ePortfolio Assignment Part 3

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George Brown College *

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Course

1001

Subject

Finance

Date

Apr 3, 2024

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pdf

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5

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- 1 - E-portfolio Assignment—Part 3 The chapters 9 to 11 of the textbook cover buying a home, insurance, retirement, and wills and estate planning. Complete a reflection of your own on the topics covered in the first three chapters. This reflection can be a written passage of about 500 to 750 words, a video of about two minutes, or an audio recording also of about two minutes. To assist you in putting together the reflection, the questions from the textbook, except for one, are replicated below. Choose the questions that are most pertinent to your situation to spur your reflection. The questions are there to get your reflection started and are not intended to be answered. Nor do you have to answer, even indirectly, all the questions. The one question that is missing has a link that no longer works. Submit your Sway by posting the link in E-portfolio Assignment Part 3. The assignment is due Sunday, March 31 st . The late penalty is 10% per day. And the last day for submitting this assignment is Saturday, April 6 th at 11:59 p.m. Please remember that to be fair to everyone, times will be strictly enforced. Also, please make sure that all assignment documentation is submitted through D2L/Brightspace. Assignments submitted any other way, particularly by e-mail, will not be marked. 1. Perform an attribute analysis of your projected wants and needs as a homeowner. Begin by prioritizing the following personal and microeconomic factors in terms of their importance to you in deciding when to buy a home: a. How large should the house be? How many bedrooms and bathrooms? b. Which rooms are most important: kitchen, family room, or home office? c. Do you need parking or a garage? d. Do you need storage space? e. Do you need disability accommodation? f. Do you want outside space: a yard, patio, or deck? g. How important is privacy? h. How important is energy efficiency or other “green” features? i. How important are design features and appearance? j. How important is location and environmental factors? k. How important is proximity to work? Schools? Shopping? Family and friends? 2. In your journal, describe hypothetically your first or next home that you think you would like to own, including its location and environment. Predict how much you think it might cost to own such a home in your province. Then look through realty news and ads to find the asking prices for homes or housing units similar to the one you described. How accurate is your prediction?
E-portfolio Assignment Part 3 Page 2 of 5 3. Discuss with classmates the ins and outs of being a tenant and the ins and outs of being a landlord. Develop a comparison chart of benefits, drawbacks, and risks. 4. Do you live in a dorm or at home with parents or other relatives? What needs to happen for you to have a place of your own? Research websites that aid students in finding independent housing. Develop a flexible plan and timetable for finding and financing a place of your own and record it in your personal finance journal. 5. Investigate the real estate market in your area. How do local housing availability and pricing differ from other cities, towns, and provinces or territories? How stable or volatile is your real estate market? Is it a buyer’s market or a seller’s market, and what does that mean? To what local factors do you attribute the differences you find? Share your findings with classmates. 6. Identify and analyze the macroeconomic factors that are affecting your local real estate market. In what ways or to what extent does your local economy reflect macroeconomic factors in the national economy? 7. You are considering purchasing an existing single-family house for $200,000 with a 20 per cent down payment and a twenty-five-year, fixed-rate mortgage at 5.5 per cent. What would be your monthly mortgage payment? When should you consider an adjustable-rate mortgage? Why should you be cautious about adjustable-rate mortgages? 8. Do you presently rent or own your home or apartment? What are your housing costs? What percentage of your income is taken up in housing costs? If your housing is costing you more than a third of your income, what could you do to reduce that cost? Record your alternatives in your personal finance journal. 9. As a prospective homeowner, what would be your estimated PITH? Would a bank consider that you qualify for a mortgage loan at this time? Why or why not? What criteria do lenders use to determine your eligibility for a home mortgage? 10. Can you afford a mortgage now? How much of a mortgage could you afford? Answer these questions using the Mortgage Calculator found on the CMHC website. Another mortgage calculator is available on the Ratehub website . If you cannot afford a mortgage now, how would your personal situation and/or budget need to change to make that possible? Establish home affordability as a goal in your financial planning. Write in your personal finance journal how and when you expect you will reach that goal. 11. Read about the closing process in the following article from the Real Estate Wire, Eight Steps to Closing the Purchase of Your New Home .” Who attends the closing? What legal documents are processed at the closing? 12. Re-review local real estate, condo, or apartment listings in the price range you have now determined is truly affordable for you. For learning purposes, choose a
E-portfolio Assignment Part 3 Page 3 of 5 home you would like to own and clip the ad with photo to put in your personal finance journal. Record the purchase price, the down payment you would make, the mortgage amount you would seek, the current interest rates on a mortgage loan for fixed- and variable-rate mortgages for various periods or maturities, the type of mortgage you would prefer, the rate and maturity you would seek, the amount of monthly mortgage payments you would expect to make, and the names of lenders you would consider approaching first. 13. According to this chapter, what information is included in a purchase and sale agreement? 14. Use the mortgage refinance calculator from Loans Canada to find out if you would save money by refinancing your real or hypothetical mortgage at this time. What factors should you take into consideration when deciding to refinance? 15. In your personal finance journal, record or chart all the insurances you own privately or through a financial institution and/or are entitled to through your employer. In each case, consider the following questions: what is insured, who is the insurer, what is the term, what are the benefits, and what is your premium or deduction? Research online to find the details. Then analyze your insurance in relation to your financial situation. How does each type of insurance shift or reduce your risk or otherwise help protect you and your assets or wealth? 16. Conduct and record a complete inventory of all your personal property. State the current market value or replacement cost of each item. Then identify the specific items that would cause you the greatest difficulty and expense if they were lost, damaged, or stolen. 17. How would a tenant’s insurance policy help protect your property? What do such policies cover? How much would it cost you to insure against the loss of just your laptop or desktop computer? 18. How do auto insurance rates in your province or territory which are based partly on the rates of accidents, injuries, and deaths in your respective province or territory compare with rates in other provinces? 19. Find out about workers’ compensation in your province or territory by visiting the website of the Association of Workers’ Compensation Boards of Canada . What does the Association of Workers’ Compensation Boards of Canada do? Find out what programs are available in your province for workers’ compensation covering industrial and workplace accidents. What information does the Canadian Centre for Occupational Health and Safety provide on the prevention of workplace illness and injury? 20. Find information about employment insurance at the following websites Employment and Social Development Canada and EI Regular Benefits Overview to answer the following questions:
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