COVID and the housing market | Page 45 | GTAMotorcycle.com

COVID and the housing market

Yeah that is what the business makes not what the guy doing the work makes. Nephew was your "tree cutter" six months on the job and he was doing all the work and running a crew. I wouldn't get out of bed for what he was making per hour (basically roofer pay), but there was a guy right behind him willing to do the work for the same money and take bigger risks.....

Sure the guy who owned the business made your stated money, he had a business degree and daddy handed it down... Spent very little time in trees but knew accounting.

Carpet cleaner, really? Min wage all day long. Again the guy who owns the business makes the money.... he has business sense not a trade.
well the tree cutter I know started in forestry, then a city company doing routine care. He combined the two and now does ‘problem trees’. A problem tree can cost up to $3000 to fix and up to $7k to remove.

The carpet cleaner I know pulls a thousand a day solo. He works for himself, high end decorators, realtors and charter aviators book him a month out.

my point is get really good at something and your ability becomes the other guys barrier.
 
Great idea if you are financially responsible. I’ve dealt with my fair share of People with heloc problems - they can be the crack cocaine of financing.
Yup...know a few of those too.

Need a newer car because the old one is warranty and upside down...HELOC
Vacation...HELOC
New deck...HELOC
80K in dividend stocks...HELOC (this one I would do if I had the nuts my buddy does)

Free money in their eyes.
 
That's why you setup HELOC. The bank doesn't know or care what the money is being used for. No person in their right mind would try to renegotiate a mortage for a 10K cash infusion. Every year I bump up the HELOC limit. When you don't need it, credit is available, if you need it, you can't get it.

HELOC is either your best defense or a complete train wreck. If you wake up and need a new roof , there is easy access to 10-15k with no issue. But if you see a great deal on ( insert whatever dumb vehicle here) and need that , then a roof, then a new kitchen because why not? then a trip to Italy because 2% ! free money, then you loose your job, your missus is sour and files for divorce, and then you win the tri fector and she gives birth to a special needs daughter. Oy vey.

and there are hundreds of them....
 
I should really look into getting one on our house. Never needed it before. But like you say....if it's used properly it's a great thing to have available.

When you don't need it, credit is easy. When you need it, good luck w/ that.

I think it's about 2k to setup with MCAP as it involves lawyers and home appraisal.
 
Yup...know a few of those too.

Need a newer car because the old one is warranty and upside down...HELOC
Vacation...HELOC
New deck...HELOC
80K in dividend stocks...HELOC (this one I would do if I had the nuts my buddy does)

Free money in their eyes.
Nope, nope, nope, not yet. If we get the covid correction that I still believe the market deserves, I will heloc to invest. Had the discussion with my wife, she doesnt like it but she is on board. Heloc only exists to take care of opportunities to get ahead in my world. Anything the puts you behind is not heloc eligible.
 
HELOC is either your best defense or a complete train wreck. If you wake up and need a new roof , there is easy access to 10-15k with no issue. But if you see a great deal on ( insert whatever dumb vehicle here) and need that , then a roof, then a new kitchen because why not? then a trip to Italy because 2% ! free money, then you loose your job, your missus is sour and files for divorce, and then you win the tri fector and she gives birth to a special needs daughter. Oy vey.

and there are hundreds of them....
Hundreds? As a banker I saw just as many helocs bouncing off limit as I saw credit cards.

Most helocs also have an equity requirement of 40% on the security including the fixed portion, a quick downturn and you’re in a credit headlock.
 
I should really look into getting one on our house. Never needed it before. But like you say....if it's used properly it's a great thing to have available.

When you don't need it, credit is easy. When you need it, good luck w/ that.

I think it's about 2k to setup with MCAP as it involves lawyers and home appraisal.
Yeah, it's annoying to setup on a house you own. You basically buy the house from yourself to add it. I did that on the last house and thankfully never needed it. Be prepared for them to take a 100% lien even if you are only asking for a portion of that. They want complete control of your asset in exchange for the credit. On the flip side, with 100% lien, you can open up room in the future with a phone call.
 
I should really look into getting one on our house. Never needed it before. But like you say....if it's used properly it's a great thing to have available.

When you don't need it, credit is easy. When you need it, good luck w/ that.

I think it's about 2k to setup with MCAP as it involves lawyers and home appraisal.
Shouldn’t cost anything to setup.
 
On the last house, adding the heloc was going to take me 200k over initial mortgage. That triggered lawyers and appraisal.
Depends on a lot of things. Most lenders can get a fair eval using combos and Google maps these days. If you had a massive increase in value and you were looking to max out a heloc then a lot of due diligence. It’s complicated to explain how security is registered, a decent bank would do it right at the mortgage initiation, smaller aggressive lenders might not.
 
While few hobbies make money some save it. Gourmet cooking instead of going out. Buy some decent pots and pans, watch YouTube. We just bought 8 pounds of butter on sale. That and some flour gets us lots of inexpensive, expensive tasting goodies.

As mentioned earlier by another, video gaming is a great hobby. Not only is it engaging, but most of the complex games (4X genre or ridiculously system overloaded JRPGs come to mind) indirectly teach resource management (aka. finances) and "forward thinking" (thinking a few steps ahead of the computer or opponent.)

I know many gamers that got into the hardware side too (or in some cases, software.) It's funny thinking back a decade or two ago when parents were screaming that games are bad, high school teachers would berate us for playing games in class (their class sucked, teach faster! lol), and bullies would bully the nerds.

The tables have turned!
 
I just want 50-75k as an emergency fund. Outside of that I don’t expect to ever need it.

house is worth conservatively 1.1-1.2M with a sub 500k mortgage.
 
The people who were affected by the pandemic the most are not in a position to seize the opportunity to come once it is over, and the people who were least affected by it will just jump in comfortably and reap the most... People were complaining about the wealth gap before the pandemic, what about now? I don't see how Gen Zs will ever make it in Vancouver or Toronto other than inheritance
 
I should really look into getting one on our house. Never needed it before. But like you say....if it's used properly it's a great thing to have available.

When you don't need it, credit is easy. When you need it, good luck w/ that.

I think it's about 2k to setup with MCAP as it involves lawyers and home appraisal.
A friend mentioned they had a nest egg of $20 K in the bank in case one of his kids ever needed anything and they needed the money. He was paying a mortgage that had no tax deduction and paying taxes on his interest income. My thought was pay off $20 K of mortgage and get a HELOC for emergencies. You only pay if you use it.
 
A friend mentioned they had a nest egg of $20 K in the bank in case one of his kids ever needed anything and they needed the money. He was paying a mortgage that had no tax deduction and paying taxes on his interest income. My thought was pay off $20 K of mortgage and get a HELOC for emergencies. You only pay if you use it.
At least invest and use tfsa if going that route.
 
The people who were affected by the pandemic the most are not in a position to seize the opportunity to come once it is over, and the people who were least affected by it will just jump in comfortably and reap the most... People were complaining about the wealth gap before the pandemic, what about now? I don't see how Gen Zs will ever make it in Vancouver or Toronto other than inheritance

I know zoomers who bought a property during this time. I also know millennials that are struggling. The key factor, backed by science journals, is intelligence.

The bleak reality is that in my 20s I already knew who was gonna be a loser and winner; the high IQ ones will accept reality and adapt, the low IQ ones moved out too early, had to move back in with parents, bought too many cars, etc. etc.

How we fix this is beyond me.

The greatest success story I know is a friend who had parents that abandoned him at around 16. Dude is now a doctor. He had no assistance. But I'm not stupid enough to not admit he's a league above me and many others I know in intelligence. Dude makes $300k a year now, has a side software gig, and will retire by 40 (if not sooner.)


This guy, for example, gets it lol
 
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well the tree cutter I know started in forestry, then a city company doing routine care. He combined the two and now does ‘problem trees’. A problem tree can cost up to $3000 to fix and up to $7k to remove.

The carpet cleaner I know pulls a thousand a day solo. He works for himself, high end decorators, realtors and charter aviators book him a month out.

my point is get really good at something and your ability becomes the other guys barrier.
These are business owners not pure trades people.... Yeah I know a guy with a corner store or whatever other business that makes coin... so work in a corner store??? They are making that money for business sense not just because they have a specific well paying trade. Anyone can open up a similar business as there is no real barrier to entry, entrepreneurial skills more than trade skills is the difference in your examples. If they hire people they will not pay them well as they do not need to (no barrier in both examples).... This is very rare case and the vast majority of the people taking up carpet cleaning as a "trade" will make min wage. Tree guys a little more, Amazon money as the main barrier is working from heights.

Real world example, we had our trees trimmed two years ago. Regular size red norway (about 2.5 feet across at the trunk) in the front and a large silver maple in the rear (just short of 6 feet across at the trunk with no heavy equipment access). Five guy crew (rotating through being in the trees) and NO WAY a one guy on his own or even a two man crew couold do the job! They were here 10 hours total for $2500 before tax... but that is not $200+ an hour in wages! Acknowledging the 10 hours and $2500 price was a little lower than usual for the size of the job (maybe your 3K if they took all the wood away) as I had them leave anything larger than 2" across (fire wood for me), multiple cords, again just a trim not removal... On top of the five guys was an arborist assessment that they have on staff. They had full insurance and WSIB which is high for tree services. The business owners make their money.... The guys in the trees doing the actual work (the trades) could make the same or more money working in an Amazon warehouse. And BTW, it does not need it but we got a quote for removal of the silver maple just for future budgeting, yes 10K.... but now there are large cranes, possibly multiple days and a much larger crew all making Amazon warehouse money.

Electrician, plumber, etc. make pretty good money even as employees because of the barrier to entry and the requirement to have a license. An employer can't just hire a random guy off the street like carpet cleaning. Yes, they make even more as a business owner (but now they are entrepreneurs) or as a single proprietor (both owner and trade).

Most people regardless of education or trade do not have the skills to be a good entrepreneur. That is one of the reasons so many small businesses fail. A person can be the best skilled trades person in the world if they have no business skills they will fail on their own. A very small percentage of people will be good natural entrepreneurs and will make big money because of that (not the trade or degree or whatever itself), so it is silly to label their success as being in an unlicensed trade.

The majority in trades will also make good money even as employees, the higher the barrier to entry (with noted exceptions like mechanics) the higher the money. At best in your examples the entrepreneurial skills were the barrier to entry for being the business owner, not their specific trade (they would have had similar success without the unlicensed trade).
 
like that dental hygienist who makes 100k
They of course have a barrier to entry as there is an education requirement, etc. and also "papers". Some may argue it is a career more than a trade.

Many do not know this but it is also a career that tends to have a shorter working lifespan (like some trades that take a toll on the body) as it requires "fine" motor-skills. When is the last time you have seen a 60 year old dental hygienist? Some can do it, for sure, but most move on to something else as they get older as the job gets harder to do. The ones I know aged out before they hit 50 but some stayed in dental related work just not doing the same thing.
 
There are rental bidding wars happening in KW now -_-"
 

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