Borrowing money – Condenetint http://condenetint.com/ Fri, 21 Jan 2022 11:07:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://condenetint.com/wp-content/uploads/2021/06/cropped-icon-32x32.png Borrowing money – Condenetint http://condenetint.com/ 32 32 China caps weekly policy easing blitz with further rate cuts https://condenetint.com/china-caps-weekly-policy-easing-blitz-with-further-rate-cuts/ Fri, 21 Jan 2022 11:07:00 +0000 https://condenetint.com/china-caps-weekly-policy-easing-blitz-with-further-rate-cuts/

SHANGHAI, Jan 21 (Reuters) – China’s central bank said on Friday it had cut interest rates in another key monetary policy tool, capping a week of easing measures that underline authorities’ concern over the outlook for the world’s second largest economy.

In response to questions from Reuters, the People’s Bank of China (PBOC) said it had cut rates on its Standing Lending Facility (SLF) loans by 10 basis points (bps) effective Jan. 17.

Under the SLF program, financial institutions can obtain temporary liquidity from the central bank.

Join now for FREE unlimited access to Reuters.com

The bank said it cut the SLF overnight rate to 2.95% from 3.05%, the 7-day rate to 3.10% from 3.20% and the 1-month rate to 3.45% against 3.55%.

Reuters previously reported, citing three sources with direct knowledge of the matter, that the bank planned to cut SLF rates following a series of cuts in China’s key interest rates as Beijing eased monetary policy. to enhance cooling activity.

The economy grew 4% in the fourth quarter – the slowest rate in a year and a half – weighed down by a housing market slump and weak consumption amid sporadic COVID-19 outbreaks.

Analysts expect more easing measures in China in the coming months, even as other major global central banks begin to tighten policy and withdraw unprecedented amounts of liquidity injected into their economies to cushion the impact of the COVID-19 pandemic.

China will appropriately step up its policy support for the economy as it faces further downward pressure, Premier Li Keqiang was quoted by state media as saying.

But Li, in remarks on Thursday, reiterated that the government will not resort to “flood-like” stimulus.

“We see that the cycle of monetary policy easing is just beginning. We expect further reductions,” said Paula Chan, senior portfolio manager at Manulife Investments. She said she expects China’s benchmark 10-year yield to test a low of 2.5%.

The yield on benchmark 10-year Chinese government bonds stood at 2.705% on Friday evening. Earlier today, China’s 2-year yield hit its lowest level since June 2020 and last stood at 2.16%.

On Thursday, China cut prime lending rates (LPRs), benchmark rates for mortgages and other types of loans. On Monday, the PBOC surprised markets by cutting borrowing costs on its medium-term loans for the first time since April 2020, and also lowered a short-term lending rate. Read more

Nomura analysts, however, believe the economic boost from the rate cuts so far will be quite limited, as they have been too small to have any significant impact.

The SLF was created by the PBOC in 2013 to meet the temporary liquidity needs of financial institutions, and its interest rates are determined by the stance of monetary policy and other money market rates in China.

Chinese banks can borrow SLF loans from the PBOC using qualified bonds and other credit assets as collateral.

Join now for FREE unlimited access to Reuters.com

Reporting by Xiangming Hou and Ryan Woo in Beijing, and Hongwei Li and Steven Bian in Shanghai; Additional reporting by Samuel Shen and Andrew Galbraith in Shanghai; Editing by Jacqueline Wong, Simon Cameron-Moore and Kim Coghill

Our standards: The Thomson Reuters Trust Principles.

]]>
Is my emergency fund sufficient? https://condenetint.com/is-my-emergency-fund-sufficient/ Thu, 20 Jan 2022 02:16:58 +0000 https://condenetint.com/is-my-emergency-fund-sufficient/

Photo courtesy of Crediverso

  • What is an emergency fund?
  • How many do you need?
  • How to build an emergency fund

Emergency funds are a powerful tool for managing your finances. Having an emergency fund will help you deal with unexpected expenses and save you from borrowing money with interest. But how do emergency funds work?

What is an emergency fund?

An emergency fund is a “set aside” fund of money to help you cover any unexpected expenses. This fund works as a contingency plan to help cover costs if you lose your job, have medical bills, home repairs, or any other emergency expense.

How many do you need?

Your emergency fund will vary depending on your income and expenses, but ideally it should cover three to six months of your total expenses. Keep in mind that your emergency fund is meant to help you with your monthly expenses. It is not a fund intended to replace all of your income.

How to build an emergency fund

You should start building your emergency fund by setting savings goals. This will help you determine how much money to set aside based on your personal finances. You then need to compare your expenses to your income. Doing this will give you a better idea of ​​how much you can save from month to month. Finally, it’s best to automate your savings to ensure you keep putting money aside.

IN A WORD

Emergency funds help protect your finances and they will help you cover any unexpected expenses that may arise. When building your fund, you need to consider your monthly income and expenses to create the best plan for yourself. Learn more about Credit.

]]>
Why 30-40 vehicle convoy no longer used, Governor Abubakar gives reasons https://condenetint.com/why-30-40-vehicle-convoy-no-longer-used-governor-abubakar-gives-reasons/ Tue, 18 Jan 2022 06:39:45 +0000 https://condenetint.com/why-30-40-vehicle-convoy-no-longer-used-governor-abubakar-gives-reasons/
  • Nigerian governors no longer use many convoys according to Governor Mohammed Badaru Abubakar
  • The Jigawa state governor said his colleagues are taking serious measures to minimize wasteful spending in their respective areas.
  • He said rather than borrowing money for spending, state governors were prioritizing employment in the education and health sectors.

Jigawa State Governor Mohammed Badaru Abubakar said governors no longer use convoys of 30 to 40 vehicles as measures to reduce governance costs.

Speaking during an interview on Channels Television’s Newsnight aired on Monday, the governor said his colleagues were taking serious steps to minimize wasteful spending in their respective areas.

Governor Mohammed Badaru Abubakar said state governors put the welfare of their people first. Photo: Garba Shehou

“All governors try to look within their spending. You don’t see the governors leaving in a convoy of 30, 40 vehicles. You mostly see us now with three or four vehicles,” he said.

Read also

Election bill: State governors not against direct primaries, says Governor Abdullahi Sule

“Most governors have abandoned wasteful spending to reduce the cost of governance. This is the first step in reducing the cost of governance.

Rather than borrowing money for spending, he explained that state governors are prioritizing employment in the education and health sectors.

According to him, most governors do not employ services that do not have a direct impact on people’s lives.

He also debunked insinuations that governors were heavily feasting on security votes in their respective states.

While noting that the amount budgeted for security votes has decreased significantly, the governor of Jigawa explained that some of his colleagues do not even have security votes.

Governor Abubakar also revealed the steps taken by governors to look beyond oil and generate more money for states’ survival.

One of them, he said, is the zero oil initiative which will create more exportable products that will allow states to generate more revenue.

Source: Legit.ng

]]>
Qualicum Beach Council Approves Loan Bylaw for Downtown East Village Project – Parksville Qualicum Beach News https://condenetint.com/qualicum-beach-council-approves-loan-bylaw-for-downtown-east-village-project-parksville-qualicum-beach-news/ Sun, 16 Jan 2022 13:30:00 +0000 https://condenetint.com/qualicum-beach-council-approves-loan-bylaw-for-downtown-east-village-project-parksville-qualicum-beach-news/

Qualicum Beach Council has approved a bylaw that would allow funding for the East Village downtown revitalization project, which will be funded through a long-term loan.

The first phase of the project is now complete, but the second phase along East Second Avenue, which includes public realm improvements, has yet to be completed. It will cost $1,345,000.

The council wants the project to move forward before the end of their term. They gave first, second and third reading to the East Village local service by-law as well as the loan authorization by-law at its regular council meeting on January 12.

The East Village project aims to create a commercial and residential village that will attract tourists, professionals, families, seniors and residents. It includes various housing options, mixed-use commercial and residential spaces, and other amenities that aim to enhance community vitality and visitor attraction to the area.

“The intention is not to be funded by the city,” the councilor said. Scott Harrison. “The city borrows money, but it’s actually the payments that are made by the business owners.”

Com. Anne Skipsey voted against the loan. She wanted the issue deferred and discussed during budget deliberations because she thinks it could impact the city’s ability to borrow for other projects and capital expenditures.

Com. Teunis Westbroek said he is normally against borrowing money as the city has always prided itself on having low or very low debt. But this case is different, he said.

“Because the servicing of the loan, the interest, would also be covered by the payments from the developers, I agree with that,” Westbroek said. “I think we can work in other areas if we need to do more. I think we have other options to cover the costs of other municipal projects. But this one is a nice clean separation between what the city pays and what the owners pay. So splitting it up and borrowing it separately, charging the interest to the project from the developers, that’s fine.

Mayor Brian Wiese was also in favor of the loan by-law and wants to see the project come to fruition.

“It’s been going on for a really long time,” Wiese said. “I can’t think of a project the city has done that we’ve spent more time on than this one. Staff time and a lot of hard work has been put into this by the promoters. Some people have already taken the plunge like in the brewery there. And I think we have to go all the way. You know, this is what we’ve been planning since day one and we need this as advice to follow through.

The concept of the Second Ave East development is to create a pedestrian and cyclist-friendly streetscape that, along with the retail development, would function as a community gathering place.

Like we to Facebook and to follow we to Twitter

developmentqualicum beach

]]>
Commercial loans could rebound this year https://condenetint.com/commercial-loans-could-rebound-this-year/ Fri, 14 Jan 2022 22:16:18 +0000 https://condenetint.com/commercial-loans-could-rebound-this-year/

Some of the country’s big banks reported earnings on Friday morning, including JP Morgan Chase, Citigroup and Wells Fargo. And lending at these banks, for the most part, increased slightly in the last quarter. It’s worth noting that borrowing, especially corporate borrowing, hasn’t been that big lately.

This is due to both the uncertain times we are going through and the fact that many businesses have borrowed what they needed through government aid programs. But there are signs that could change.

Ongoing supply chain challenges have made it harder for bakery supplies company TMB Baking to import the equipment it sells.

So the company is trying to increase inventory, said CEO Greg Warwick – and that means it has to borrow money.

“We are currently working with Chase to secure a line of credit that will allow us to do this,” Warwick said.

It would also help the company cover the cost of the new employees it is trying to hire and give it more flexibility if, for example, equipment costs more than expected or a customer does not pay on time.

“This money allows us, through the ebbs and flows of business, to be able to manage some of these tough times,” Warwick said.

Commercial lending still hasn’t caught up to pre-pandemic levels, said banking analyst Gerard Cassidy of RBC Capital Markets.

But in the last quarter, he said many businesses have started to feel a little more secure about the economy and are more comfortable taking out loans.

“They use them to replenish inventory, for capital expenditures,” Cassidy said. “So we think commercial loan growth will be very strong in 2022 as the economy continues to expand.”

Other businesses borrow because they are growing.

“We plan to open our third restaurant,” said Steve Chu, chef and co-owner of Ekiben, a restaurant in Baltimore.

Sales have been good over the past year and he wants to grow. But he doesn’t know where things are going in the economy.

Chu said funding his expansion would allow him to keep all the money he made, just in case things go wrong.

“With COVID and, like, all the inflation and stuff, and everything changing all the time, we just think it’s a wiser decision to just hold our money,” he said.

Especially, he said, when borrowing is still very cheap.

]]>
Workers and retirees kick in as FG plans naira 620 billion loan from pension funds https://condenetint.com/workers-and-retirees-kick-in-as-fg-plans-naira-620-billion-loan-from-pension-funds/ Thu, 13 Jan 2022 00:02:10 +0000 https://condenetint.com/workers-and-retirees-kick-in-as-fg-plans-naira-620-billion-loan-from-pension-funds/

The federal government plans to secure a loan of $ 1.5 billion (620 billion naira) from pension funds to support its plan to invest 7.73 billion naira in transport infrastructure over the next five years. coming years.

Specifically, the government is seeking to secure the facility to finance transport sector projects between 2021 and 2025, with the expectation that the over 13 billion naira pension fund will grow at an average rate of 15% per annum over the course of the period.

These were included in the federal government’s “National Development Plan 2021-2025: Volume I”, which was recently launched.

The federal government also revealed in the NDP document that infrastructure spending of 7.73 billion naira will come from the capital market, the portfolio of the Presidential Infrastructure Development Fund, pension funds, among others.

The government, however, said the proposed N620 billion facility would be based on the willingness of pension fund administrators to invest in the transport sector.

The NDP document said in part: “An additional $ 1.5 billion (620 billion naira) could come from pension funds, assuming that Nigeria’s pension fund assets are valued at over $ 31.3 billion. in 2019 increase at an average rate of 15% per year over five years, and pension fund administrators choose to invest in infrastructure funds and infrastructure bonds up to the thresholds allowed to them. ”

The national development plan describes transport as vital to the economy, noting that it underpins development, improves quality of life and enables effective governance.

As such, the government has stated in the plan that it will modernize the current transport infrastructure into a well-integrated, economically efficient, socially equitable and environmentally sustainable multimodal and intermodal transport system.

The NPD further read in part: “To achieve the stated objectives in the transport sector, the estimated public investment is 7.73 billion naira from 2021 to 2025. Allocations will be allocated to priority projects in the sector as well as ” projects essential to MDA operations relevant to each level of government.

“In addition, the transport sector plan and the infrastructure master plan have identified some available financing options. In addition to the sources of expenditure of the public sector investment budget, the following options are available to the government: The capital market increases the sum of 100 billion naira on an annual basis through the Sukuk sovereign bonds. This will be equivalent to a sum of 500 billion naira which will be available for financing critical road projects. The portfolio of the Presidential Infrastructure Development Fund (managed by the Nigeria Sovereign Investment Authority): The sum of $ 321 million was made available to this fund from the proceeds of the last tranche of the “Abacha loot” recovered. The proceeds of the fund will be used to finance the execution of the Lagos-Ibadan highway, the Abuja – Kaduna – Kano highway and the 2nd bridge over the Niger.

“The Central Bank of Nigeria is in the process of setting up an infrastructure company in collaboration with NSIA and some private funding sources. InfraCo is expected to generate a total capital portfolio of around $ 40 billion. Over the next five years, InfraCo is expected to generate up to at least 55% of its total projected portfolio (or $ 22.5 billion).

According to the document, with more than 200 million people living in an area of ​​more than 900,000 square kilometers, the country’s transport sector currently contributes an average of 3% of the gross domestic product.

The sector’s contribution to GDP is expected to increase to 5% over the next five to ten years.

As such, the government has said it will incentivize the private sector to attract alternative sources of finance to the sector.

However, senior officials and retirees opposed the federal government’s plan to borrow $ 1.5 billion (620 billion naira) from pension funds.

The workers, under the aegis of the Association of Senior Officials of Nigeria, called on the government not to consider the idea, calling the proposal insensitive.

ASCSN President Tommy Okon said, “Some retirees are even complaining about late payments and you talk about borrowing from the pension fund. No sane union would agree to this. Anyway, it is still in the area of ​​the proposal because we have not received such a proposal but I think they should not make such a proposal because no union would accept this.

The union also berated the FG for its borrowing frenzy, noting it had put the nation under pressure.

Okon said, “I also think a very sane government would know that you can’t keep doing things the same way and expect a different outcome. They borrowed, putting Nigeria under pressure.

In addition, retirees under the auspices of the Nigerian Retirees Union stressed that the government should be careful about borrowing from pension funds.

Reacting to the plan, NUP information officer Mr. Bunmi Ogunkolade noted that retirees could be stranded if the government does not repay the loan.

Ogunkolade said: “From the NUP we call for caution on the borrowing plan because what happens today may not happen tomorrow. This money does not belong to the government, it belongs to the workers who will retire tomorrow. The pension fund does not even belong to the workers; it becomes a pension after workers can retire. So the people in service today who are contributing hope to one day retire and collect the money.

“Our fear is that they are retiring now and that the money is not there, having been spent on road construction or electricity; so, what would be the fate of these retirees? Thus, we call for caution on the part of the government. They should please think twice. The total contribution, according to the Pensions Commission, exceeds 13 billion naira and the government wants to borrow 1.5 billion dollars. We express our strong reservations with regard to such borrowings.

However, analysts believe that since the pension law allows ATPs to invest in federal government bonds, workers and pension unions may not have a legal basis to prevent the government or administration of funds from. pension to go ahead with the proposal.

Copyright PUNCH.

All rights reserved. This material and any other digital content on this website may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without the express prior written permission of PUNCH.

Contact: [email protected]

]]>
Is Getting a Student Loan Worth It? https://condenetint.com/is-getting-a-student-loan-worth-it/ Tue, 11 Jan 2022 06:34:45 +0000 https://condenetint.com/is-getting-a-student-loan-worth-it/

Is Getting a Student Loan Worth It?

It is a common misconception that students should take out loans for school, but it may not be. There are many reasons why borrowing money for college can be wrong. First, if you attend a four-year institution and graduate with average debt (around $ 30,000), it could take you over 25 years to pay off your debt.

It will reduce the strength of your life and reduce savings for retirement or other goals. Another reason you should avoid borrowing for college is that you may not be able to find a job after you graduate. Some workers say they were turned down by the companies they applied to because they had student loan debt.

However, there are times when borrowing is a good idea. For example, the federal government and many states offer financial assistance that can be applied to loans, grants, and scholarships.

Is Getting a Student Loan Worth It?

What is a student loan?

Student loans are a type of loan that many students in higher education institutions take out to reduce the cost of their studies. The amount they borrow is used to pay for tuition, books, and other tuition fees.

Student loans are typically repaid over time with interest rates ranging from 5% to 9%. The repayment term depends on the amount you borrow, the interest rate charged on your loan, and when you make your first payment. If you are a parent who financially supports your child or grandchild by paying for their education, you may be eligible for federal student assistance.

There are two types of student loans: subsidized loans and unsubsidized loans.

To provide a better education for the next generation, many people decide to take out a student loan. There are two types of student loans: subsidized loans and unsubsidized loans. These loans come with different amounts of interest rates and monthly payments. Generally speaking, it’s not worth getting a student loan if you want to get an arts or humanities degree, as your salaries are likely never going to be high enough to cover the amount you owe. The main purpose of a student loan is usually to cover tuition and other costs.

Subsidized loans are a type of federal student loan with a low interest rate and a monthly payment limit. You must repay the loan in full with no monthly payment for the first seven years of your loan. After that, the interest rate will be at the federal subsidized rate, which is lower than most private student loans.

Pros and Cons: Pros and Cons of a Student Loan.

Getting a student loan can be an investment in your future. But it’s important to consider the pros and cons before getting into debt.

  1. Student loans carry interest rates of up to 10% or more, so paying down debt can get expensive quickly.
  2. You may not be eligible for federal student loans if you have a history of delinquency on other types of loans.
  3. Student loans offer a higher monthly payment than other types of loans.
  4. The interest rate on student loans is generally lower than that of other loans.
  5. Student loans are more expensive to repay than other types of loans.

Advantages and disadvantages of a student loan.

Many people think that getting a student loan is the best way to pay for college. They believe that there are too many advantages to not getting a student loan and therefore it is worth it. However, there are some drawbacks to obtaining a student loan, such as high interest rates and repayment terms.

This article discusses the pros and cons of getting a student loan. Student loans are a way to invest in your future. Students who go to college want to go to college. Then they want to get a great job helping them pay for their college education.

Is Getting a Student Loan Worth It?

In today’s world, student loans are a popular option for financing college education. As tuition costs skyrocket and salaries drop, many students are turning to student loans as a way forward.

It is important to weigh your options when considering whether or not to take out a loan, because borrowing money from the government comes with risk. Therefore, it would be best to make sure that you know the laws that protect you and see what you agree to in the event of default. If you are wondering whether it is worth taking out a student loan, you should carefully consider your options.


]]> Migrants return home again fearing lockdown https://condenetint.com/migrants-return-home-again-fearing-lockdown/ Sun, 09 Jan 2022 09:34:27 +0000 https://condenetint.com/migrants-return-home-again-fearing-lockdown/

Migrant workers, who during the previous coronavirus-induced lockdown ran out of food, struggled to access health care and faced severe livelihood challenges, are returning again to their home countries , fearing the weekly curfew could turn into lockdown as the Covid push continues.

Fearing confinement in the national capital, migrant worker Hemant Maurya has already left for his country of origin.

“The last time I got stuck in the nation’s capital with my family. The length of the lockdown was gradually extended and I faced a lot of hardship. That’s why, when this time I heard about it curfew, I left the nation’s capital, “said Maurya.

He added: “If the curfew is not extended, we will come back. Fearing the lockdown, I left for the house on January 6. was accompanied by four fellow workers.

Read also: Wear masks, we will not have to impose confinement in Delhi: Kejriwal

Hemant is not the only one, Raju, 33, from Gonda district, has also returned home.

Raju said: “In the previous lockdown, my children stayed with me. We had no money and had to survive without food for a day. After borrowing money from my friend, I went home. “This time, I didn’t expect anything. If the curfew is not extended, we will come back.”

“One of my villagers Vinod has also returned with me. The cases of Covid are increasing. We will consider returning when the situation returns to normal,” Raju added.

Delhi’s daily Covid tally crossed over 20,000 cases in one day. Due to the upsurge in infection, the lockdown is likely to be imposed, which is of concern to migrant workers.

Although the government has imposed a curfew at night and on weekends to contain Covid, but given the current situation, migrant workers are taking no chances this time around and either prepare or choose to return home.

Toufiq Ahmed, an entrepreneur at a Prem Nagar company in Delhi, is a resident of Ambedkar Nagar. Many people from his village work under him. Even before the curfew was imposed in the nation’s capital, eight of the migrant workers left for their homes.

Ahmed said IANS that eight workers have already returned home and that more should follow.

Read also: Omicron 105% more transmissible than Delta: study

“Despite our assurances to migrant workers that there will be no food shortage, they are afraid,” Ahmed added.

“Workers who have faced hardships in previous closures are scared and rush home. At the same time, bus fares have also increased. Previously, a private bus from Prem Nagar to Ambedkar Nagar charged Rs 1,000, which has now been increased. at Rs 1,200 “, he said.

Ahmed said: “The workers in Bihar, Gonda and Moradabad have left for their homes. Three workers left two days ago and earlier three workers left. We want them to come back sooner or else the work would be affected. Not all of the workers who have left for their homes have notified when they will return. “

However, many private operators, who are sitting outside Anand Vihar bus station and dealing with buses operating for Bihar, said the situation is grim so they charge the high fare.

Most of the people who work in Delhi are from other states. If the Covid situation does not improve, the national capital could once again bear witness to the problems encountered during previous lockdowns.

On Monday, the Kejriwal government will review the Covid situation in Delhi and take an appeal on whether or not to impose the lockdown.

Discover the latest videos from DH:

]]>
Money Milestones: How to make your dream of owning a home a reality in 2022 https://condenetint.com/money-milestones-how-to-make-your-dream-of-owning-a-home-a-reality-in-2022/ Fri, 07 Jan 2022 17:37:57 +0000 https://condenetint.com/money-milestones-how-to-make-your-dream-of-owning-a-home-a-reality-in-2022/

It may be possible if you’re willing to get creative, experts say

Content of the article

MONETARY MILESTONES: In an ongoing series, the Financial Post explores personal finance issues related to major life milestones, from marriage to retirement.

Advertising

Content of the article

Buying a home has never been so difficult and this is especially true for millennials.

This generation was born into a recession, tried to enter the workforce during a financial crisis, and are now trying to settle down and own a home during an economic crisis and pandemic.

Do not be mistaken. The pandemic has certainly made matters worse for this 25-34 year old group. Housing affordability in Canada continues to deteriorate, with homeownership now accounting for 46.5% of average household income, according to the National Bank of Canada.

Content of the article

To put this in perspective, it is recommended that home ownership never be more than 25% of your income. Still, this situation is not likely to go away anytime soon, said Robert Hogue, senior economist for RBC Economics.

Advertising

Content of the article

“Prices in some places have increased year over year by 30% and sometimes 40%,” he said. “We haven’t seen the kind of wage increases that would match rising house prices at just about every level in Canada. “

The median income of Canadian households remains around $ 62,000, according to Statistics Canada in 2019. However, the average household spends around $ 68,000. This makes it almost impossible to own a home given the high cost of a mortgage, along with all of the other household bills.

It’s like waving in the wind

James mccreath

But it can be possible if you’re willing to get creative, said James McCreath, portfolio manager and senior investment advisor at BMO Private Wealth.

“The first step is to prepare a family budget and that gives you the framework of what you can afford, and to look at your monthly entries and exits,” he said. “Then you can start building that down payment… it’s not easy unless you have a budget. It’s like waving in the wind.

Advertising

Content of the article

From there, McCreath said there are new ways for young people to start putting down money for a down payment. For example, side activities have become more and more popular, with some people renting out parking spaces and storage units, and others finding a passion project paying off.

“People are really open to these side jobs,” he said. “Write a list of your strengths and areas that interest you and I think the possibilities are endless. “

But not everyone has the time or energy after work to start an extra gig. There are also tax implications once you open a small business. Instead, Hogue recommends viewing today’s work-from-home economy as an opportunity.

“Because of working from home, it allows some Canadians to think of other cities or markets to fulfill their dreams of homeownership,” he said. “Employers are much more flexible. Time will tell if this is a permanent avenue to owning a home, especially in the markets which are very expensive.

Advertising

Content of the article

You drive until you qualify

Robert hogue

But even though major markets remain expensive, millennials and young people continue to flock to them. In 2018, about 88% of millennials lived and worked in metropolitan areas, according to Pew Research. This pushed homeownership into the background and increased rental costs.

Housing supply remains close to all-time lows in almost all markets, according to a research report from Hogue, and the pandemic has only made it more difficult to access the housing market. He expects this to continue in 2022.

With that in mind, Hogue recommends that perhaps it is time to reconsider your options if home ownership is your dream. If you want a downtown Toronto home with a back yard, you might want to consider a townhouse or a semi-detached house. Or, you can keep driving until you find a market you can afford.

Advertising

Content of the article

“You drive until you qualify,” he said. “This will mean longer distances than in the past. And some will have to settle for condominium apartments.

If you absolutely need a home, one way to help with the down payment is to use the savings you already have. If you are a Canadian who has added to their Registered Retirement Savings Plan (RRSP), you can use up to $ 35,000 as a first-time homebuyer with the Home Buyers‘ Plan. You then have 15 years to repay it, tax-free.

This repayment plan would also help in another area where millennials struggle: credit. Living at home longer than previous generations means there is less evidence that you will be paying your bills.

Advertising

Content of the article

“Young people can have car payments, student debt, all of which meet the loan conditions to build credit,” Hogue said. “Like any form of credit you have, such as credit cards and lines of credit, you need to stay up to date on your payments. Pay it back in an orderly fashion and it will tell lenders you can count on.

Of course, you can still fail even after you’ve created a budget, accumulated credit, used up available savings, and put money aside each month. That’s when Hogue and McCreath say maybe it’s time to visit Mom and Dad’s bank.

“If you tell them, ‘I’ve budgeted, I’ve got a plan, I’m committed to it, and I’m setting aside that amount of savings,’ it just shows that you are very well prepared and that the the conversation will be much easier when you ask for money, ”he said.

If you still don’t have enough, even after doing this exercise, choosing to rent over owning a home certainly isn’t a failure. Many need to stay downtown for work or they just enjoy the city lifestyle. If so, staying put is definitely an option.

“There is a cultural component to homeownership, which is very strong in North America. But if you look around the world, there isn’t such a strong trend towards home ownership, ”Hogue said. “There could be a cultural shift towards rental… and it’s not necessarily some kind of failure.

Financial post

Advertising

comments

Postmedia is committed to maintaining a vibrant but civil discussion forum and encourages all readers to share their views on our articles. Comments may take up to an hour of moderation before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications. You will now receive an email if you receive a reply to your comment, if there is an update to a comment thread that you follow, or if a user that you follow comments. Check out our community guidelines for more information and details on how to adjust your email settings.

]]>
Danish bonds rally as currency interventions fuel discussions on rate cuts https://condenetint.com/danish-bonds-rally-as-currency-interventions-fuel-discussions-on-rate-cuts/ Wed, 05 Jan 2022 14:59:00 +0000 https://condenetint.com/danish-bonds-rally-as-currency-interventions-fuel-discussions-on-rate-cuts/

LONDON, Jan. 5 (Reuters) – Denmark’s short-term borrowing costs fell on Wednesday, as news of massive foreign exchange interventions aimed at weakening the Danish krone fueled speculation that the central bank would soon resort to lowering interest rates.

According to data released on Tuesday, Denmark’s central bank last month sold 47 billion Danish kroner, worth more than $ 7 billion, to defend its currency’s peg against the euro.

As it sells crowns to stabilize its strengthening of the currency since March 2021, December marked the biggest monthly intervention since early 2020. read more

Register now for FREE and unlimited access to Reuters.com

These purchases brought Denmark’s foreign exchange reserves to the highest since 2015, to nearly 530 billion Danish kroner ($ 81 billion).

Denmark’s foreign exchange reserves

But economists say the authorities may need to follow up on these interventions by cutting interest rates.

Denmark’s central bank does not hold regular monetary policy meetings, but the Governing Council meets whenever necessary. It usually announces pricing decisions on a Thursday at 5 p.m. local time.

Another reduction would soon follow a move in September, which came after months of currency intervention not weakening the krone enough.

The sole mandate of the Danish central bank is to keep the peg and keep the krone in a range of 7.29252 to 7.62824 kroner per euro.

Speculation on lower rates is now playing out in bond markets where yields have fallen sharply, suggesting that investors are starting to position themselves for such a move.

The Danish three-year bond yield fell almost 7 basis points (bps) on Wednesday to -0.50%.

Five-year bond yields fell 3 basis points to -0.34%.

“They have shown a longstanding willingness to defend the peg in the exchange rate and that will not change anytime soon,” said David Oxley, senior European economist at Capital Economics, referring to policymakers at the Danish central bank.

“In September, the rate cut was a logical solution to the upward pressure on the ankle, so if the crown is under pressure again, it will do whatever it takes to hold the ankle in place.”

While money market futures so far suggest only a 20% chance of a 10 basis point rate cut in February, speculation is strengthening.

Nordea analysts said another rate cut could be imminent while Soren Kristensen, Sydbank’s chief economist, saw a possible 10-15 basis point move in the first quarter.

Oxley of Capital Economics said Denmark could cut rates to -0.75% without opening too much of a spread to the European Central Bank’s key rate of -0.50%.

At -0.60%, the Danish key interest rate is already among the lowest in the world and a rate cut would contrast with the policy of most other developed economies, where central banks are cutting stimulus and lifting borrowing costs to ultra-low levels as inflation picks up.

Not everyone sees a rate cut as a deal. Danske Bank noted that the upward pressure on the krone is now fading, meaning that currency intervention could be considered sufficient.

Claus Hvidegaard, head of bond research in Denmark at SEB, said the rise in currency interventions was more a reflection of the central bank’s willingness to increase excess liquidity and keep money market rates stable relative to the eurozone.

“We see this as more of a liquidity exercise, so we believe they will need to intervene more in the forex markets to increase liquidity before considering another rate cut.”

Register now for FREE and unlimited access to Reuters.com

Danish interest rate cut speculation on the rise

Reporting by Dhara Ranasinghe in London and Nikolaj Skydsgaard in Copenhagen; Editing by Sujata Rao, Mark Potter and Hugh Lawson

Our Standards: Thomson Reuters Trust Principles.

]]>