Through its website and daily newsletters, The Peak (a ZoomerMedia property) offers Canadians the news they need to understand business, tech, and other must-know stories.
In this dispatch, The Peak looks at the home renovations that offer the biggest return on your investment, the perks of online-only banks and how to leave money behind for your pets.
Focus on Higher Returns When Renovating Your Home
Homebuyers are snapping up older homes at lower prices in neighbourhoods they might otherwise be priced out of, then investing in renovations to boost property value. Between 2019 and 2023, renovation spending in Canada surged by $300 billion — an 8 per cent increase from the previous five years — driving up the prices of listings in the process. If you’re thinking about buying a fixer-upper, make sure you’ll actually see a return on your investment. You can determine that by tallying up all your renovation costs and subtracting the total from the home’s estimated worth after the work is done. Remember to include an extra 10 to 20 per cent for any surprise expenses. It’s important to choose renovations that will give you the biggest returns: kitchen and bathroom remodels, along with fresh paint, typically offer the best bang for your buck, offering over a 60 per cent return in most housing markets. If you need financing, think about a home equity line of credit or adding renovation costs to your mortgage. Just make sure to always have a healthy emergency fund to be able to fall back on. —Meera Raman
How to Know if an Online-Only Bank is Right For You
More online-only banks have been popping up, and whether you should make the switch depends on your banking habits and priorities. If you’re like 77 per cent of Canadians, you probably already do most of your banking digitally for everyday transactions. If you find yourself forgetting in-person bank branches exist and plan to wave goodbye to them for good in the next five years (along with 37 per cent of Canadians), it might be time to consider an online-only bank. These banks — some of the big Canadian players include EQ Bank and Simplii Financial — often have user-friendly platforms that make handling simple transactions a breeze. Plus, without the costs of maintaining physical branches, they typically offer higher interest rates on savings accounts and low or even no fees (compared to the $15 monthly fees some traditional banks charge). But, if your banking needs are a bit more complex or you often require in-person assistance, an online bank might not be the best fit for you. If you’re still all in on the switch, just make sure your online-only bank is insured by the Canada Deposit Insurance Corporation (CDIC), which you can check on its website. —MR
How to Leave Money Behind For Your Furry Friends
Leaving money in a will for your furry friend isn’t just for eccentric billionaires anymore. Yes, billionaire Leona Helmsley did leave US$12 million to her Maltese, but more everyday and average people are leaving normal amounts of money to care for their pets after they themselves pass away. In Canada, you can’t leave a direct inheritance to your pet, but you can create a pet trust with clear instructions in your will for a trustee to manage the funds. To set one up, first pick a reliable trustee who understands the responsibilities. Since your pet can’t enforce the trust’s terms, it’s smart to appoint another person as a guardian to care for the pet and make sure everything goes according to plan. Then, use an online calculator to estimate how much you’ll need to put aside based on your pet’s life expectancy, annual costs, and potential medical expenses as they age. After it’s all set in stone, you can rest in peace knowing that your bestie will be taken care of. —MR
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