200 a month !!! Really?

[starboy869]

Best thing I ever did financially was get out of the GTA...

If lived in the GTA I would have shoe box compared to what I have Kingston for around the same price plus my bike and kids toys (50cc-110cc) just wouldn't exist. ALSO my insurance would triple in price from $200/m for two new 2015 models to around $600/m in the GTA. pfff eff that

MY commute to work for me here is 15 minutes & my wife commute is 25 minutes.

 

[nfq]

Everyone's talking about how they're loving that their house has double or tripled in price. Has anyone's wage even gone up 10% in double that time?

Things are just more expensive today (speaking about the GTA). Yes there are the spend now, worry later crowd, but I think Crankcall nailed it in an earlier post when he talked about the single guy/gal trying to get by and just stuck on a treadmill.

 

[inreb]

These threads are more for chest pounding than anything else.

 

[Baggsy]

These threads are more for chest pounding than anything else.

I dare you to try and warn people not to bite off more than they can chew then.

 

[inreb]

People, don't bite off more than you can chew.

 

[Dilligaf0220]

Slow down there Donald, we can fact check...

California Debt: $470B USD
Ontario Debt: $302B CDN or $230B USD.

So, your statement is not even close to being true...

Yeah, and cancelling Oakville gas plants only cost CAN$100Mil.
I'm sure the CDN$350Bil (it's up to $350 billion for Ontario now) that is being admitted to is the proper tally. And it's the Cali opposition that's calling $500Bil, Sacramento is only saying it's $250Bil....so we'll call it a wash.

Ofcourse California has THE ENTIRE POPULATION OF CANUCKISTAN to pay it off, along with solid economies in agriculture, manufacturing AND shipping. Whereas Ontario has...what again for a future?

Everyone's talking about how they're loving that their house has double or tripled in price. Has anyone's wage even gone up 10% in double that time?

Things are just more expensive today (speaking about the GTA). Yes there are the spend now, worry later crowd, but I think Crankcall nailed it in an earlier post when he talked about the single guy/gal trying to get by and just stuck on a treadmill.

If you missed or fell off the GTA Bubble Economy it's more like standing on the shoulder of the 401 while everyone does a buck forty....into a brick wall of interest rates rise at the end of the 407.

 

[black_CG2]

I like these threads and the posts that come with em. I paid off my osap recently and couldn't be happier. My salary is ok. It is nowhere enough to buy any kind of place in GTA though. I can only afford in London/Kingston area. Not a fan of gta, however, not sure of employments in those areas either.

Someone mentioned about being out on the streets if you are not a home owner and you rent. I think the only flexibility renters have is moving when there is loss of employment?

 

[Joe Bass]

These threads are more for chest pounding than anything else.

Ikr? Some guy earlier bragging about making $42/ hr

Sent from my custom Purple Joe Bass mobile on Tapatalk

 

[Dilligaf0220]

I like these threads and the posts that come with em. I paid off my osap recently and couldn't be happier. My salary is ok. It is nowhere enough to buy any kind of place in GTA though. I can only afford in London/Kingston area. Not a fan of gta, however, not sure of employments in those areas either.

Someone mentioned about being out on the streets if you are not a home owner and you rent. I think the only flexibility renters have is moving when there is loss of employment?

London has better prospects than Kingston. The riding tho...meh.

 

[Dilligaf0220]

Ikr? Some guy earlier bragging about making $42/ hr

Sent from my custom Purple Joe Bass mobile on Tapatalk

That woulda been great...in 2000.

 

[Megamaniac]

Everyone's talking about how they're loving that their house has double or tripled in price. Has anyone's wage even gone up 10% in double that time?

Things are just more expensive today (speaking about the GTA). Yes there are the spend now, worry later crowd, but I think Crankcall nailed it in an earlier post when he talked about the single guy/gal trying to get by and just stuck on a treadmill.

Yup this year a 25% to 30 % increase and more depending on the house and some builders and contractors also offering a 2 dollar sq foot bonus 4000 sq ft $8000 adds up fast. One of the small models I built last year paid 10680 now pays 16500.
Save but enjoy life cause you might not even make it to crack open that piggy bank saw it happen first hand father in law a frugal bugger saved all his life to retire back home the shipping container in the drive loaded ready for pickup and he gets cough back pain two weeks later dies of cancer so alot of good it did him driving junkers all his life.

 

[inreb]

Ikr? Some guy earlier bragging about making $42/ hr

Sent from my custom Purple Joe Bass mobile on Tapatalk

It's not bragging if read in context. It is if you're aspire to work at subway, underground or footlong, she's a no matter for me.

 

[inreb]

That woulda been great...in 2000.

This is how to brag.

 

[crankcall]

part two, if you dont want live $200. bucks out, dont marry a dum dum. Get a partner that's gainfully employed, has the ambition to stay employed and dont be a dick so they stay with you.
Want to have trouble making ends meet, give away 50% or more of income.

 

[mmmnaked]

I'm not saying that buying a house is a bad thing, or people shouldn't do it.

Just remember that it's kind of the bank (mortgage lender) that's buying the house, and you are kind of on rent to own.

The only way to realize any gain in the property value, is to sell the house, or take out a bigger loan on it.

Best to pay it off a.s.a.p. That way if your income takes a drop, you're not on the hook for payments, or foreclosure.

Why is it "best" to pay it off asap? I'll argue that when interest rates are this low, and you're not extremely risk-averse, it's best to borrow MORE - this is especially true for the younger folks who aren't yet tied down with serious obligations like raising kids etc. The bank is almost handing you free money - if you wanna get rich, you'll take it and run. Like it or not, real estate has been very lucrative for folks. The bank will lend you money @2% to buy a house. Inflation (CPI) was upwards of 1.6% just 2 months ago.

If I didn't have a baby I'd be moving every 6 months, and probably borrowing some for a secondary rental property too. The bank is lending me 600k @2% to purchase an asset which by this time next year will very likely be up 15%? Hell yeah, I'm in. If it goes bust, so be it...

Some guy said earlier that his advice to youngsters is "save your way to riches"... I've never ever in my life met a rich person who got there by saving money. If you wanna be rich, or even comfortable before you're 60, you need to take some risks in life.

 

[Joe Bass]

@mimico_ploak I will have to disagree a little with the above post. What you described is basically leverage. And many people have gotten rich through it, and many more have gone bust. Yes, if you are willing to accept the risk, then your plan is a viable option. But some people are not prepared for that (me being one). And I think it's a little off line from what we are really looking at: just being able to buy something. Now, your plan is not bad, because you are borrowing to invest in something that will appreciate (hopefully). The problem is that mamy people are using those low rates to finance non investment items/ goods that will only depreciate.
And saving to wealth is very possible, it just takes longer. Compound interest is a powerful wealth builder, so much so that banks use it to make money. They call that investment "mortgages" and that is why imho they should be paid down aggressively. A $200k mortgage, even at low rates, will cost you almost double at the end of a 25 year term.


Added: I just feel that once your home is yours, you will always have that. No one can take it away. I am not, however, opposed at all to leveraging investment properties.
Sent from my custom Purple Joe Bass mobile on Tapatalk

 

[PrivatePilot]

Why is it "best" to pay it off asap? I'll argue that when interest rates are this low, and you're not extremely risk-averse, it's best to borrow MORE

Not sure about rushing to borrow more, but I would disagree with rushing to pay off your mortgage, despite the fact we've been a bit agressive with ours.

Interest rates are at historic lows - mortgages are cheap right now. It wasn't that many years ago this wasn't the case - our first mortgage was 6.35% in Y2K when we bought our house, but now we are paying 2.1% on our last 21 months before we are free and clear.

We've been agressive, but not so much that we aren't saving money in our RRSP's either. Sure, we could dump that money against the mortgage as well and we'd probably have been paid off a few years ago vs another 2 years out, but...with interest rates so low it made more money sense to contribute to our RRSP's vs directing that to the mortgage instead. Had interest rates on our mortgage still been 6%, trust me, we'd have done it the other way around.

I'm not saying that it's bad to be ahead of the curve and be somewhat aggressive with your mortgage (which comes full circle to buying a cheaper house than what the bank is willing to let you buy), but with low interest rates one must consider directing some of that money towards retirement instead - it makes sense in the world of ~2% interest rates.

part two, if you dont want live $200. bucks out, dont marry a dum dum. Get a partner that's gainfully employed, has the ambition to stay employed

Have to agree, yeah...this is part of the equation - a single income household isn't realistic anymore, that I'll agree with, but pick your partner carefully - same goes for both men and women. Getting into a relationship with someone who is satisfied working part time at KFC as their lifelong career ambition, or worse yet..just can't be bothered by that pesky "working" thing at all isn't going to lead to the same success as two hard workers with careers in mind, and hopefully some post secondary education as well to help with the earning potential. Of course, if one spouse is a HUGE earner and the family lives comfortably on that single income this doesn't apply...but then again, neither does this whole discussion at that point.

 

[starboy869]

London has better prospects than Kingston. The riding tho...meh.

Each city has their own prospects. For where my family/life is now Kingston is great. Riding in Kingston meh? City & Hwy riding are just that. Traffic and stop lights. Last time I checked riding in the city and on the 401 is boring as ****. Plenty of places to go riding around Kingston with no traffic, hardly a stop sign or a cop.

FYI Lots of places are hiring here in Kingston. However if you just have a grade 12.. those timmy jobs are pretty much filled up. My wife work is looking a for trained and decent employee start is around 45k but around the 5 year mark you'd be around mid 60's.

 

[Baggsy]

When I say asap, I mean 8-10 years.

That removes the risk associated with carrying the mortgage, when paid off.
You now have a place to live, and cash flow to risk.

The other option is to leverage things, and accept more risk, to try for more reward.
As long as you understand the relative risk involved. Some people see it as free money, which it isn't.

I remember having a CSB guaranteed at 10 3/4%, that was paying out closer to 20%.
People with mortgages did not have a good time back then.

Oh and guess who was Prime Minister at that time?

 

[mmmnaked]

A lot of money can be made in 8-10 years of waiting to pay down a mortgage. It can be lost too.

I'm not saying you're wrong, I'm just saying you're not 'right'. Your position is simply one that completely avoids risk.

After 10 years and a paid-for house, you'd still have to save or leverage your own property to borrow money for investment ventures. Just saying. I'm of the opinion that while interest is so comically low, it could make sense to consider taking the bank's money.