Category: Moneywise

When it comes to investing, few command more respect than Warren Buffett. The reason is simple: from 1964 to 2023, his company, Berkshire Hathaway, delivered an astonishing overall gain of 4,384,748%.

That kind of success has created immense wealth for its shareholders, including Buffett himself. Forbes estimates his net worth at US$143.5 billion, placing him among the world’s richest individuals.

But the stock market is unpredictable, and not everyone shares Buffett’s track record. We’ve all heard cautionary tales of investors losing fortunes chasing stock tips.

Buffett believes many investors fall into a fundamental trap. In an interview with Yahoo Finance, Buffett was asked what he sees as the biggest mistake investors make.

His response was immediate: “They just don’t realize that all you have to do is just buy a cross section of America, and they never listen to people like me or read the papers or do anything subsequently. They think that because you can trade, you should trade.”

Put simply, investors trade too often. Buffett attributes this issue to the stock market’s low transaction costs compared to other asset classes.

“You buy a farm, you buy an apartment house, you can’t resell it tomorrow [because of] the cost of moving around. Now you get something handed to you — liquidity, which in an instant, you can sell, and the cost of doing it are pennies compared to other kinds of investment activity. So because they can so easily move around, they do move around and moving around is not smart in investing,” he explained.

In other words, just because you can trade frequently doesn’t mean you should.

Warren Buffett proclaims: The best thing to do

Buffett’s message is clear: Long-term success in investing doesn’t require constant buying and selling. He advocates owning a “cross section of America.”

This philosophy stems from his unwavering confidence in the U.S. economy.

“American business — and consequently a basket of stocks — is virtually certain to be worth far more in the years ahead,” Buffett wrote in his 2016 letter to shareholders.

Berkshire’s own investment strategy reflects this belief. Its US$295-billion equity portfolio is heavily weighted towards American companies across diverse industries, reinforcing Buffett’s faith in the nation’s long-term economic strength.

For those unsure about which American businesses to invest in, Buffett offers a straightforward solution: “In my view, for most people, the best thing to do is own the S&P 500 index fund,” he famously stated.

This simple approach gives investors exposure to 500 of America’s largest companies across various industries, providing diversified exposure without the need for constant monitoring or active trading.

Buffett’s commitment to this strategy is evident in his estate planning: he has directed that 90% of his wife’s inheritance be invested in “a very low-cost S&P 500 index fund” after his passing.

The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it.

Buffett likes productive assets

Buffett’s point about how “you can’t resell it tomorrow” when investing in farmland or apartment buildings is also worth highlighting.

Unlike stocks, which can be traded instantly, real assets come with higher transaction costs — but that’s not necessarily a drawback. Investors typically aren’t looking for quick flips; they’re in it for the long-term income these assets generate.

With farmland, you can earn money through crop sales or leasing fees. With rental properties, you can collect monthly rental income — both providing a steady cash flow while the asset itself appreciates over time.

Buffett has personal experience with both. In 1986, he bought a 400-acre farm near Omaha, and in 1993, he acquired a New York retail property next to NYU.

His verdict?

“The two investments will be solid and satisfactory holdings for my lifetime and, subsequently, for my children and grandchildren,” he wrote in his 2013 letter to Berkshire shareholders. He also predicted that the income from the two investments “will probably increase in the decades to come.”

Today, you don’t need to buy a whole farm or an entire building to invest in these asset classes.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Scott Galloway might be a college professor at New York University, but he has a whale of a time living like a rockstar.

In a 2024 interview with Lewis Howes, he said he frequently “bombs off to the Beverly Hills Hotel”, goes to the Stagecoach Festival and enjoys a luxe lifestyle.

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With multiple successful podcasts and business ventures under his belt, Galloway’s fortune isn’t surprising. But he admits that part of his wealth was created by fluke.

“The ultimate intergenerational theft just happened and it was COVID,” he told Howes, slamming the government’s response for being more focused on preserving wealth than lives.

Galloway said he believes the pandemic relief efforts widened the wealth gap between the young and old, which could be one reason younger Americans are hesitant to start families now.

Great transfer of wealth

According to the Government Accountability Office, from 2020 to 2021 — the height of the pandemic — the federal government passed six laws that released $4.6 trillion of funding for pandemic response and recovery. However, only 85% of it wasn’t spent.

“Where did it end up?” Galloway asked. “It ended up in the market so it sent housing and stock prices skyrocketing.”

The S&P 500 surged roughly 80% from March 2020 to December 2021. Meanwhile, the median U.S. home price has surged 45% from 2020 to 2025, according to Redfin.

Galloway argued that these policies benefited those who already owned most of the assets, usually older Americans like him.

“All you’re doing is seeding advantage to the incumbents,” he says.

Younger people who missed out now face a housing crisis, which is impacting their ability to start families and have children. A study published in the journal Labor Economics found that a 10% rise in home prices suppressed births per woman by 0.01 to 0.03.

That means if you’re under 35, the odds are stacked against you. However, that doesn’t mean there aren’t any opportunities to build and accumulate wealth.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Against all odds

Since Galloway argued that economic policies bolster those who hold assets, the obvious way to shift the odds in your favor is by playing the game: accumulate assets and boost your earnings.

Acquiring high-value skills in industries facing labor shortages could be an excellent way to bring in more income. For example, an elevator installer can earn roughly $99,000 a year without a college degree.

Minimizing debt and maximizing investments can also tip the scale in your favor. According to Empower, the median net worth of a person in their 20s is just $7,638 and for someone in their 30s, it’s $35,649.

If you’re in these age groups, you can outperform your peers with a few years of above-average income and lower-than-average debt. Remember that time is on your side, so accumulating even modest wealth early can help you enjoy the power of long-term compound growth.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Over a million Canadian snowbirds go south when it gets cold every year, and many of them choose to spend winters in Florida.

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But the current political climate is changing that.

Gulf Coast News recently reported on “a mass exodus” of Canadians from Southwest Florida as new travel regulations are imposed and the trade war escalates.

CNN also recently reported on snowbirds considering alternative destinations or selling their properties. “Some of the clients I have been dealing with want to sell at any cost, even at a loss,” said Share Ross, a realtor based in southeast Florida.

“More home purchases in the U.S. are done by Canadians than any other country — 13% from April 2023 to March 2024, the National Association of Realtors (NAR) says,” reported CBC News. “Half of all Canadian purchases were vacation homes, and roughly 41% of sales were in Florida.”

This will likely have a ripple effect on the tourism industry and local businesses.

“If we travel at all, it won’t be here”

Many Canadians are rethinking their plans to return to Florida, with some even considering putting their properties on the market.

"I’ve lived here six months. This is my home, but I’m leaving April 2," said Susan, a Canadian speaking with Gulf Coast News. She was not comfortable sharing her last name for fear of becoming a target amid the growing political divide between the U.S. and Canada.

For the Presement family, regular winter residents in Fort Myers, the political landscape has left them regretting their decision to visit Florida. “The truth of the matter is if I hadn’t prepaid everything and wasn’t here and your weather wasn’t so damn nice. I’d go home now,” said Barry Presement to Gulf Coast News. He and his wife Ruth have no plans to return next winter. "If we travel at all, it won’t be here," Ruth said. "For sure, it won’t be here. We’ll go elsewhere."

Their son Brian had even considered retiring in Southwest Florida, but now says Mexico is looking like a better option. "We thought about buying a home in Florida, but now we might reconsider that," he said.

Local businesses are probably going to feel the strain of Canadians avoiding the U.S.

“It’s not only having a negative impact on the tourism market, but business as a whole,”said Cole Peacock, owner of cannabis cafe & CBD marketplace Seed and Bean to Gulf Coast News. “You need those extra visits to kick that profit margins to another level.”

"Not only have Canadians been electing to divest from their vacation homes and investment properties in Florida, they have also been canceling their trips to the area which is having a negative impact on our vacation rental market," Robert Washington of Savvy Buyers Realty told Realtor.com. "We have heard from several of our vacation rental property owners that they have experienced multiple cancellations from Canadian guests due to the tariff battle. Hopefully the tariff situation is resolved soon, or it could have a lasting impact on our tourism industry."

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

What Americans can expect with tariffs

The U.S. Travel Association has said Florida is among the top five most visited states by Canadians and it “could see declines in retail and hospitality revenue, as shopping is the top leisure activity for Canadian visitors.”

In addition to losing business from a lack of Canadian visitors, Florida businesses and consumers are also facing another blow, the implementation of tariffs on imports from Canada and the rest of the world.

These tariffs are set to raise the costs of imported goods, raw materials, and even locally produced items that rely on imported components.

The Federal Reserve Bank of Atlanta found that an additional 10% tariff on Chinese imports, 25% tariffs on Canadian and Mexican imports, and 10% tariffs on other countries could raise consumer prices on everyday retail purchases such as food and beverage items and general merchandise, covering about a quarter of the total consumption basket, by 0.81% to 1.63%, assuming the costs are fully passed to the consumer.

So what can consumers do to protect their budgets?

A good place to start is to review spending habits, since cutting costs could provide some relief. Consider buying essentials in bulk before the tariffs drive prices higher. That way, you can lock in current prices and shield yourself from immediate price increases.

For those willing to shop around, you can consider products from countries not affected by tariffs, or choose items that are produced locally to avoid the extra costs.

Above all, staying informed is critical. As tariffs and related policies continue to evolve, consumers who stay up-to-date should be better equipped to make smarter financial decisions.

What to read next

• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Here are 3 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Nearly 1 million Americans have a net worth of at least $10,000,000 — here are 3 ‘quiet’ ways the ultra-wealthy grow their riches (and how you can join the club ASAP)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Pets change our lives for the better, and not just because they’re fuzzy, tail wagging bundles of unconditional love. According to the Human Animal Bond Research Institute (HABRI), pets foster connection and community, encourage mindfulness, focus and healthy habits and support resilience and recovery.

But, pet parenthood gets expensive when you factor in food, vaccinations and grooming. That doesn’t even include the cost of giving them the best treats, toys and veterinary care (and we know you’ll want to).

Being pet parents ourselves, we’ve come up with eight tried and tested tips to help save you money while you spoil your pet.

1. Buy in bulk

Save money by bulk-buying items with a long shelf life or that won’t expire. These items include puppy pee training pads, poop bags, cat litter, cat toys, canned food, dry food and bedding for small animals.

If the thought of lugging home oversized packages makes your back hurt, check online retailers, such Amazon, where these goods can be delivered right to your front door. It you’re an Amazon Prime member, you’ll enjoy free shipping, and some pet products come with recurring delivery options, which save you even more money.

If you’re already signed up for a warehouse club such as Costco, then you’re already set to take advantage of bulk pricing for certain pet supplies. Pro tip: Head to the pet aisle to pick up a box of 100 pee pads — it’s the best deal in town.

Read More: A surprise trip to the vet can cost $1,000 or more. Don’t get caught off guard. See how pet insurance can ease the stress — and cost — of caring for fur babies. Protect yourself now  

2. Invest in pet insurance

When covering pet expenses, pet insurance is one of the most useful tools pet owners have. Sure, you’ve got to shell out a certain amount a month, but spending today may save you thousands in the future if your pet becomes injured or ill.

Pet insurance providers — such as Spot Pet Insurance — offer flexible, comprehensive coverage at a monthly rate.

With pet insurance, you can be sure that you have coverage on any given day and can handle surprise vet costs — such as an exam fee, prescription medicine or even cancer treatment — without breaking the bank.

Spot Pet Insurance has flexible offerings based on your needs and the type of pet you have, including accident-only, illness and preventative care plans. With so many options available, you can find the coverage that best suits you and your pet.

3. Come up with a pet budget

Budgeting is an essential part of managing costs, even when it comes to pets. From the moment your furry BFF comes homes to well into their senior years, you can budget and prepare for expected costs.

Even if you’re just starting your search for a pet, you’ll still need to budget — make sure you account for everything from adoption/breeder fees to health care, essential supplies and more.

Develop a budget not only helps you save money, but it also ease stress. A clear expectation of how much your furry family member costs will help with financial planning.

4. Medical prevention

There are two ways to save money when it comes to your pet’s health. First, pet insurance — such as Spot — is a good way to avoid spending a large sum on an unexpected medical crisis.

You can also work to prevent a health problem before it occurs, which will be a boon to both your wallet and your pet’s well-being.

Doing what you can to keep your pet as healthy as possible will reduce the likelihood of a costly medical problem. Make sure your pet is fed a nutritious diet, gets plenty of exercise and receives regular veterinary checkups.

Depending on your chosen coverage, Spot Pet Insurance covers care such as veterinary exams, diagnostic tests, ultrasounds and breed-specific hereditary conditions, to make sure your furry friend stays in good shape.

5. Train your dog at home

Seek help from a professional trainer if your dog is extremely reactive, fearful, has deeply ingrained behavioral issues or is stronger than you. But, if you don’t have the means to pay for a dog trainer, then consider using a reward-based system at home.

Reward-based training just means training your dog with treat rewards. This also happens to be the Humane Society’s preferred positive and cruelty-free training method.

One simple example of reward-based training is teaching your dog to sit before giving him his meal. YouTube now has an amazing selection of free positive-reinforcement training resources.

6. Groom your pet at home

Some home grooming is super easy, including brushing your long-haired pet frequently to avoid mats. You also can brush pets’ teeth (which will help save on dental bills), clean their ears and bathe pets at home.

As with dog training, there are some situations when it’s best to call in the professionals. A seriously matted dog, a pet whose nails haven’t been trimmed in years or a fearful animal may best be handled by a pro.

If you groom your pet at home, keep things positive. Use rewards during and after the process to keep your pet interested and happy. To ensure best results, start handling and grooming your pet when it’s young.

7. Spay or neuter your pet

North America has a major pet overpopulation problem, and it’s partly due to unsterilized pets creating unplanned litters. There are many economical and ethical reasons to spay or neuter your pet.

When you leave a male cat intact, it wants to mark territory, find a mate (or 10) and fight with other males. Dogs are more aggressive, and larger breed pooches are more susceptible to cancer when they’re not neutured. Unspayed females of both species mark territory or have pee accidents and must be kept away from males to avoid unplanned litters.

Getting your pet fixed is simply doing your part to reduce the overpopulation problem. And, you’ll save money in numerous ways, such as not having to clean up territory markings or spend on a s lew of pee pads/diapers.

8. DIY toys and treats

Skip the expensive pet store toys and save your money! Many mass-produced plastic pet toys are poorly constructed and can break easily, potentially becoming a safety hazard. Instead, focus on creating engaging DIY toys that your pets will love just as much, if not more.

For cats, simple household items can provide hours of entertainment. They naturally gravitate toward cardboard boxes which become instant fortresses and paper balls that mimic prey. Dogs are equally content with homemade toys, such as braided fleece blankets or old t-shirts (bonus because they smell like you) that make perfect tug toys, or a secure sock containing an empty water bottle for a satisfying crinkly sound.

During the holidays, I’ve found that homemade dog treats are great to give as gifts to other pet parents. Just add them to a reusable jar or a festive bag, affix a tag and prepare to be the most popular guest in the house. If you’re a treat-making noob, try out this easy peanut butter and pumpkin dog treat recipe. It’s chock full of healty ingredients that are good for dogs and chances are, you’ve got most of them in your kitchen already.

Sources

1. HABRI: How Pets Impact Our Mental Health (May 2, 2024)

2. ThatFluffingDog: Easy Peanut Butter and Pumpkin Dog Treat Recipe

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

There’s no shortage of coffee shops offering espresso shots and matcha lattes, but Flamingos Coffee Bar in New Hampshire has carved out a niche with more than just creative drinks.

Known for its vibrant decor, playful branding and community-focused atmosphere, the café has built a loyal customer base at both its locations.

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With bright flamingo wallpaper and a neon sign that reads “Zero Flocks Given,” the shop positions itself as a welcoming space for all — from remote workers to first dates.

But one online review — describing the café as “disgustingly pro-women” — sparked an unexpected branding opportunity.

"Place was disgustingly pro women and just walking inside I immediately felt unwelcome as a male … probably wouldn’t return," it read, according to WMUR 9 ABC News.

Instead of allowing the comment to damage the shop’s reputation, owner MacKenzie Logan turned it into a new business idea that ultimately led to a broader customer base.

Zero flocks

While no business owner enjoys reading negative reviews, Logan saw an opportunity where others might have taken offense.

"It’s actually a really great motto," she told WMUR 9 News. "It’s a great slogan."

Rather than ignoring the comment, Logan tested the waters online, asking her community whether they’d be interested in merchandise bearing the phrase “Disgustingly Pro-Women.” The response was very positive — so much so that she moved quickly to turn the idea into a new revenue stream.

With her garage doubling as a shipping center, orders began pouring in from across the country.

Logan’s entrepreneurial pivot reflects a growing trend. According to a Quicken survey, 43% of Americans with side hustles report earning more and working fewer hours than they would with a single job.

In Logan’s case, the merchandise — and the message — resonated far beyond New Hampshire.

"I’ve had people tell me they’ve driven from New Jersey," said Colleen Jenkins, who works at Flamingos. "I had a lady from Virginia, specifically just to get our coffee, and they planned their vacation around Flamingos."

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Larger purpose

This isn’t just a feel-good fashion statement — it’s a movement stitched together with purpose. With 20% of all proceeds going directly to Exeter Area Womenade, a local nonprofit that provides immediate financial assistance to those who need it, these T-shirts represent more than just a trendy slogan.

"They will help people if they need new tires or if their car is broken down and it needs a fix for them to get to work," Logan said. "You won’t find pretty much any other nonprofit in the area that can help in that way."

In a country where women in 2024 still earn just 85 cents for every dollar a man makes — according to Pew Research Center — being a strong woman isn’t just empowering, it’s essential.

As one customer, Zan Lewis put it, "I think being pro-women does not mean not pro-anybody else."

As inflation and the cost of living continue to climb, the need for financial aid is real. And so is the impact.

“Giving back has been shown to boost happiness, reduce stress, enhance self-esteem and strengthen social connections,” Megan Hays, Ph.D., a clinical psychologist at the University of Alabama at Birmingham, shared with UAB News.

While a negative review called the coffee shop “disgustingly pro-women,” the business remains unapologetically aligned with its values — and that’s the point.

Whether customers wear the shirt or simply support from a far while sipping on a latte, backing a company that champions equity and refuses to dilute its message isn’t just admirable — it allows for a larger cultural shift.

What to read next

• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
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• Nearly 1 million Americans have a net worth of at least $10,000,000 — here are 3 ‘quiet’ ways the ultra-wealthy grow their riches (and how you can join the club ASAP)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

The U.S. budget deficit surged past the $1 trillion mark in February, less than six months into fiscal year 2025.

According to the Department of the Treasury, the federal government so far has spent a $1.15 trillion more than it has collected since October. That’s about $318 billion more than in the same span last year, roughly 38% higher, and a record for the period, per CNBC.

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So, how does the national deficit affect you? Let’s take a look at several factors that have contributed to the deficit and how it can impact the finances of Americans.

Contributing factors to the US deficit

Although the specifics may differ from time to time, a budget deficit occurs when tax revenue is lower than the amount being spent. Why is there a gap between money that’s coming in and going out? The calculation is primarily influenced by policies set by the president and Congress. It can also serve as a reflection of the overall health of the economy.

If the economy isn’t doing so well, businesses and individuals typically aren’t earning as much. Or, businesses may invest less into their operations and cut costs, which could lead to stalled growth and higher unemployment. With lower incomes from individuals or businesses, less taxes are collected. And if government spending doesn’t change, it increases the chance of a deficit.

But even if the economy is doing well, policies or legislation that increase spending can still result in a deficit. During the COVID-19 pandemic, increased spending from policies that offered relief to families and businesses led to a higher amount of spending. Even though government revenue was high, the increased spending resulted in a deficit.

In fact, over the last 50 years, the government has operated on a surplus only four times, most recently in 2001.

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This puts a lot of pressure on the way the government manages its finances. The U.S. Government Accountability Office (GAO) regularly audits the federal government’s financials. In an article posted Feb. 5, the GAO reported weaknesses at the management level that hindered the government’s ability to operate efficiently and address the country’s long-term financial health.

Some of these include financial management challenges at the Department of Defense, payment errors at several agencies and issues with supporting loan programs like ones through the Small Business Administration.

How the national deficit can impact your finances

The larger the deficit, the more likely the government needs to take on debt to make up for the shortfall, and like other borrowers the government needs to pay interest on its debts. According to the GOA, since 2017, the annual spending on net interest payments has more than tripled. To put it in perspective, in fiscal year 2024, more money was spent on net interest than national defense or Medicare.

If more revenue continues to be spent servicing debt, it could lead to drastic changes. Policies may be put in place to increase taxes or lower the amount of social services and subsidies currently available for Americans. But changes like these require government action, and you may not see this anytime soon.

In the meantime, preparing for rising prices is a smart move. Consider bolstering your emergency fund or padding your retirement savings, or finding ways to cut back in other areas to account for increased expenses.

Strategies to increase your income will help you to bear the brunt of any increased costs and make it easier for you to save and invest. Some best practices include negotiating a better wage with your current employer, finding a new job with a higher salary or working a side gig temporarily.

What to read next

• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Here are 3 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Nearly 1 million Americans have a net worth of at least $10,000,000 — here are 3 ‘quiet’ ways the ultra-wealthy grow their riches (and how you can join the club ASAP)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

A few years ago, your brother borrowed money to help pay for groceries for several months, and paid you back. But now, he finds himself short of cash again and you’re not sure whether you want to lend her more money.

Wanting to help out a friend or family member when they’re in a financial bind may seem like a no-brainer, but you need to be sure you’re also taking care of your needs as well.

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For one, you want to make sure you have enough room in the budget to pay for your own expenses — and lend money. You may also need to mitigate other risks, like potential strain on your relationship.

Let’s take a closer look at these risks and if you decide to still lend the money, how to do so responsibly.

Emotional and financial risks of lending money

Even if you have extra money to lend to friends and family, you still want to be careful. Think about from where you’ll pull the money. Is it from sources like your emergency fund or money you’ve set aside for taxes?

Lending money that you may need yourself means a risk of putting yourself in a precarious financial position. If the borrower doesn’t pay back your loan and you were relying on it, you’ll need to figure out how you can meet your financial obligations. It could mean taking out a loan yourself (and paying interest costs) or finding other ways to make up for the shortfall.

Even if you can afford to lend money, you risk your relationship suffering if the borrower doesn’t make payments as promised — or is unable to pay the loan back at all. It could get awkward at future social gatherings or even lead to feelings of resentment.

Still, you may decide that the risks are worth it or you’re absolutely sure the borrower will pay back what’s owed. Before handing over the cash, you’ll want to set some clear rules and guidelines.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How you can lend money responsibly

Before lending money, be sure you check that you can afford to. Setting clear expectations about the loans is also key.

Create a loan agreement

Creating a written loan agreement can help prevent any issues or miscommunication when lending money. At the very least, the agreement should outline the amount you lent and the repayment terms.

Other details you may want to put into the loan agreement:

• Interest rate, if you decide to charge one.
• Repayment amount and cadence.
• When the loan needs to be repaid in full.
• What happens in the event the borrower can’t repay the loan.

Share this document with the friend or family member before lending the money. That way, they can decide whether to agree to the terms. Having open and honest communication from the very beginning ensures that everyone can address questions or concerns about the loan.

Though it may cost you some money, having this document notarized signifies that you take the loan seriously.

Understand any tax implications

You are required to charge interest if you lend your friend or family member more than $10,000, according to the IRS. The amount should be equivalent to the AFR, or the applicable federal rate.

Interest you collect counts as taxable income. It is up to you to determine how much interest you want to charge. However, if you charge a rate lower than the AFR, the IRS may still charge you taxes based on the interest you should have earned.

Be OK with saying ‘no’

Even though it’s an uncomfortable situation, you need to be prepared to say ‘no’ to requests to lend money to family and friends.

At the end of the day, you need to look out for your best interests. It may not be worth risking your financial security to help someone else, especially if it means you could be left in dire straits. Not lending to friends or family because you don’t want to risk ruining the relationship is also a perfectly valid choice.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

While the Bank of Canada interest rate has dipped over the past few months, home affordability slipped further in January, as rising prices raised the income needed for a mortgage in 12 of 13 major markets, according to a report by Ratehub.

This marks the second month in a row where affordability declined. Prior to the November over December 2024 statistics, affordability was trending positively for a solid five months.

Hamilton led the steepest decline with its average home price rising $20,900 to $819,500 between December and January. As a result, a buyer would now need to earn an additional $4,050 to afford a mortgage on a home at that price. This would result in a steep monthly mortgage increase of $110 — making the monthly average home price around $1,320 per month in January 2025.

In the last few months, this situation hasn’t improved. According to March 2025 data from the Canadian Real Estate Association (CREA), Hamilton’s average home price in February 2025 was $828,000, up $8,600 from January 2025. This means homebuyers will need to budget even when shopping for a mortgage (or buying a home).

What other real estate markets are seeing price hikes?

Major markets like Toronto and Vancouver saw modest increases in home pricing.

Throughout Toronto, prices surged $8,200 to an average cost of $1,070,100 between December 2024 qand January 2025. This raised the required annual income to afford an average priced home by $1,640 (or monthly payments of $43).

In February and March things didn’t get better. According to the Toronto Regional Real Estate Board (TRREB), Toronto’s average home price in February 2025 was $1,075,800 — an month-over-month increase in the average home price of $5,700.

Meanwhile in Vancouver, the average home price ticked upwards in January 2025 to $1,173,000, an increase of $1,500, as the income needed to purchase a home at this price rose $300 and monthly mortgage payments experienced an uptick of $8.

According to the Real Estate Board of Greater Vancouver (REBGV), Vancouver’s average home price in February 2025 was $1,184,100 — an month-over-month increase in the average home price of $11,100.

In contrast, Fredericton was the only market to show improvement in affordability, with home prices dropping by $2,300 to $338,800, as the required income was reduced by $450 and monthly payments by $12.

According to CREA, the ongoing affordability of Fredericton’s housing market continued with housing prices dropping an additional $2,800 in February 2025.

Mortgage rates were mostly consistent

As a sign of relief, mortgage rates remained largely uninterrupted in January.

While the Bank of Canada cut its benchmark rate by a quarter-point on Jan. 29, fixed mortgage rates held steady with bond yields in the 2.8% to 2.9% range before a brief dip due to bond investor reaction to tariff threats from the US.

As of March 2025, 5-year fixed mortgage rates range between 5.14% and 5.64% (depending on the lender and the borrower), while bond yields are now closer to 3.2%.

It appears variable rates will remain unchanged in the next month, as the Consumer Price Index sat at 1.9% in January, a 0.1% increase. This was in large part due to the federal tax holiday that took place from mid-December to mid-February; If this had not been implemented, inflation would have resulted in a year-over-year increase of 2.6%.

Given the Bank of Canada’s rate cut in March, due to tariff pressures, most economists predict further reductions in variable rates throughout 2025.

— with files from Romana King

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

In a housing market that’s been pro-seller for a while, many Houston buyers have been scared off, choosing to rent instead. However, as things shift into buyer territory, Houstonians may soon see the scales tip in their favor, with more opportunities for discounts or other perks.

For instance, the Woolcoxes recently found their dream home. Despite expecting land and house prices to go up as they’d been seeing, the retired Houston couple decided to make an offer on a house they eventually got.

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A shifting Houston market

Wondering if they were "absolutely out of [their] minds," their kids advised against the purchase. Even as they were being told they should be downsizing, not upsizing, the Woolcoxes decided to put in on the house anyway. In an interview with KHOU 11, the couple shared, "If it’s really what you want and it feels right, just do it."

And there is indication their decision will pay off.

Kat Robinson, vice chair of the Houston Association of Realtors (HAR), told KHOU 11 that fear and — at times — frustration for potential buyers caused by the strong sellers’ market led many to give up, tipping the favour towards buyers.

"That negotiation fatigue is real," she said, and is something that led to an influx of housing inventory and the potential buyer’s market shift. Although technically, Houston is currently in a balanced market, "Right now we’re sitting on 4.5 months of inventory, which puts us leaning more towards that buyer’s market."

HAR confirms this tip when comparing property sales from February 2024 and February 2025, noting sales dropped 4.7%. According to Robinson, this means more opportunity for buyers, "To get a discount or more repairs done by the sellers or credits for those repairs."

How to take advantage of a buyer’s market

Even if you’re not in Houston yourself, a buyer’s market is the perfect time to purchase a home because supply exceeds demand — just as Houston is experiencing. This gives you more power in negotiations, including the ability to be pickier, take your time and strategize on price.

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If you feel the time might be right, maximize your opportunity with these tips:

Negotiate your price aggressively

Sellers in a buyers’ market may struggle to get offers, making them more open to price reductions. Take time to research comparable properties sold recently in your choice areas to determine a fair offer, and don’t be afraid to submit a bid below asking. If the home has been on the market for an extended period, you may have even more room to negotiate.

Ask for seller concessions

In a competitive market, buyers often cover many closing costs, but in a buyers’ market, you can ask the seller to help with expenses, which could save you thousands. These may include loan or appraisal fees, title insurance or even a home warranty. Why not put that money towards new furniture, or even in your nest egg, emergency fund or other investments? Even relatively small savings can make a meaningful difference, so ask for them.

Request home repairs or upgrades

Sellers eager to close a deal may be willing to make needed repairs, or even extra upgrades. When issues are identified after the home inspection, negotiate to have major concerns fixed before closing, or request a credit to cover the cost of repairs you oversee later.

In addition, consider taking advantage of these strategies:

Get pre-approved for a mortgage to move quickly

With more buyers competing for deals, getting pre-approved for a mortgage shows sellers you’re serious and financially prepared, which can make your offer more attractive.

Work with a local agent for market insights

A knowledgeable real estate agent can help you identify motivated sellers, hidden deals and properties that have been on the market too long, giving you an edge in negotiations. Agents also provide insight into fair pricing and trends in your area of interest.

Secure favorable loan terms

Lenders may offer better mortgage interest rates and terms when fewer buyers are in the market. You could potentially secure a lower mortgage rate, reducing your monthly payments and overall loan cost.

What to read next

• Accredited investors can now buy into this $22 trillion asset class once reserved for elites – and become the landlord of Walmart, Whole Foods or Kroger without lifting a finger. Here’s how
• Here are 3 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• Nearly 1 million Americans have a net worth of at least $10,000,000 — here are 3 ‘quiet’ ways the ultra-wealthy grow their riches (and how you can join the club ASAP)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.