“Sounds like both of you are envious and like to pu down boomers, many oif whom lived within their means”

Talk about making assumptions.

First off, I am a later boomer (in my 5th decade on this world).

Secondly, not envious of anybody, completely self made and retired and have been a fairly succesful property owner and developer as principal (my money on the line) for almost two decades.

Thirdly, don’t blame others for interpretations of what you write that may be ambiguous.

Fourthly, that is how I interpreted your post and you have clarified some points, thanks for the clarifiction.

Fifth, no disrespect to you or yours, it just read pretty ‘smugly’ in your post. You’ve communicted well now and I see where you are coming from, apologies if it caused offence.

Sixthly, a lot of families that are decent and hard working can not get ahead (read save) as life seems to be much more expensive as oulined in my last post directed at you and so instead of being able to save a downpayment or have no well to do family are seduced into these onerous finacial burdens and it ends up ending their family.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6094863/Bank-bonus-culture-to-come-under-spotlight-at-G20-talks.html

Watched this on TV5 last night. Sounds like a good move. Tonight they said that the British PM is willing to look at it.

Lots of sites on the net about it. Time will tell, but I think its about time. Most would have to agree to make it effective.

Two years after we bought our current home he was laid off from his job. The co. went under. I convinced him to make a change in his career. I taught him DOS and about PCs when he took the AMT course and he really took to PC’s. He then took another 50 week course at the Information Technology Institute and graduated in ’95. We paid $10K for his course but he did receive EI during the time. He’s now an IT Supervisor. We were glad that we bought a home based on one salary. And, BTW, we took a mtg. whereby we could double up mo. payments (which we did while both working), and put 10% down annually on the original mtg. And, when our bank (TD) sent us a notice to say they’d start charging us for cheques/debits, my DH went to the Bank Manager and threatened we’d move our business. The BM relented & signed his business card that we’d never pay any fees. He also gave many of his cards to my DH to give to his friends, who were also threatening to move their business. I had been a client for at least 25 years with their predecessors. We learned before that that one can negotiate. I’ve never paid any bank fees, tho they’ve lots of money off us.

Been checking out sites re Real Return Bonds and will study RRB’s for Canadian Dummies this weekend. So far, it sounds like something we’d be interested in. Thanks Garth for the H/T.

#65 Peter Wiener on 08.26.09 at 5:58 pm

# 64 Live Within Your Means

“Many people on this blog consider a house as an investment.”

“Sorry mate, have to disagree.

You might have paid a reasonable multiple of your income when you purchased your house (bet it wasn’t 7 times like it is today) and the world wasn’t going thru the economic collapse it is now, with structural unemployment and the debt loads that exist today.”

No it was more likely 3X one of our salaries when we purchased it more $116.00 in ’91 with 25% down. My sis & I had previously owned a condo townhouse. (BTW, my sis & I got hit with 19% mtg during that time.) I & my husband bought my sister’s share. Two years later my husband and I sold it. He moved here, took a 6 mo. English As a Second Language and his training in France and work experience in Quebec was not recognized. He worked as a labourer for 6 months then finally got hired on as a hydraulics tech, not earning a good wage and no security. When I moved here I only applied to the provincial govt. because wages were so low here and benefits non-existent. Do you fault me for choosing to work for the best employer I could find. I’m sure you would have done the same.

We saved, ate lots of KD and bought what we could afford, based on one of us losing a job. We sold my Honda and kept his Pony as mine was worth more.

“Ergo, one has to view and consider the financial commitment to a home with a far more gimlet eye so as not to potentially ruin one’s finances going forward.
You didn’t have those concerns when you bought and the nominal values were much lower and you didn’t have to commit financial suicide to put a roof over your heads. Some people today do, so forgive them for being a little money minded!”

Check my comment above. My husband remodeled our kitchen/dining areas, etc. in our last place. We dumpster dived at Ikea for useable materials. Please don’t presume you know anything about our lives. We looked at lots of homes in the area, much more expensive than our home, but did not want to be a slave to a mtg. Ours is assessed the lowest on the street. My DH has made many renovations in our home inside and out. We didn’t have to get permits because of its structure. Its not our fault that people choose to go into massive debt to buy a home.

“I feel sad for them.”

I do. So many choose to get in over their heads, wanting granite countertops, stainless steel appliances, etc. I know several young couples who purchased way beyond their means, 0-5% down, and no real secure job. Time will tell.

“Nice tone of condescension there!”

Its anything but Peter.

“I feel sad too because the powers that be have, through overregulation of deveolpment, huge development charges, restrictive zoning, etc. and through sanctioning ridiculous lending standards, lessened downpayments and higher lending ratios than in your puchase days have driven costs and prices through the roof.”

I happen to totally agree with you.

“Are you really sad that these actions have inflated the price of your house way beyond anything reasonable? Didn’t think so!”

As I said Peter, I live in NS. We bought in ’91 for $116K. Our assessment is $186k tho we know its worth much more. But, it hasn’t inflated at all in comparison to other homes in the area.

“Bottom line, you had more economic certainty, paid less for your home as a function of your income, used less leverage (bigger downstroke) and had less taxes to pay and fewer calls on your cash flow than most prospective buyers on this blog face today. And a far more certain economic outlook and possibly job security.”

I lived in the ‘Savage Day’s where our salaries were cut 3%, we had to take days off without pay, etc. I never recouped those cuts for my pension. And, when the prov. & the feds came to an agreement so that I could buy back 3 years of service with the Feds in Ottawa, I chose to do so even tho it cost us lots of $$. Should I have not taken advantage of that as well.

“How do they find the time in places like Vancouver to “contribute to their community” when two wage earners are busting their butts to cover an eggregious mortgage payment which now goes on almost twice as long as the mortgage you paid I’m guessing.”

Its their choice to live in Vcr. I went there on vacation in ’75, staying with 3 girlfriends and saw the costs of RE and life. For various reasons, including the cost of living, I chose not to move there.

“As the saying goes …walk a mile in someone else’s moccassins before you judge them…”

I have walked in other shoes and know what it’s like.

“Smart guys those Native Indians! They really knew about community and they sure as hell didn’t have a two car garage!”

rant off

#69 markintheprairies on 08.26.09 at 7:06 pm
To Live within your means:

“I am very glad for you; an indexed pension, a 2nd pension not indexed, a large inheritance assured. And virtue, what a wonderful life.

And, of course, nobody’s income is being transferred to you via the indexed pension; that would have spoiled its taste.

http://fairpensionsforall.blogspot.com/”

I never said there would be a large inheritance – just the sale of my husband’s parents home in France – split 3 ways. Like Peter above, you presume too much. Sounds like both of you are envious and like to put down boomers, many of whom ‘lived within their means’. I did without growing up, worked my ass off since a young teenager, and tried to ensure that I would not have to do without in my senior years. Its not my fault that the younger generation is struggling. I feel for them but know many that have been spoiled by their parents who’ve provided all the ‘toys’ and now expect a free ride from society.