Depends where you park your money. Most of mine is in metals as I dislike the market.
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Housing during SARS-CoV-2 lockdown, before, during and after - Renting vs Owning
- Thread starter Baggsy
- Start date
Perfect boat has drinks for 8-10, meals for 8-10, bed for 8-10 , but only two ever sleep there. Unless its a distance race , then 12 sleep there doing hot bunking and the cooler management is more important than naviagtion.
But back to renting , yes @Evoex , I would have to negoiate with the landlord about paint LOL, maybe return it to what he wants when i move out. I hang pictures and some look just aweful on the wrong color wall ( 95% of my house neutral grey) . We are all different.
And good for you she makes more, its good when they have as much or more to looose than you.
Housing prices can and have also dropped. We have had a very good run but as a point of reference....
Co-worker of mine in 1994/95 (can't remember the exact year but I do remember the numbers!) bought a house downtown power-of-sale for $275K (seemed like a lot of money to me back then!). The previous owner owed over 600K on the house to the bank and walked away. Now it was power-of-sale to previous owner owed but it gives a good idea of what that collapse looked like in the early 90s. It was ugly.
Then there was the US housing crisis in 2008.... people walking away again (in the US not here) because they owed more than the house was worth and lost the ability to pay.
Like almost any market, if you can wait long enough you get back int he black.
Co-worker of mine in 1994/95 (can't remember the exact year but I do remember the numbers!) bought a house downtown power-of-sale for $275K (seemed like a lot of money to me back then!). The previous owner owed over 600K on the house to the bank and walked away. Now it was power-of-sale to previous owner owed but it gives a good idea of what that collapse looked like in the early 90s. It was ugly.
Then there was the US housing crisis in 2008.... people walking away again (in the US not here) because they owed more than the house was worth and lost the ability to pay.
Like almost any market, if you can wait long enough you get back int he black.
Need to consider what kind of home you're purchasing and where.
The savings is a roller coaster based on those 2 facts
I don't know the market enough to throw money into it without more research. I'm basically all in with VGRO as a 'safe / boring' market fund. Although I did pick up $2k of Air Canada stock a few days ago.
I'll dig it up later, but I watched a lot of interviews with a few millionaires who are very anti bank and anti liquidity. The minute they make a buck in profit it's re invested.
They also disdain the market for the same reason, it's a 'piece of paper' that can be blown up overnight. Got me into researching gold bullion among other things.
Gold has gone up 43% over the last 5 years.
I'd start looking at metals used in car ev batteries etc, target what's rare, where is it, future uses etc.
It's a headspin but serious peace of mind. I didn't bat an eye when the market went upside down.
Don't worry, I have been shorting the markets and they have been spiting me. Taking one for the team...
I'm just more comfortable with Air Canada instead of any of the US carriers. Probably because I don't see them failing personally through this. I don't see the gov't letting it fail. But if I'm wrong...there goes 2k.
blackcamaro
Well-known member
I agree on the where which is why I mentioned southern Ontario and later this market as opposed to another one.
You kind of lost me on the type though. I can’t think of a type of property that rent hasn’t gone up on whereas if you bought 5-10-15 years ago the mortgage payment has stayed relatively the same. While the dollar figures won’t match my example at a certain point the home owner is going to have lower monthly payments then the renter. Maybe I’m missing something and if you expand on the thought I’m open to it I just don’t see it.
Sorry,
To clarify. Are people buying more house then they have to be.
If we're going to drill down into potential savings then can Owen the owner live with a 650k 2bdrm instead of that 1.1mil 3 bdrm?
Want !=Need
Nobody ever "needs" more bedrooms. Much of europe and many developing countries just piled everyone into one room. We all want a little more space so we aren't piled on top on one another.
blackcamaro
Well-known member
Oh yeah then I agree 100%. A lot bite off more then they can chew. Although true for homeowners and renters it’s a bigger issue for the homeowner.
The biggest issue for renters is that if the owner wants you out, doesn't really need a valid reason...he can fabricate one up. 'Family is moving in' is the most popular.
I know when I originally bought my place, we were warned by realtors, sellers, and everyone that if tenants don't pay, don't bother with the LTB...just give them notice they have to be out cause your mom/dad/kid has to move in. Whoever is within the legal framework of 'family'.
Thankfully never had to do it as all our tenants were great, so never went through that type of issue in 10 years.
As much as historically GTA housing has been on an elevator up, the people that bet everything expecting there is no top are not smart. If I'm making a house size bet, I am ensuring that the property reasonably reflects the price (eg. a 2.5 Million 17' wide 100 year old house in TO is out for me), I wouldn't mind staying their forever (obviously I may want to move, but I try to buy where I wouldn't have to move like a condo where I would be kicked out for rules violations), and somewhere where I can afford to pay it off at some point in the future using conservative numbers for income and interest. For those that pull mortgages close to seven figures, yikes.
blackcamaro
Well-known member
@mimico_polak yeah that happened to a friend of mine last year. I felt bad for her it took forever to find an affordable place to rent and even then she had to move 20 minutes farther from work. I feel a lot better knowing that my costs are going to be about the same for the next 5 years as opposed to renting where you have very little control.
@GreyGhost along with your point I don’t understand people that need to move into a upgrade every 2-3 years. Yeah sure they might make $150,000 and have more equity on paper but they’re just carrying the same mortgage balance around. I hate payments, so I don’t understand it. I would rather just chip away at the original mortgage /home.
@GreyGhost along with your point I don’t understand people that need to move into a upgrade every 2-3 years. Yeah sure they might make $150,000 and have more equity on paper but they’re just carrying the same mortgage balance around. I hate payments, so I don’t understand it. I would rather just chip away at the original mortgage /home.
@blackcamaro For us the moves were 2 fold...the first we were living in 1 of our rental apartments and the tenants in the others.
Got married, wanted kids so we bought the townhouse.
FIL died, MIL moved in, second baby on the way we "had" to move to a larger property. In the end we wanted to due to not wanting to be anywhere near a condo board again...and we wanted the kids to have more space, which is where we are now.
Not planning on moving, but if someone comes along with 1.5M I'll be out in 30 days! LoL
Got married, wanted kids so we bought the townhouse.
FIL died, MIL moved in, second baby on the way we "had" to move to a larger property. In the end we wanted to due to not wanting to be anywhere near a condo board again...and we wanted the kids to have more space, which is where we are now.
Not planning on moving, but if someone comes along with 1.5M I'll be out in 30 days! LoL
The real estate hopping game is a fun question.
Someone says "I am in a million dollar home with only a 100K mortgage. I started with one I bought for 100K and sold for 200K,then bought for 500 and sold for 900K. Then I bought my current home". Ok then, so what is the first place worth now (deafening silence). Let's look it up, it just sold for 750K. So you have paid lots of interest and huge closing costs multiple times, are you really ahead financially over just staying in your first house? "I have a million dollar house with a 100K mortgage and I don't want to talk to you anymore".
If it works the tax free capital gain on the 1.1 mil home will be more than the gain on the 650 k one. Speculation drives the market up and will have to be dealt with at some point. If you have cash wait for a crash, buy a formerly 3 million dollar home for half price and wait it out. It beats buying a million dollar home that only dropped a hundred thou. In tough times modest homes fare better than the high rollers. The guy losing the 3 million home will move down to the one million. The 1.1 mil owner has far fewer options to move down and more likely to stay put.
A large number of Canadians have no mortgages and would be ****** if the capital gains rules got changed. They could be grandfathered in while new buyers could opt for a tax deduction on interest but pay capital gains when the sell out or downsize. Oh wait, that won't work because people will allow for the interest kickback and buy a bigger home.
Gotta do something. Canada will need money in the times to come. Going into this our debt was 800 Billion IIRC and JT's benefits will go into trillion territory PDQ.
One regulation can't cover all of Canada. A dump in TO is worth more than an executive house in ditchwater on the prairies. Where do the lines get drawn and who draws them?
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