Buying fewer groceries, driving the car less, and eating out less are some considerations – but perhaps, one of the more feasible options is to cut down on our electric bill by taking advantage of the many energy-saving opportunities that now exist. 

Apart from simply turning off the lights in rooms you are not in at the moment – or turning down, or off, the A/C, there may be value in considering a home equity loan from the Bank to renovate or upgrade some of the areas in the house that need attention. 

I chatted with Teresa Gibson, Vice President, Consumer Credit at Butterfield about seeking such a loan. 

“A home equity loan is a consumer loan allowing homeowners to borrow against the equity in their home. It can be used to consolidate debt or fund a child’s education, but it can also be used to make home improvements,” Ms. Gibson explained. 

One of the more useful uses of the loan is to insulate part of the home such as ceiling areas, window frames, or outside doors. It is amazing how much energy can be wasted when air circulates freely around the home – both inwards and outwards. 

Extra heat seeping in during summer can easily result in your A/C unit having to work harder to keep the room cool, and that can cause the electric bill to increase significantly. 

Probably the first place to look at will be the attic. We rarely go up there to check if there are any gaps or holes in the roof areas, etc. Perhaps if we see some uninvited guests with four feet, we might be tempted to climb up to check them out – but otherwise, we probably haven’t been up there in years. 

Likewise, if there is a basement in the house, there may be many sections of floorboards – and wall joints – needing some padding or re-lining. 

Similarly, hot water pipes can be insulated to prevent excessive heat loss. 

It is probably advisable to have any improvements be carried out by professionals. Self-improvements may seem cost-effective in the short term – and indeed may be worthwhile. However, to be sure of an effective and long-lasting job, the professional approach may be the best way to get the job done properly. 

“Another way to use a home equity loan could be to purchase and install solar panels, which may significantly reduce energy bills in the long term. This is an investment for the future as the savings from the reductions in energy bills will only be felt over many years – and of course, the cost of the loan, by way of repayment and loan interest, must be factored in. A long-term view is essential,” said Ms. Gibson. 

You may also consider buying more energy-efficient appliances when replacements are required. Today’s advanced technologies – in a variety of cases – have significantly improved overall energy use – washing machines, refrigerators, hot water tanks, heaters, and so forth. 

“There is an application process for a home equity loan which can include insulation and installing solar panels”, according to Ms. Gibson. 

“We will need information regarding current borrowings from the Bank, the purpose for the loan, the amount, with accurate costs – and of course additional information regarding personal finances.” 

It should also be noted that most of the measures mentioned above – especially solar panels – will also add to the value of the property. 

Call the Bank for an appointment to discuss this with their customer service representatives at 298 4799. 

The post Saving Energy in the Home appeared first on RG Magazines.

Fortunately, in Bermuda, we have the Bermuda College, which is recognised for its academic excellence in many disciplines as well as its ability to encourage the academic or career advancement of its students. Try taking a look at their range of academic programmes and professional certificates. Even some of us older folks might be pleasantly surprised. 

Many young people may not have the financial capability, nor the social maturity to go overseas straight out of high school, yet they are keen to attain a higher level of education and qualifications to get that dream job. That concern has been addressed and remedied by Bermuda College. 

I chatted to Dr Constance Ridley-Smith, who wears two hats at Bermuda College – coordinator, training, professional development, and coordinator, external programmes & articulation agreements. She spoke about the college’s Transfer Pathways Programme. 

This programme gives students the opportunity to obtain their associate degree at the college, transferring their academic credits to the third year of a four-year college or university, or to the second year in the UK. Bermuda College has these transfer agreements or pathways with nearly 40 accredited institutions in the US, Canada, the West Indies/Caribbean, and the UK. 

Dr Ridley-Smith explained: “In the last five years, we have broadened our subject areas. Whereas most partnerships were previously in business and accounting, we now have law at the University of Buckingham, Marine Science at Arizona State via Bermuda’s own BIOS, Sports Medicine at Voorhees University in South Carolina, the opportunity to play college sports at Thomas College, and exciting opportunities at Troy University in Alabama. 

“Recognising the changing world of academics, we have boosted our online partnerships. This is a plus for young persons and mature learners like me who want to participate in lifelong learning without leaving home and disrupting their lives. We offer undergraduate degrees online in Risk Management, Nursing, Cyber Security, Fashion Design, Music, and many other options. 

“After spending two years at Bermuda College and attaining at least a 2.0 GPA, the student can apply for admission into one of the institutions on Bermuda College’s transfer pathways list. Thereafter, the student can complete a further two years of study at partner institutions to attain the internationally-recognised bachelor’s degree in many different disciplines, commonly known as subject areas. Moreover, Bermuda College’s partners offer a range of scholarships possible for their international students. 

“These programmes have been rigorously negotiated to guarantee a two-plus-two option. In order to make good on that promise, it is strongly advised that coursework (your major) at Bermuda College correlates to the bachelor’s degree that you intend to take at the overseas institution. You can change your major once you get abroad, but it will take you longer than the two-plus-two option implies.” 

Having said that, Bermuda College recognises that objectives, especially in education, can change through the learning years, and discussion with a college counsellor and academic advisor is recommended. Earliest discussions are advised. 

Students who are UK-bound will benefit from the college’s one-year Foundation Diploma, designed for smooth transfer. The advisement process assists not only with the identification of courses and requirements, but also with a full itinerary of subject matter, classes and time frames. 

Visit “Transfer Pathways” on the Bermuda College website. From the “Menu”, “Academics”, then “Transfer Pathways”. Next, call Bermuda College to schedule an appointment. They will provide you with the best possible options for your academic and, ultimately, career success. This part of the pathways programme underscores the Bermuda College mission statement: “Many paths. Discover yours.” 

The post Home grown options appeared first on RG Magazines.

The ability for the family to cover all tuition costs plus expenses including travel and accommodation has become increasingly difficult. Even with a regular savings regimen starting years before the son or daughter is expected to go to college, the current cost will inevitably be much higher than originally projected, and saved for. 

Hopefully, there may be some opportunity for a scholarship or grant from the targeted college, but that is never guaranteed and can’t be predicted years ahead of time. Consequently, there is a growing need for financial assistance from outside the family, usually in the form of a personal loan from a bank. 

I spoke with Teresa Gibson, vice president of Bank of Butterfield’s Consumer Credit department regarding a few questions and comments. 

The bank recognises that a college loan needs to be affordable over a longer period to allow repayment terms suitable for both the student and the bank. The typical lending period is between one to seven years ahead, and discussion with the lending person at the bank will assist in that determination. 

In most cases, information from the student’s parent or parents will be required, such as name, address employment, existing lending with the bank, comfortable repayment terms, current financial obligations, expenses and income. 

The bank loan can cover the cost of the college tuition fees plus travel, accommodation and reasonable out-of-pocket expenses, considering that the intended college will most likely be outside of Bermuda in the US, Canada or the UK. 

The bank also provides advice on how to manage your finances, including budgeting, saving, credit card control and general personal expense management. It is critical for the student, and for that matter, the parents, to have a full grasp of personal money management before taking out the loan, and especially during the term of the loan. Attention to cost control is essential and the bank will require regular financial updates over the course of the loan. 

It is also advisable to not only have a good idea of which college you are going to well ahead of time, but also which courses you intend to take. And, of course, whether you will be accepted by the college entry process. 

Getting a pre-assessment from the bank is a useful approach. Contact them in advance when you have a good idea of where you want to go, and the approximate costs of the college fees. Simply contact the bank and submit the necessary information to have the lending experts review the details and pre-approve you for financing, giving you some indication of your borrowing ability when you are ultimately ready to apply for college. 

Leaving discussions with the bank until you are ready to go off to college is not a wise approach. The sooner you know what your options are, the better for you, your parents and the bank. Moreover, introducing yourself to the bank in ample time is a good idea. 

Finally, note that Butterfield education loans can also be utilized for professional advancement, such as a masters degree, doctorate, or even a certification. The bank recognises that education for all sections of the community is a high priority, so regardless of your age, should you have an interest in further education, and need some assistance, talk to the bank. 

For more information, visit www.butterfieldgroup.com, e-mail them at personallending.bermuda@butterfieldgroup. com, or call 298-4799 to speak to a lending specialist.

The post Funding Further Education appeared first on RG Magazines.

The concept of downsizing has been gaining increasing popularity in Bermuda in recent years. But, moving from your large, and perhaps underutilized, property nowadays, to a smaller home can be a very worthwhile – but daunting – move. 

As downsizing is a major life-changing event in your life, I consulted with Ed Williams at Coldwell Banker Bermuda Realty to get his expert advice on the matter. 

BEFORE YOU START LOOKING FOR ANOTHER PROPERTY, YOU SHOULD IDENTIFY THREE PRIMARY MATTERS TO CONSIDER: 

1. Financial impact – if you have equity in your current property and have no mortgage liability outstanding when you sell the current house, you need to work out how much cash you can expect to receive if you sell. That amount of “free cash” is critical to determining your level of interest in selling from the financial perspective. Consideration can also be given to investigate if it is cost effective for your existing home to be renovated into a duplex, allowing you to continue to live in a portion of the house, while the remaining portion becomes a rental accommodation. You need to consider your present level of income from pensions, investments, or employment income, your likely future financial needs, as well as whether you want to leave an inheritance for your loved ones in the form of investments. 

Speak to your real estate agent before making any decisions. It is imperative to understand your financial status, what you may anticipate from the sale of your property; whether you should rent or buy again and the costs for each. 

2. Physical impact – moving house is not an easy task. You may have been in your present home for years, perhaps a lifetime, and will have inevitably accumulated mountains of furniture, clothes, papers, and “junk”. The task of sorting through all of that and throwing much of it away (because you intend to move to a smaller place that won’t have the room to store it) can be a daunting task to tackle on your own. Perhaps the family will help, or perhaps you will hire professionals to clear out, clean, and then move the remaining contents of your home to a new property but in either case, you need to carefully think through all of the logistics and make a plan. 

Your agent can help you decide if it is best to sell your property “as is” with you living in the space; if you need to declutter and what repairs may be needed or if it is best for you to sell the property empty. Based on their advice you can ascertain how long you will need to get your property ready for sale and how to find new accommodations. 

3. Emotional & practical considerations – having been in your current house for a long time, you will have developed many thoughts, memories, and familiarities. Moving around the corner may be relatively straightforward, but moving to the other end of the island or even off the island can cause unexpected obstacles – will you still be able to see the family and friends regularly? How will this change your getting to church, getting groceries or going to appointments? 

While Bermuda is a small island, with close knit families, we are finding more seniors moving off island for the cost savings, joining other family members relocating or finding more senior friendly communities. Remember, a house or condo is only block and mortar, people and quality of life is what it is really all about. Your agent can refer you to other qualified agents around the globe if needed. 

The post ASK A REAL ESTATE AGENT: Downsizing Considerations appeared first on RG Magazines.

Mr. Smith mentioned various issues around the home that could cause both damage to the home and/or financial loss. His main comment was to check all electrical outlets, circuits, and the main board regularly – and contact a certified electrician if you have any doubts or uncertainty. Trying to self-analyse is not recommended.

Mr. Smith said,” Perhaps the biggest hazard in the home is having overloaded circuits. In other words, using too much power in one circuit, through too many devices including extension cords, all plugged into one outlet. This can be very dangerous, and while the circuit breaker will typically cut in and thus cut off the electric power in that circuit, it is never a good idea to let that situation go on for a while.”

We are all guilty of using extension cords around the house for convenience and being able to plug in a new device, especially for laptops, printers, televisions, routers, and so forth. The problem is that once we plug it in, we tend to forget about it and carry on regardless of checking for the power usage.

Don’t run cords under carpets or rugs, as this can cause overheating and increase the risk of fire. Avoid pinching cords against walls or furniture, and never yank them from the wall socket.

“Another power device we ignore frequently is the smoke alarm(s) in the house”, he said. “If the alarm is faulty through the battery being dead for example, then the alarm will not work, and any heat-related/fire/ smoke situations will be missed. And not only can damage to the house be the outcome but there may be a denial of house insurance if it is discovered that the smoke alarms were not working.”

The perfect scenario is to have a smoke alarm installed in every room of the house, especially the kitchen.

“One issue that is often overlooked,” says Mr. Smith “is when we have a power outage – either from an unexpected outage which just happens suddenly – or when we have forewarning from an impending storm.”

“It is always better to unplug all devices in advance, including power surge boxes and extension cords, so that when the power comes back on, we will not have had any power surges, and we can simply re-plug all the devices.”

One of the problems with the restoration of power – if the device had not been unplugged – is that the surge can knock out the device – especially televisions – completely. Hence, it is very important to be aware of power outages and unplugging all devices. In some cases, it could be very costly and perhaps not covered by home insurance.

If your house is old and has not been checked for electrical issues for some time, it is advisable to hire a certified electrician to check all your plugs, wires, and devices – especially if they are carried through conduits in the wall.

Mr. Smith said, “While rewiring can be expensive, it nonetheless should be a consideration. The alternative could easily be hazardous to the house and much more expensive. I don’t recommend self-checking in this situation because there are so many issues from times past when perhaps the original wiring was not done properly – or not well enough secured. In many cases, I have found that the original wiring was not done to current code requirements and has become a danger to your safety.”

One last situation, raised by Mr. Smith, which can be easily overlooked is a “discoloured” wall socket. “There is no doubt that a wall socket which is not the normal – or original colour – is a clear sign of a problem,’ says Alan. It should be checked and remedied as soon as possible. Every wall socket in the house should be checked regularly, including sockets behind curtains, beds, in closets, and so forth – areas that are not easily visible, but equally dangerous.”

IN CONCLUSION, SOME OF MR. SMITH’S BIG TAKEAWAYS INCLUDE: –

Regular Inspections

Routinely check your electrical appliances, cords, and outlets for signs of wear and tear, such as frayed wires or loose connections. Replace or repair damaged items promptly.

Outlet Safety

Avoid overloading outlets with too many devices or using extension cords as a permanent solution. Use power strips with built-in overload protection if you need to plug in multiple devices.

Water and Electricity don’t mix

Keep electrical appliances away from water sources, and never handle them with wet hands. Install Ground Fault Circuit Interrupters (GFCIs) in areas where water and electricity may come into contact, such as kitchens, bathrooms, and outdoor outlets.

Safeguarding your home against electrical hazards is crucial and often involves straightforward measures. Regular inspections, proper use of outlets, and maintaining distance between electrical devices and water sources are key steps in preventing accidents.

Mr. Smith’s expert advice raises numerous issues which if ignored can easily lead to hazardous situations and unwanted consequences. Timely and current advice. By following these safety tips, you can help prevent electrical hazards and ensure a safer environment in your home.

Finally, if you’re unsure about any electrical work or experience frequent electrical issues, consult a qualified electrician. If you are new to the island and unsure who to contact, you can reach out to the Electrical Contractors Association at 295-2323 for recommendations.

The post Top 5 Electrical Hazards in your Home appeared first on RG Magazines.

As all mortgage holders and mortgage lenders will tell you, having home insurance is not only important but is mission critical. In other words, you won’t get a mortgage without having adequate home insurance. 

According to Stephen Muso, Head of Personal Lines at the BF&M Group of Companies, “Mortgage Lenders require the home be insured, as they have a vested interest in your home. Moreover, owning a home is an investment and you want to protect that investment. 

But to be clear, Nathaniel Butterfield, Operations Manager at Butterfield Insurance says that while “Home insurance is not mandatory in the way vehicle insurance is, there is a reason that if you have a mortgage, the lender will require you to have insurance – they know how a sudden loss can derail your finances.” 

In other words, it is not by choice but a “must-have.” It cannot be ignored if you have a mortgage. 

COMPREHENSIVE PROTECTION 

By definition, home insurance, also known as homeowner’s insurance, is a type of property insurance that safeguards your home in case of unexpected events. It acts like a financial safety net, protecting your dwelling, your belongings, and even yourself in certain situations. 

Stephen Muso says, “No one ever expects a loss or damages to occur to their home and/or personal possessions by an event such as a windstorm, fire, or theft, to name a few. Damages caused by these losses can often have an overwhelming impact on your savings.” 

But there’s more to financial protection for a mortgage according to Mr. Butterfield, “When we think of Home Insurance in Bermuda, we tend to think of Hurricanes. A normal Bermuda Home Insurance policy covers a lot more than that – you might think of fire, but water can cause as much or more damage.” 

“Your home policy will cover you for the damage caused by water from burst pipes which can ruin floors, cabinets, and contents. Lightning is also a frequent cause of damage to buildings and contents (home electronics especially) and is covered under standard policies”, he explained. 

LIABILITY COVERAGE 

Mr. Muso adds, “Liability coverage provides you protection should you become legally liable should someone hold you responsible for their injuries or damage to their property and typically covers a wide range of causes including fire, lightning, windstorms, flood, earthquake, leakage of water or oil, riot, malicious persons, theft, falling trees and impact by vehicles.” 

Some insurance policies may also include Additional Living Expenses – If your home becomes uninhabitable due to a covered event, home insurance may help pay for temporary living expenses, such as hotel bills. 

MAINTAINING ADEQUATE COVERAGE 

Mr. Muso also says that “You should be insuring your home or possessions for their full rebuilding or replacement cost. By not doing so you can be considered underinsured. The consequence of being underinsured is not having your claim fully paid, which leads to you being responsible for paying the difference in the cost of repair or replacement yourself.” 

It is important to recognize that while insurance of any type is a cost-of-living expense and can sometimes be a challenge for some people, the reality is that some types of insurance – such as Home Insurance is mandatory if you have a mortgage – but even more importantly – it is your financial well-being that you are protecting. 

THE IMPACT OF INFLATION 

In these difficult economic and inflationary times, the cost of goods and services seems to increase almost weekly. Unfortunately, insurance of any kind, especially home insurance, is no exception and increases from one year to the next can sometimes run as high as 5-10% more. And of course, always keep in mind that the underlying purpose of home insurance is to replace the house in the life-changing event of a total loss of the house through fire or windstorm, etc. 

That being the case, it is likely that your current house value – or replacement cost – is too low, and hence any settlement from the insurance company in the event of such a loss would not be enough to rebuild your house. In other words, while inflation can increase the premium, you may have to further consider increasing the replacement value from time to time. That will simply add to the premium cost. 

BUDGETING FOR COVERAGE 

Therefore, it is always financially wise to include the cost of home insurance in your annual budget process, so you won’t be left scrambling to pay for the premiums when they arise. 

Home insurance is as much a cost of living expense as electricity, gas for the car, and groceries. Your budget process should ideally spread out the annual cost by month (or at least quarterly) – so that the cash outflows are easier to handle and become a normal monthly or quarterly expense within your financial projections ahead. 

A small price to pay for knowing that you are protected when you go to sleep each night.

The post Ask an Insurance Agent: The Importance of Home Insurance appeared first on RG Magazines.

I recently met with Carole Mitchel, Head of Lending at Clarien Bank to get her expertise on the issues involved in a home improvement loan.

My first question was simply to find out exactly what a home improvement loan is. Carole said,

“The purpose of a home improvement loan is to utilize the funds borrowed to make improvements to the home which is already owned by the borrower. These improvements could be smaller in nature such as replacing flooring, remodelling bathrooms, and kitchens to larger scale projects including making additions to the home.”

She added “Any customer with a clear payment record, the ability to make the payments, and who has equity in the home is eligible. In simple terms, the Bank would require an up-to-date valuation of the property; then calculate the lendable value as banks do not lend 100% of the value; deduct the existing mortgage balance to determine how much “equity” there is left in the property to lend against.”

Carole kindly provided an example:

“If a property is valued at $500,000, the bank would lend up to 80% of the value being $400,000. If a customer has a mortgage balance of $300,000, that leaves equity of $100,000 ($400,000 – $300,000) available to be borrowed.”

I asked if there were any restrictions on how the funds could be used. In other words, is it at the Borrower’s discretion what the funds can be used for?

She replied, “In all cases, the funds are meant to be used for the purpose they are lent. In the case of home improvements, the funds will be released upon presentation of invoices which need to align to the plan that the bank approved.”

Your current mortgage will have time-limit terms (when your mortgage expires, assuming you have kept up-to-date payments of principal and interest). So, can you add on to that mortgage with a home improvement loan?

Carole said, “Typical repayment terms are monthly matching the term of the existing mortgage. In some cases, it may be possible to extend the term, keeping in mind that the bank will not lend 100%, there should be some equity remaining even after the borrowing. The bank will only lend against the available equity based on its loan-to-value ratios.”

She added, “The interest rates on these loans are on a variable rate basis comprised of the Bank’s Bermuda Dollar Base rate plus a spread which is determined based on the assessed risk of the transaction. There is also a loan negotiation fee of up to 1% of the borrowed amount.”

“There could be legal fees and stamp duty should the bank require updated mortgage documentation. The legal fees are determined by the Bar Council and the stamp duty is determined by the Bermuda Government and is based on the borrowed amount.”

The typical application process according to Ms. Mitchell is that “The customer completes an application form and provides up-to-date income (salary, rental income etc.). Quotes and invoices for the work to be completed are to be provided to support the borrowing amount requested. An updated property appraisal may be required depending on the age of the appraisal we already have on file or depending on how much equity is being used up to borrow.

She added that it is better to meet with the Bank ahead of getting renovation quotes etc. to ensure that you meet the necessary requirements, including personal financial review. This will indicate what level of borrowing you can expect to get.

A final observation is that if you’re planning to sell your home in the near future, you’ll want to make sure that the home improvement project will actually increase the value of your home. Otherwise, you may not recoup the cost of the loan.

Home improvement loans are an excellent way to increase the value of your property for the long term – but make sure that you are comfortable with your financial projections regarding the cost of the borrowing and your ability to repay the borrowing.

The post ASK A BANKER: Applying for a Home Improvement Loan appeared first on RG Magazines.

I had the pleasure of doing a test drive with a Mini Cooper SE from Bermuda Motors.

Being a fairly tall fellow, I must admit I had doubts beforehand whether I would fit comfortably into what is essentially a small vehicle.

My fears evaporated immediately as I stepped into the car. Not only did I get in easily, I discovered that it had the most comfortable driver’s seat I have ever experienced. So comfortable in fact I found myself wishing to go for a long ride on an open road – but this is Bermuda, so I settled for a spin up the North Shore.

The Mini Cooper SE is a fully electric vehicle and rides ever so smoothly.

It clearly is a sit back, relax and enjoy this “theatre on wheels”. It has a sophisticated entertainment system with volume controls on the steering wheel, but also a large centre screen (touch screen) for radio, Bluetooth and many more features. And with a state-of-the-art speaker system (Harmon-Kardon) your favourite music will be heard across the island.

I was particularly keen to know about the charging system of the car: very easy indeed. Just plug it into your household system and the charging function kicks in.

A full charge would take you about 143 miles, but then you would be empty, so not a great idea. I think better to plug it in most evenings at home. A full recharge takes several hours, so if you let the battery run all the way down and then need the car the next morning, an overnight charge may not have been enough. But the point is that you don’t use a full charge every day.

The battery indicator is on the front screen and can be seen all the time. It takes power out of the battery when you are driving normally but puts power back in each time you brake or decelerate (a nifty feature).

Another feature I enjoyed was the zippiness.

I had this notion that an EV would be slow when a brief dash was needed – not so with this beauty! I approached the foot of Barker’s Hill and intentionally slowed down to a walking pace, then booted it to get up the hill. We were at the top before I could say “nice one”. Great acceleration.

It’s classified as a three-door car, which means two at the front and the hatchback for the boot. I mentioned that the driving seat was uber-comfortable but, because I had the seat pushed as far back as needed, the room in the back seat area was cramped. In other words, this is not the ideal car for four adults on a regular basis. Putting the kids in the back seat would be easy at first, but as they grow it would be less comfortable. So maybe just a car for two adults and a pampered pooch or two.

On Bermuda roads these days we seem to have an abundance of large cars, hence trying to park alongside them can be difficult.

But the sleek Mini Cooper SE is very easy to park and takes much of the guesswork out of negotiating whether you can safely get into that single space available at the grocery store.

All in all, this is the perfect EV for Bermuda.

So, if you are into electric vehicles and can afford a quality automobile, then this is the car for you.

It truly is a beautiful vehicle. You will unforgettably be admired buzzing along Reid Street with the roof open.

I call it the “Electric Head-Turner”.

The post The perfect EV for Bermuda’s roads appeared first on RG Magazines.