COVID and the housing market

[GreyGhost]

I feel personally attacked...but I'll bite.

I buy $100 in lottery tickets every 2-3 months. It's a set it and forget it subscription service for me, which provides me with a cheap $100 entertainment.

I don't go clubbing. I don't go to eat out a lot, and I don't burn my money on fire. Hell you know me well enough and those focaccias are delicious (thank you btw).

So if I use that example...that's (let's say) $500/year in dividend paying stocks. After a decade I'll have...$700? Maybe $1000? Meanwhile costs go up an order of magnitude in the same time frame.

While I see the point you're making, I think it's rather out of touch with today's realities of the younger generation. It's not as simple as 'just work hard and you'll get yours'.

 

[mimico_polak]

Alright…I take back my comment.

 

[Mikedezo44]

Stop be a slave to the retail market. The fake it til you make it is no more successful than strategic lottery numbers.

Was talking to my buddy today, he was telling me about his uncle. Has a wife and 2 kids, makes $28 an hour. Somehow managed to rack up 250 grand in non mortgage debt. Sold house in Waterdown and downsized to a cheaper home in Paris to pay off some debt. Bleeding his inheritance constantly getting a couple grand here and there every couple months from his well off parents... Guess what he just bought? a $40,000 Harley-Davidson. His new neighbors must think he has all kinds of money

 

[GreyGhost]

Was talking to my buddy today, he was telling me about his uncle. Has a wife and 2 kids, makes $28 an hour. Somehow managed to rack up 250 grand in non mortgage debt. Sold house in Waterdown and downsized to a cheaper home in Paris to pay off some debt. Bleeding his inheritance constantly getting a couple grand here and there every couple months from his well off parents... Guess what he just bought? a $40,000 Harley-Davidson. His new neighbors must think he has all kinds of money

Sadly the vast majority of people can't change their pattern. That's how lottery winners end up with no money in less than a decade. Some people save everything for the future, others spend everything now and let the future take care of itself. The hard line is somewhere between those two.

 

[nobbie48]

Was talking to my buddy today, he was telling me about his uncle. Has a wife and 2 kids, makes $28 an hour. Somehow managed to rack up 250 grand in non mortgage debt. Sold house in Waterdown and downsized to a cheaper home in Paris to pay off some debt. Bleeding his inheritance constantly getting a couple grand here and there every couple months from his well off parents... Guess what he just bought? a $40,000 Harley-Davidson. His new neighbors must think he has all kinds of money

A friend was supposed to inherit a decent portion of the parent's estate but due to his mom having Alzheimer's his sister ran the estate. Ran up over $ 600 K in non recoverable debt. Vacations and fashion have zero monetary ROI.

 

[nobbie48]

I feel personally attacked...but I'll bite.

I buy $100 in lottery tickets every 2-3 months. It's a set it and forget it subscription service for me, which provides me with a cheap $100 entertainment.

I don't go clubbing. I don't go to eat out a lot, and I don't burn my money on fire. Hell you know me well enough and those focaccias are delicious (thank you btw).

So if I use that example...that's (let's say) $500/year in dividend paying stocks. After a decade I'll have...$700? Maybe $1000? Meanwhile costs go up an order of magnitude in the same time frame.

While I see the point you're making, I think it's rather out of touch with today's realities of the younger generation. It's not as simple as 'just work hard and you'll get yours'.

In ten years you'll have $5,000 cash in plus the accumulated dividends plus increased capital. Not much of a down payment though on a $1 M house. A lot depends on your investment skills but then the government wants it's cut.

 

[GreyGhost]

A friend was supposed to inherit a decent portion of the parent's estate but due to his mom having Alzheimer's his sister ran the estate. Ran up over $ 600 K in non recoverable debt. Vacations and fashion have zero monetary ROI.

My almost 40 yo brother lives in a rental house that is now for sale. Their plan is to move in with my parents (wife, kids and dog in tow). Ugh. I told them to buy what they could afford pre-covid. Hard no as they wanted a 4-bed detached completely up to date in the gta for their <450 budget. Now they have downgraded requirements to 3 bed detached (attached is still a hard no) but they have minimal downpayment as they used their down payment to buy a truck and planned on spending the next decade rebuilding a downpayment. Bleeping morons.

 

[Evoex]

My almost 40 yo brother lives in a rental house that is now for sale. Their plan is to move in with my parents (wife, kids and dog in tow). Ugh. I told them to buy what they could afford pre-covid. Hard no as they wanted a 4-bed detached completely up to date in the gta for their <450 budget. Now they have downgraded requirements to 3 bed detached (attached is still a hard no) but they have minimal downpayment as they used their down payment to buy a truck and planned on spending the next decade rebuilding a downpayment. Bleeping morons.

Tell him I got a bridge...

 

[nobbie48]

My almost 40 yo brother lives in a rental house that is now for sale. Their plan is to move in with my parents (wife, kids and dog in tow). Ugh. I told them to buy what they could afford pre-covid. Hard no as they wanted a 4-bed detached completely up to date in the gta for their <450 budget. Now they have downgraded requirements to 3 bed detached (attached is still a hard no) but they have minimal downpayment as they used their down payment to buy a truck and planned on spending the next decade rebuilding a downpayment. Bleeping morons.

Go to Dollarama and buy them a cheap calculator, piece of paper and a pencil with a big eraser.

Have them write down the cash flow and accumulation for the next 10 years.

Will they have enough in 10 years to replace the then, ten year old truck?

Revolving door poverty.

 

[GreyGhost]

Go to Dollarama and buy them a cheap calculator, piece of paper and a pencil with a big eraser.

Have them write down the cash flow and accumulation for the next 10 years.

Will they have enough in 10 years to replace the then, ten year old truck?

Revolving door poverty.

They didn't even need a truck. My brother feels he needs it as part of his identity. They justify most purchases as "there is no number that is too big when it comes to safety of my family". Meanwhile they are one step away from homeless and could have a townhouse to live a stable life in instead of a rapidly depreciating truck.

 

[nobbie48]

They didn't even need a truck. My brother feels he needs it as part of his identity. They justify most purchases as "there is no number that is too big when it comes to safety of my family". Meanwhile they are one step away from homeless and could have a townhouse to live a stable life in instead of a rapidly depreciating truck.

Yup, have all the safety toys and get to live at Jane / Finch where it's really safe.

 

[crankcall]

Your brother is one of thousands with a nice truck , quads , bass boat and no roof . If that’s the lifestyle choice then go get ‘em .
If what you would like is a home and “ the man” is making it hard . Well best wishes


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[nobbie48]

Your brother is one of thousands with a nice truck , quads , bass boat and no roof . If that’s the lifestyle choice then go get ‘em .
If what you would like is a home and “ the man” is making it hard . Well best wishes


Sent from my iPhone using GTAMotorcycle.com

Someone commented about two brothers I knew vaguely. The one that looks rich, isn't. The one that looks poor, isn't.

Adder: Poor people that act rich are more fun especially if they let you play with their toys

 

[nobbie48]

Alright…I take back my comment.

Only a little bit. True that the first house I lived in in TO was worth about three years tradesman's salary. Now the same house is 20 years of tradesman's salary.

Lotteries are OK if you enjoy the entertainment value which is hypothetical thinking. If I won $15 million I'd blah blah blah. Most knee jerk thinking doesn't work.

When you have the cash in your hand you either do serious financial planning (and lose your friends) or you squander it and look like a loser for the rest of your life.

GG's chart doesn't take off the tax on interest so maybe a $1500 gain. I'm not sure if REITs could work for a small investor.

My saving plan was to take up smoking two packs a day. Then I'd quit and save $14000 a year.

 

[nobbie48]

A sad part of the housing market happened in Hamilton. A landlord tenant dispute ended with three dead. There are rumours about rent not being paid and that could have been over unsafe conditions. Google street view showed an OK place. RIP.

It would be nice if the dispute system was more transparent and fair.

 

[mimico_polak]

Someone commented about two brothers I knew vaguely. The one that looks rich, isn't. The one that looks poor, isn't.

Adder: Poor people that act rich are more fun especially if they let you play with their toys

But it is tempting. My wife gets upset that we don't go on vacations as much as some of our friends do.

BUT...we have zero debts outside of the house, and me being 'cheap/frugal' is part of it...but...when I ask him 'why you always complaining about money, and then have cars/toys/trips/etc' the answer is simple...

'If you have access to an LOC...you can do all that and more'

Mind you, his mortgage is 100k (if that) so he's just living off the LOC as a bank account.

 

[mimico_polak]

Only a little bit. True that the first house I lived in in TO was worth about three years tradesman's salary. Now the same house is 20 years of tradesman's salary.

Lotteries are OK if you enjoy the entertainment value which is hypothetical thinking. If I won $15 million I'd blah blah blah. Most knee jerk thinking doesn't work.

When you have the cash in your hand you either do serious financial planning (and lose your friends) or you squander it and look like a loser for the rest of your life.

GG's chart doesn't take off the tax on interest so maybe a $1500 gain. I'm not sure if REITs could work for a small investor.

My saving plan was to take up smoking two packs a day. Then I'd quit and save $14000 a year.

GG's chart is fine when it's within a TFSA...tax free gains.

The only trick is making 6% annual return, every year for a decade. Otherwise the math fails.

 

[GreyGhost]

GG's chart is fine when it's within a TFSA...tax free gains.

The only trick is making 6% annual return, every year for a decade. Otherwise the math fails.

That's not a trick. That is just buying the index and not trying to beat the market.

"The average yearly return of the S&P 500 is 9.773% over the last 30 years, as of the end of April 2023. This assumes dividends are reinvested. Adjusted for inflation, the 30-year average stock market return (including dividends) is 7.085%."

 

[mimico_polak]

That's not a trick. That is just buying the index and not trying to beat the market.

"The average yearly return of the S&P 500 is 9.773% over the last 30 years, as of the end of April 2023. This assumes dividends are reinvested. Adjusted for inflation, the 30-year average stock market return (including dividends) is 7.085%."

Well yes that's the average, but you need to select the right index fund.

I'm happy with my VGRO though, and that's going on. But this discussion should be moved to the 'stocks' thread.

 

[crankcall]

There is nothing new about ‘outspend your income’ and end up in the ditch financially. That’s as historic as civilization itself .
There are currently thousands of people in Ontario that had a lot of fun with a 2.5% LOC that are now figuring out wtf at 7.5%


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