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Canada’s rental market soars to new heights
From businesses to students and families, renters are feeling the squeeze as costs rise to levels unseen in the country’s history.
New data shows July’s average asking residential rent hit $2,078, just shy of nine per cent above the same month last year. Compared to July 2021, the average asking rent increased by 21 per cent, adding $354 per month on average.
“Canada’s rental market is currently facing a perfect storm of factors driving rents to new highs,” said Shaun Hildebrand, president of Urbanation, in a news release regarding the rent spike.
“These include the peak season for lease activity, an open border policy for new residents, quickly rising incomes, and the worst-ever home ownership affordability conditions.”
Businesses are also facing tough choices as rents jump on commercial spaces.
Krista Mansour, in Bracebridge, Ont., was forced to close one of her locations of Footprints on Muskoka after the building was sold and her rent increased.
“We were shocked… We’re a small business,” said Mansour, when her rent of $2,260 per month went up by an extra $952 before taxes.
Read more about the push for better rent controls for commercial spaces.
Why party planning is serious business
Emma Rockburn and her fiance Phil Dallimore’s dream day turned into a nightmare when the Toronto venue for their September wedding abruptly closed.
“I immediately started crying, of course,” Rockburn told Global News. Her thoughts quickly turned to finances. “And ‘oh my gosh, we’ve just lost so much money and what are we going to do?’”
From poring over contracts to buying insurance, Alison McGill, host of Aisle Seat Podcast and former editor-in-chief of Weddingbells magazine, says there are ways to protect yourself when planning an event.
“You really need to put your business head on because, you know, this is an event, an expensive event, and it’s really a kind of a business,” McGill said.
People should consider options such as paying in installments and using a credit card as there could be recourse by having your bank stop payments should your vendor go out of business. And, if all else fails, explore your legal options.
Read more about handling vendor contracts and averting big-day disasters.
Is Canada’s economy ready for ‘Swiftonomics’?
International superstar Taylor Swift is bringing her Eras Tour to Canada next year with six shows in Toronto — and along with it, what’s projected to be boatloads of cash for the economy.
 Fans are excited for Swift’s arrival in the city, and businesses should be as well, said music industry expert Eric Alper.
“On average, each Taylor Swift fan going to a show so far in 2023 has spent US$1,300 not just on tickets, but hotels, merchandise, food, alcohol, drinks, gas, parking,” he told Global News.
The Eras Tour, which kicked off in the U.S. in March and will span at least two years, has become one of the most lucrative shows in history.
Fans from across Canada have already scooped up tickets — if they could get their hands on them.
While some major sponsors have already partnered with the tour, the opportunity for businesses big and small to ride the coattails of the frenzy knows no bounds.
“There’s a lot of money to be made off of a Taylor Swift tour.”
Read more about the ripple effects Canada could see from Swiftonomics.
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– THE QUESTION –
“I recently unexpectedly received $200K from an inheritance. I have about $320,000 left on my five-year fixed mortgage set to renew in February and about $5,000 left on my car loan, which has a pretty low interest rate. No other debt. Should I pay off my debts first or invest the money? “
— A Money123 reader
“First off, it’s amazing that you received a sizable inheritance. It’s great that you’re considering the best way to optimize this windfall to improve your financial situation. It’s definitely a classic question that I get asked all the time when it comes to choosing paying off debt versus investing the money.
Of course, without knowing all the details of your situation, it really comes down to personal choice. Some people feel like a weight is lifted off their shoulders when they are able to pay down a significant amount of their debt. Others feel like they are prioritizing their future retirement or future goals when they invest their money in the stock market or in real estate.
If I were in your shoes, I would do a bit of both. When you renew your mortgage with your lender, you should find out if you’re eligible to contribute a lump sum payment towards your mortgage (outside of your regular payments). This will be beneficial if you’re going to renew at a higher mortgage rate. You can also consider changing the frequency (such as going from monthly to weekly payments) and increasing the amount of your mortgage payments to accelerate the time it takes to pay off your mortgage.
I would also pay off the car loan since $5,000 is a small amount to cover based on your inheritance. Then you can cross it off your checklist and it will be one less thing to worry about!
When it comes to investing, remember that there are always risks involved. Hopefully, you have a long-term financial plan and understand how much risk you’re willing to take. Then you can consider which investment accounts you plan to top up (such as your RRSP and TFSA) assuming you have some contribution room. Personally, I like to have a diversified portfolio where I’m investing in many sectors and countries as opposed to chasing a few hot stocks.
Also, don’t forget to treat yourself! It’s not that often we receive a large inheritance. So, if you have some dream vacation or fancy gadget you’ve been putting off buying, perhaps it’s a good time to revisit it. After all, you have to enjoy the blessings that money can provide to you.”
– Sandy Yong, personal finance writer and author, The Money Master
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