With summer in full-swing, it’s a great time to turn our attention to the family cottage – whether it’s an aspiration, new acquisition, or has been in the family for generations.

• – Thinking about Buying a Vacation Property with Your Family – RBC shares some tips to avoid common pitfalls and create multi-generational harmony, particularly for your perfect U.S. retreat.
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• –  Canadians Owning U.S. Real Estate (attached) – It’s not surprising that many Canadians spend time (especially winters) in the U.S. There are many factors, including Canadian and U.S. income tax implications, U.S. gift and estate tax exposure, and U.S. probate and guardianship issues, that must be considered when determining the most appropriate ownership structure for you to own U.S. real estate.
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• –  How a Cottage can Complicate Estate Planning – In this 4-minute video, David Chilton, author of the best-selling personal finance-guide The Wealthy Barber, and former dragon on Dragon’s Den, cautions the last thing you want is for your cottage, a place of great memories, to end up being a wedge that drives your family apart.
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• – Succession Planning for your Canadian Vacation Property (attached) – Some owners feel strongly about passing their vacation property to the next generation. Besides tax considerations, it’s equally important to contemplate family dynamics and legal matters that may impact planning choices. What rules are there for the use and enjoyment of the property? What provisions are there for the maintenance and upkeep of the property? What happens if there’s a divorce in the family? What if there’s an estate dispute?

 

Market Moment

• – RBC’s Comprehensive Global Investment Outlook Summer 2024 – Economies have demonstrated resilience in the face of restrictive monetary conditions. Inflation has now cooled sufficiently to prompt central-bank rate cuts. Investors have embraced this favorable backdrop, with stocks climbing to record levels. Further gains are becoming increasingly dependent on lofty expectations being achieved and heightened investor confidence being sustained.
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• – RBC’s Investment Outlook One-Minute Version – The global economy has managed to withstand higher interest rates and continue to grow. This reinforces the view that a recession can be avoided over the year ahead.
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• – Fed Chair Powell tells Congress the U.S. economy is no longer overheated – The Fed now faces a two-sided risk: if it lowers interest rates too late or too little, it will limit economic activity; and if it lowers rates too soon or too much, it will undermine inflation progress.
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• – Inventories Rebuilding Fast in Canada’s Largest Housing Markets – Transactions increased across the board from May with more buyers coming into the housing markets. Yet, buying was far from enough to absorb the new inventory that’s been rebuilding for months – even in the busy Calgary market.
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• – Canada’s Job Market Continues to Cool – The June dip in employment was small but layoffs are creeping higher under the surface. And, the downtrend in hiring demand has shown no sign of ending.

Team Touch

As a friendly reminder, the team is enjoying Summer Fridays. We’re kicking off weekends at 3pm – one hour earlier than usual – from Victoria Day through Labour Day to enjoy some nicer weather. We’ll also be heading away for our annual team retreat to Tofino Sep 13-15!

So far this summer, Matt and his family have been chasing after their brand-new puppy Mochi in Surrey. Alex and his fiancée Melissa have been hiking in Belcarra with their dog, Leo. Jen and her fiancé Rhys have been walking Spanish Banks with their two dogs, Mo and Ellie. Warwick and Lisa have taken up e-mountain biking on the Northshore. And, Kevin and Breanna have been playing beach volleyball at Jericho – on the same team!

Chart Corner

 

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Your suggestions for future topics are encouraged and welcome!

With appreciation,