Inflation

[mimico_polak]

We are supposed to renew in 2 years I will be paying in full of rates are still above 3. I have had rates of 7.5 before but on a 100000 House.

Sent from the future

That’s a very enviable position to be in. Let’s talk after about 450k in payments I still need to make.

I keep adding $200-300/month in my payments but it’s not enough to keep up with the rate rise.

Every 0.25% change is another $30-40/payment increase for me.

 

[Mikedezo44]

Had dinner with my brothers widow last week. The house beside hers was sold 2 years ago, new owners bought as a rental property...and she was informed last week by owners that renters are 4 months behind on rent...I would be losing my **** if tenants weren't paying up and who knows how long it will go on before it goes through the courts and everything. Imagine having to pay mortgage on primary residence, and now rental property as well...could sink really fast. Of course tenants had great references and presented well paying jobs etc...

 

[mimico_polak]

Had dinner with my brothers widow last week. The house beside hers was sold 2 years ago, new owners bought as a rental property...and she was informed last week by owners that renters are 4 months behind on rent...I would be losing my **** if tenants weren't paying up and who knows how long it will go on before it goes through the courts and everything. Imagine having to pay mortgage on primary residence, and now rental property as well...could sink really fast. Of course tenants had great references and presented well paying jobs etc...

While I don’t have any good word for tenants that refuse to pay, I have little sympathy for residential landlords that snap up housing for renting out as an investment. They want to invest but refuse to acknowledge that there is in fact a risk to this. Everyone just thinks it’s a zero risk investment and this is why we’re here. Houses have become investment vehicles, not homes for families.

It is risky, and any landlord that doesn’t acknowledge that and prepares for it is a fool.

Would you be losing your **** if you put money in an investment and it tanked? What’s the difference?

 

[GreyGhost]

Would you be losing your **** if you put money in an investment and it tanked? What’s the difference?

I have control over investments. If a company was supposed to pay dividends and didn't, yes, I would be losing my crap. I would be dumping them quickly and going with someone else. A functional ltb is necessary if you hope for a functional rental market.

 

[Mad Mike]

I renew tomorrow. when we first bought out home (14 years ago) our Mortgage was $1247.00 a month (inc. property tax)
Now we are looking at $908.00 every two weeks before property tax, and another 25 years. I have never felt so discouraged.
We're taking a 3 year term and very afraid of what we'll see at the end of those 3 years...

Checking my life insurance, to see if I'm better of dead... LOL

Mortgage rates in 09 were about the same as today. Did you draw equity and increase the debt?

 

[GreyGhost]

Mortgage rates in 09 were about the same as today. Did you draw equity and increase the debt?

I don't know about 2009 but my 2010 rate was a long ways below my current rate and I expect a huge rate increase at renewal.

 

[Jampy00]

I recall having a discussion about taxes and mortgages with my mother and her friends. One guy piped in they we have it easy he had a 15% mortgage back in the 70's. I reminded him that at that same time

Mortgage rates in 09 were about the same as today. Did you draw equity and increase the debt?

Nope. We had more debt back then, but nothing related to the house. CC, LOC that sort of thing. Also made way less money back then as well.

 

[mimico_polak]

Welp...so my current payment is $1333/bi-weekly.

Went from 890 -> 800 -> 1333 bi-weekly within the span of a year. Yup....I am S-M-R-T

Fixed @ 2.79% -> Variable at 1.1% -> Variable at 5.65% currently

 

[Jampy00]

Welp...so my current payment is $1333/bi-weekly.

Went from 890 -> 800 -> 1333 bi-weekly within the span of a year. Yup....I am S-M-R-T

Fixed @ 2.79% -> Variable at 1.1% -> Variable at 5.65% currently

Ouch, I fear it will continue to rise until almost collapsing the economy then it will magically start to drop back down. How long it takes is anybody's guess... I have no confidence that we'll see much improvement..

 

[mimico_polak]

Ouch, I fear it will continue to rise until almost collapsing the economy then it will magically start to drop back down. How long it takes is anybody's guess... I have no confidence that we'll see much improvement..

Yup. It will continue to rise and I’m good for a while still since the recent raise and promotion.

Just less LEGO. Maybe I should wait as these rate rises may make motorcycles cheaper.

 

[crankcall]

In my view , the variable mortgage has always been a lottery , and like most casinos the roulette wheel favour the ‘house’ .
Bankers are nice people , but they are not your friends .


Sent from my iPhone using GTAMotorcycle.com

 

[GreyGhost]

In my view , the variable mortgage has always been a lottery , and like most casinos the roulette wheel favour the ‘house’ .
Bankers are nice people , but they are not your friends .


Sent from my iPhone using GTAMotorcycle.com

Statistically, that's not the case. There have only been a few years in the last 50 where variable paid more than fixed. Now, banks have recently increased the stink and if central bank cuts by 0.25, mortgage rate is cut by 0.15. That is a dirtbag move with no justification and should be brutally punished by regulators (but of course it isn't).

 

[nobbie48]

All natural has always been a scam designed to trick people with little ability to think on their own. Cyanide is all natural, clean, no chemicals added, non-gmo, etc, etc.

Most poison ivy is organic.

 

[nobbie48]

Looks like a Terrible investment 3.6 dollars for every hundred dollars of sales you could make more with a gic and have all the hassles.

Sent from the future

In the good old days one went into a profession that one found interesting and there was a potential of it paying the bills. Big money has taken over those markets with big box stores and the little guy can't compete.

IIRC there was a motorcycle dealership in London and non of the salespeople rode. Brilliant business plan. Sales reps are there to sell, not talk about their latest ride, knee drag. A 17 YO wants a liter bike and can write the cheque, go for it. You're not his father.

You have a better chance of success if you own your premises. Got an extra few million to kick start your small business?

Mom and pop businesses are a tough go unless you can connect to a niche market. Enjoying your job and making a living gets harder every year.

We recently had our roof replaced at a good price by a legit contractor. He has to compete with foreign workers, without WSIB or working at height training, no insurance and cash only. He wasn't a BS artist like the guy that wanted three times the price for the same job.

I spoke with a guy in the tree business and that isn't something that one starts overnight. He may close down because he can't get workers and insurance thinks he grows money trees.

As far as starting anything food oriented goes, have big balls or a big wallet.

 

[nobbie48]

I renew tomorrow. when we first bought out home (14 years ago) our Mortgage was $1247.00 a month (inc. property tax)
Now we are looking at $908.00 every two weeks before property tax, and another 25 years. I have never felt so discouraged.
We're taking a 3 year term and very afraid of what we'll see at the end of those 3 years...

Checking my life insurance, to see if I'm better of dead... LOL

So I'm guessing about double with tax in, same house. Then you consider your wage increases......

But our first house in the GTA was rental but worth three years gross trade salary. That house is now over twenty years gross salary. My first house was 5 or 6 years trade salary. The present one was about 8 years trade salary when I bought it and now about 20 years trade salary.

With a half a million newcomers arriving each year in Canada will things improve? (Sarcasm)

The feds have their agenda, the province theirs and Chow hers. None of them mesh and the failures will be because of "Someone else"

 

[nobbie48]

My mortgage gal tells me she is looking at 30-40 yr residential mortagages and 60-90yr commercial. Wtf?

The shear number of people taking 25ys to pay off a 25yr mortgage surprised the heck out of me , it’s a different time .


Sent from my iPhone using GTAMotorcycle.com

With our present place the mortgage came with a printed payout and the option of paying off capital every six months. A quick glance showed that the early payments were 99% interest so paying an extra $50 at the six month time knocked six months off the duration. We kept that up until the weight of the payment fell on the principle and the timeline shrank.

P.S. 13% mortgage

 

[GreyGhost]

With our present place the mortgage came with a printed payout and the option of paying off capital every six months. A quick glance showed that the early payments were 99% interest so paying an extra $50 at the six month time knocked six months off the duration. We kept that up until the weight of the payment fell on the principle and the timeline shrank.

P.S. 13% mortgage

I've been lucky and only had a year of payments where interest exceeded principal. Sadly, that doesn't mean the interest is painless as the financed amount is not small.

 

[nobbie48]

While I don’t have any good word for tenants that refuse to pay, I have little sympathy for residential landlords that snap up housing for renting out as an investment. They want to invest but refuse to acknowledge that there is in fact a risk to this. Everyone just thinks it’s a zero risk investment and this is why we’re here. Houses have become investment vehicles, not homes for families.

It is risky, and any landlord that doesn’t acknowledge that and prepares for it is a fool.

Would you be losing your **** if you put money in an investment and it tanked? What’s the difference?

The problem is that not all landlords rip people off. A lot are decent but get tarred with the same LTB brush.

Since all parties are dead I don't know if we'll ever find out what happened in Hamilton with three dead, landlord and two tenants.

A former S-I-L and her accountant hubby screwed a landlord out of the best part of a years rent. She was a veterinarian so not in the burger flipping income range. Trust no one.

 

[nobbie48]

I have control over investments. If a company was supposed to pay dividends and didn't, yes, I would be losing my crap. I would be dumping them quickly and going with someone else. A functional ltb is necessary if you hope for a functional rental market.

The LTB is governmental and you're pizzing upwind to fight them. Private sector has better odds.

 

[Mad Mike]

I don't know about 2009 but my 2010 rate was a long ways below my current rate and I expect a huge rate increase at renewal.

My Aug 2009 rate was 4.95 5-yr fixed. That was the employee rate at my wife's bank. Today's employee rate from wife's bank is 4.47, 48 basis points lower than 2009.

I expect rates have peaked and that BOC could hold, but wont. I suspect .25 jump this month then a long hold, maybe till early 2025. But you never know, BOC may well play some political games -- there is no fundamental economic need to do another raise. If JT starts pouring cash into the economy inflation will increase, which in turn forces rates higher.

The stuff I'm getting suggests 2025 will see some nice drops, maybe down to 2.5 by the end of 2025.

Unfortunately my crystal ball looks smoke filled right now.