Covid economy non real estate | Page 7 | GTAMotorcycle.com

Covid economy non real estate

Georg3__ said:

Canada Inflation Rate

Inflation Rate in Canada increased to 2 percent in October from 1.60 percent in September of 2024. This page provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.
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Anyone else depressed?
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If you're not you may be in a coma.

It's ancient history but the old male superiority thing was:

1) Get married
2) Buy a house
3) Have kids
4) Dad brings home the bacon and mom cooks it
5) Next generation repeats

Not much of that works anymore. Sadly, historic advice from your parents doesn't often work anymore. Ten years ago our daughter bought a house and we helped with the down payment. Today we couldn't be nearly as helpful.

As others have pointed out, a mind shift may be required to survive. A house is not the only way to stay ahead of inflation. The hard part in my mind is the risk potential of stocks. Even if a house drops in value for a bit it still gives you a return on investment, the equivalent of the monthly rent. Stocks can do well but there will be potholes. On top of the potholes there are washed out bridges, Nortel, Bre-X, Kodak, Madoff, etc.

With a house, one doesn't have to constantly think, wheel and deal. It's more relaxing.

Sorry, back to non housing please
 
nobbie48 said:
As others have pointed out, a mind shift may be required to survive.
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@Georg3__ I've mentioned this before and will again but with an added caveat: we'll all repeatedly make the same choice in life, what are you going to sacrifice?

Some brutal adjustments that work for sure:

Do not have children unless your/her parents will help out substantially (time if you have money, money if you have time.)
Have one vehicle at most.
Have a budget and follow it without mercy; people will 100% call you cheap.
Avoid/disengage with any social gathering that is above your budget.
Find a significant other who is at least your income level or higher.
Don't have a wedding (or have one below $10k; average wedding cost is $60k.)
Don't follow your passion; find the most lucrative field you can stay in without completely losing your sanity.
Live with your parents for as long as possible.
Live with multiple households to exponentially increased income.

Doing any of the above will garner jealous fueled hating failures. You also sacrifice your sanity because you'll move against the grain; the higher you climb, the less people you have to sanity check with because you don't rise up by being normal, you rise up by being different. Also happiness is not always there. For example:

In my 20s, I went to social gatherings and only ordered a soft drink because I was following my budget. My friends were already doing Vegas trips (I flopped on this) for strippers and what not. FOMO is real.

I sold my motorcycle; don't think I need to expand on this because this is a site for riders who love riding. I still dream about riding but cut off contact from all close riding friends and refuse to touch a motorcycle because it will reignite the passion, and therefore bleed money.

Most women are gonna fight with you about a wedding, and their friends will gang up on you. Nobody enjoys fighting with their significant other.

Friends my age are now having kids. I'm pretty much forced to make friends with ppl between 20 to 30 now. Knowing you're going the way of a boomer (out of touch w/ reality/society) is not exactly a great feeling.

If you can't stomach what I just wrote, then you are in the best path possible for yourself imo.
 
油井緋色 said:
Some brutal adjustments that work for sure:

Do not have children unless your/her parents will help out substantially (time if you have money, money if you have time.)
Have one vehicle at most.
Have a budget and follow it without mercy; people will 100% call you cheap.
Avoid/disengage with any social gathering that is above your budget.
Find a significant other who is at least your income level or higher.
Don't have a wedding (or have one below $10k; average wedding cost is $60k.)
Don't follow your passion; find the most lucrative field you can stay in without completely losing your sanity.
Live with your parents for as long as possible.
Live with multiple households to exponentially increased income.

Doing any of the above will garner jealous fueled hating failures. You also sacrifice your sanity because you'll move against the grain; the higher you climb, the less people you have to sanity check with because you don't rise up by being normal, you rise up by being different. Also happiness is not always there. For example:
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Some extreme examples in there, but generally it's good stuff that I agree with:

Don't live above your means.
Don't borrow money to pay for depreciating assets.
Don't make stupid financial decisions that will impact your future.

Take responsibility for your decisions.

油井緋色 said:
what are you going to sacrifice?
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Gold.

Some people feel they're entitled to everything that the next guy has. And if they don't get it, it's never their fault that they find themselves in the situation they're in. Meanwhile they have no idea what the next guy has sacrificed to get there, all they see is the end product.
 
GreyGhost said:
I like your post. More workers in the house is linear increase in income but better than linear on disposable income as many costs won't increase (property tax, insurance, heat, etc).
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My dad pitched the idea to me.

If my brother and I combined incomes with our significant others...holy **** the win would be insane...then we remembered my mom is also insane =)

I envy those mofos who have quadruple+ income households!

Lightcycle said:
Some people feel they're entitled to everything that the next guy has. And if they don't get it, it's never their fault that they find themselves in the situation they're in. Meanwhile they have no idea what the next guy has sacrificed to get there, all they see is the end product.
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Friend of mine moved out in her early teens because she couldn't stand her parents. She spent the next decade going to school for acting and telling me how I should move out because it's great.

She moved back in with her parents, a decade later, when I moved out. When we had a chat about finances, she literally told me "did you not notice your family is from a different income class?"

*****, we're from the same class. I just didn't have the heart to tell you you're a ******* idiot and still don't so I'll do it here =) lol
 
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油井緋色 said:
Friend of mine moved out in her early teens because she couldn't stand her parents. She spent the next decade going to school for acting and telling me how I should move out because it's great.

She moved back in with her parents, a decade later, when I moved out. When we had a chat about finances, she literally told me "did you not notice your family is from a different income class?"

*****, we're from the same class. I just didn't have the heart to tell you you're a ******* idiot and still don't so I'll do it here =) lol
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More than one way to skin a cat. I did move out early, but I lived with room mates for many years till I was able to afford my own place.

Canadian media these days makes it seem like everyone is entitled to a house and picket fence upon graduation. Sorry, that's not the way it works, and it's never been like that.
 
Lightcycle said:
Some people feel they're entitled to everything that the next guy has. And if they don't get it, it's never their fault that they find themselves in the situation they're in. Meanwhile they have no idea what the next guy has sacrificed to get there, all they see is the end product.
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Someone on the forum has a tag line "You can have anything you want, just not everything you want."

Sober thought

One my wife picked up. If you aren't happy with what you are you'll never be happy with what you've got.

Advertising is meant to make you unhappy so you buy more stuff.
 
GreyGhost said:
I like your post. More workers in the house is linear increase in income but better than linear on disposable income as many costs won't increase (property tax, insurance, heat, etc).
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So if a house is in four names is it still cap gain exempt? The leveraged investment appreciates at the rate of house inflation. Then I go a bit foggy when the place sells to get each partner their share. But the next purchase is in a higher price due to the present insane market. Win a lot, little or???
 
nobbie48 said:
So if a house is in four names is it still cap gain exempt? The leveraged investment appreciates at the rate of house inflation. Then I go a bit foggy when the place sells to get each partner their share. But the next purchase is in a higher price due to the present insane market. Win a lot, little or???
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I don't know what happens if multiple people own the house. If I was buying with most people, house would be owned by a company and each partner would own shares in company. Everybody would have to pay capital gains (or maybe use small business exemption?). Most tax-efficient would be one official owner with other owners as a side agreement with no filed documentation. No capital gains, official owner can distribute to others upon sale and each of the other partners could declare somewhere else as their principal residence to dodge CG on another property. Need to be careful if the primary owner isn't declaring rent and hammers the mortgage too hard. "Rent" money would probably need to go into renovations that aren't easy to track to drive up value of house.
 
nobbie48 said:
So if a house is in four names is it still cap gain exempt? The leveraged investment appreciates at the rate of house inflation. Then I go a bit foggy when the place sells to get each partner their share. But the next purchase is in a higher price due to the present insane market. Win a lot, little or???
Click to expand...

Would still win a lot.

In the hypothetical scenario I would be in....the "family of 6" would have significantly more income than 2 doctors despite making a less pre-tax total because you don't add all 6 incomes together and get ****** by taxes at the total.

I don't even know if it's worth it to switch properties in this case; just buy a $3+ million dollar place (would easily get paid off between 10-15 years, and this is conservative), make the grandparents or whatever tend to it (assuming late 50s to early 60s), and everybody is a happy mother fucker. There's probably also a massive garage with 3 cars (1 car for each pair), and space for motorcycles.

Hell, there are probably enough rooms to create a virtual whore house with haptic feedback that I could rent out for $100/h and market it as "cheaper than $300/h hookers."

One can dream!
 
油井緋色 said:
Would still win a lot.

In the hypothetical scenario I would be in....the "family of 6" would have significantly more income than 2 doctors despite making a less pre-tax total because you don't add all 6 incomes together and get ****** by taxes at the total.

I don't even know if it's worth it to switch properties in this case; just buy a $3+ million dollar place (would easily get paid off between 10-15 years, and this is conservative), make the grandparents or whatever tend to it (assuming late 50s to early 60s), and everybody is a happy mother fucker. There's probably also a massive garage with 3 cars (1 car for each pair), and space for motorcycles.

Hell, there are probably enough rooms to create a virtual whore house with haptic feedback that I could rent out for $100/h and market it as "cheaper than $300/h hookers."

One can dream!
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Where is this theoretical $3M house? Sure as hell not in Toronto.
 
GreyGhost said:
Where is this theoretical $3M house? Sure as hell not in Toronto.
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I'm seeing some $2M houses in Richmond Hill that were sold in the last few weeks. 4 bed rooms, 4 bathroom, 2 garage.

I'm assuming a million more would be more rooms and garage space? lol
 
GreyGhost said:
I don't know what happens if multiple people own the house. If I was buying with most people, house would be owned by a company and each partner would own shares in company. Everybody would have to pay capital gains (or maybe use small business exemption?). Most tax-efficient would be one official owner with other owners as a side agreement with no filed documentation. No capital gains, official owner can distribute to others upon sale and each of the other partners could declare somewhere else as their principal residence to dodge CG on another property. Need to be careful if the primary owner isn't declaring rent and hammers the mortgage too hard. "Rent" money would probably need to go into renovations that aren't easy to track to drive up value of house.
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When my M-I-L's estate was settled and the house sold there were two names on the new deed. That may have been due to financial assistance from a family member, ensuring the the contributor control of their investment. Depending on how it was worded it could get tricky. Do they own 50% of the house or $300,000 worth of real estate. The property is likely up 50% now. So does the second party have $300 K or $450 K in equity. Small out of town property.

When my brother first got married and they wanted to buy a house his father-in-law loaned my brother a decent lump of money for the down payment. He wisely didn't trust my brother. When the marriage tanked and the assets split, my brother had to pay back 100% of the loan out of his share. It might be different now due to family reform act changes.
 
油井緋色 said:
Would still win a lot.

In the hypothetical scenario I would be in....the "family of 6" would have significantly more income than 2 doctors despite making a less pre-tax total because you don't add all 6 incomes together and get ****** by taxes at the total.

I don't even know if it's worth it to switch properties in this case; just buy a $3+ million dollar place (would easily get paid off between 10-15 years, and this is conservative), make the grandparents or whatever tend to it (assuming late 50s to early 60s), and everybody is a happy mother fucker. There's probably also a massive garage with 3 cars (1 car for each pair), and space for motorcycles.

Hell, there are probably enough rooms to create a virtual whore house with haptic feedback that I could rent out for $100/h and market it as "cheaper than $300/h hookers."

One can dream!
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Being a cynic I would have an escape clause as it isn't unusual for people to differ as time goes by. One wants to pay off the mortgage the other wants to buy toys. Someone gets sick and can't keep up. Divorce etc.
 
If your smart it gets written by a lawyer and can go a couple ways . You own xx percent of the house and it’s another investment that can go up/down , but you own xx percent regardless. It can be worded you own xx as a cash investment and if the house doubles your only entitled to your initial investment. Some have done it with cash + interest .

Something to consider, our family lawyer wouldn’t put me and my brother on the deed to my moms condo. Brother thought we could dodge some taxes .
Lawyers says , yeah one of you pull a Stupid / impaired accident and get a massive lawsuit and your mom looses her condo . His job is to protect us from outside threats , and each other LOL


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crankcall said:
If your smart it gets written by a lawyer and can go a couple ways . You own xx percent of the house and it’s another investment that can go up/down , but you own xx percent regardless. It can be worded you own xx as a cash investment and if the house doubles your only entitled to your initial investment. Some have done it with cash + interest .

Something to consider, our family lawyer wouldn’t put me and my brother on the deed to my moms condo. Brother thought we could dodge some taxes .
Lawyers says , yeah one of you pull a Stupid / impaired accident and get a massive lawsuit and your mom looses her condo . His job is to protect us from outside threats , and each other LOL


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My parents thought of signing us up onto their house (me and my sister), but the lawyer talked them out of it real quick.

'Sure your relationship is good NOW, but what happens when the daughter in law (or son in law) decides that they need the money...what're you going to do then when they kick you out?'
 
mimico_polak said:
My parents thought of signing us up onto their house (me and my sister), but the lawyer talked them out of it real quick.

'Sure your relationship is good NOW, but what happens when the daughter in law (or son in law) decides that they need the money...what're you going to do then when they kick you out?'
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Wait, is it legally binding to do what @crankcall said and split via percentage? Cause that was the plan anyway lol

Cause in that case, couldn't you just buy out the person who needs the cash? Or take a loan to buy them out?
 
That’s the other part , happy family isn’t always long term .

We watched friends devolve a relationship, he inherited three properties in 8 yrs , farm near Orangeville , cottage on Georgian bay . Kept it as separate properties, rented them and kept the income stream in a ltd holding company. As inhierited she had no claim to any of it . Meanwhile the house they are in needs a roof LOL.
They divorced. She got an apt in Burlington, he has a 3m house .


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