Homeless

Today’s needy Blog Dog is a solid guy with a squeeze, a canine and (regrettably) a cat. Charlie lives in Oakville where, after two years, he‘s just been booted out of his rental. Suddenly, everything changed.

“Unfortunately, our landlord has informed us that his father will require the house, and as such, we are to be evicted on September 1 (the end of our lease). He’s always been a decent guy, but I have to admit, I’m suspicious that he’s looked around the neighborhood, realized he can probably get about $600-700 more per month, and figured he’s better off to boot us out and get a new tenant at a higher rate.”

So what has Charlie done in response?

“I’ve pushed back a little bit, requesting an N12 form, as well as the required one month’s rent as compensation, but this is going to be a losing battle. So, we’re looking for a new place to live. As mentioned above, market rent has crept up, while we’ve spent the past two years sheltered by rent control. In addition, while living in this house, we’ve acquired a dog and a cat. Many of the available rentals do not want pets, so I can either cross them off the list, or lie to our prospective landlord and claim not to have any pets. Neither option seems particularly appealing.

“My partner and I had been quite content renting, saving, and investing. We had hoped to purchase a home eventually, either once we had a very solid nest egg, or some sanity returned to the GTA market, whichever came first. Now, we’re not so sure. Real estate still seems quite expensive, but I have to admit, getting kicked to the curb with 60 days’ notice doesn’t feel great. It definitely is causing a rethink of our strategy.

  “For reference, our annual household income is about $205k, and we have approx. $360k saved up, in RRSPs, TFSAs, and non-registered accounts. No debts. We’re 30 and 28 years old. Guess I’m just looking for an opinion here. I’ve attached a couple photos of our dog (as a pup) in an attempt to endear you into answering.

“Thank you again for your daily insights, and any opinion you can offer. I greatly appreciate it, and all you’ve done for the improvement of Canadians’ financial literacy, and mine.”

Yes, this is one of the most powerful nesting moments. Others include getting hitched and having a kid. Suddenly a heady mix of fear and house lust makes every single waking hour another opportunity to check realtor.ca. The irrational thought of living in your vehicle and showering in a car wash drives people to make quick, unstudied, panicky decisions. So just chill. We’ll figure this out.

The first thing to do is buy time. If you suspect the LL is tossing you just to get more rent, then offer more rent. Duh. You can afford it. Another $600 a month is $7,200 a year – which is a mere pimple on the rump of a typical Oakville house. Land transfer tax alone on a $1 million townhouse is almost $16,500 (even after the first-timer rebate). House prices are going down, not up, so waiting another year would save you far more than the additional rent. Besides, you need time. Finding a house and closing on it in five or six weeks is just silly.

Second, prepare in case your offer of extra money is rebuffed. Scour the rental market. Grab an Airbnb for a few months, if you have to. Just try to extend the period of time you’ll have to rationally contemplate a purchase.

Third, prepare. Go and get pre-qualified for a mortgage – a commitment which should remain in place until November (120 days). That will allow you to make a clean, quick and decisive offer if the perfect place materializes. Now, establish a relationship with a seasoned local realtor and, for the love of Dog, stop pouring over MLS stuff all day.

Hiring an agent to represent you costs nothing. He/she will be aware of every new listing before you even see them online, then able to advise you on neighbourhood, comparables, price history and overall value. Take your stress, FOMO and anxiety and unload them on someone else. Let your guy research listings, call the agent involved, pre-inspect and set up a viewing schedule. Then, if you offer, that person will help you write it, pluses argue for your interests during negotiations. All for free. Oakville, by the way, has a slew of seasoned house-slingers to choose from.

Can you afford to buy?

Depends. Income‘s good. Savings (for your ages) are epic. You can always sell the cat, of course, and prosper more. You can use the HBP to drain $70,000 from your RRSPs for a tax-free downpayment and defer any repayments for two years. And you can borrow five-year money now for just 2.8% (after the stress test is passed). But remember that the housing market is weak. Sales locally year/year are flat. Prices locally are declining (the median dropped $20,000 last month), and this may well continue.

Be in no hurry. Lose feelings of anger or apprehension. And you can always call your mom. She has to take you.

131 comments ↓

#1 Andrewski on 07.16.19 at 3:59 pm

Great, sane opinion Garth. You’ve always said owning RE is good if it makes sense. Pay heed Charlie.

#2 dakkie on 07.16.19 at 4:15 pm

West Vancouver Prices Down 40%. Steve Saretksy

https://www.investmentwatchblog.com/west-vancouver-prices-down-40-steve-saretksy/

#3 Lefty on 07.16.19 at 4:18 pm

Tell us more about the cat.

#4 IHCTD9 on 07.16.19 at 4:27 pm

#114 JonBoy on 07.16.19 at 11:44 am
IHCTD9 on 07.16.19 at 10:40 am

—————

Baloney. I know dozens that successfully handle the single-income strategy for their families.
___

Kudos if so, but if you:

1. Live comfortably
2. Save and invest adequately for retirement
3. Have owned a house
4. Have raise 3-4+ kids.

Then your income is like 6-7X the Canadian single earner median MINIMUM, and at least DOUBLE the Canadian Median household income. Being frugal doesn’t cut it doing 1-4 above when you’re making 60K, that’s just a fact.

I know there is a lot of pride in the old live simply (I preach it from the rooftops myself), and frugally – but this is Canada and it’s 2019. 60K does not do 1-4 – no matter what. I’m not going to lie to myself or anyone else.

About that 2019 thing, Men should not be on the hook as a sole provider in this day and age. Those days are long gone. Women IMHO, should be clamouring to get back to work when the kids hit school.

When the kids hit 5 (SK is full time), she goes back to work – even if it’s part time (and only for a little while).

#5 Smoking Man on 07.16.19 at 4:37 pm

#125 Tater on 07.16.19 at 2:16 pm

Nitro and Smokey, I’ll save you some time and money: you have no edge in the FX market. Thus no chance to be profitable over the long term……

…….

90% of fx traders will lose. Why, Becauae they dont hedge.
I’ve been doing this for a long time. No naked bets. Always hedge.
Always win…

keep punching the clock if it makes you feel good.

#6 The Wet One on 07.16.19 at 4:37 pm

I’ve never been a renter.

I can’t imagine being booted out of my own home because someone else decides that my residency has come to an end.

Lucky me I guess.

:-)

#7 Smoking Man on 07.16.19 at 4:47 pm

#125 Tater on 07.16.19 at 2:16 pm
Nitro and Smokey, I’ll save you some time and money: you have no edge in the FX market. Thus no chance to be profitable over the long term.
…..

#8 Steeev on 07.16.19 at 4:58 pm

Steps to take regarding your LL evicting you.

1) Document all interaction as best as possible back to when you were provided with notice

2) Ask for the N12

3) Document any and all moving expenses.

4) Get the realtor Garth mentioned to provide a letter of opinion regarding market rate your rental would command. This will be important if you move into a different sized place/new neighborhood/whatever and need to prove damages.

5) Do everything else Garth said

6) In the event you move out, check in on the place every few months to see if LL’s dad is living there. Keep in mind that if you want to file with the LTB you’d have one year from the date you moved out.

Good luck

#9 n1tro on 07.16.19 at 5:01 pm

#129 Tater on 07.16.19 at 3:39 pm
N1tro- language was a bit loose, apologies. By profitable I mean a profit in excess of the risk free rate.
————-
Food for thought. I currently don’t do any carry trades but will have to look into it.

#10 Tater on 07.16.19 at 5:02 pm

Smokey – go on then, tell us your CAGR, sharpe, Sortino, max drawdown for your strat.

#11 dirtydebtor on 07.16.19 at 5:05 pm

Garth,

you cant deny, it is tough work to be both a renter and guardian to a canine.

The reality is Charlie from Oakville might have to choose between buying a nest or orphaning the canine

#12 Burnaby Boy on 07.16.19 at 5:17 pm

Charlie, Hope you find a place which is tough these days. Judging by the carry on down the street you could probably stay there till you find a place even if it takes tlll Christmas. Watching the carry on down the street I would never rent a house out – not that I have one!

#13 Penny Henny on 07.16.19 at 5:20 pm

Amazon’s on strike?
That’s two typos in one week I had to correct you on.

And where is Emma Zaun?

#14 Swm on 07.16.19 at 5:21 pm

Your landlord is not giving you the legal minimum notice of 90+ days from the end of the last full month. The 90 days would start August 1st. Ask for the N12 form, I think these rules are on it.

First, he should try being cooperative. Fight later. – Garth

#15 mitzerboyakaQueencitykidd on 07.16.19 at 5:38 pm

https://www.thedodo.com/close-to-home/boy-makes-bow-ties-shelter-dogs-new-jersey

Go ahead…. make my day

#16 Mr Canada on 07.16.19 at 5:40 pm

I will give you $100 for the cat…..

#17 hmmm on 07.16.19 at 5:42 pm

@#8 Steeev on 07.16.19 at 4:58 pm
Steps to take regarding your LL evicting you.

1) Document all interaction as best as possible back to when you were provided with notice

2) Ask for the N12

3) Document any and all moving expenses.

4) Get the realtor Garth mentioned to provide a letter of opinion regarding market rate your rental would command. This will be important if you move into a different sized place/new neighborhood/whatever and need to prove damages.

5) Do everything else Garth said

6) In the event you move out, check in on the place every few months to see if LL’s dad is living there. Keep in mind that if you want to file with the LTB you’d have one year from the date you moved out.

Good luck
____________________________________

I can sorta understand why people go the airbnb route instead of long term rental after reading this.
Glad i never got into the landlord game.

#18 Paul on 07.16.19 at 5:43 pm

“My landlord a pretty good guy”
So I gave him some push back and filed n12 form and clipped him for a months rent.

You had a lease the man wants his house back at the END of the lease.
These are some of the reasons I sold my rentals.

#19 SuspiciousMinds on 07.16.19 at 5:45 pm

My wife is a professional squirrel groomer and I shine rocks in the back yard. We have a combined income of 400k and a savings of twice that. She is 23 and I am 19.

What should we do about having to upheave our life for an extra few hundy a month?

Asking for a friend.

#20 Is Charlie Aware Of... on 07.16.19 at 5:46 pm

… his rights as a tenant in BC? In particular, see https://www.straight.com/news/355391/reasonable-doubt-landlords-cant-evict-tenants-without-good-reason-and-notice. If it turns out the landlord was giving a false reason for evicting you, you can claim two month’s worth of rent. Use this to negotiate with the landlord.

#21 jess on 07.16.19 at 5:53 pm

from nouriel roubini on crypto investments
bitmex
https://www.marketwatch.com/story/crypto-is-an-unregulated-casino-where-criminality-runs-riot-2019-07-16?mod=mw_theo_homepage

U.K. Finance Watchdog Proposes Retail Crypto Derivatives Ban

#22 Bobo on 07.16.19 at 5:57 pm

First demand an N12, ignore everything else it is not legal. Second simply don’t move, after 2 months, eventually you may get an eviction hearing date in the mail, probably another month later, then a week before date ask for an extension cause you cant get there that day, presto another month minimum for a new hearing date, then on the hearing date argue why he is doing this ( your opinion) the landlord will be required to present a sworn affidavit that his father is moving in. Then if they still order the eviction date which will be another month later don’t move, fill out an appeal and try and get another hearing date, even if you don’t get another hearing date the sheriff will give you a 2 or 3 week notice on your door eventually. Move one day prior to the sheriff showing up.

This whole process will take around 6 months longer if you get an appeal, all the while you can look for another apartment.

By the way you can also not pay any rent from the moment this starts and probably never end up paying.

I am not saying this is right but it is easily possible under the current Landlord tenant act in Ontario.

Combative. Ignorant. Pointless. – Garth

#23 SoggyShorts on 07.16.19 at 5:57 pm

Charlie don’t forget, Garth rule #?
“Never sign a BRA, or if you must, do it for ONE single address.”

#24 Andrew on 07.16.19 at 5:58 pm

Move to Calgary

#25 OUTLAW RENT CONTROL ALL TOGHETER on 07.16.19 at 6:01 pm

OUTLAW RENT CONTROL ALL TOGHETER, JOBS ARE MARKET VALUE, NO ONE IS CAPPING YOUR SALARY OR LANDLORDS TAXES MAINTENANCE OR MORTGAGE

RESPECT. WAKE UP AND STAND WITH YOUR INTEGRITY

VOTE TO OUTLAW RENT CONTROL IN CONSTITUTION

#26 NoOneOfConsequence on 07.16.19 at 6:02 pm

Hey! You forgot to add your usual “NO BRA” comment.

As in don’t sign a buyers representation agreement…

Yup! I’m a learnin’.

#27 leebow on 07.16.19 at 6:20 pm

There is a constant supply of houses for rent between Mississauga and Burlington for ~2500/mo. Beats buying by a huge margin.

#28 Voting for Andrew Scheer on 07.16.19 at 6:25 pm

DELETED

#29 Out Of Work CEO, Will Travel on 07.16.19 at 6:52 pm

Tell Charlie he can come to London where we have tons of excellent rentals at less than 30% of what Toronto pays. I moved here from the big smoke three years back and every day I say: Thank-you God for Blessing me with a good home I can actually pay for. Oh well, I guess it’s a good thing London is a secret. If the news gets out we would end up being another Toronto. Thank-you Garth

#30 Felix on 07.16.19 at 7:02 pm

More pathetic anti-feline RACISM on display today!

We’re sharpening our claws, don’t worry.

#31 devore on 07.16.19 at 7:09 pm

If the landlord is a straight shooter and down for some realtalk, avoid official process. Chances are it’s just to raise rent by more than allowed amount as you’re far behind market rates. Deal with him man to man to get a deal worked our, keep the government out of it. If the eviction is certain, use legal means to ensure you get everything you’re entitled to, ie, minimum notice period, etc.

#32 Yanniel on 07.16.19 at 7:13 pm

#96 Tater on 07.16.19 at 8:45 am (in response to my comment: https://www.greaterfool.ca/2019/07/15/bid-ask/#comment-659226)

Yanniel:

Do me a favour and go to portfoliovisualizer.com and compare a portfolio of 100% SSO and 100% SPY since 2007 and it should become very clear that while your strategy decrease the max drawdown, it also increases the probability of that drawdown occurring.

And levered ETFs that only go back to 2009 or later, don’t have the performance history you need to see. Since 09, SPY has had a sharpe of 1. Any leveraged strategy will look good.

—–
Tater,

I think you wanted me to compare:

Portfolio 1: 50% SSO + 50% SHY (for a 100% equity exposure given that SSO is leveraged 2:1)

Portfolio 2: 100% SPY

If not, please clarify what you meant.

I’ll refer to the leveraged portfolio in my original comment as:

Portfolio 3: 33.33% UPRO + 66.67 SHY (for a 100% equity exposure given that UPRO is leveraged 3:1)

My opinion:

The combination of the “right” weight for the leveraged position and the right leveraged product (ETF) matters. We know from history than meltdowns of ~50% and above come and go from time to time. These are the outliers (fat tails) I wanted to protect against. Portfolio 1 is not by any means what I had in mind to protect against this. In my opinion Portfolio 3 is better equipped than Portfolio 1 to deal with this kind of risk (I think most people would agree than a 50% loss classifies as a fat tail). Both portfolios are leveraged, but they have different characteristics.

If we had data for UPRO going back to 2007, I think Portfolio 3 would have greatly exceeded Portfolio 1 and Portfolio 2. (this simulation I might be able to try and even go further in time [1])

“and it should become very clear that while your strategy decrease the max drawdown, it also increases the probability of that drawdown occurring.”

That is not my strategy. That’s yours. (My strategy is Portfolio 3, yours is Portfolio 1; they are very different).
You are clearly seeing in Portfolio 1, than in the specific time frame from 2007 to present, the probability of the drawdown increases. That does not have to be the same for Portfolio 3. Actually, that does not have to be the same even for Portfolio 1 if you extend the date range.

How then do you back your claim (“…your strategy … increases the probability of that drawdown occurring.)? Genuinely interested in your opinion, not trying to be a prick.

“And levered ETFs that only go back to 2009 or later, don’t have the performance history you need to see.”

[1] This is pretty unfortunate actually. I got some ideas from this article (https://teddykoker.com/2019/04/backtesting-portfolios-of-leveraged-etfs-in-python-with-backtrader/) to simulate the performance of leveraged ETFs by using plain vanilla ETFs as proxies.

The particular portfolio simulated in that article is beyond anything I would attempt in my wildest dreams (or nightmares), but the underlying programing code and the free software platform used for the back test picked my interest. Wife permitting this will be a side project of mine.

#33 BC Tenant on 07.16.19 at 7:17 pm

I’m looking into the Tenancy Regulations here in BC as my lease (of 2+ years), is coming to an end. There’s no ‘move-out’ clause and I’m looking to renew for another 2-3 years.
What I’m not sure about is whether the landlord can evict us in order to get new tenants with higher rent (which he probably could). From my understanding, he can’t, and if he lies (ie. move in himself or relatives…), he’s subject to fines.
Anyone have a good understanding of this? thx

#34 Hawk on 07.16.19 at 7:22 pm

#14 Swm on 07.16.19 at 5:21 pm

It’s 60 days not 90 days.

#35 Jack Phelps on 07.16.19 at 7:41 pm

I work 2 part-time jobs, 28, 32 hours a week in the restaurant and hospitality industry clearing $900 a week after income taxes, C.P.P. E.I., union dues etc.

My rent, car insurance, food etc. and all expenses is give or take $500 a week. I save currently $400 a week in RRSP’s, TFSA’s fully funded. I have been doing this for over 20 years starting saving at $200 a week to $400 a week now and managed to accumulate $507,560. I just turned 39 years old.

It makes me nuts when my friend spends $600 a month on just smokes and beer. Bad habits are hard to die I guess.

#36 yvrmc on 07.16.19 at 7:42 pm

Wow re #2 Dakkie… just listened to Steve Saretsky YVR RE expert… he said that so far this year data shows that there are 14000 RE agents in and around YVR . Of that number , in 2019 only 4000 agents have made a deal this year , 10,000 have not . Slim pickings in YVR …..

#37 T on 07.16.19 at 7:51 pm

Straight up ask the LL for 3 more months, minimum. I’m sure if his dad is in dire straights for somewhere to sleep he can accommodate him at his own primary residence.

If you don’t get an adequate extension then it’s time to play hardball. Tribunal all the way. Don’t pinch on the rent but definitely go through the tribunal, claim everything you can.

Honestly, it’s sounds very odd a LL needs to free up a residence for their father on such short notice. Very odd. I would sure ask for proof, do some research on the father and his situation, where he lives etc.

Yes, this sounds combative but it’s life and don’t let someone push you around. This is business.

#38 Bill Puffle on 07.16.19 at 8:01 pm

We also have pets… three cats and a German Shepherd.

The place we’re renting now was listed as no pets but they rented to us anyways because we had good credit and jobs. Apparently, there were a lot of people interested in renting our townhouse at the time, but when the realtor asked for credit checks, people either just backed out right then or they had horrible credit.

So first look for places that are pet friendly (they are out there). If you can’t find one, start asking around the non-pet friendly places. Some are desperate for good renters with good credit. You can offer to pay 12 months rent in advance or something like that. You can offer to pay for any damage that your pets cause. Good luck!

#39 Sail away on 07.16.19 at 8:02 pm

#8 Steeev
#14 Swm
#20 Is Charlie Aware Of…
#22 Bobo

———————————-

First of all, the lease is over. That’s the way contracts work. Second… what geniuses decided that requiring owners to take a loss renting their own property at less than market rate makes even the slightest sense? Third, Garth, this post sure flushed out those with an entitled victim mentality.

I suspect the LL won’t rent to Charlie even for more money since Charlie’s shown his willingness to pursue the legal path by asking for the N12 form. The best way to proceed in this type of situation is always to keep an eye on market rates and come to an agreement with the LL ahead of time to avoid all the drama. Just because the government is trying to screw its citizens doesn’t mean you need to do the same.

#40 Sail away on 07.16.19 at 8:08 pm

… and add #31 devore, #33 BC Tenant, and #37 T to my previous post. Bunch of entitled jerks.

#41 BC Tenant on 07.16.19 at 8:16 pm

#40 Sail away on 07.16.19 at 8:08 pm

… and add #31 devore, #33 BC Tenant, and #37 T to my previous post. Bunch of entitled jerks.
++++

Entitled jerk for wanting to play by the rules? You must be seeing your equity shrinking by the day – but that doesn’t entitle you to be a dork!

#42 Spade on 07.16.19 at 8:18 pm

#18 Paul on 07.16.19 at 5:43 pm
“My landlord a pretty good guy”
So I gave him some push back and filed n12 form and clipped him for a months rent.

You had a lease the man wants his house back at the END of the lease.
These are some of the reasons I sold my rentals.

^^^^^^^^^^^^^^^^

‘some’ of the reasons?

First, Charlie is entitled to the free month and the LL know’s it, or maybe is hoping Charlie doesn’t.

Sounds like you were a LL that doesn’t like smart Tenants that know their rights.

And Charlie, if he was REALLY a good guy, he would have been forthcoming about the free month, and even explained all of your entitlements to help you and your family plan for your immediate future.

Charlie’s LL can only replace with another Tenant if his Lease agreement has a fixed end date. Most convert to Month-to-Month at the end of the lease end date. So, sorry Paul, he cannot have his house back just because the Length of the tenancy is over. Only for family use, his own personal use, or for a full demo can he evict Charlie.

Paul, maybe try not to vilify all tenants just because you didn’t like, understand, or respect the rules that protect both Tenant and LL.

#43 T on 07.16.19 at 8:26 pm

#40 Sail away on 07.16.19 at 8:08 pm
… and add #31 devore, #33 BC Tenant, and #37 T to my previous post. Bunch of entitled jerks.

—–

This isn’t about being entitled, it’s about following well documented laws. A lease ending does not equal tenancy termination.

There are reasons why laws exist to protect tenants. You can’t just expect to be able to upend someone’s life on a whim, regardless of a lease ending or not.

#44 penguin on 07.16.19 at 8:37 pm

http://www.rew.ca is far more better for the GTA where you can filter by neighbourhood.

#45 Ace Goodheart on 07.16.19 at 8:38 pm

So, it looks like an interesting and historic currency buying opportunity is developing.

The Canadian Dollar might at some point hit parity again with the US greenback.

When that happens (if it does, or if it gets close) you want to, of course, back up the truck.

This will happen probably around October or November this year, and has a better chance of happening if the Conservatives win the election (which they likely will).

People will be trashing the US dollar, calling it junk, people will be bailing. You want to move into US cash at that point. Buy as much as you can. Then move your US cash holdings into two things: SP500 and Dow Jones.

Then just relax and wait for the fireworks. You will likely be up around 30-40% on your move by summer of 2022.

Cheers!

#46 crossbordershopper on 07.16.19 at 8:44 pm

yes the downside of renting off someone else, or the other view of renting your basement to a stranger.
simply buy a house and live in it, whats with all this number crunching cheaper to rent then buy, long term returns bla bla bla.
be happy and live in a house you want to live in without worrying about some landlord kicking you out due to his financial worries or greed, whats that got to do with you.
70% of canadians own homes for a reason, not because its tax free growth, or leveraged investment, etc. its simple its a cold country, moving is a hassle, and like any animal you want to rest your head every night without too much worries.

#47 Robert Ash on 07.16.19 at 8:45 pm

Sadly this situation, is the result of Government intervention, into the Free Market… for sleazy reasons… like Gasoline and Carbon Taxes… in this case to secure votes, of one voting entity against another smaller group of Small Business people..
My view is to suggest that if Government were out of the picture, then overall rental units would be more readily available, and at Cheaper prices… It takes, Canada, so long to make Development Decisions, in RE, the IMF noted the time considerations, as problematic…

#48 Nonplused on 07.16.19 at 8:51 pm

To be fair to Charlie’s landlord, most marriages end with a lot less notice than that.

#49 Spade on 07.16.19 at 8:52 pm

#33 BC Tenant on 07.16.19 at 7:17 pm
I’m looking into the Tenancy Regulations here in BC as my lease (of 2+ years), is coming to an end. There’s no ‘move-out’ clause and I’m looking to renew for another 2-3 years.
What I’m not sure about is whether the landlord can evict us in order to get new tenants with higher rent (which he probably could). From my understanding, he can’t, and if he lies (ie. move in himself or relatives…), he’s subject to fines.
Anyone have a good understanding of this? thx

^^^^^^^^^^^^^^^^^^^^^^^

As I just educated Paul, your Tenancy agreement will have a start date and an End date. This is the period of time in which BOTH parties agree to honor. The LL is responsible for ensuring you have a place to live for that period of time. And in return, you agree to live there and pay rent for the duration.

It’s what happens after the End Date that matters. You are of course still entitled to live there, but certain events beyond the LL’s control can get you booted. such as LL needing the place for themselves, or for a family member (parent, spouse, or child), or for demo-renovation. reno must be big enough to disrupt living in the unit and must have permits.

There are conditions that occur after the End date. Those check boxes. Make sure you checked the “the tenancy may continue on a month-to-month basis” box, and not the “tenancy ends and the tenant must move out” box.

If the second box is checked, then LL has the option to get new tenants.

If the first box is checked (only one can be checked), then you can draw up a new agreement, but LL might want to negotiate a new rate.

LL is allowed to increase your rent to the maximum allowable once every 12 months, and must give 3 months notice prior to the increase. The 2019 limit is 2.5%.

If LL decides to sell the property, they must do so with you living in it. It’s the BUYER that decides if you will be evicted, not the LL. They cannot evict you while they are listed on the MLS. In fact, they must advertise “property is currently rented”.

Personally, I’d stay Month-to-Month at this point, but expect max. allowable increase notice at some point. Inflation is no one’s friend.

https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/during-a-tenancy/rent-increases

And Sail Away, the lease is not over for Charlie. Sorry dude. Spend some time researching before spouting off. As Garth says… try to keep up.

#50 AA on 07.16.19 at 8:52 pm

I would say the entitled jerks tend to be the landowners who refuse to acknowledge that selling shelter to your fellow humans comes with responsibilities, both moral and legal.

An N12 is not an eviction notice. If you are given an N12, and you have reason to believe it’s being given in bad faith, you can tell the landlord to request a tribunal hearing; it’s not too expensive, it’s generally held within the 60-day notice period, and it’s a perfectly fair thing to ask for. It’s your right as a tenant, and if a landlord doesn’t want to respect tenant rights, they don’t need to be a landlord.

More amicable would be to leave, but keep tabs on the property to ensure good faith. If there’s so much as a whiff of a rental listing within a year of your departure, file a T5 and ask for full compensation. You can be awarded the increased rent you’ve been made to pay, you can be refunded rent from before you left, and the landlord can be fined.

The LTB system is too combative in my opinion. It almost seems designed to pit landlords and tenants against one another, and it certainly doesn’t live up to the lofty “Social Justice Tribunal” name. But it does exist, so there’s no shame in using it to assure something resembling fairness.

#51 Hello Fellow Miscreants on 07.16.19 at 9:05 pm

“House prices are going down, not up, so waiting another year would save you far more than the additional rent. ” – Garth

____________________________________________

Very, very bad advice. Buy. Renting is for suckers.

#52 Al on 07.16.19 at 9:20 pm

If your N12 has a September 1, 2019 termination date it will get tossed out at the LTB. Termination date has to be end of the rental period (e.g. August 31). Use this to bargain with your Landlord

Sheesh. First have a convo and try to extend the tenancy on mutually-agreeable terms. It’s not a war. – Garth

#53 Ponzius Pilatus on 07.16.19 at 9:56 pm

#108 IHCTD9 on 07.16.19 at 10:40 am
#98 dharma bum on 07.16.19 at 8:52 am
#87 Tom Roberts

It looks like my wife is thinking of leaving her $60,000 a year job because after all income taxes, C.P.P, E.I., gas, insurance, car payments etc. she is breaking even maybe losing money to go to work. If she stops working, she will actually save money instead of losing money every month.
——————————————————————-

BINGO!

Give the man a prize. He finally figured it out.
_____

IMHO, in today’s family units, the Women have no choice but to work. You just can’t get anywhere on a single income in Canada. The surplus that dual incomes once provided has been usurped by lifestyle, taxes, RE increases, education increases and many more cost hikes.

I’ve watched a couple of families try to do the stay at home Mom thing, and they have all failed somewhere before 40. Modern life simply demands it – there is no real choice outside of getting somewhere – or going nowhere.

That’s the future, Women today are now just as much a wage slave as Men have always been.
———-
The new President of the EU parliament is a women who before was the Defence Minister of German.
She does all this, while being a mother to 6 kids.
Stop being condescending towards women.

#54 Sail Away on 07.16.19 at 9:59 pm

#41 BC Tenant on 07.16.19 at 8:16 pm
#40 Sail away on 07.16.19 at 8:08 pm

… and add #31 devore, #33 BC Tenant, and #37 T to my previous post. Bunch of entitled jerks.
++++

Entitled jerk for wanting to play by the rules? You must be seeing your equity shrinking by the day – but that doesn’t entitle you to be a dork!

——————————————

No, not for wanting to play by the rules, but for demanding free services and suggesting ways to steal additional free services by bullying and threatening lawsuits. Jerks.

#55 meslippery on 07.16.19 at 10:00 pm

#35 Jack Phelps
It makes me nuts when my friend spends $600 a month on just smokes and beer. Bad habits are hard to die I guess.
——————–

Makes me nuts too. The cost of tobacco and hops and barley we are being gouged big time.
If we could buy these products at a fair price maybe the bars and taverns would be available for the middle class. Think what the real cost of a bottle of beer is.
Then think what is charged at a bar. Gouged is all I can say.

#56 Moh on 07.16.19 at 10:11 pm

Should have bought the new builds in Brampton. Prices were amazing in January. Massive houses for 700k. Just saying.

#57 Ponzius Pilatus on 07.16.19 at 10:12 pm

Just stumbled on the Netflix documentary “Dirty Money”.
Sensationalist, probably.
But, you get the feeling that Mr. Market is not a nice man.

#58 BigAl (Original) on 07.16.19 at 10:15 pm

The example today just shows what I’ve always said: Today’s young people have it way WAY better than all previous. I can’t figure out our governments and media endlessly flogging the “youth unemployment” lie. 28 years old and household income $200K? This is the norm among millenials, not the exception. Employers almost exclusively hire young people. When I was that age in the early 90s the vast majority of 30 year olds had just gotten married, had an average income, and were just a couple of years into their mortgage with little savings. They were low level managers – not executive directors and heads of departments like today. Can everyone please stop telling us how hard today’s youth have it? Really have no sympathy for the 26 year old girl I met recently who was in tears because all of her friends have “broken a hundred” (make over $100K) and she hasn’t yet. Geez.

#59 T on 07.16.19 at 10:16 pm

#54 Sail Away on 07.16.19 at 9:59 pm
#41 BC Tenant on 07.16.19 at 8:16 pm
#40 Sail away on 07.16.19 at 8:08 pm

… and add #31 devore, #33 BC Tenant, and #37 T to my previous post. Bunch of entitled jerks.
++++

Entitled jerk for wanting to play by the rules? You must be seeing your equity shrinking by the day – but that doesn’t entitle you to be a dork!

——————————————

No, not for wanting to play by the rules, but for demanding free services and suggesting ways to steal additional free services by bullying and threatening lawsuits. Jerks.

—–

I never mentioned anything about free services whatsoever.

Pay for what you use, just don’t let some jerk LL push you around. Tribunal doesn’t mean free services, it’s mediation.

You must have had some negative experiences in your past to be so defensive of this unknown LL.

#60 crowdedelevatorfartz on 07.16.19 at 10:18 pm

Charlie! Dont Surf the couch at mom’s!
Git yer butt into rent hunting overdrive and make it work.
If you buy now…
You’ll end up watching housing prices sink like Trudeau’s popularity at a Calgary Oil conference.
Kepp racking up those savings baby!
Retire at 50, put yer stuff in storage, walk from the rental and travel the world.

#61 Yanniel on 07.16.19 at 10:50 pm

I was running the following mental “simulation” trying to guess the outcome. I had a brain blue-screen before finishing:

It all starts with a question: what if Charlie’s landlord is a blog dog that happens to read today’s post?

1.) Charlie’s identity won’t be unknown to the landlord. The lovely pic of the puppy certainly would be like a fingerprint.

2.) Charlie is suspicious that the landlord might be lying about his ulterior motive to vacate the property.

3.) The landlord might not take kindly that Charlie considered the possibility (even if remotely) that he is a liar. It can actually make the landlord go further on the defensive if he is caught in the lie.

4.) Charlie armed himself with powerful advice. There is the business like, non-combative advice and also the Trumpian advice. The landlord, knows this.

5.) Charlie revealed a lot of his financial situation; which will now be known to the landlord as per point 1.

6.) The landlord read my comment.

Blue screen.

#62 Paul on 07.16.19 at 10:51 pm

#42 Spade on 07.16.19 at 8:18 pM
Like I said some of the reasons.

Every contract has a beginning and and grant it if it says x days notice great. If you ever had tenants that trashed your house or didn’t pay rent for months yes months. Then go to the tribunal and stall for more time. You may understand. The government has nationalized the rental housing stock. The developers won’t build apartments like years ago nice size rooms parking. Now they build box Condos slap them up grab the money and move on!

#63 NoName on 07.17.19 at 12:17 am

#53 Ponzius Pilatus on 07.16.19 at 9:56 pm
#108 IHCTD9 on 07.16.19 at 10:40 am
#98 dharma bum on 07.16.19 at 8:52 am
#87 Tom Roberts

It looks like my wife is thinking of leaving her $60,000 a year job because after all income taxes, C.P.P, E.I., gas, insurance, car payments etc. she is breaking even maybe losing money to go to work. If she stops working, she will actually save money instead of losing money every month.
——————————————————————-

BINGO!

Give the man a prize. He finally figured it out.
_____

IMHO, in today’s family units, the Women have no choice but to work. You just can’t get anywhere on a single income in Canada. The surplus that dual incomes once provided has been usurped by lifestyle, taxes, RE increases, education increases and many more cost hikes.

I’ve watched a couple of families try to do the stay at home Mom thing, and they have all failed somewhere before 40. Modern life simply demands it – there is no real choice outside of getting somewhere – or going nowhere.

That’s the future, Women today are now just as much a wage slave as Men have always been.
———-
The new President of the EU parliament is a women who before was the Defence Minister of German.
She does all this, while being a mother to 6 kids.
Stop being condescending towards women.

Did she do all that on 40k a year?

#64 Smoking Man on 07.17.19 at 2:32 am

When a teacher says bring me an apple , do your home work or else.

Well if you listen you will never own a lear jet.

Rebals make all the money. Teachers pets become Govt workers.

It’s all about risk taken. And when a govt desides to punish risk takers you leave.

God Bless Trumps America. Enjoy a T2 and green party you have no idea the pain they will bring to the fools that vote for them.

I’ll send you a post card from Vegas.

#65 Smoking Man on 07.17.19 at 2:58 am

Hey James.

So you’re running your dads company , what risks have you taken you little spoiled child.

You are going to run it into the ground. Because you dont understand risk .

Hope your dad fires you ,and let’s little sister fix what your killing.

I am the Smoking Man and I can.

Cant isn’t in my vocabulary.

#66 Dolce Vita on 07.17.19 at 4:24 am

Great cover all your bases advice Garth.

————————————-

Sorry Garth, off topic here and about the far left biased Cdn and US MSM, again.

Since news from the US about Migrant housing at the Mexican border all the rage with the Far Left dominated US and CDN MSM, here is something that seems to have escaped their WATCHFUL SELECTIVE EYES about their darling MACRON in France and his treatment of MIGRANTS (from Center Right “Il Giornale” in Italia, right click, Translate to English):

“This is how the feel-good Macron treats the migrants: locked up without food or water”

http://www.ilgiornale.it/news/cronache/cos-buonista-macron-tratta-i-migranti-rinchiusi-senza-cibo-n-1727792.html

…imagine if Trump had done that.

Oh yes, Macron has closed all French ports since his inception to NGO’s, yet criticizes Italia for doing the same thing the past year.

What a 2 faced person Macron is.

Why more of Le Penn’s far right candidates got elected in the recent EU election than Macron’s…YET another story NOT REPORTED by the Far Left Cdn or US MSM.

What $600 MM for the Cdn. MSM buys you in Canada:

“report no evil, report no evil, report no evil”.

…well, “evil” to the far left.

#67 Nameless on 07.17.19 at 6:45 am

And remember – don’t sigh a BRA if working with a real estate agent!

#68 Captain Uppa on 07.17.19 at 6:51 am

GTA sales up 19% YOY in first half of July.

In a few years the “sting” of 2017 will be forgotten and the bears will have nothing left to compare to.

Buy a house Charlie, you can afford it.

#69 expat on 07.17.19 at 7:15 am

You can see why we sold all of our rentals. Entitled renters were all that was left in the renter pool.

AirBNB is growing for a reason.

#70 expat on 07.17.19 at 7:18 am

Bank of Canada is buying back 500 million in bonds. No details just an announcement in the media.

Hmm

#71 fathersdaughter on 07.17.19 at 7:49 am

Well after years of my Dad @bezengy hounding me to read this blog, I’ve finally given in and it’s part of my nightly routine. It makes for some good back and forth. Long-term renters in TO who moved into a house rental in Bloor West after having a baby. Previously owner occupied, so we have no idea when we might be given a notice that they wish to return. Plan is that we would find a new rental. Baby won’t care. We live knowing that we could be uprooted from our “shelter” (thanks Garth it makes us less attached) any day, but also knowing that we could pack up and leave on our own wishes too when the place no longer serves us.
Thanks Garth for the insight and wisdom. #happyrenters (sorry..Millenials have to hashtag everything)

#72 fathersdaughter on 07.17.19 at 7:49 am

Well after years of my Dad @bezengy hounding me to read this blog, I’ve finally given in and it’s part of my nightly routine. It makes for some good back and forth. Long-term renters in TO who moved into a house rental in Bloor West after having a baby. Previously owner occupied, so we have no idea when we might be given a notice that they wish to return. Plan is that we would find a new rental. Baby won’t care. We live knowing that we could be uprooted from our “shelter” (thanks Garth it makes us less attached) any day, but also knowing that we could pack up and leave on our own wishes too when the place no longer serves us.
Thanks Garth for the insight and wisdom. #happyrenters (sorry..couldn’t help it I’m a millennial)

#73 Tater on 07.17.19 at 7:51 am

Yanniel – no, I meant 100% in SSO and 100% in SPY. Look at the CAGR for bothering and the max drawdown. Then think about the implication for the strategy you propose vs just buying on margin.

#74 Justin S on 07.17.19 at 8:06 am

Good advice as always Garth.

Thank you for this blog!

#75 SimplyPut7 on 07.17.19 at 8:10 am

Unfortunately, I would still rent.

The problem is anything they buy now will depreciate in value and I think they would rather not be in a situation like Vancouver buyers from 2015-2016 when prices were extremely high and then dropped over 30% to 40%, 4 years later.

I know it sucks renting crappy places when you make that amount of money, but as the thousands of condo investors need financing over the next several years and sell real estate investments to pay for their purchases, you will probably get a better deal in 2020 or 2021 compared to the overpriced crap on the market today from sellers who think it’s still March 2017 in the GTA.

The GTA is littered with empty homes from greedy investors hoping for prices to go back up so they can breakeven on their investments and get out of the housing market before the real crash takes place.

Just wait, your dream home is closer than you think

#76 dharma bum on 07.17.19 at 8:16 am

You can always sell the cat, of course, and prosper more.
– Garth
——————————————————————–

Sell the dog too.

Individuals with unstable living situations should not own pets. It’s irresponsible.

Tenants (aka renters) are, by definition, not in control of their own shelter. Therefore, they are in an unstable situation.

Once you know where you stand, and are in control, then you can have pets.

#77 Ponzius Pilatus on 07.17.19 at 8:42 am

#63 NoName on 07.17.19 at 12:17 am
#53 Ponzius Pilatus on 07.16.19 at 9:56 pm
#108 IHCTD9 on 07.16.19 at 10:40 am
#98 dharma bum on 07.16.19 at 8:52 am
#87 Tom Roberts

It looks like my wife is thinking of leaving her $60,000 a year job because after all income taxes, C.P.P, E.I., gas, insurance, car payments etc. she is breaking even maybe losing money to go to work. If she stops working, she will actually save money instead of losing money every month.
——————————————————————-

BINGO!

Give the man a prize. He finally figured it out.
_____

IMHO, in today’s family units, the Women have no choice but to work. You just can’t get anywhere on a single income in Canada. The surplus that dual incomes once provided has been usurped by lifestyle, taxes, RE increases, education increases and many more cost hikes.

I’ve watched a couple of families try to do the stay at home Mom thing, and they have all failed somewhere before 40. Modern life simply demands it – there is no real choice outside of getting somewhere – or going nowhere.

That’s the future, Women today are now just as much a wage slave as Men have always been.
———-
The new President of the EU parliament is a women who before was the Defence Minister of German.
She does all this, while being a mother to 6 kids.
Stop being condescending towards women.

Did she do all that on 40k a year?
————
Germany has very generous child benefits.
Trivia question: which German party first introduced family allowance?

#78 right on 07.17.19 at 8:44 am

@#40 Sail away on 07.16.19 at 8:08 pm
… and add #31 devore, #33 BC Tenant, and #37 T to my previous post. Bunch of entitled jerks.
________________

yup

#79 Ponzius Pilatus on 07.17.19 at 8:49 am

#75 dharma bum on 07.17.19 at 8:16 am
You can always sell the cat, of course, and prosper more.
– Garth
——————————————————————–

Sell the dog too.

Individuals with unstable living situations should not own pets. It’s irresponsible.

Tenants (aka renters) are, by definition, not in control of their own shelter. Therefore, they are in an unstable situation.

Once you know where you stand, and are in control, then you can have pets.
——–
You ever heard of the band “Three Dog Night”?
And do you know where the name comes from?

#80 Tater on 07.17.19 at 9:02 am

More for Yanniel:

The idea that you are increasing the probability of having the max drawdown comes from a couple things. The underlying asset has a 50% max drawdown. Levered 3x it’s a certainty that you go broke.

Levered funds can’t go broke, but they are still trying to replicate a strategy that does. To do that they are selling volatility. When volatility ramps, the levered etf underperforms. This is a drag on the returns. Put another way, by chopping off the scenarios where a margined etf would go broke, you plump up the left hand side of the returns distribution

As for the simulation, seems that guy is using 0 for the risk free rate, which would be wrong (python not my thing, so I could be missing something here).

If you back test 40% spy and 60% tlt, you get a CAGR of 8.5% and a draw down of 16%. Lever that 3x in a margin account and it will outperform the leveraged etf portfolio I expect (tough to be sure with out knowing margin rates)

#81 Keyboard Smasher on 07.17.19 at 9:23 am

Hey look, more Millennials with half a million dollars in liquid wealth!

How are the statistics collected so wrong when every Millennial that writes to this blog is nearly 7 figures in net worth?

#82 Residential tenancy act in Ontario on 07.17.19 at 9:52 am

There’s no provision in the residential tennacy act to allow for an above market increase like what you’re suggesting Garth… The tenant can pay that extra $600/m and then sue back for it later.
I couldn’t trust a tenant with something like this. Not worth it. Move the dad in, wait 12 months and then get that sweet market rent.

#83 Yanniel on 07.17.19 at 10:08 am

#72 Tater on 07.17.19 at 7:51 am

Yanniel – no, I meant 100% in SSO and 100% in SPY. Look at the CAGR for bothering and the max drawdown. Then think about the implication for the strategy you propose vs just buying on margin.

——————————————————

I think I get your point now. Which means I grossly misunderstood you before. Thanks for coming back with feedback.

“it also increases the probability of that drawdown occurring.” This is the point where I interpreted things wrongly.

With leveraged ETFs we are most likely to reach the point of the drawdowns. The more leveraged the product, the more likely we are to reach that point. Did I get it right this time?

This idea crossed my mind before, but I was not able to articulate it or otherwise frame it in my head. I appreciate you helping me out.

It crossed my mind when I was thinking about products like “SG S&P x5 Daily Long (SG92 LN)” in the UK.

I was thinking about a portfolio with 90% treasury bills + 10% SG92 (with a 100% exposure to equities). I said, yeah, 90% in the safe stuff, 100% exposure to the upside. But then, how robust is this thing I though? A simple 10% correction would cause the leveraged fund to implode.

I don’t know to be honest how problematic this is. These products go almost to zero, but never to zero by design. From the perspective of a portfolio which a huge allocation to the safe stuff, you will see a 10% drop and keep going after rebalancing.

I have been thinking to back test all this to get a better understanding of it. But yeah, I hit the wall with the lack of data for leveraged products.

The margin perspective: let me think about it for a day or two. What I see at this time is that with margin your leverage will dilute as time passes and the market goes up. Unless you borrow some more. Nothing wrong or right with it. It just is.

I also see that margin can’t be used in say an RRSP, but a leverage ETF could be used. (yeah, let’s be careful with how we trade in our registered accounts. The CRA won’t let abuse pass)

Tater, if after all this I got it wrong again, please, be kind and let me know. Thanks.

#84 IHCTD9 on 07.17.19 at 10:14 am

#53 Ponzius Pilatus on 07.16.19 at 9:56 pm

The new President of the EU parliament is a women who before was the Defence Minister of German.
She does all this, while being a mother to 6 kids.
Stop being condescending towards women.
___

Hi Ponzie!

I make a post about how Women should be working while raising kids.

You reply with a story about a Woman who is working while raising kids…

…and tell me to stop being condescending towards women.

Help me out here buddy…

#85 Yanniel on 07.17.19 at 10:21 am

#75 dharma bum on 07.17.19 at 8:16 am

You can always sell the cat, of course, and prosper more.
– Garth
——————————————————————–

Sell the dog too.

Individuals with unstable living situations should not own pets. It’s irresponsible.

Tenants (aka renters) are, by definition, not in control of their own shelter. Therefore, they are in an unstable situation.

Once you know where you stand, and are in control, then you can have pets.

—–

Can renters have kids in your world?

#86 IHCTD9 on 07.17.19 at 10:27 am

#55 meslippery on 07.16.19 at 10:00 pm

Makes me nuts too. The cost of tobacco and hops and barley we are being gouged big time.
If we could buy these products at a fair price maybe the bars and taverns would be available for the middle class. Think what the real cost of a bottle of beer is.
Then think what is charged at a bar. Gouged is all I can say.
___

Smokes at the corner store – 15.00/pack
Smokes on the Rez – $5.00/pack

26’er of standard issue white rum at the LC – 28.50
26’er of same rum at any US Walmart – 10.98

I can’t wait till the natives on the rez start making their own beer/spirits…

#87 Yanniel on 07.17.19 at 10:35 am

#79 Tater on 07.17.19 at 9:02 am

“When volatility ramps, the levered etf underperforms.”

Does this tell the whole story though? In trending markets, either up or down, wouldn’t the leverage ETF outperform the alternative leveraged portfolio that uses margin.

“As for the simulation, seems that guy is using 0 for the risk free rate, which would be wrong (python not my thing, so I could be missing something here).” Tater

I can help with that. The guy is assuming these MERs in the simulation: TMF: 1.09% and UPRO: 0.92%. See:

upro_sim = sim_leverage(vfinx, leverage=3.0, expense_ratio=0.0092).to_frame(“close”)
tmf_sim = sim_leverage(vustx, leverage=3.0, expense_ratio=0.0109).to_frame(“close”)

#88 Mattl on 07.17.19 at 10:37 am

28 with some money saved for a DP, good income that will only grow and a market that has quite a bit of inventory and some good deals + cheap rates = a pretty good time to consider buying.

As long as he buys something he can afford, will be mortgage free by 50. Save an additional 20K per year and he will be set.

#89 IHCTD9 on 07.17.19 at 10:47 am

#56 Moh on 07.16.19 at 10:11 pm

Should have bought the new builds in Brampton. Prices were amazing in January. Massive houses for 700k. Just saying.
___

Why would anyone buy a massive house in Brampton for 700K?

#90 IHCTD9 on 07.17.19 at 11:00 am

Charlie and S/O could probably buy. Their nest egg is well on the way – 360K at 5% 30 to 65 years old is about 2 mil – that should be enough.

Both of them should have a good look at their job security though. Few will get to 40 without losing at least 1 good job – and the big dollar jobs get chopped first. I made it to 38 before I had to start over.

Last thing you want is to be under a big mortgage payment (perhaps one that’s underwater too) and then lose half your income.

#91 NoName on 07.17.19 at 11:24 am

#76 Ponzius Pilatus on 07.17.19 at 8:42 am
#63 NoName on 07.17.19 at 12:17 am
#53 Ponzius Pilatus on 07.16.19 at 9:56 pm
#108 IHCTD9 on 07.16.19 at 10:40 am
#98 dharma bum on 07.16.19 at 8:52 am
#87 Tom Roberts

It looks like my wife is thinking of leaving her $60,000 a year job because after all income taxes, C.P.P, E.I., gas, insurance, car payments etc. she is breaking even maybe losing money to go to work. If she stops working, she will actually save money instead of losing money every month.
——————————————————————-

BINGO!

Give the man a prize. He finally figured it out.
_____

IMHO, in today’s family units, the Women have no choice but to work. You just can’t get anywhere on a single income in Canada. The surplus that dual incomes once provided has been usurped by lifestyle, taxes, RE increases, education increases and many more cost hikes.

I’ve watched a couple of families try to do the stay at home Mom thing, and they have all failed somewhere before 40. Modern life simply demands it – there is no real choice outside of getting somewhere – or going nowhere.

That’s the future, Women today are now just as much a wage slave as Men have always been.
———-
The new President of the EU parliament is a women who before was the Defence Minister of German.
She does all this, while being a mother to 6 kids.
Stop being condescending towards women.

Did she do all that on 40k a year?
————
Germany has very generous child benefits.
Trivia question: which German party first introduced family allowance?

—-

dont know/dont have an correct answer.

Here is a thing, going rate for baby sitting in germany is low 5 to 8.5 euro (minijob vs job) (7-12cad) per hour, with 250ish of subsidy per kid per month, now compare that to mine ccb of 11.53 per kid per month, and ontario min wage of 14. (min wage in ger 8.5eu).

Mine situation is unique, we receive 11-something per kid per month, from government because of family income. I have 13yro with disability (yes i do get disability credit tax time), but also his disability savings grants is reduced because of family income. Like invers square formula, as income increases, childs disability decrises…

Son needs 100% time supervision, because he is like dad, not 100% upstairs, non verbal for the most part, but luckily he understand, so he cant be left alone. Depending on a shifts overlaps, on a good month it cost me 500 for sitting on a bad month twice as much, relatively cheap comparing to racket of daycare, plys lady that help us, often she’ll cooks for us when she is here, tells me, she is bored, so that is why she does it, so we do get super extra value for cheap.

Ok, here is a kicker every year i leave on a table anywhere between 40-80k. My wife maybe 20-30k. Just to compare my self to dudes i work with, so far, one made 50% more and second twice as much as i did.
I know this weary unique for my situation but, im sure that many can relate to same problem.

Here is a thing, i have a causen in northeren germany in similar situation, amount of help and services that she gets from government is unbelievable for our standard, plus german government doesnt run deficit year over year will all that. Imagine that?

Under no circumstances we can compare our self to germans. https://bit.ly/2JDIrE7

#92 Darren on 07.17.19 at 11:28 am

July Mid-Month GTA Home Sales Shaping Up to Be Slower Than June: Report

https://www.zoocasa.com/blog/july-mid-month-gta-home-sales-slower-than-june/

#93 Howard on 07.17.19 at 11:29 am

DELETED

#94 Coastal Zapper on 07.17.19 at 11:31 am

Homeless

Reading the comment section it should be clear to all why VRBO and AirBNB have become so popular to landlords.

Garth is right, don’t be combative (Le Tour), try to work things out and have your conversation about continuing to rent face to face, not over the phone or with emails. It will be much harder for him to continue a lie if his father is really not involved.

Did you have pets when you moved in or after moving in? If I was the landlord that would piss me off too. If so, include this in your face to face and apologize but offer to add a damage clause moving forward and expect to pay for some flooring to be replaced when you finally do move out ($5000-$15000 can be expected).

When I built a carriage house I put it on VRBO, 1) to keep it in perfect condition when it came time to sell. 2) to make more money. 3) to not have to deal with the LTA, in BC it’s a nightmare, renter has all the rights.

Listen to all of what Garth has said, excellent advise.

#95 James on 07.17.19 at 11:42 am

#65 Smoking Man on 07.17.19 at 2:58 am

Hey James.
So you’re running your dads company , what risks have you taken you little spoiled child.
You are going to run it into the ground. Because you dont understand risk .
Hope your dad fires you ,and let’s little sister fix what your killing.
I am the Smoking Man and I can.
Cant isn’t in my vocabulary.
___________________________________________
Where did I say that I was running my fathers company Old Man? My father is in the medical field and I am not!

Risk in business is the exposure an organization has to the dynamics that will reduce its profits or cause it to miscarry. I have minimized our exposures that threaten our company’s ability to achieve our financial goals. Every company must put in place a risk management strategy. We are successful and profitable and that is why I run a company not due to Daddy you benighted also-ran. In university we learned how to mitigate and work with risk so I’m quite familiar with it. You Old Man are a unenlightened risk taker and have not adopted a risk management strategy just by the fact that you smoke gregariously and imbibe copious quantities of alcohol. This lack of a plan will be your undoing. What is the purpose in life of creating huge amounts of money if your future uncharted and full of risk?

Huh, can’t is not in your vocabulary along with most other intelligent words?

#96 Ronaldo on 07.17.19 at 11:45 am

#93 Coastal Zapper

When I built a carriage house I put it on VRBO, 1) to keep it in perfect condition when it came time to sell. 2) to make more money. 3) to not have to deal with the LTA, in BC it’s a nightmare, renter has all the rights.
—————————————————————-
Just curious, what percentage of the sales value was exluded from the tax free capital gains because of the carriage house and was it really worth the effort to build it?

#97 Damifino on 07.17.19 at 11:46 am

When we rented in YVR 8 years ago there was a very strict no pets rule. The manager admitted to us there were already 6 dogs and several cats in the 39-unit building (due to an earlier, more permissive policy), but they were now ‘grandfathered’ in.

They made it clear to us: no more animals. Period.

Eight years later, some of those original animals have gone to their rewards. They’ve all been replaced. In the meantime, lots of new ones have arrived. The reason is simple. Management simply can’t fill the suites if pets are not allowed. Tells you something.

#98 Sail away on 07.17.19 at 11:52 am

If there’s ever been a case for AirBNB or investing instead of standard rental, it’s been shown with this post.

Who would ever choose to place themselves in an unfair compulsory contract that’s been mandated without recourse and is enforced with your own tax dollars to the overwhelming benefit of the other party?

Buy an REIT and be done with it.

Add these factors to the AirBNB debate.

#99 Hogtown Harry on 07.17.19 at 11:59 am

#94 James

“…Huh, can’t is not in your vocabulary along with most other intelligent words?”

Your retorts to poor ol Smoking Man are a scream! He is a glutton for punishment and is to dim witted to realize you are having a veritable field day with him. Keep up the retorts senor, you are giving me some great belly laughs!

#100 Hogtown Harry on 07.17.19 at 12:06 pm

#88 IHCTD9 on 07.17.19 at 10:47 am
#56 Moh on 07.16.19 at 10:11 pm

Should have bought the new builds in Brampton. Prices were amazing in January. Massive houses for 700k. Just saying.
___
Why would anyone buy a massive house in Brampton for 700K?

Your ignorance of the GTA is quite startling. How about a 700k massive home in Brampton being a hell of a better deal than the same amount for a shoe box condo in downtown Toronto? The fact that Brampton is a Go ride away from downtown Toronto for $9.95. Those 700k homes were a steal!

#101 IHCTD9 on 07.17.19 at 12:23 pm

#99 Hogtown Harry on 07.17.19 at 12:06 pm
#88 IHCTD9 on 07.17.19 at 10:47 am
#56 Moh on 07.16.19 at 10:11 pm

Should have bought the new builds in Brampton. Prices were amazing in January. Massive houses for 700k. Just saying.
___
Why would anyone buy a massive house in Brampton for 700K?

Your ignorance of the GTA is quite startling. How about a 700k massive home in Brampton being a hell of a better deal than the same amount for a shoe box condo in downtown Toronto? The fact that Brampton is a Go ride away from downtown Toronto for $9.95. Those 700k homes were a steal!
____

Well Mr. Harry, then why are those massive homes in Brampton such a steal if things are so horrible in downtown Toronto?

Shouldn’t they going for a lot more?

#102 Rupie In Vic on 07.17.19 at 12:29 pm

I find it very disturbing that so many answers for Charlie are to ‘be combative’. Is this where we are going with a society?! I mean, even the bank will negotiate with you if you find yourself in dire straights in regards to housing. But to suggest that a tenant needs to go balls to the wall and fight the landlord on everything and not pay and be an ass is just the wrong mentality.

The right answer is to have an adult conversation with the landlord, like Garth said, and find out his motivation. Maybe his father really needs the place. After all, it is the end of your lease and he can end it, albeit following the proper protocol. This arrangement could have been in the works for months, you have no idea as the landlord does not share his personal life with you.
If he really is wanting to get higher rent then offer it to him! Ask him if he is noticing that market rents are higher than what you are paying and offer to bring it more than the prescribed amount. This could save both parties a huge headache and all the expense of moving and the lot. I mean, if he’s a nice and reasonable guy and you’ve been a good tenant then there should be no issue here. Plus the rent is still most likely cheaper than buying that house!

I think more people need to learn to how to negotiate or at least be able to have adult conversations with people that end up in a mutual benefit for both instead of thinking me vs you. After all the landlord owns the house, is he not allowed to somewhat dictate his options following the draconian tenancy law?

We’re losing our minds. Renting instead of buying gives you more flexibility and the trade off is you could be forced to move. That’s the way it works. You can buy, have less flexibility but more stability and that’s another choice but it seems that most people, renters, want to have it every which way and howl to the moon when its not going their way.

House lust is brutal. No more evident than here in Victoria where I never heard the end of why I’m renting. Oh really so I should just buy the 1.5 mill house I’m renting for 3k instead? With no suite and 10 percent down and pay triple the amount per month so I can have stability? Please people…

#103 IHCTD9 on 07.17.19 at 12:30 pm

#96 Damifino on 07.17.19 at 11:46 am
When we rented in YVR 8 years ago there was a very strict no pets rule. The manager admitted to us there were already 6 dogs and several cats in the 39-unit building (due to an earlier, more permissive policy), but they were now ‘grandfathered’ in.

They made it clear to us: no more animals. Period.

Eight years later, some of those original animals have gone to their rewards. They’ve all been replaced. In the meantime, lots of new ones have arrived. The reason is simple. Management simply can’t fill the suites if pets are not allowed. Tells you something.
____

I’ll bet pet owners are a lot better these days too. When I was a kid, the pets lived outside, weren’t fixed, were infested with ticks and lice, were not house trained, and were dirty, very dirty.

They might be letting it slide because there are no real repercussions for doing so.

But you are right in that it seems everyone has a pet these days (expensive ones too).

#104 JonBoy on 07.17.19 at 12:33 pm

#4 IHCTD9 on 07.16.19 at 4:27 pm

Kudos if so, but if you:

1. Live comfortably
2. Save and invest adequately for retirement
3. Have owned a house
4. Have raise 3-4+ kids.

Then your income is like 6-7X the Canadian single earner median MINIMUM, and at least DOUBLE the Canadian Median household income. Being frugal doesn’t cut it doing 1-4 above when you’re making 60K, that’s just a fact.

I know there is a lot of pride in the old live simply (I preach it from the rooftops myself), and frugally – but this is Canada and it’s 2019. 60K does not do 1-4 – no matter what. I’m not going to lie to myself or anyone else.

———-

I think what you forget is if you progressively raise your wage (by promotion/experience/leveraged employer changes) but don’t expand your lifestyle, it’s amazing how much you can make ends meet on a single salary.

My kids are 16, 10, 4 and one yet to be born. My wife doesn’t need new shoes or clothes every month and we drive a 10 year old and 9 year old vehicle with a total mileage between them of over 550K kms! Hondas last forever if you properly maintain them…

Living in Texas allowed for moderately high wages with low costs of living, which gave us a nice early nest egg for retirement (great company benefits and 401(k) match). I made about $85K/year there, with a house that cost $133K, but I started at $37K/year (!) and it took me six years to get to $85K/year.

Living in Alberta was also moderately low cost but with high wages, which again allowed for home ownership and excellent retirement planning. My retirement plans all returned roughly 10% annual gains in the last nine years, which is HUGE for retirement. I made up to $150K/year there in a house that was under $400K.

Living in the Lower Mainland, we eschewed purchasing a home (thanks to Garth’s advice) so as not to tie up so much of our take-home income. That allows us to save properly and reduce our monthly expenses. I’ll be 40 this year, so I still have quite a bit of time left until I retire.

My salary now is about $150K a year and I generally get a bonus of between $10K and $30K, depending on how things go in the year. That’s a chunk of cash, sure, but I also get taxed a lot. I’ve been using my excess RRSP room to reduce that as much as possible, as in the early years, we didn’t necessarily use all of our RRSP room (like I said, it isn’t easy – it requires a commitment).

Let me blow your mind a little bit more: I give 8-10% (roughly) of my GROSS income to non-profit organizations every year as well. Not exactly sound financial acumen for most people but I’m a firm believer that to whom much is given, much is required. We also support my parents-in-law significantly through the year (financially).

I’m in the engineering field, I’ve worked hard, I’ve been blessed and I’ve stayed with a simple lifestyle through it all. I have a wife that supports that idea and therefore, we make it work.

So go back to my original point: choose the right career, make the sacrifice to do so (sacrifice early to gain in the long run), commit to living simply and trust that you’ll be (at least) average and therefore end up with $100K+ a year within 10 years, and thus have a moderately comfortable lifestyle with your family all around you.

I realize not everyone can be an engineer, doctor, etc, but there are tons of people I know in the trades that make at least $100K a year with hard work and commitment to their craft. You don’t have to be a mental giant to work hard. Friends of mine that make this work for them (ie, they work – their wife stays home) include linemen, electricians, drywallers and carpenters/handymen and salesmen.

You can also gain by leveraging the knowledge of those that are specialized in certain areas. I’m here to learn from Garth because he’s specialized in an area that I am not AND he’s free (at least on the blog). Having good mentors (or paying for good advice) is usually a sound strategy.

#105 I'm A Believer on 07.17.19 at 12:46 pm

LL in my apartment building pulled same stunt a year ago. Went to LTB with mother in tears said she lost her home and needed the apartment. LTB granted eviction of tenants who had been living there for 14 years.

LL put blinds on all windows, kept them closed, put lights and radio on timers to make it seem someone was living. NOT. Myself nor other tenants have ever seen the mother come in or out of the apartment in almost a year. We all know the apartment is vacant.

LL is now renovating apartment to put it on the market.
LTB allows this to go on? Why?

We are now the lowest rent in the building and think LL will target us next.

You sound like a good reason never to become a landlord. – Garth

#106 Sail away on 07.17.19 at 1:14 pm

#101 Rupie In Vic on 07.17.19 at 12:29 pm

Great response

#107 Sail away on 07.17.19 at 1:21 pm

#104 I’m A Believer on 07.17.19 at 12:46 pm

LL in my apartment building pulled same stunt a year ago. Went to LTB with mother in tears said she lost her home and needed the apartment. LTB granted eviction of tenants who had been living there for 14 years.
LL put blinds on all windows, kept them closed, put lights and radio on timers to make it seem someone was living. NOT. Myself nor other tenants have ever seen the mother come in or out of the apartment in almost a year. We all know the apartment is vacant.
LL is now renovating apartment to put it on the market.
LTB allows this to go on? Why?

We are now the lowest rent in the building and think LL will target us next.

——————————————
You sound like a good reason never to become a landlord. – Garth
——————————————

I’ll pretend to be his brother if he needs to get rid of you in order to get market rate for the unit. Us capitalists need to stick together.

…or you could just talk to him and volunteer for a fair rate. But that might not fit your ideology.

#108 Tater on 07.17.19 at 1:44 pm

Yanniel:

Yes, I saw the MERs, and that’s fine. But I’m talking about the risk free rate used in the Sharpe calculation. You could set it to 0 for the last couple years, arguably, but it wouldn’t be appropriate for the 80’s, 90’s or 00’s.

The levered ETF approaches the 2x return when the sharpe ratio of the underlying is higher. Over 1, ideally. Historically the Sharpe for the SPY is .5.

If you compare SSO and SPY from 2007 to now, you see SPY returned 8% and SSO only 10%. And that’s with SPY having a typical Sharpe of 0.55.

#109 IHCTD9 on 07.17.19 at 1:55 pm

#103 JonBoy on 07.17.19 at 12:33 pm
___

Your income is over 5X the median single income in Canada. In fact, you make more than double the median HOUSEHOLD income in Canada. If you get a 30K bonus this year, you are only ~10K short of being a 1%’er in Canada. You are likely a 2%’er most years.

That is why you’ve been able to pull this off. Plus you have earned well in low cost of living areas for a long time, and made a good chunk of your wages in USD to boot. You’ve done well, made good decisions, and had a bit of good luck as icing on the cake.

While I admire your accomplishments – you have to realize that your situation is not typical. 97-98% of Canadians make less than you do. If you made 50-60K, I’ve got a hunch the wife would be out looking for a job. If you made the median of ~34K or so – she’d have no choice about it. Half of all Canadians make even less than this.

I understand frugality and good decision making are game changers (I am big fans of these), but once your income drops to a certain level – that is the end of the road for improvements gained from lifestyle choices.

There is just no way that stay-at-home motherhood is anywhere near doable for the vast majority of working stiffs trying to raise a family in Canada.

#110 Hogtown Harry on 07.17.19 at 2:01 pm

#100 IHCTD9 on 07.17.19 at 12:23 pm

“Well Mr. Harry, then why are those massive homes in Brampton such a steal if things are so horrible in downtown Toronto? Shouldn’t they going for a lot more?”

That is my point. They were a steal and taking only the blogger’s word for the price, they were a great price. What is horrible is condo pricing in downtown Toronto, the downtown itself is fabulous hence, the pricing. Also forgot to mention the main thrust of my argument was a response to your comment on why would anyone pay $700k for a massive home in Brampton. Aside from the Go transit taking you to downtown TO for $9.95 you have Mississauga joining Brampton with its industry and jobs. Such lightweights as Amazon, Microsoft, several large pharmaceuticals to name only a few industries that reside in Mississauga and north Mississauga to boot which borders Brampton. Brampton itself is also home to industry. Doesn’t your comment seem silly now?

#111 Marco on 07.17.19 at 2:04 pm

Well, illiterate people came to Turdonto long time ago.
A lot of jobs then. So they bought real estate and rent it to those who came latter. They are rich, they hate literate people and they vote for Dog or something like that.
See for them this is the beast country in the world.
Any other place they could work according to their qualifications. Like goat herders maybe….

#112 Marco on 07.17.19 at 2:08 pm

And you who are exposed to that dirty black mail of illiterates…. Just wait, time is on your side. You’ll buy it cheap enough, you’ll be landlords.

#113 entropy on 07.17.19 at 2:35 pm

With those supposed savings at 30…why on earth would you buy into the market right now?

Keep doing what you are doing. You’re better off than 99% people out there.

#114 Mattl on 07.17.19 at 2:42 pm

This post has convinced me it sucks to be a landlord AND a renter.

Can’t imagine having to uproot with only 90 days notice, and fighting to evict a renter with way to much time sounds like a nightmare.

#115 Ace Goodheart on 07.17.19 at 2:45 pm

From the looks of it, anyone who wants to purchase a house right now is facing a buyer’s market.

You have a number of factors which are favouring buyers over sellers. You have price depression, which has put people under water. There was rampant speculation during a bubble period, which means that people who bought more than one house during the upswing are now trying to unload those houses.

It seems no one is speculating anymore. People are dumping their residential real estate holdings.

You have interest rates at a historic low, combined with a “mortgage stress test” that is holding many people out of the market artificially, creating a “demand hole” for mid level housing. If you have the money and the credit to pass the “stress test” you can get incredibly cheap mortgages right now.

Banks are hurting. They want to lend out money. But again, the stress test has cratered their markets . Many of the people who they would have loaned to, cannot pass the “stress test”. So when you go and sit down with a few banks and talk mortgage, you will find yourself in the unbelievable situation that the banks will be competing with each other to get your business. You can bargain for a better interest rate. This is a once in a lifetime, for sure.

You have housing which is currently artificially cheap. Price depression is being caused by government policy. That house you want to buy is actually worth more than you are going to pay for it. The governments have depressed prices. This will likely not happen again in our lifetimes.

You can bid under asking right now. Again, insane right? Have a look on bungol.ca. Houses are consistently going under asking, with single bids. This process usually involves the seller setting a price, and then waiting. They get a lot of walk throughs, and maybe they set an offer night, but then crickets. No action.

So you come along and low ball them. Their realtor tells you, time to negotiate. So you go back and forth for a few weeks. Eventually, you settle on an under asking price, after the seller panics and decides they need you more than you need them (which is true, they do).

These conditions are historic. if there was ever a right time to buy a house, it is right now.

#116 Smoking Man on 07.17.19 at 3:53 pm

James on 07.17.19 at 11:42 am

#65 Smoking Man on 07.17.19 at 2:58 am

Hey James.
So you’re running your dads company , what risks have you taken you little spoiled child.
You are going to run it into the ground. Because you dont understand risk .
Hope your dad fires you ,and let’s little sister fix what your killing.
I am the Smoking Man and I can.
Cant isn’t in my vocabulary.
___________________________________________
Where did I say that I was running my fathers company Old Man? My father is in the medical field and I am not!

Risk in business is the exposure an organization has to the dynamics that will reduce its profits or cause it to miscarry. I have minimized our exposures that threaten our company’s ability to achieve our financial goals. Every company must put in place a risk management strategy. We are successful and profitable and that is why I run a company not due to Daddy you benighted also-ran. In university we learned how to mitigate and work with risk so I’m quite familiar with it. You Old Man are a unenlightened risk taker and have not adopted a risk management strategy just by the fact that you smoke gregariously and imbibe copious quantities of alcohol. This lack of a plan will be your undoing. What is the purpose in life of creating huge amounts of money if your future uncharted and full of risk?

Huh, can’t is not in your vocabulary along with most other intelligent words?
……

Nice story, I still think you’re basement dwelling atifa wack job..

Everytime I set up a meet up with the blog dogs when in TO you always said you show up on your Harley. But never do.

And if you were entrepreneurialish you would love Trumps policies. You would understand that dropping taxes and brooming regs makes money and prosperity for all.

So you are full of child..

#117 Yanniel on 07.17.19 at 4:05 pm

#107 Tater on 07.17.19 at 1:44 pm

“Yes, I saw the MERs, and that’s fine. But I’m talking about the risk free rate used in the Sharpe calculation. You could set it to 0 for the last couple years, arguably, but it wouldn’t be appropriate for the 80’s, 90’s or 00’s.”

You are right. He is using ZERO as the risk free rate. He has the code in place to pass along different values but he did not plug any data set and he is simply defaulting to 0.0. Great catch for a non-Python guy :-)

Actually, my purpose in referencing that article was to show a way by which we could simulate leveraged ETFs. I plan to build on his prototype if I can. I will incorporate your feedback Tater!

I’ll let the author know of your feedback. I’ll give you credit.

“The levered ETF approaches the 2x return when the sharpe ratio of the underlying is higher. Over 1, ideally. Historically the Sharpe for the SPY is .5.

If you compare SSO and SPY from 2007 to now, you see SPY returned 8% and SSO only 10%. And that’s with SPY having a typical Sharpe of 0.55.”

Ah, the moment of enlightenment. You have made me see the truth. I love this feeling. Thank you.

Thus “Since 09, SPY has had a sharpe of 1. Any leveraged strategy will look good.” I get it now. I get it.

#118 IHCTD9 on 07.17.19 at 4:12 pm

#109 Hogtown Harry on 07.17.19 at 2:01 pm
#100 IHCTD9 on 07.17.19 at 12:23 pm

“Well Mr. Harry, then why are those massive homes in Brampton such a steal if things are so horrible in downtown Toronto? Shouldn’t they going for a lot more?”

That is my point. They were a steal and taking only the blogger’s word for the price, they were a great price. What is horrible is condo pricing in downtown Toronto, the downtown itself is fabulous hence, the pricing. Also forgot to mention the main thrust of my argument was a response to your comment on why would anyone pay $700k for a massive home in Brampton. Aside from the Go transit taking you to downtown TO for $9.95 you have Mississauga joining Brampton with its industry and jobs. Such lightweights as Amazon, Microsoft, several large pharmaceuticals to name only a few industries that reside in Mississauga and north Mississauga to boot which borders Brampton. Brampton itself is also home to industry. Doesn’t your comment seem silly now?
___

So those houses should have went for a lot more. Such a steal at 700K.

Guess what the average sale price of an SFD in Brampton is?

Look it up. Is every RE professional in Brampton selling houses way under market value?

Either that – or 700K is about right, and was all anyone would pay for one of those houses – so that is what they sold for (just like every other house sale since the dawn of time).

Come back to planet Earth when you’re ready. No one in the GTA is selling a whack of Mansions way under market value – not even in Brampton.

They sell for the maximum the market will bear, and not a penny less.

#119 Yanniel on 07.17.19 at 4:12 pm

#115 Yanniel on 07.17.19 at 4:05 pm

“’ll let the author know of your feedback. I’ll give you credit.”

———

Nope. No comments section in that website. No email. I don’t have twitter. And I don’t feel like reaching out on LinkedIn at this time.

#120 JonBoy on 07.17.19 at 4:29 pm

#108 IHCTD9

Your income is over 5X the median single income in Canada. In fact, you make more than double the median HOUSEHOLD income in Canada. If you get a 30K bonus this year, you are only ~10K short of being a 1%’er in Canada. You are likely a 2%’er most years.

That is why you’ve been able to pull this off. Plus you have earned well in low cost of living areas for a long time, and made a good chunk of your wages in USD to boot. You’ve done well, made good decisions, and had a bit of good luck as icing on the cake.

—-

Did you miss the part where we did it while I was making $37K a year, and all the way up to $150K? I wasn’t making $150K all along – that’s only the last four or five years.

Seriously, you’re completely ignoring the fact that I got where I was ON A SINGLE INCOME far below what I currently make. I made $85K my last year in Texas but got a $10K increase and promotion my last year to get there. Here’s my rough salary levels, as I remember them.

Year 1 – $37K
Year 2 – $40K
Year 3 – $65K (switched employers and took a senior position)
Year 4 – $70K
Year 5 – $75K
Year 6 – $85K

In Alberta, I started at $120K and worked up to $150K over six years.

In BC, I started quite a bit higher and actually walked away from that job and now make $150K.

I told you, we’ve done it this way for 15 years, from low salary to big salary. It’s doable. You’re literally saying “It isn’t doable” to a person that has done it, is doing it, and has a ton of friends that share the same values and do it as well.

I’m telling you it can be done, how to do it, and how we’ve made it work. All you can do is say “median income this” and “typical family that”. Let me take your angle then: a typical family buys a new car every four to five years. A typical family buys a new phone every two years, for each adult (and we buy them on Craigslist for 1/3 the price and make them last another four years). A typical family takes an expensive vacation every year. A typical family goes out to eat twice a week. A typical family gets one new outfit per person per month.

See the issue? DON’T BE TYPICAL and you WON’T GET TYPICAL RESULTS. Talk to anyone successful and they’ll tell you the same thing: if you want different results, do different things. The average Canadian or family can’t do what I did (and do) because they refuse to CHOOSE, not because they can’t. I’ve been perfectly “typical” (in terms of income) for the first 10 years of my career, pretty much, and I was able to do it.

I CHOSE to live in a low-cost area, initially, to get my career going (moved away from family). What keeps others from doing the same thing? Even so, I have friends born and raised here in the Lower Mainland and they’re making it happen as well – single income, hard working, good families, mid-30s (ie, not necessarily gifted with a big run-up in real estate).

I CHOSE my career with a long-term goal in mind. What keeps others from doing the same thing? My wife worked the midnight shift at Tim Horton’s while I finished school. We lived off less than $1500/month back then (!). We chose to do that, in order to make a lot more in the future. We built a future together, sacrificing in the short term for a long term benefit.

Choices, friend. We choose to be typical. We are not forced to be typical.

Stop looking at what I am and what I have and look at the path and progression and you’ll see that I was perfectly “typical” in terms of income for a lot longer than I was a 2%er.

#121 BC Tenant on 07.17.19 at 5:59 pm

Found some info on recent changes to BC Tenancy regulations. Looks like I have a minimum 4 month window to move, and if the LL lies about it, I could get compensated 12 months rent. My intention is negotiate a new lease but it helps to know the rules. If that makes me a ‘jerk’, so be it!

—–

Changes to the Residential Tenancy Act – Effective May 17, 2018:
1. Landlords must give four months’ notice to end tenancy for demolition, renovation or repair, or conversion, and tenants have 30 days to dispute the notice,
2. A landlord or purchaser if applicable must compensate a tenant 12 months’ rent (unless excused by an arbitrator in extenuating circumstances) if a landlord or purchaser ends a tenancy under section 49 (landlord use) and they don’t:
a. take steps to accomplish the stated purpose for ending the tenancy under section 49 within a reasonable period after the effective date of the notice, or
b. use the rental unit for that stated purpose for at least 6 months beginning within a reasonable period after the effective date of the notice.
3. A tenant has a right of first refusal to enter into a new tenancy agreement at a rent determined by the landlord if the landlord ends their tenancy to renovate or repair the rental unit. This right of first refusal applies only to a rental unit in a residential property containing 5 or more units.
4. A landlord must compensate a tenant 12 months’ rent (unless excused by an arbitrator in extenuating circumstances) if the tenant exercises a right of first refusal and the landlord does not give the tenant:
a. a 45 day notice of availability
b. a tenancy agreement to sign.
5. If a landlord is ending a tenancy on behalf of a purchaser, the notice must contain the purchaser’s name and address.

And some recent changes from 2 years ago:

Effective December 11, 2017:
1. Fixed term tenancy agreements can no longer include a vacate clause requiring a tenant to move out at the end of the term unless:
a. The tenancy agreement is a sublease agreement; or
b. The tenancy is a fixed term tenancy in circumstances prescribed in section 13.1 of the Residential Tenancy Regulation. This Regulation specifies situations where a landlord or landlord’s close family member plans in good faith to occupy the rental unit
2. A rent increase for a tenant remaining in a rental unit is limited to the maximum annual allowable amount and can only be increased once every 12 months. Rent can no longer be increased above that amount between tenancy agreements with the same tenant.
3. Landlords are no longer able to apply for an additional rent increase on the basis that the rent is significantly lower than other similar rental units in the same geographic area.

#122 Hogtown Harry on 07.17.19 at 6:08 pm

#117 IHCTD9 on 07.17.19 at 4:12 pm

“Guess what the average sale price of an SFD in Brampton is?Look it up. Is every RE professional in Brampton selling houses way under market value?”

You mathematical ineptness is really showing. According to a quick google search from the Brampton Real Estate Board the average house price in Brampton is $740,000

https://www.zolo.ca/brampton-real-estate/trends

Average cowboy, average. Do you understand that includes semis and townhomes of which there are many in Brampton. Recently built, large single family homes going for 700K would be a steal. They are not being sold for that price. Here is what large, newer builds are going for in Brampton…

https://www.realtor.ca/real-estate/20931001/5-3-bedroom-single-family-house-36-cedarsprings-way-brampton-sandringham-wellington?

It is you that is on another planet when it comes to pricing in the GTA.

#123 Steven Rowlandson on 07.17.19 at 6:47 pm

“Be in no hurry. Lose feelings of anger or apprehension. And you can always call your mom. She has to take you.”

My Mom wound up in a nursing home and her previous home was sold by my baby brother. There is no going home except to my Honda Hilton….It is paid for.

#124 Sail away on 07.17.19 at 7:18 pm

#121 BC Tenant on 07.17.19 at 5:59 pm

Found some info on recent changes to BC Tenancy regulations. Looks like I have a minimum 4 month window to move, and if the LL lies about it, I could get compensated 12 months rent. My intention is negotiate a new lease but it helps to know the rules. If that makes me a ‘jerk’, so be it!

———————————

Just renegotiate the lease. You’re probably making more than your landlord. Be fair.

#125 Sail away on 07.17.19 at 7:22 pm

And I mean fair in terms of fair to all parties, not fair as the greatly skewed Tenancy Regs could allow you to grind your landlord who you say has always been decent even though you’re paying far below market rate.

What goes around comes around.

#126 T on 07.17.19 at 7:28 pm

#122 Hogtown Harry on 07.17.19 at 6:08 pm

You do have some good points around Mississauga and Brampton industries, however you seem to fail to understand these companies aren’t paying silicon valley or even Seattle wages. I know many working at the companies you refer to; Microsoft, Amazon, etc. Their incomes don’t support the very high housing prices and many of them are very concerned about rates going up and how it will affect them.

#127 Coastal Zapper on 07.18.19 at 9:46 am

#98 Ronaldo

Just curious, what percentage of the sales value was exluded from the tax free capital gains because of the carriage house and was it really worth the effort to build it?

********************************************

0% of the sale was excluded, you are allowed a portion of your primary residence to be money earning, like a home office or renting a basement suite. Check with your accountant to find out the percentage.

The reason it was built was to provide a proper garage for my Camaro (Zapper). Turning just a garage into a Carriage House allowed me to make income to pay for the garage. Have a far more valuable addition when it came time to sell (cost to build $125,000, added value to property $275,000.). And yes for all those wondering, commercial insurance policy separate from my home policy, declared ALL income on my tax return. It was definitely worth it and would do it again.

#128 Karen Cortelle on 07.18.19 at 11:20 am

JonBoy, it is pure jealousy. I know where you are coming from. I experience it and see it all the time. I understand how this feeds and feeds on the minds and souls of this entitlement and give it to me now mentality and ideology. This is why in a society there will always be people that are never happy or content with what they have.

I remember my grandma always told me an old saying, there is no poverty without defect. I translated it into English.

Many people make mistakes in their lives but recognizing the mistakes and learning from them plus improving their lives is what many people never do or don’t want to do.

They blame others and think they have a right to take others things, property and try to justify it. Stealing, lying, cheating is just that. This is what happens with a morally bankrupt society gets out of hand and does not stay in check as it is supposed to happen. Political correctness is one of the major contributors to this for decades.

Canadians need to stop comparing themselves with others that have achieved much more and start improving and learning from others on how they can be better. It is a slower process than most people want to take. Patience and understanding is what is sorrily missing in our society.

#129 Steven Rowlandson on 07.18.19 at 1:09 pm

Karen Cortelle entitlement comes in all guises.

#130 Marco on 07.18.19 at 2:07 pm

The base problem about humanity is tolerance and comparison

#131 John Loenbuam on 07.19.19 at 4:47 pm

Steve Rowlandson,

One liners with no specifics is not going to get your point across. Liberals, lefties show they want to help but in the long run they put us in debt and impoverish societies with high taxes, fees, choking regulations. You can’t get blood from a stone and you can’t make everyone equally great. Reality bites but you can’t escape it.