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What percent of the population heard dinner conversations about how to survive instead of how to get ahead?
That's where moderation on borrow to invest comes in (assuming you have access to money at a decent rate). I didn't have the cash (or cash flow) to buy the securities. With low interest rates, things were working well and the loan was going down quickly. At peak rates, it was in the ballpark of breaking even. Now making progress again. I assumed the risk and stress but the investment did not need my cash nor cashflow. I could have made it completely cashflow neutral if I used some dividend to pay the tax owed but I chose to pay off loan slightly faster. As it did not require input from me, technically I could have invested much more and been further ahead but if things went wrong (like reduced or suspended dividends), the house of cards could collapse as all of a sudden you need to be throwing in a bunch of cash to keep loan happy.
Growing up in a single parent home there was never enough coin to invest so knowing how to was as important as knowing how to saddle a camel. We've done alright with real estate. Some complex family issues add to the problem.
I have the lot my wife doesn't want to move unless the new house is perfect. The house on the existing lot could be renovated and expanded for less but that isn't going over well
Of course it’ll be area-dependent but $391sq.ft. Is high. $300sqft is much more realistic with mid-grade finishings inside/out (plus service hookups and well if applicable).
That was price plus septic and well even if I renovate and expand it will need a new well and septic I would also like to tear down and rebuild the shop but I don't see that happening soon.
Like a custom tailored suit, it's only custom for you. If it's your "for life" place and affordable, go for it. If it's a stepping stone learn to like other people's tastes.
Average condo at 700K? That's whacked. Condo fee+interest+insurance+tax probably exceeds rent and I don't see that "investment" growing rapidly. Most are almost unlivable and only exist because you could make money with them.I wonder if this is the start of an upward trend again...or just a blip...
Toronto Housing Market Report
Toronto housing market report shows average home price of $1,135,215 in October 2024 which is a 0.82% year-over-year increase. See the outlook for real estate in the Greater Toronto Area (GTA).wealthvieu.com
I think YoY is simultaneously too short and too long a window to capture the fast moving changes in the market. Things are moving again in our corner of Hamilton after a long pause, and prices aren't as low as I'd feared. But there's a huge chunk of buyers still holding out for rate cuts (and who don't really understand that fixed mortgages aren't directly tied to the government rate), and I read somewhere recently that a huge chunk of potential buyers is sitting things out until 3.75% is attainable, based on survey results. Whether we actually get there is a different story...I wonder if this is the start of an upward trend again...or just a blip...
Toronto Housing Market Report
Toronto housing market report shows average home price of $1,135,215 in October 2024 which is a 0.82% year-over-year increase. See the outlook for real estate in the Greater Toronto Area (GTA).wealthvieu.com
I was in a condo recently. Two storey penthouse. Huge column in primary bedroom basically forced bed location. Bed plus aisle to access bathroom was 7'. Wtf. For almost $3M, turning sideways to shuffle through the gap to get to the bathroom is pretty awful. If you are OK with two separate single beds many feet apart in the primary, it worked a lot better.
Yeah when I met my wife she had a 1bdrm downtown, about 580sqft including balcony. Queen size bed almost filled the entire bedroom. Single tiny closet had all her clothes..well some of them. When we decided to move in together she offered to have me move in, I just laughed.
I'm still not convinced about the fire and brimstone. Yes, rates will be higher when they renew but 2-3% below the recent peaks. My mortgage went up $1000 at renewal. I suspect many more will have a similar bump (lower starting rate, lower renewal rate). It hurts but it's also survivable. If you sell after buying at the peak, paying LTT, paying RE agents and lawyers, you will be well underwater. Rent (on a much smaller dwelling) plus payments on the loan many would need to cover the shortfall (at a crap rate as it's unsecured) would exceed the monthly outlay for mortgage at the higher rate. Dumping toys/possessions can cover the cashflow issue for a bit.
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