you need to keep up with demand. Without the right materials, the business would fall flat and have to close its doors. It’s about keeping the supply line open to fulfill company orders.

As true as this may be, it’s not the only reason suppliers matter. Below are four more factors which put them at the top of the food chain.

Risk Prevention

There are a whole host of risks which come with dealing with suppliers. The fact that some don’t keep their promises is one of the biggest ones. Yep, certain organizations will take the money and promise the world yet come up with the goods later. Also, there are unforeseen circumstances and regulatory compliance to factor in too. In short, the wrong supplier can impact the company’s efficiency which can harm output. A quality partner is a firm which understands the risks and has backup plans from A through to Z and beyond. You need a supplier that is accountable and proactive to be successful.

Cost-Cutting

Slashing the business’ expenses is an unavoidable thing. Whether you are in the red or the black, it’s the only thing you will think of for months. The unlucky ones have to focus on cutting costs for years. Suppliers hold power in the palm of their hands. A deal can be expensive if the firm needs packaging for fireworks or other hazardous materials. The majority of companies will charge a pretty penny, and it’s money you can’t afford to waste. The good news is most are open to negotiation. If you promise to buy a big shipment or use them for the long-term, they will reduce the price per unit. Also, being punctual takes away from the return and overhead costs.

Brand Association

People never used to care from where their products came as long as they arrived. Today, the culture is entirely different as green packaging and helping the planet matter to customers. In fact, this is true to the point that they will choose a business with the same ideals. To secure their custom, you have to prove your dedication to the cause, which isn’t too difficult. However, a bad supplier can ruin everything. If they are notorious for harming the planet, this reflects on your brand. Inevitably, customers will bounce.

Small World

The world seems huge yet there are only six degrees of separation between people. In business, it feels as if it isn’t as much as six. Everyone has contacts and aren’t afraid to use them to their advantage. Sadly, spiteful people will communicate with their “friends” to tarnish your reputation. As petty as it sounds, it has happened a million times before due to a bad relationship. Although tensions rise, you should be careful about bad mouthing a partner as they may do the same to their peers.

Can you see the importance of your suppliers now?

 

4 Money Mistakes Every Business Owner Makes

Being your own boss can be exhilarating, until the moment you realize it can all go horribly wrong at a moment’s notice.  Maybe this is because you haven’t managed your money, or maybe it is because you haven’t protected your family in the case that something happens to you.  Either way, money mistakes can come back to cause significant sorrow for business owners – especially if they are ignored.

Why does this happen?  For many business owners, they are too caught up with just trying to keep the lights on to even think about long-term planning.  For others, it is a false sense that things will always stay the same.  The reality is the downturns and accidents happen and if you haven’t prepared yourself and your family then you are doing both a disservice.

With that in mind, here are four money mistakes every business owner makes.

Mistake 1: No Insurance

While this might seem like an added expense, the reality is that when managed correctly, insurance is an excellent way to manage risks.  The key is to manage the cost of your premiums with the coverage you are getting.  Doing so help you maximize your coverage levels while minimizing how susceptible you and your business are risks.

Policies you should consider for your business include general liability insurance and ‘key man’ insurance.  The latter will cover the company and maybe your family in case of anything were to happen to you.  This is important as most small businesses rely so onheavily on the owner that it would be almost impossible to continue operating if something happened to them.

Another way this can help is that it will provide added security for your family as the insurance payout can help to cover some of the uncertainties that will pop up if you are no longer in the picture.  Not to be morose but this is something that all small business owners should think of, but few rarely do.

Mistake 2: No Budget

Let’s face it, money can go out the door much faster than it comes in the door.  Even when times are good it can feel like you are bleeding cash and for this reason, you need to set up a budget to help manage your business.

It doesn’t matter if your revenue and expenses are ‘predictable’ or not, the key is to start tracking your revenue sources and your expenses and then see how the two are related.  Not only will this help you to better manage your costs, it will help you to identify the relationship between your revenues and the expenses required to deliver to your customers.

Another benefit of having a budget in place is that it can help to improve how you do your pricing.  Gone are the days of picking a number out of thin air as you replace your pricing with data.

Mistake 3: Not Preparing for Emergencies

Just as with your personal finances, you need to prepare your business for emergencies as well.  This could be a sharp change in the economy or in your local market, a personal injury claim, or even a motorcycle accident while you are enjoying some free time.  In the case of the latter, you might want to reach out to a lawyer who specializes in such claims, such as https://westcoasttriallawyers.com/practices/motorcycle-accidents/.

But even if a lawyer helps you, the question should be whether you have helped your business?  The answer to this starts by being prepared for emergencies.  As mentioned, having insurance can help but it is not the only answer.

What can you do?  It starts by making sure your business is on the firm financial footing and then setting aside some of your profits for a rainy day.  Beyond this, you also want to establish a relationship with your bank as the reality is that it is very hard to get credit when you need it, so you are better off getting it in place when times are good.

Mistake 4: Failing to Reinvest

There was a time when the steel industry in the U.S. ruled the world. However, boards of these major corporations failed to reinvest at a time when their foreign competitors had no choice but to build new mills.  Fast forward 50 years and the domestic steel industry is a shadow of what it once was.

The lesson here is that you either reinvest in your business or you die.  Sure, you might not be running a steel mill worth hundreds of millions of dollars, but this is something you should take to heart for your business.

This is not to say that you need to keep pouring money into your company without a return.  Instead, invest in those priorities which will help your company grow.  Doing so will help to make sure your business is on a strong footing for the future.