Mark your valuables

I was reading in the media this past week about the police nabbing some suspects involved in a large-scale bike theft operation. Apparently they recovered hundreds of bikes and are in the process of returning them to their owners. But without being able to prove ownership, it makes the process that much more difficult.

Police recommend that you use an engraving tool to mark your valuables. Two recommended options are to mark your SIN or your license plate number on them. One problem with the SIN suggestion is that police can't locate you via your SIN - that's private information. Whereas your license plate is a different story - very easy to find you.

Want an easy trick to be able to prove the bike is yours, roll up and stuff your business card down the seat post. Then it should be relatively easy to fish it out down the road, should the need arise.

But on a larger scale, many of us just can't make the time to go through such a seemingly laborious and time-consuming process. Is there an alternative? I think so - courtesy of the digital age.

Take digital pictures of your valuables.
Shoot photos like crazy.
And even include yourself in some pics, to prove a personal connection between you and that item. (I.e. just because I photograph a Ferrari doesn't mean it's mine). Being in the photo with your valued possession doesn't automatically prove that it's yours either, but it makes the case for it that much more compelling.

When you buy a house and you're also purchasing certain chattels with it, such as a fridge, stove, dishwasher, select light fixtures etc., make your to ask your realtor to include a clause in your offer that gives you permission to photograph those specific chattels. (do not photograph without the seller's permission and especially do not photograph items that are not part of the offer - how would you feel if it was happening in your house?)

By taking photos of chattels at the time of the offer, you can set an expectation of what you should be getting on closing date, plus the condition they're in as well. In rare instances, unethical sellers have tried to swap out appliances after the sale, but before closing. Having pictures, plus having a clause in your offer that tells the sellers that you are likely to have these pictures is a strong deterrent to problems on your closing date.

I would rather take the extra steps up front to try to prevent problems down the road, than having to deal with them after the fact.

They can't be serious?

In an article in today's Toronto Star, a BMO economist makes reference to the change in the real estate market and says
"There is no debating that there is now a serious chill in Canada's housing market after a six-year boom," observed Doug Porter, BMO Capital Markets deputy chief economist.

A "serious chill"?
The same article says the average price declined across the country by 0.4% and yet they rose in the GTA by 4%.

If that's a "serious chill", what the heck would they call anything more than that?

Sales are off their peak, that is true. But even the stock market never stays at the peak. They're both *markets* - they rise and fall.

It seems the media fluctuates between market that's burning up or melting down - because anything in the middle would be, well, normal, and therefore not really newsworthy.

So I guess they feel that "serious chill" sounds more media-worthy than something like "normalizing" or "settling" etc.

As you can probably tell from my blog, I'm a cup-half-full kind of person and while I agree the market is off it's peak, I just can't quite swallow that "serious chill" thing.

Sheesh!

Feds revamp mortgage lending rules

The Globe & Mail online site reports today that the federal government has announced plans to change the mortgage lending rules to pre-empt a housing bubble similar to what happened in the U.S.

Both the Finance Minister and Governor of the Bank of Canada had expressed concern in the surge of 40-year amortizations; feeling that they were contributing to a bubble situation.

CMHC mortgage insurance will no longer be available on amortizations over 35 years in length and buyers will also require a minimum 5% down payment. The intent is to prevent people from over-leveraging themselves into houses that they realistically can't afford and would most likely lose at the slightest upswing in mortgage interest rates.

In addition, buyers will require a minimum credit score of 620 along with stronger "documentary evidence" that buyers can pay their loans.

What does this mean to the buyers?
On a $200,000 mortgage at 6% interest, the reduction from 40 years to a 35 year amortization will mean an additional $41.00 on the monthly payment and will save them over $49,000 in additional interest charges.

The new rules come into effect on October 15, 2008.

P.S. The feds report that mortgage defaults are at 0.27 percent - near the lowest levels since 1990!