COVID and the housing market | Page 185 | GTAMotorcycle.com

COVID and the housing market

george__ said:
Drama started with the current landlord 🙄

Yearly contract ends so you become month to month. But landlord needs someone iron tight to pay for half their mortgage.

I said nope to signing another contract so landlord decided kick us out now or sign another 12 month contract.
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Just sign it and walk away if anything changes. Not like they’ll go chasing you to court.

“Your honour we are a young couple trying to start a family and could no longer afford it.”

Officially goes month to month but you can’t blame the landlord for trying to get another lease.
 
On a related note:

news.google.com

Google News

Comprehensive up-to-date news coverage, aggregated from sources all over the world by Google News.
news.google.com news.google.com

Some interesting stats in the article regarding percentage of net worth attributable to real estate. Some are lower than I expected.
 
Really need to start on this investing train, as my money just sitting there is doing nothing.

Think I might dump in a bit to the TFSA/RRSP into some paying stocks. They seem like a safe bet....BELL, BMO, ENBRIDGE...

Savings plans are worthless, and I've missed out on enough. As the chart says, majority of our paper 'wealth' are in the real estate jump.
 
mimico_polak said:
Really need to start on this investing train, as my money just sitting there is doing nothing.

Think I might dump in a bit to the TFSA/RRSP into some paying stocks. They seem like a safe bet....BELL, BMO, ENBRIDGE...

Savings plans are worthless, and I've missed out on enough. As the chart says, majority of our paper 'wealth' are in the real estate jump.
Click to expand...
My percentage gain on securities exceeded real estate percentage gain. Securities had no leverage until late in the year and a smaller pool of money in play so in absolute dollars they were similar (all paper money until anything sells, real estate incurred substantial costs to hold, yadda yadda yadda)
 
mimico_polak said:
Really need to start on this investing train, as my money just sitting there is doing nothing.

Think I might dump in a bit to the TFSA/RRSP into some paying stocks. They seem like a safe bet....BELL, BMO, ENBRIDGE...

Savings plans are worthless, and I've missed out on enough. As the chart says, majority of our paper 'wealth' are in the real estate jump.
Click to expand...
I’m currently buying bank stock and looking into Reits. I think all the big banks have made a profit since the 70s.
 
GreyGhost said:
My percentage gain on securities exceeded real estate percentage gain. Securities had no leverage until late in the year and a smaller pool of money in play so in absolute dollars they were similar (all paper money until anything sells, real estate incurred substantial costs to hold, yadda yadda yadda)
Click to expand...
Yup...I missed out on a LOT of gains. My only loss is keeping it in a savings account and losing it to 'inflation' but it's in hand still so that's good and doesn't go down too much. Just purchasing power goes down.
 
why would anybody keep more than 10k in a savings account? If you have access to a secured LOC , there is your easy out. If you need to buy something for 15k you should have something you can cash in , and 15-20k purchases shouldn't be spontanious. In a perfect world
 
crankcall said:
why would anybody keep more than 10k in a savings account? If you have access to a secured LOC , there is your easy out. If you need to buy something for 15k you should have something you can cash in , and 15-20k purchases shouldn't be spontanious. In a perfect world
Click to expand...

I'd even argue that if you have any kind of high interest consumer debt plus a LOC, then pay that off instead of keeping any cash in hand.

However, this only works from a pure mathematics standpoint. Psychologically, the temptation to overspend again once the loan is chipped away defeats the purpose of paying down high interest loans in the first place.

Some people only stop spending when their income is insufficient to service their minimum payments. Basically, their credit limit is treated like an extension of their chequing account.

At least when that threshold is hit, the spending stops.

Theoretically...

If having a $10K on hand (or whatever 3-6 months living expenses emergency fund is recommended these days) is a savings target that is added on top of servicing the minimum debt with no additional consumer spending, at least that's a (very, very) small step in the right direction.

Numbers vs human nature.
 
Sorry I forgot about those folks with 10k in charge card debt and a 50k car loan. And still running out of money before they run out of month.
I was thinking more about folks that have a handle on the monthly bar tab. But they may well be a visible minority


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Zero debts outside of mortgage, cars and everything we purchase is paid off immediately.

crankcall said:
why would anybody keep more than 10k in a savings account? If you have access to a secured LOC , there is your easy out. If you need to buy something for 15k you should have something you can cash in , and 15-20k purchases shouldn't be spontanious. In a perfect world
Click to expand...

Because I'm stupid.
 
mimico_polak said:
Zero debts outside of mortgage, cars and everything we purchase is paid off immediately.



Because I'm stupid.
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To be fair, the immigrants aren't dumb. You are always at the whim of others if you don't have physical control of your emergency money. I get locked out of my unsecured LOC all the time due to lack of activity. It's not helpful if you can't access it when you need it. Getting locked out of a bank account is less likely but still possible. A financial reserve protected from fire and water hidden somewhere in your house is hard to lose access to. Don't even think about "hiding" it in your master bedroom.
 
GreyGhost said:
On a related note:

news.google.com

Google News

Comprehensive up-to-date news coverage, aggregated from sources all over the world by Google News.
news.google.com news.google.com

Some interesting stats in the article regarding percentage of net worth attributable to real estate. Some are lower than I expected.
Click to expand...

Read the article. They focus too much on Average vs Median.

Very important distinction. The rich getting richer means nothing to the non 1%ers.
 
Lightcycle said:
Read the article. They focus too much on Average vs Median.

Very important distinction. The rich getting richer means nothing to the non 1%ers.
Click to expand...
Yup. The author provided a generic link to statscan, not a direct link to the data used. Searching for the numbers the author presented on the statscan site gets you nothing. From the base data, hopefully the median and percentiles could be extracted which are far more meaningful than averages. Obviously this is Canadian numbers but Elon alone is ~$700/person in the US. That means the average in the US has to be much higher than that even though a large percentage will be treading water below the Elon number.
 
Damn....

Option #1 - Second Mortgage at Prime -1% BUT since it's a mortgage...I take out 150k I need to pay back all 150k whether I use 0 or 150k

Option #2 - HELOC - Prime + 0.5% BUT as an LOC I only need to pay back what I use and only able to grab 130k but need to pay for an appraisal and lawyer to register it.

About a 6 month payback going with Option #1...but if I don't need it, waste of money.

I'm leaning toward Option #2.
 
mimico_polak said:
Really need to start on this investing train, as my money just sitting there is doing nothing.

Think I might dump in a bit to the TFSA/RRSP into some paying stocks. They seem like a safe bet....BELL, BMO, ENBRIDGE...

Savings plans are worthless, and I've missed out on enough. As the chart says, majority of our paper 'wealth' are in the real estate jump.
Click to expand...
A lot of people think a TFSA has to be a savings account at a bank where they get < 0.5% interest. Whoopee you don't pay tax on the 0.5% that is 1/20th of the present COLI. A TFSA can be in a stock account through any investment broker if you're not up to doing it yourself.

The problem with doing it through a broker can be the trade fees. A $200 fee on 100 shares to buy and $200 to sell means the stock has to go up $4 to just break even. You can do it yourself for $10 in and $10 out. You break even at $0.20 a share.
Lightcycle said:
Read the article. They focus too much on Average vs Median.

Very important distinction. The rich getting richer means nothing to the non 1%ers.
Click to expand...
Often misunderstood.

Joe owns a company and pays his employee son $300 K a year. His other four employees get $50 K. Payroll $500 K / 5= $100 K average. Median income $ 50 K.

Average is easy to calculate. How much divided by how many. For median you have to count in from both ends.
 
mimico_polak said:
Damn....

Option #1 - Second Mortgage at Prime -1% BUT since it's a mortgage...I take out 150k I need to pay back all 150k whether I use 0 or 150k

Option #2 - HELOC - Prime + 0.5% BUT as an LOC I only need to pay back what I use and only able to grab 130k but need to pay for an appraisal and lawyer to register it.

About a 6 month payback going with Option #1...but if I don't need it, waste of money.

I'm leaning toward Option #2.
Click to expand...
How much is the appraisal (pricks, your lot is worth more than you owe on your mortgage)? Interest on the mortgage is 1000 to 2000 for six months.
 
GreyGhost said:
How much is the appraisal (pricks, your lot is worth more than you owe on your mortgage)? Interest on the mortgage is 1000 to 2000 for six months.
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Appraisal will probably come in at 1.4M or so, maybe less. They're usually VERY conservative. Cost of appraisal is $300-500.

Pretty sure I could sell for 1.6-1.7M tomorrow.
 
mimico_polak said:
Appraisal will probably come in at 1.4M or so, maybe less. They're usually VERY conservative. Cost of appraisal is $300-500.

Pretty sure I could sell for 1.6-1.7M tomorrow.
Click to expand...
So the appraisal costs you upfront ~25% of your interest cost on the mortgage and you pay a crappier rate. Assuming you are ready to pull the trigger and spend the money, I would do mortgage. If you are going to think about it for six months, I would wait until I was ready to pull the trigger (or if you are feeling ballsy, dump mortgage into bank stock until you need it, very low chance you lose a significant percentage).
 
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