Struggling financially and getting frustrated? | Page 10 | GTAMotorcycle.com

Struggling financially and getting frustrated?

I grew up in a massive stone 5 bedroom house. But it was my parents house. I had to start a bit smaller. My kids grew up in a nice enough place with a pool and vacations on the boat. They had to start a bit smaller.
Too many just don't want to/ cant wait to/ don't think they have to wait, money is cheap, a line of credit is for everybody and CC debt is how you get stuff.
I'm happy for those that dig out after digging in on credit, but my buddy the mortgage broker says the cycle wont end anytime soon.
 
My exes parents lived next to that dirt bag he was in his 40s with an 18 year old wife at the time.

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I tried to buy a house from him twice. Both times he wouldn’t present my offer at asking price. According to my lawyer, his tactics are illegal however it’s difficult to prosecute this. Sooner or later he’ll run into a bored lawyer with will try a civil case for misrepresentation under the Ontario consumer protection act.
 
So the question
If your in your late 30’s And it will literally take everything you can muster up to purchase a home. You will be able to save for the next couple years and make it happen but at that point your house poor With a 25 year mortgage. That puts you in your 60’s when it’s payed off.
I say why bother it’s only a roof over your head. Just rent. You missed the boat.
find other types of investments and enjoy life, within your budget.
why is home ownership such a holly grail that someone bases their self worth off of.
 
why is home ownership such a holly grail that someone bases their self worth off of.
Assuming you are just house poor and didn't reach far enough that the whole mess collapses, owning a home buys you stability. If you rent, unless you religiously renew leases (which the vast majority of renters I know don't), you are only ever 60 days from uprooting your life and trying to find something else in a neighbourhood you like at a price you can afford. Landlords aren't supposed to boot you but we all know there are some loopholes that are often exploited (family needs to move into your dwelling even though they own 100 other dwellings, renoviction etc). Even if your current landlord is good, a sale can happen at any time and you can bet the new owner will be looking for rent at current market value not your grandfathered rate.
 
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So the question
If your in your late 30’s And it will literally take everything you can muster up to purchase a home. You will be able to save for the next couple years and make it happen but at that point your house poor With a 25 year mortgage. That puts you in your 60’s when it’s payed off.
I say why bother it’s only a roof over your head. Just rent. You missed the boat.
find other types of investments and enjoy life, within your budget.
why is home ownership such a holly grail that someone bases their self worth off of.

I can't stand renting ............

Assuming you are just house poor and didn't reach far enough that the whole mess collapses, owning a home buys you stability. If you rent, unless you religiously renew leases (which the vast majority of renters I know don't), you are only ever 60 days from uprooting your life and trying to find something else in a neighbourhood you like at a price you can afford. Landlords aren't supposed to boot you but we all know there are some loopholes that are often exploited (family needs to move into your dwelling even though they own 100 other dwellings, renoviction etc). Even if your current landlord is good, a sale can happen at any time and you can bet the new owner will be looking for rent at current market value not your grandfathered rate.

110%
 
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Owning a home provides access to other financial vehicles that bankers won’t offer “renters”.

Line of credit?

Investments?

Loan?

Credit?

You can get these things renting but, being a homeowner makes it easier. And like all things, that doesn’t mean that is a good thing.

Just because you can, doesn’t mean you should. But, having the freedom to choose.......


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Other than a storage unit for my business I have never rented.
but if things were different and I was a single guy at my age and didn’t own a home.
im saying why bother if that’s the only thing your going to have is that roof over your head. At 50to 60k a year there is not much you are going to do.
Im not even sure it is possible
 
At 50to 60k a year there is not much you are going to do.
Im not even sure it is possible
I don't think it is possible in the current scenario (GTA, 60K, late 30's). You need to change the scenario if you want it to work (add partners, rent out majority of house [helps to pay for it, but you still needed to get the bank to let you buy it first], move far from GTA, gross salary change [be your own boss?], etc)
 
Other than a storage unit for my business I have never rented.
but if things were different and I was a single guy at my age and didn’t own a home.
im saying why bother if that’s the only thing your going to have is that roof over your head. At 50to 60k a year there is not much you are going to do.
Im not even sure it is possible

I have single friends in KW who make $70k+ as engineers and they are struggling.

I tell them to go find a partner but they are too busy with work -_-"

@OlderFolks

Did most of your friends have family by the time they were in their mid 30s?
 
I don't think it is possible in the current scenario (GTA, 60K, late 30's). You need to change the scenario if you want it to work (add partners, rent out majority of house [helps to pay for it, but you still needed to get the bank to let you buy it first], move far from GTA, gross salary change [be your own boss?], etc)

exactly what I’m saying
As you move away the houses get cheaper but the wages drop.
example
15 years ago mind you
I made 18hr as a licensed carpenter non union working north east Northumberland county. Living in a small house in Hastings fairly comfortable nice truck, good car and nice atv but mostly broke.
made one move to Bowmanville to work in GTA same job
jumped to 28hr with company truck I drove home daily
Bought a bigger, nicer, newer house but was house poor.
No toy budget no truck, and the same paid for now a beater car.

My only answer was self employment.
But it comes with a price too. I’m not a carpenter anymore, now I’m an entrepreneur and some days it sucks real bad. But I have the potential to earn more this way and most months I do.
 
exactly what I’m saying
As you move away the houses get cheaper but the wages drop.
example
15 years ago mind you
I made 18hr as a licensed carpenter non union working north east Northumberland county. Living in a small house in Hastings fairly comfortable nice truck, good car and nice atv but mostly broke.
made one move to Bowmanville to work in GTA same job
jumped to 28hr with company truck I drove home daily
Bought a bigger, nicer, newer house but was house poor.
No toy budget no truck, and the same paid for now a beater car.

My only answer was self employment.
But it comes with a price too. I’m not a carpenter anymore, now I’m an entrepreneur and some days it sucks real bad. But I have the potential to earn more this way and most months I do.
Not every job has salary proportional to distance to center of TO. My wifes field pays more as you move further out (once you get passed orillia, it's reasonably constant). Lots of people want to live and work in TO and it drives the rate down. Easy decision for us.
 
When I was younger, I dated a lot of Asian women.

A common pattern I noticed was:
  • They were studying a questionable degree (if in university or college at all)
  • They wanted to be taken care of
  • They had zero sense of money management
    • One particular women comes to mind. She said "a man should let me handle the money so I can buy us nice things."
  • Some felt they were actually entitled to marry a man that'd take care of them and they could just sit at home
  • Having expensive brand name **** mattered to them
This was kinda infuriating tbh. It got a bit worse later in life because I realized the trend wasn't specific to Asian women, it was applicable to every ethnicity.

Later on, I found myself failing my first degree and getting into credit card debt and this was probably one of the best things that happened to me. I ended up reading a bunch of books on investing and money management. Within a year, the CC debt was gone. Then started working on a software dev degree and reminded myself of my failure everyday for the first 2 years. I'd wake up every morning, look at myself in the mirror, and tell myself I'm a failure; succeed or die. Within the first year, I landed a job at a really popular open-source browser dev group.

Then I looked at the average household income in Toronto, Ontario, and Canada. I could easily beat those $s as a software developer, but you know what'd be better? Find a girl that was equal or smarter than me with strong pragmatic traits so we wouldn't just beat those numbers, we'd actually skew the numbers up. I ended up creating a set of interview questions, spent 4 months on "dates" interviewing women, and found my fiancee later.

Remember those investment books I mentioned? Everything I learned, from both failures and reading, came into play now. It's been 5 years. She is amazing at saving money, but very bad at what to do with the **** tons of cash she sat on; we've doubled it now.

Point of this story aside from showboating and bragging? Life sucks, for everyone. Survey your situation, take stock of what is actually possible, figure out what it is that you don't know, and do something about it.....I notice most don't actually do this regardless of age or ethnicity.

I've also told this story to fellow junior developers. Many of them end up reading about investing immediately after; teach a man to fish and they'll never be hungry! Sometimes, they might even teach you a new trick or two as well!

P.S. It's worth noting some of those "marry rich" women did actually marry rich. But for the vast majority that failed, I'm psychopathically enjoying their Facebook rants about how it's so hard to find a decent guy =)

I dated a chick from Hong Kong and it didn't last. She wanted cheap new stuff all the time and I'm into quality keepers. I'm from the prairies and like the country, only tolerating the city. She couldn't stand being away from tall buildings.
 
I work with lots of buddies from NFLD and the Eastern Provinces. They all laugh at the GTA and GVA and the amount we are willing to shell out on housing. Our house was close to a $1m mark...but we like it, and the area, and the GTA.

My buddy paid $300k for a massive swatch of land with a huge house on the ocean out in NFLD.

To each their own I guess...but in the end, I'm not willing to give up our friends and family to live out that far away. Especially working away as I do, I want my wife to have a support network that can be counted on. As if that's gone, my marriage is most likely over.

My formative years were spent in rural Manitoba. I could move back and pocket a bundle from the sale of my GTA home. The trouble is I'd have to live there. Yee-haw.
 
Not every job has salary proportional to distance to center of TO. My wifes field pays more as you move further out (once you get passed orillia, it's reasonably constant). Lots of people want to live and work in TO and it drives the rate down. Easy decision for us.

This.

There's more work, but also more competition in TO

Also even if the pay isnt nearly as great away from the city, the cost of living isnt nearly as high either so it evens out

If I had to take a pay cut to live in the maritimes, I could still live comfortably, in toronto? Not so much.
 
I dated a chick from Hong Kong and it didn't last. She wanted cheap new stuff all the time and I'm into quality keepers. I'm from the prairies and like the country, only tolerating the city. She couldn't stand being away from tall buildings.

During the WW2 many people from the prairies joined the RCN which seems a bit odd at first. The reason apparently was that they preferred open spaces, open seas got them that. What you grew up with has a big impact on what you are used to and what you prefer.
 
Market dynamics are different here and there. In my little town, a tidy 70s era bungalo might go for $1.3M, the dilapidated tear down next to it for $1.3M, and the empty building lot next to that $1.35M. My point is in the GTA the house part of your investment usually depreciates while the land appreciates. And since there's no real prospect of more land being converted to suburban subdivisions in the GTA, demand for land will keep prices high and inflating.

Go to NB or small town Ontario and the dynamics are different. Land will be far cheaper than the house that sits on it. The house will still depreciate, and as long as there is ample supply of land, the land will not appreciate. That same building lot 20km from Moncton costs$12-$20K, in a 5KM radius of downtown in a primo subdivision $50K. For $1M you can buy an undeveloped 40 acre plot of subdivision land that would fit 300 homes, 5km from downtown Moncton.

I was dealing with a small developer a half dozen years ago and asked his opinion on a bungalow that recently sold in my area for $700 K, 60 X 120 lot. he said he'd flatten it and build 2500 SF at $300 SF. Prices are up but my house could end flattened if I sold. Any renos I do are for me.

Our countertops are laminate and I hate granite. It looks nice but is noisy and shows scratches. If we want a colour change the cost is 1/10th of granite.

There are super homes with second kitchens. One to look at and the other to cook in.
 
Prices are up but my house could end flattened if I sold. Any renos I do are for me.
That's an interesting situation to be in. People in houses that don't maximize density on super expensive land. Whether you spend 250k renovating and making it beautiful or do nothing beyond keeping the raccoons out, you get the same number when you sell.

Based on my experience, the money put in to renos doesn't return financially but does help find a buyer quickly and makes your house get offers instead of your neighbours. We all like to think that we get some financial return but mostly the changes are just money lit on fire to make us happy.
 
Yeah 1M house does not necessarily equal 1M mortgage. Add in the stupid tax law that gives you unlimited primary residence capital gain tax free and you end up with many people in something huge and expensive as an investment instead of an appropriately sized residence.

When we were looking at places to move north, my wife wanted to look at places that were ~even money with the house we were selling. We could have had an ok subdivision house with no mortgage. I pushed her to buy an awesome house in a great location with a reasonable mortgage. In a perfect world, I would prefer to keep taking 200K mortgages and leapfrogging but the transactional cost of a real estate deal is nuts so you need to take bigger steps to come out ahead. FWIW, the house is probably up 150 in 18 months (two sales of similar houses in the neighbourhood in the last month that are slightly smaller, on busier roads and slightly less interesting design for 120K more than we paid). For the last owners, it went up over 75 a year.

Consider the American tax situation where deductible interest discourages stability, IE paying off your mortgage. You can also deduct interest on secondary residences, cottages and motorhomes, cabin cruisers etc. Deductible interest on a depreciating asset????? Keeps the banks happy I guess.

The idea of capping the prime residence exemption value is interesting but a challenge. Where do you set the bar? A million in Toronto or 500K in the boonies?
 

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