Cell 250-812-2589

Office 833-817-6506

Email: jpappy@uniserve.com


Tips for Riding Out a Recession

Experts have drawn parallels between the high inflation of the 70s and 80s and what’s happening today.

Back in the mid-80s, homeowners dreamt of a day they would see mortgage rates below 10 percent.

We’ve been extremely fortunate over the last few decades to see our interest rates at record lows, however, we are now seeing them climb again and it’s causing some panic for owners and buyers.

Here are a few tips on how to ride out a recession:

Pay Down Debt

One of the most important things you can do during times of high-interest rates is to pay down debt, starting with the debt that holds the highest rate.

While this will take a lot of discipline, it will save you countless dollars in unnecessary interest payments.

There are still plenty of options for consolidating debt with lower interest rates and may be a great option for you if you’ve got debt spread across various credit cards, loans, etc. 

Stay Invested

As tempting as it may be to take money out of your investment accounts, especially as you watch numbers take a dive, we highly advise against this.

We recommend that people remain invested, maintain their asset allocation that was designed in order to achieve their goals and objectives in the timeframes that they have set for themselves and continue to add to their investment portfolio through their retirement account savings.

Dollar-cost averaging is one of the most trusted strategies. It’s investing the same amount of money at regular intervals, regardless of what the market is doing.

By taking advantage of lower valuations you’re effectively buying more shares at a lower price. This is a great opportunity for younger generations to invest at a lower price. 

Save, Save Save

This can be extremely difficult when every trip to the grocery store is costing you more and the price of fuel, along with everything else is going up, but saving is always extremely important.

As interest rates continue to rise, we will being to see interest rates higher in our savings accounts, and newly fixed income securities.

Saving your money in a high-interest savings account during this time, you are going to see growth faster than you would have a few months ago. While it may not keep pace with current inflation, it’s sure to help build a safety net. 

Settle in for the Long Haul

The 1980s was a long decade. There were two recessions and it was years before inflation was under control and interest rates began to drop. And although our current situation is a little different, if there’s anything to be learned from the past, it’s that inflation and higher interest rates will be here for a while yet.

Throughout this time, try to work as hard as you can, make as much money as you can, and be as frugal as you can.

You have to be prudent, you need to pull back and watch your spending. 


10 Home Renovations That Can Actually Decrease the Value of Your Home  Part 2 of 2

Further to our blog post last week, we are following up with the top ten renovations that actually decrease the value of your home.

Here are the final 5:

Bedroom Conversions

Anytime you remove a bedroom from your home you decrease the value.

Whether it’s permanently converting a bedroom into an office, closet, or combining two bedrooms into one, the loss of one bedroom will cost you.

Adding a bedroom in your can increase the value of your home by $15,000 - $25,000 so you can safely assume that is the approximate amount you’re losing by removing a bedroom. 

Removing Closets

Closets and storage space in general are key motivators for homebuyers.

Using that square footage to expand a nearby bathroom or bedroom seems like an easy decision, especially if you’re not really using that closet, to begin with. However, it comes at a cost to your home’s value.

Similarly to bedrooms and bathrooms, the more closets, the better. Closets and storage space may not get front-line treatment in the listing, but buyers definitely notice when they’re lacking.

Inflexible Rooms

An overly specific room, such as a home gym or theatre, can be seen as a renovation bill to potential buyers.

While some buyers may love this feature, others may not have the same interests and want to convert the room to something more useful to their lifestyle, such as a bedroom or additional storage space.

That said, the value a home theatre brings to your house depends a lot on the size of your home and whether comparable homes in your neighbourhood have them.

But if you’ve used precious square footage in a modest home for one and no other homes in your area have a theatre, the people looking to buy may not be wowed by this and see it as a renovation expense they will need to take on. 

Pool and Hot Tub

We all dream of having a pool and hot tub in our backyard…or do we?

Yes, these are excellent features but they are extremely expensive and time-consuming to upkeep.

Many buyers actually see pools and hot tubs as something they will need to pay for or remove.

If your home is located in an area where these are common, then yes, they may increase the value, but there are no comparables in your area, your chances of this increasing the value of your are actually quite slim. 

Textured Ceilings and Walls

Adding texture to your walls or ceilings is an incredibly personal choice and unfortunately, they are often associated with cheaper housing.

Buyers are definitely not looking to purchase a home where they will need to scrape the texture of the ceiling before moving in, which can be an extremely messy and expensive procedure. 

MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.