Canard, Part Deux

Andy Seliverstoff photo

Yesterday we brought you news that the dude in charge of Canada’s housing agency thinks real estate is a fat canard. We’re obsessed with it, says he. Realtors are drunk on their own excess. Society is nuts for glorifying the SFH. We’ve made renters into second-class citizens. Worse, even. Losers.

Well, here are some interesting numbers. Sixty per cent of Millennials (18 to 37) have no savings. Zippo.  The other 40% have precious little – between zero and $25,000. And yet of those between 26 and 37 more than four in ten own real estate. Of that group about half got help from the Bank of Mom, and 92% have mortgages.

So, obviously, the kids couldn’t care less what some crusty bureaucrat thinks. The obsession continues. And people are willing to do whatever’s necessary – looting their families and indenturing to the bankers – to get it.

Now let’s compare that to the United States where, unlike here, everybody went through Houseageddon a decade ago. Real estate then lost 32% of its value (70% in some places). The mess was precipitated by the serious financial troubles of one in twelve homeowners who defaulted on mortgages they could not service. Mortgage-backed investment assets, stocks and entire banks cascaded soon afterwards. America teetered on the edge of a financial black hole.

That experience altered behaviors. For five years after the event, surveys showed a majority of young adults wanted absolutely nothing to do with mortgages or houses. Renters abounded. It was hip to lease. Smart. Prudent. Real estate values languished. Investment companies moved into cities across the country and scooped up thousands of foreclosures and distressed properties.

Now, as the Mills stare at the big 4-0, married and breeding, things are changing. But the gap between Boomers and this cohort at the same age is stunning. In 1990, at an average age of 30, Baby Boomers owned a third of all real estate in the States. Today’s Millennials (average age 31) own just 4%.

The outcome of this disparity between moisters in Canada and the US? Simple. Our kids possess way more real estate and owe a ton more debt. Young adults in America have fewer assets but more money. The Canadian savings rate has plunged to 1% while in the Land of Trump it’s jumped from sub-6% in 1996 to plus-8% now. Three-quarters of US mills have a savings account, and a UBS survey found this is the most financially conservative generation since the Great Depression. On average, they’re putting almost $500 a month into retirement savings – while so many moisters here are stretching to service debts.

So what’s the best approach?

The upside of real estate, even when you have to scratch and sacrifice to own, is forced savings. Paying an amortized mortgage slowly builds equity and reduces debt. So long as the capital value of the property doesn’t plop, you build wealth over time. People who build it ultimately spend more of it, which is an economic good. Also, if you’re lucky (and smart) real estate can be liquidated when retirement rolls around. Moreover, if the experience of the last ten years is repeated for another ten, you da man!

This, of course, is how the Boomers made a ton of dough. But it was during a time of expansion, growth and inflating asset values. Today, not so much.

The downside of real estate for the young is debt, entanglement and risk. Buying a property and swallowing a mortgage brings an inherent loss of personal flexibility and mobility. People tend not to chase a better job in another city, for example. With mortgage payments, property taxes, condo fees and insurance premiums to worry about, they may feel trapped in a job or career choice, instead of training for something more appealing.

Sticking all your net worth in one thing at one address in one city means no diversification. So if a market turns down, rates rise or the economy stumbles, you can get whacked far more than with a broad portfolio of assets. For Americans who remember the real estate crisis, this is a burning fear.

What to do?

Rent and invest, if you can stand the shame and possess the discipline. This is, by far, the cheapest way to live.

But if you do buy, be cautious. Buy what you can afford (my Rule of 90) and buy what you can sell later (nobody will want a loft with a creepy concrete ceiling in a few years). Don’t eschew investing – make sure you’re at least topping up your TFSA routinely. Don’t spend stupid money on a house, like adding a hot tub or even a swimming pool. Be very, very careful about condos. They’re turning into insurance timebombs.

Most of all, accept that reward (a house worth more than you paid) comes with risk (a recession could put you underwater fast). Meanwhile politicians have real estate in their tax crosshairs.

Canadian Boomers dodged a bullet. Your canard could end up being a dead duck.

 

146 comments ↓

#1 Captain Uppa on 01.20.20 at 3:38 pm

A lot of Boomers, especially those that immigrated here from Europe or alike, do not sell their homes. In fact they plan to die in them. I personally don’t get it, but I’ll see when I’m a wrinklie.

But I bring this up because those Mills who are not saving will be getting a massive inheritance once their parents pass and they sell those homes (thinking GTA). It’s not something a good person wants to think about, but huge waves on inheritances are coming which will save the non-saving Mills.

#2 Andrewski on 01.20.20 at 3:50 pm

Parents of Mills, please stop yammering on how renting where you live is lost money, so buying is the only option. Today’s young workers need some sensible financial direction that does not have them confused.

#3 TurnerNation on 01.20.20 at 3:53 pm

Backgrounder on the War on SFH. Nothing new in human behavior since time began. Just repacked for the times.


For centuries our elite rulers controlled us via religions. An omnipresent God ready to strike should you get it wrong. You had only one chance else face unimaginable
destruction via fires, floods, damnation or hellfire. Heretics were punished. Tithe 10% of income for best results.
Then it wore off.

Today we have the lurking and omnipresent Climate. What will it do, how will it rise up and strike us? Oceans literally burning up, flooding, fires?; Who knows but we
Have Only One Chance To Get This Right For Our Children* . Do not question just act and submit to new laws daily. Questioners/Deniers are the biggest threat to Our Children’s Future*). Pay 10% carbon tax for best results.
(*children are bad for the climate k? We are the enemy, the Earth is our new god; sacrifice yourself and your dreams for it.)

Report on Business section today contains 8 pages. 3 of which contained climate propaganda.
But not a line of print was wasted on the fact most of us here will get cancer or diseases of the mind at birth or later on after being doused with deadly chemicals in our food/water/air. But the environment yo!!

#4 Derek R on 01.20.20 at 3:54 pm

Yup, debt, particularly mortgage debt, is the biggest threat facing Canadian citizens today.

Young Canadians who avoid the debt trap are smart Canadians. We need more of them.

#5 SoggyShorts on 01.20.20 at 4:00 pm

#63 IHCTD9 on 01.19.20 at 11:15 pm
#59 JuliaS on 01.19.20 at 10:09 pm

IMHO, any Man should be able to do the following (at least) work on their car:

Change a damn tire
Brakes
Wheel bearings
All fluids/filters
Wipers
Headlights/signals/tails

Ideally, a young guy should do a whole lot more than that.
**************************
Change a tire, sure, but most of the rest are all included in regular oil changes which I won’t do myself for the following reasons:

All of that work you do yourself might make sense in your situation especially if you enjoy it, but for me the numbers never work. i.e. Since I charge $XXX per hour for my work, any labor that I can outsource for under $XXX is a savings.

Also, I have all the gear I need to do my job but to do other stuff (build a deck, redo a roof/windows/furnace (I forget the list of stuff you’ve said you do yourself) would require the purchase(rental?) of equipment.

Some things are a rip-off, but largely I find that experts in a field can do things faster and cheaper than I can once I factor in how I value my own labor.

M40AB

#6 SoggyShorts on 01.20.20 at 4:02 pm

#24 Expatriate on 01.19.20 at 5:31 pm
Home ownership in the GTA?

Pftttt (spills coffee laughing)

The Landlord has asked for the following to rent the apartment which is located at an infamous street corner:

Salary of at least $75,000/annually
No PART-TIME or students allowed.

Equifax or Trans-Union score of at least 900+
Six months post-dated cheques
Signed contract of 12 months post-dated cheques for utilities.
A “security deposit” of $5,000.

************************
I think it might be hard to find someone with an equifax score over 900…

#7 JB on 01.20.20 at 4:04 pm

#1 Captain Uppa on 01.20.20 at 3:38 pm

A lot of Boomers, especially those that immigrated here from Europe or alike, do not sell their homes. In fact they plan to die in them. I personally don’t get it, but I’ll see when I’m a wrinklie.

But I bring this up because those Mills who are not saving will be getting a massive inheritance once their parents pass and they sell those homes (thinking GTA). It’s not something a good person wants to think about, but huge waves on inheritances are coming which will save the non-saving Mills.
…………………………………….
lmaf
When the retired boomer wrinklies that bought into the condo lifestyle croak their mil heirs will not be able to capitalize on the massive broken-down selloff that will occur. It will be a huge investment loss with pennies on the dollar to the kiddies. Of course the old mouldies will not care as they will be dead.

#8 6manLikeLouWill on 01.20.20 at 4:09 pm

Can we get some more insight into what makes condos an “insurance timebomb”? Totally went over my head!

#9 crazed and a little confused on 01.20.20 at 4:11 pm

hi All,

i dont care if im first …really some people have no lives.

this post is definitely one of your better ones . . it a common theme of investment to sell high buy low.
i bought brookfield ETF and sold it on Friday
and I bpught Nvidia and sold it friday as a well.

Normally this timing the market is a NO-NO. but logic went out the window sometime last quarter. double digit gains in 1 month is not normal given that there is so much political turmoil and profits for most companies do not justify double digit growth . Did my salary increase by 18 % in one month ? hell no .
last December 2018 we suffered a 30% dip in 2 months with no apparent reason .

Now we had more debt than ever and Deutsche bank (DB) is on a verge of a bailout and negative rates

https://www.theguardian.com/business/2019/nov/22/germanys-risk-averse-savers-grapple-with-negative-interest-rates

the german are still the biggest players in the EU. The list goes on about uncertainity. but you get my point. just so you know i admit i would have made more money by holding and not selling in december . but i still made $$$ that is all im trying to do.

im not shamed for renting . but its more like ” poor …. ”

good luck to you.

#10 David Pylyp on 01.20.20 at 4:15 pm

Sixty per cent of Millennials (18 to 37) have no savings. Zippo. The other 40% have precious little – between zero and $25,000. And yet of those between 26 and 37 more than four in ten own real estate. Of that group about half got help from the Bank of Mom, and 92% have mortgages.

Yet House Values in Toronto are not only holding! They are increasing! Engorged in Frenzy!

David Pylyp
Toronto

#11 Entrepreneur on 01.20.20 at 4:16 pm

And don’t forget a lot of Canadians moved downed to the States, gave up on Canada and the leaders running it.

And don’t forget the more and more homeless camps, never have I seen so many homeless people in my life. We used to go Vancouver and see some homeless men, about 6 on the streets. Now, unreal.

And don’t forget the States has a President that is watching out for his people, the hard-working, taxpaying ones.

The States had a crash, dealt with it but we kept the interest low which Canada brought in a whole mess of unwanted house buyers ( who either sell in the 5 year allotted time, they know the game or rent with a high price.)

Notice on my street the holly trees are not getting pruned, evergreen trees not pruned, birds are not being fed, fence gates never repaired, etc. The high-priced landlords could care less about their place until they can sell. So much for their neighbours, they only care about themselves. Sad. The renters are nice, couples, both working, no kids, confused.

Not nice to mess with people’s minds.

#12 IHCTD9 on 01.20.20 at 4:23 pm

#1 Captain Uppa on 01.20.20 at 3:38 pm
A lot of Boomers, especially those that immigrated here from Europe or alike, do not sell their homes. In fact they plan to die in them. I personally don’t get it, but I’ll see when I’m a wrinklie.

But I bring this up because those Mills who are not saving will be getting a massive inheritance once their parents pass and they sell those homes (thinking GTA). It’s not something a good person wants to think about, but huge waves on inheritances are coming which will save the non-saving Mills.
__

Mils will be 60+ by the time both their parents are gone – maybe longer. My parents are razor’s edge Silent Gen’s, and they themselves were 65/66 when the last of their Interbellum/Greatest Gen parents died, and people are supposedly living longer these days.

Finally moving into a house will be a bit anticlimactic at 65+. I guess selling and realizing the cash would be good if they have jack saved up. Although by then, all these SJW governments they voted in for years will be taking 50%+ of whatever they get.

Oh well.

#13 Dave on 01.20.20 at 4:24 pm

Is Metro Vancouver going to see a major price correction this year?

#14 IHCTD9 on 01.20.20 at 4:33 pm

#5 SoggyShorts on 01.20.20 at 4:00 pm
#63 IHCTD9 on 01.19.20 at 11:15 pm
#59 JuliaS on 01.19.20 at 10:09 pm

IMHO, any Man should be able to do the following (at least) work on their car:

Change a damn tire
Brakes
Wheel bearings
All fluids/filters
Wipers
Headlights/signals/tails

Ideally, a young guy should do a whole lot more than that.
**************************
Change a tire, sure, but most of the rest are all included in regular oil changes which I won’t do myself for the following reasons:
___

I don’t expect you to do the tasks above – just KNOW HOW to do – Man thing.

Truth – I don’t change my own Oil these days anymore either since “The Great Canadian Oil Change” came to town. Yes I let them do the fluids, and wipers/filters too. Cheap, convenient, easy. Laying in the snow changing the oil via a trouble light while slush falls in your face sucks.

I still do my own brakes and wheel bearings though. The job is too quick and simple to not save the big bill involved. It’s also a PITA figuring out the logistics for everyone while the car sits at the garage for the day. Much easier to do the job at home in the evening or weekend, car is only down for an hour or two instead of all day.

#15 Went for a stroll today ... on 01.20.20 at 4:48 pm

over in the old fishing community of Steveston. So many not very old condo’s under huge tarps. Workers everywhere. A lot of ground level decks all dug up too. This must be costing the poor owners a fortune. Best to stay away from condo’s I think. So sad … buyer beware but … should it have to be like this?

#16 Drill Baby Drill on 01.20.20 at 4:53 pm

Jees did we Boomers do anything right ??

#17 Blog Bunny on 01.20.20 at 4:54 pm

Garth, can you tell us more about condos being insurance timebombs ?

Does it mean that the buildings will have many issues as they age not necessairly covered by insurance / or causing skyrocketing insurance costs ?

#18 Camille on 01.20.20 at 4:55 pm

That’s a lot of fear. Perhaps rightly so. But what’s a woman or man to do. People want to work honestly, behave properly and get ahead.
Are things too complicated now, because primarily of precarious work? Is anyone safe? It all moves too fast? Too greedy? I dont get it. What’s are we fearing? T2? Bolsheviks? I need some clarity.

#19 BillyBob on 01.20.20 at 5:03 pm

#5 SoggyShorts on 01.20.20 at 4:00 pm
#63 IHCTD9 on 01.19.20 at 11:15 pm
#59 JuliaS on 01.19.20 at 10:09 pm

IMHO, any Man should be able to do the following (at least) work on their car:

Change a damn tire
Brakes
Wheel bearings
All fluids/filters
Wipers
Headlights/signals/tails

Ideally, a young guy should do a whole lot more than that.
**************************
Change a tire, sure, but most of the rest are all included in regular oil changes which I won’t do myself for the following reasons:

All of that work you do yourself might make sense in your situation especially if you enjoy it, but for me the numbers never work. i.e. Since I charge $XXX per hour for my work, any labor that I can outsource for under $XXX is a savings.

Also, I have all the gear I need to do my job but to do other stuff (build a deck, redo a roof/windows/furnace (I forget the list of stuff you’ve said you do yourself) would require the purchase(rental?) of equipment.

Some things are a rip-off, but largely I find that experts in a field can do things faster and cheaper than I can once I factor in how I value my own labor.

M40AB

====================================================

Dozer-Man’s comments were not a debate about the economics of doing said tasks oneself versus farming them out.

It was about possessing the ability to do them. And in a larger sense, the almost total loss of some sense of “how things work”. I drive planes, not fix them, for a living so of course I cannot perform complex engineering tasks on the aircraft – nor is it my role. But I sure as hell have more than a basic understanding of how all the underlying systems work.

One of my beloved Millennial relatives had to call my brother-in-law to ask how to open the filler door to put gas in the family car, if that gives any indication of how far the bar has fallen..

#20 SoggyShorts on 01.20.20 at 5:05 pm

#14 IHCTD9 on 01.20.20 at 4:33 pm
#5 SoggyShorts on 01.20.20 at 4:00 pm
#63 IHCTD9 on 01.19.20 at 11:15 pm
#59 JuliaS on 01.19.20 at 10:09 pm

I don’t expect you to do the tasks above – just KNOW HOW to do – Man thing.

*************************
But why? Why would I learn how to change the brakes if I know for 100% certainty I will never change the brakes? To feel more Manly? By watching a youtube video or watching over a mechanics shoulder?

Those are complete and utter wastes of time.

Since I won’t use the knowledge and no one will know I have the knowledge how can it possibly make me feel/be more manly?

#21 Sam on 01.20.20 at 5:11 pm

Sixty per cent of Millennials (18 to 37) have no savings. Zippo.
………

do people really believe these silly stats/surveys

good grief

#22 crazed and a little confused on 01.20.20 at 5:16 pm

hi 6manLikeLouWill on ( post 8)

the insurance premiun for condos will go up about 50 %

https://globalnews.ca/news/6237709/bc-strata-insurance-surge/

try to keep up ;)

#23 crowdedelevatorfartz on 01.20.20 at 5:18 pm

@#19 BillyBob
“One of my beloved Millennial relatives had to call my brother-in-law to ask how to open the filler door to put gas in the family car….”
++++
I might understand if the car was a loaner and they had never driven it before.
I drive a lot of different company trucks and rental cars and sometimes…..my god….I’m at the gas station trying to fill up and……..where is the fricken release lever for the fricken gas cap?

Under the seat? Beside the seat, on the door? on the dash? Or do you just push it to pop it open.

Oh well, in a decade or so kids will ask, “Whats a gas cap?”

#24 Sail away on 01.20.20 at 5:22 pm

#14 IHCTD9 on 01.20.20 at 4:33 pm
#5 SoggyShorts on 01.20.20 at 4:00 pm
#63 IHCTD9 on 01.19.20 at 11:15 pm
#59 JuliaS on 01.19.20 at 10:09 pm

IMHO, any Man should be able to do the following (at least) work on their car:
Change a damn tire
Brakes
Wheel bearings
All fluids/filters
Wipers
Headlights/signals/tails
Ideally, a young guy should do a whole lot more than that.

————————

Change a tire, sure, but most of the rest are all included in regular oil changes which I won’t do myself…

————————

I still do my own brakes and wheel bearings though. The job is too quick and simple to not save the big bill involved.

————————

Yes. I’d also include muffler/tailpipe.

I try to earn $1,000/week outside of work; when I’m doing work myself that others would do, it works out double since I’m neither spending after-tax money, nor paying GST for someone else. So, saving $500 in labour equals $1,000 I’d otherwise need to earn.

Brakes pads and rotors- $1,000 savings front and back
Wheel bearings- $1,000 savings each
Muffler- $1,000 savings

I look forward to these jobs since a relaxing 2-3 hours equals an extra $1,000 earned. That’s far better than my engineering hourly rate. Same thing with home repairs.

#25 Nonplused on 01.20.20 at 5:27 pm

What’s wrong with hot tubs? Especially if you are single they are a very good thing to have. Most of them are stand alone anyway so if the new buyer doesn’t want it you just unplug it and sell it. Or I had a built in one once, was already in the sunroom when I bought the house, and the buyer didn’t want it so we just cut it up with a demolition saw. It was sad, but problem solved in one afternoon. We didn’t even have to take it to the dump because a garbage truck happened to came alone while we were loading, and after some quick negotiations it was gone.

Pools on the other hand, limit the pool of buyers to those who want to do all the maintenance and are much more expensive to get rid of. Plus I wonder how many people really use them in this climate. If you are in Houston, sure, a pool is essential. But not in Canada. And if you want to exercise you still have to go to the Y.

#26 CEW9 on 01.20.20 at 5:33 pm

#17 Blog Bunny on 01.20.20 at 4:54 pm

Garth, can you tell us more about condos being insurance timebombs ?

Does it mean that the buildings will have many issues as they age not necessairly covered by insurance / or causing skyrocketing insurance costs ?

* * * * *

My personal experience with condos is the maintenance and upkeep, especially for large ticket items, is not covered by condo fees alone, and as my complex aged there were more and more cash calls for new stucco, new shingles, new windows. Came out to at least an extra $3000 a year on top of fees, which also went up about 20% yearly. (I know windows and shingles are costs a detached owner would spend as well, but as a homeowner you have control of when it happens. A condo does not offer that flexibility)

We then got word that the biggest ticket item, a 40 foot retaining wall leading down to the lots below, would need replacing in a few years at a few million dollars price tag for a complex of about 30 units, we got serious about moving.

So, yeah, as your condo buildings age, don’t count on condo fees to cover everything.

#27 Ever tried to fill ... on 01.20.20 at 5:34 pm

#23 crowdedelevatorfartz on 01.20.20 at 5:18 pm

@#19 BillyBob
“One of my beloved Millennial relatives had to call my brother-in-law to ask how to open the filler door to put gas in the family car….”
——————————————————————
a ’56 Chev? Stumped a lot of gas jockey’s.

#28 SoggyShorts on 01.20.20 at 5:36 pm

#21 Sam on 01.20.20 at 5:11 pm
Sixty per cent of Millennials (18 to 37) have no savings. Zippo.
………
do people really believe these silly stats/surveys
good grief

************************
Seems reasonable to me, unless you think it’s more than 60%, then I’d go with that. People suck at money.

#29 Linda on 01.20.20 at 5:42 pm

About Millennials & savings. While it is tempting to simply link property ownership to savings or the lack thereof, realistically most adults aged 18-25 wouldn’t have much if anything saved. Figure that most will have been in school to at least age 18, a good chunk to age 22 if they pursued some certification/degree. Even if they worked beginning at age 18, chances are their income would have been on the lower end of the scale & for those who did go to college/university, repayment of student loans very likely would take any ‘spare cash’ they might have.

The 25-37 age group would presumably coincide with things like marriage, children, property acquisition etc. all of which would tend to leave not a lot left over for savings or investing. While it is concerning that so many are apparently one pay day away from not being able to pay their monthly expenses as I recall that was the case for most of the Boomer generation as well. Add in the less than stellar financial picture for a rather large chunk of the Boomer generation – many of whom have nothing saved for retirement! – & I’d say the Millennials are more history repeating itself (not learning from the financial mistakes made by Boomers) rather than something new. Difference is the Millennials still have time to save themselves whereas most Boomers are either already retired or darn close to it. I’ve read that Canada’s baby boom officially ended in 1966 & if that is so then the youngest boomers will turn 54 this year. Doesn’t leave much time for those still under age 65 to fix their financial picture, now does it?

#30 stuck in Richmond on 01.20.20 at 5:42 pm

Apartments strata insurance is going up between 100 and 300% this year. My coworker friend was hit with 300% so his maintenance fee will go up 60% overnight to almost 500$ in Richmond. Here is the timebomb for you.

#31 Sail away on 01.20.20 at 5:48 pm

Re: capability

Understanding general physics and engineering principles has many uses.

My best example is when we got stuck in a gumbo mudhole way out of cell service without a winch or come-along, and couldn’t jack the truck up on the soft ground. Finally pulled the chainsaw out, built a Spanish windlass with 15′ lever arm, and winched the truck out with the tow chain. Took a while, but better than walking 5 hours for help.

Like IH wrote- it’s simpler to be able to deal with things yourself on your own time.

#32 yorkville renter on 01.20.20 at 5:51 pm

#27 – is it behind the rear plate?

#33 SoggyShorts on 01.20.20 at 5:52 pm

#23 crowdedelevatorfartz on 01.20.20 at 5:18 pm
@#19 BillyBob
“One of my beloved Millennial relatives had to call my brother-in-law to ask how to open the filler door to put gas in the family car….”
++++
I might understand if the car was a loaner and they had never driven it before.
I drive a lot of different company trucks and rental cars and sometimes…..my god….I’m at the gas station trying to fill up and……..where is the fricken release lever for the fricken gas cap?

Under the seat? Beside the seat, on the door? on the dash? Or do you just push it to pop it open.

Oh well, in a decade or so kids will ask, “Whats a gas cap?”
*******************************
I bought a new truck with the 5 years extended care package. About 4.5y later I wanted to check the washer fluid since there had been a stupid amount of slush lately and discovered that I didn’t know where the hood latch was on the front. Easy enough to find, but realizing that I had never popped the hood in almost 5 years of ownership was odd– my previous vehicles included a Delta 88 where adding a liter of oil each time I filled the gas tank was standard prcedure.

#34 PK on 01.20.20 at 5:56 pm

Hang on for a second, please:

“Sixty per cent of Millennials (18 to 37) have no savings. Zippo. The other 40% have precious little – between zero and $25,000. And yet of those between 26 and 37 more than four in ten own real estate. Of that group about half got help from the Bank of Mom, and 92% have mortgages.”

I’ve always wondered where I sit in terms of my elder millennial peers: 36, $100 of credit card debt, no student loans, no auto/mortgage debt. Rent is 1700/mo in the Big Smoke for a decent apartment in a good hood. And as of today, I have $153k total and change in my RRSP, TFSA and self-managed pension – invested in etfs though I do really need to revalance. About $15k in my savings/chequing accounts.

Given where I live, and how people seem to live, I always figured I was behind the curve and I should have double or triple that saved by now (close to $500k). And a bunch of the folks who write to you seem to make $100-200k a year for the household with like $400k to buy real estate.

Does this mean… I’m actually doing well and not near the middle of the curve? Sure doesn’t feel like it most days…

#35 Condo Building Risk on 01.20.20 at 6:08 pm

Multistory condo buildings have other risks most ordinary people not aware of:

1) Glass wall. It is chipper than brick or precast concrete facade, but is not as reliable. In opinion of Toronto University Professor of Architecture, these glass walls will need major rehabilitation within 15-20 years. Read: special assignment in big $$$.

2) The condo buildings are designed by the engineering consultants who operate in the low fee sector, eat each other throat in competition and are pressed down with respect to design fee by the developers. So the engineering consultants cannot afford to employ the best and brightest engineers. They are KIAs of engineering, not BMWs.

3) Seismic Risk. If designed properly the skyscrapers can withstand the seismic acceleration of the Building Code magnitude. The cost of seismic design is about 30-40% of the total structural engineering budget. When faced with the shortage of funds the consultant may choose to cut corners in seismic design because the earthquake is the low probability event and the lack of proper earthquake resistant design is not apparent until the disaster strikes.

#36 JonBoy on 01.20.20 at 6:18 pm

#5 SoggyShorts on 01.20.20 at 4:00 pm
Change a tire, sure, but most of the rest are all included in regular oil changes which I won’t do myself for the following reasons:

All of that work you do yourself might make sense in your situation especially if you enjoy it, but for me the numbers never work. i.e. Since I charge $XXX per hour for my work, any labor that I can outsource for under $XXX is a savings.

Also, I have all the gear I need to do my job but to do other stuff (build a deck, redo a roof/windows/furnace (I forget the list of stuff you’ve said you do yourself) would require the purchase(rental?) of equipment.

Some things are a rip-off, but largely I find that experts in a field can do things faster and cheaper than I can once I factor in how I value my own labor.

M40AB

—–

This only makes sense if you’re planning to make money doing something else in the time that you’re saving by letting someone else do a particular task.

Your time has no dollar value unless you’re actually working (to generate revenue or reduce expenses). Saying “My time is worth $200/hr and therefore I cannot do a job worth $50/hr” only makes sense if you’re doing work while your oil is being changed.

If all you’re doing is sitting around drinking fermented beverages, guess what? Your time ain’t worth squat and you didn’t save money by letting an expert do it.

#37 IHCTD9 on 01.20.20 at 6:19 pm

#20 SoggyShorts on 01.20.20 at 5:05 pm
#14 IHCTD9 on 01.20.20 at 4:33 pm
#5 SoggyShorts on 01.20.20 at 4:00 pm
#63 IHCTD9 on 01.19.20 at 11:15 pm
#59 JuliaS on 01.19.20 at 10:09 pm

I don’t expect you to do the tasks above – just KNOW HOW to do – Man thing.
*************************
But why? Why would I learn how to change the brakes if I know for 100% certainty I will never change the brakes? To feel more Manly? By watching a youtube video or watching over a mechanics shoulder?

Those are complete and utter wastes of time.

Since I won’t use the knowledge and no one will know I have the knowledge how can it possibly make me feel/be more manly?
———

You know how to do brakes because you’ve done them before. If “The Great Canadian Brake shoe and Pad” comes to town offering brake jobs for $250.00, then I expect you to use your Manly common sense to have them do it instead.

If the GCBS+P does not come to town, then you can expect to save huge Man dollars by doing it yourself, as you have no good excuse not to, seeing as you’ve done it all before.

You have gained Man skills, so you have options. You can tell those over-priced mechanics where to stuff it at your leisure. You can laugh at those pansies at work who are griping about that 1000.00 brake job on their Prius.

Life will improve for you with every new skill you gain, used or not; sometimes in unexpected ways (you know what Napoleon Dynamite said about skills…).

#38 joblo on 01.20.20 at 6:29 pm

To summarize:
Kanada Mills, Booms and Wrinks are so screwed and it is hopeless.

#39 Cristian on 01.20.20 at 6:30 pm

“In 1990, at an average age of 30, Baby Boomers owned a third of all real estate in the States.”

I am a bit doubtful about those numbers. Baby boomers are those born between 1946 and 1964 – so how could the average age be 30 in 1990? Were they all born around 1960?

“Rent and invest, if you can stand the shame and possess the discipline. This is, by far, the cheapest way to live.”

Right on. This is how I was able to retire at 58 with sizable investments and no real estate. Should I have decided to buy real estate I would have been forced to delay my retirement by at least 5 years here in Vancouver in order not to sacrifice my standard of living in retirement. Here’s one happy renter!

#40 Damifino on 01.20.20 at 6:32 pm

#15 Went for a stroll today …

over in the old fishing community of Steveston. So many not very old condo’s under huge tarps. Workers everywhere. A lot of ground level decks all dug up too. This must be costing the poor owners a fortune.
——————————-

Steveston is charming.

I visit there from time to time, but not at the height of summer. It’s far too crowded then. I even considered living there for a time. Not owning a press-board condo of course, just renting. The quality of recent construction (last 10 years) leaves much to be desired.

Another thing. It’s about six inches above sea level and built upon river silt. A decent sized earthquake and it’s gone. Really. Gone.

Other than that though, it’s a cool little town.

#41 Ultraman on 01.20.20 at 6:34 pm

(I know windows and shingles are costs a detached owner would spend as well, but as a homeowner you have control of when it happens. A condo does not offer that flexibility)
That’s one aspect, another one being that you can’t do the work yourself. Here’s my testimony: a few years back there was some problem in our condo unit with shower stalls leaking, so all the caulking had the be redone at a cost of $160.000 per unit. That’s a 30 min. job with an $8.00 tube of calking.

#42 BlogDog123 on 01.20.20 at 6:40 pm

Condo insurance timebomb?

Didn’t Vancouver have that leaky condo roof scandal a few decades ago?

And elevator techs are getting harder to find, so as that kind of infrastructure fails, get used to waiting, special assessments or taking the stairs…

How do the actuaries calculate how many AirBnB party animal transient renters does it take until one decides to trash a condo or flood the adjoining units. Very low but not an insignificant probability.

Those glass balconies or windows that were exploding a few years ago, somebody (buyers) eventually pay for that with higher insurance premiums…

#43 Bytor the Snow Dog on 01.20.20 at 6:44 pm

This post and the last one “quacked” me up. BTW it’s been a long time since you used the word “snorfle” or a derivative thereof in a post.

#44 NotLegalAdvice on 01.20.20 at 6:45 pm

Don’t spend stupid money on a house, like adding a hot tub or even a swimming pool. -Garth

But what if we’re renting a place, you think I should dish out 12 grand for a hot tub? Lol

#45 SoggyShorts on 01.20.20 at 7:03 pm

#36 JonBoy on 01.20.20 at 6:18 pm
#5 SoggyShorts on 01.20.20 at 4:00 pm

Your time has no dollar value unless you’re actually working (to generate revenue or reduce expenses). Saying “My time is worth $200/hr and therefore I cannot do a job worth $50/hr” only makes sense if you’re doing work while your oil is being changed.

If all you’re doing is sitting around drinking fermented beverages, guess what? Your time ain’t worth squat and you didn’t save money by letting an expert do it.
***********************
You’re quite right, and I’m sure my view is skewed as I’ve almost always been in a profession where I could and did put in more time for more money.
Also, most of that time was overtime at 1.5x rate making it very easy to work 2-3 extra hours and hire someone rather than do the work myself.
I assume it’s totally different for a 9-5 cubicle worker on a fixed salary with no OT.

It’s like the rent vs mortgage math: if the renter doesn’t actually put his savings into a B&D PF, then it doesn’t work.

I wonder if I’ll feel differently in retirement once the option to earn is gone…hopefully not…Melt up 2020! Make my nest egg great(er) again!

@garth sorry if this double posts, I got a 502 error message

#46 IHCTD9 on 01.20.20 at 7:07 pm

#24 Sail away on 01.20.20 at 5:22 pm

Yes. I’d also include muffler/tailpipe.

I try to earn $1,000/week outside of work; when I’m doing work myself that others would do, it works out double since I’m neither spending after-tax money, nor paying GST for someone else. So, saving $500 in labour equals $1,000 I’d otherwise need to earn.

Brakes pads and rotors- $1,000 savings front and back
Wheel bearings- $1,000 savings each
Muffler- $1,000 savings

I look forward to these jobs since a relaxing 2-3 hours equals an extra $1,000 earned. That’s far better than my engineering hourly rate. Same thing with home repairs.
——-

110%

I look at it the exact same way. Did the roof last spring, took my time and did it before it got too hot. Bought a nice air nailer just for the job, put down some top quality Owens Corning Fiberglass laminated shingles. Job would have cost 8k minimum before tax easy via a good contractor, I got it done for under 2k including the air gun. The job cost is almost all labour, a perfect job to save big by learning, and doing it yourself. Got the boys up there too so they could get some hands on roofing experience.

One of my BIL’s put 3 new exterior doors in, good quality and great workmanship. The bill was 6k. Those doors would have cost under 2k lot. The rest was a bit of moulding, flashing, trim, caulking and a pile of labour. That’s another job to learn.

I’ve never kept track, but I have undoubtedly saved many 10’s of thousands of after tax dollars by doing it myself instead of hiring it out. Just In 2019 from what I can remember doing, I’ve likely saved about 12 grand – minimum – seriously. That’s after tax dollars too! Add ~25% to that figure for what I would have had to earn to get the same work done by others.

#47 Lead Paint on 01.20.20 at 7:24 pm

Coming to a city near you?

Why Manhattan’s Skyscrapers Are Empty

“But the bust is upon us. Today, nearly half of the Manhattan luxury-condo units that have come onto the market in the past five years are still unsold, according to The New York Times.”

https://www.theatlantic.com/ideas/archive/2020/01/american-housing-has-gone-insane/605005/

#48 Jerry on 01.20.20 at 7:30 pm

Do you still rent if you live in Victoria and a 1brdm costs $2k/month?

#49 Ustabe on 01.20.20 at 7:37 pm

While all of you all are both polishing and using your man skills, never mind bragging about them, I’ll be in the kitchen marinating a pork butt prior to it hitting the smoker for pulled pork carnitas. We will toss in some wings for snacks while we wait and I might even whip up my chilled zabaglione for dessert.

Let me know when you have finished my oil change and I’ll feed you.

In a manly manner, I’m certain of that.

#50 Sold Out on 01.20.20 at 7:47 pm

#41 Ultraman on 01.20.20 at 6:34 pm
(I know windows and shingles are costs a detached owner would spend as well, but as a homeowner you have control of when it happens. A condo does not offer that flexibility)
That’s one aspect, another one being that you can’t do the work yourself. Here’s my testimony: a few years back there was some problem in our condo unit with shower stalls leaking, so all the caulking had the be redone at a cost of $160.000 per unit. That’s a 30 min. job with an $8.00 tube of calking.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

A condo owner has sole control over everything from the interior paint inwards. Any owner can perform caulking repairs themselves. You are correct about everything else requiring a professional touch, though.

#51 Ed on 01.20.20 at 7:48 pm

Hmmm… my kids will most likely be in their 60’s and early 70’s when I croak and they get my investment account. By then I hope they’ll be mature enough to not just piss it away.

#52 Ray Skunk on 01.20.20 at 7:50 pm

#1

huge waves on inheritances are coming which will save the non-saving Mills.

Well, let’s wait and see. I remember a couple of years ago the CBC – in their duty as propaganda arm of the Liberal government – put out a couple of articles on how Canada doesn’t have an inheritance tax unlike some countries, and it’s about time we did.

At the time I saw them as a blend between “testing the waters” and “planting the seed”.

Gerry and Justie want to dip their bread in that massive pot of gravy.

More wealth redistribution… although since it was the Mills who put T2 in the big office to begin with, perhaps they deserve to see their inheritance pissed away on flying the entire Cabinet to Winnipeg for an up-yours-little-people-climate-change-don’t-matter-to-us retreat.

#53 gfd on 01.20.20 at 7:52 pm

Personal Finance Poll Finds One-Third Of Canadians Can’t Cover Their Bills. Nearly half are on the verge of insolvency, a survey has found.

https://www.huffingtonpost.ca/entry/debt-insolvency-canada_ca_5e25d1efc5b63211761787b5?utm_hp_ref=ca-homepage

#54 IHCTD9 on 01.20.20 at 7:53 pm

#36 JonBoy on 01.20.20 at 6:18 pm

This only makes sense if you’re planning to make money doing something else in the time that you’re saving by letting someone else do a particular task.

Your time has no dollar value unless you’re actually working (to generate revenue or reduce expenses). Saying “My time is worth $200/hr and therefore I cannot do a job worth $50/hr” only makes sense if you’re doing work while your oil is being changed.

If all you’re doing is sitting around drinking fermented beverages, guess what? Your time ain’t worth squat and you didn’t save money by letting an expert do it.
——-

Exactly. Another way of saying this is “if you do not have the option to go to work and earn your wage at anytime day or night, then you save zip hiring it out”.

Most folks can’t show up at work whenever they want to put in X hours in order to make the 1k they need to earn to cover the brake job.

There is a “I absolutely hate that work” component to consider though too. I personally hate doing brake lines, gas lines, and any kind of exhaust work, so I will pay a premium to have a pro do it.

I’ll drink beer at home, chequebook at the ready, with a smile on my face, while waiting for others to complete certain jobs :)

#55 Sail away on 01.20.20 at 8:02 pm

#35 Condo Building Risk on 01.20.20 at 6:08 pm

Multistory condo buildings have other risks most ordinary people not aware of:

3) Seismic Risk. If designed properly the skyscrapers can withstand the seismic acceleration of the Building Code magnitude. The cost of seismic design is about 30-40% of the total structural engineering budget.

When faced with the shortage of funds the consultant may choose to cut corners in seismic design because the earthquake is the low probability event and the lack of proper earthquake resistant design is not apparent until the disaster strikes.

——————————–

Engineers deliberately defying Code requirements?

It’s cheaper for an engineer to overdesign than underdesign. All of the calcs have to be done in any case, so it’s much easier to upsize for safety.

And all calcs are reviewed and signed off- so double career suicide if engineers were to do as you think.

#56 Alessio on 01.20.20 at 8:04 pm

Markets crashed too back then – up to 80%!

#57 Sail away on 01.20.20 at 8:05 pm

#35 Condo Building Risk on 01.20.20 at 6:08 pm

…and structural calculations are stored forever with the design package. How would you approach something you knew would be public record for the rest of your life?

#58 Doug t on 01.20.20 at 8:11 pm

MMT will take care of everything – in fact it will become the ultimate test to Fiat currency and be the saviour of modern Capitalism – it’s like religion- if you have faith in it, trust in it, buy into it and put your worth into it, well its like magic. It’s only a problem when the masses open their eyes and like a “pyramid scheme” exit stage left and the house collapses lol

#59 Sold Out on 01.20.20 at 8:13 pm

#51 Sail away on 01.20.20 at 8:02 pm
#35 Condo Building Risk on 01.20.20 at 6:08 pm

Multistory condo buildings have other risks most ordinary people not aware of:

3) Seismic Risk. If designed properly the skyscrapers can withstand the seismic acceleration of the Building Code magnitude. The cost of seismic design is about 30-40% of the total structural engineering budget.

When faced with the shortage of funds the consultant may choose to cut corners in seismic design because the earthquake is the low probability event and the lack of proper earthquake resistant design is not apparent until the disaster strikes.

——————————–

Engineers deliberately defying Code requirements?

It’s cheaper for an engineer to overdesign than underdesign. All of the calcs have to be done in any case, so it’s much easier to upsize for safety.

And all calcs are reviewed and signed off- so double career suicide if engineers were to do as you think.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

It happens all too often.

https://www.cbc.ca/news/canada/british-columbia/john-bryson-engineer-surrey-high-rise-1.5125884

https://www.cbc.ca/news/canada/british-columbia/langford-danbrook-one-1.5406134

#60 Stone on 01.20.20 at 8:16 pm

#1 Captain Uppa on 01.20.20 at 3:38 pm
A lot of Boomers, especially those that immigrated here from Europe or alike, do not sell their homes. In fact they plan to die in them. I personally don’t get it, but I’ll see when I’m a wrinklie.

But I bring this up because those Mills who are not saving will be getting a massive inheritance once their parents pass and they sell those homes (thinking GTA). It’s not something a good person wants to think about, but huge waves on inheritances are coming which will save the non-saving Mills.

———

Were you not paying attention when Garth raised the issue of reverse mortgage originations cranking up. The little delicate Mills for the most part won’t be seeing that mass transfer of wealth because it will be reverse mortgaged away. Think about it.

Also, today, our good buddies at BNN let us know that 50% of the good folks in Canakustan are $200 away from financial annihilation.

Let’s connect the dots on the 2 points above. If 50% of the population is $200 away from bankruptcy (I’m sure lots of these people are Boomers), where the hell are these delicate Mills gonna get their inheritance from? Someone is not making sense here or is it all about a transfer of imaginary wealth to the little Mill generation? You can only save yourself – don’t wait for someone else to do it for you.

Would love to be a fly on the wall when the little Mills sit down with the lawyer to review the will (if there even is a will) and find out all there is left is debt. Boom!

Ok Millennials. Lol

#61 Phylis on 01.20.20 at 8:18 pm

#19 BillyBob on 01.20.20 at 5:03 pm#23 crowdedelevatorfartz on 01.20.20 at 5:18 pm
@#19 BillyBob
“One of my beloved Millennial relatives had to call my brother-in-law to ask how to open the filler door to put gas in the family car….”
++++
I might understand if the car was a loaner and they had never driven it before.
I drive a lot of different company trucks and rental cars and sometimes…..my god….I’m at the gas station trying to fill up and……..where is the fricken release lever for the fricken gas cap?

Under the seat? Beside the seat, on the door? on the dash? Or do you just push it to pop it open.

Oh well, in a decade or so kids will ask, “Whats a gas cap?”

The future is already here. Capless tanks already exist. Just wait for the day you try to fill it with a jerry can. Bet a least one person here knows what happens if you dont use the fill adapter that’s stowed in the trunk.

#62 the ryguy - In cabo on 01.20.20 at 8:22 pm

#17 Blog Bunny on 01.20.20 at 4:54 pm
———————————————–
I was wondering if Garth was gonna do a post about this topic. A friend of mine in BC just told me he has to shell out an extra $900 this year to cover the insurance premiums for their condo. Thats in addition to the extra $500 he kicked in the previous year.

Folks..this is the BIG ONE. This will absolutely send our once great country into a brutal recession. What would Canada sell if we can’t sell condos? Just think of the ramifications..is there a country with a higher % of people owning condos? Wood frame condos? Think of all the mortgages & CMHC liabilities, what happens if an insurance company won’t touch it?

There is no quick fix for this..years of poor quality materials, garbage tenants & condo boards, stupid designs,…blame whoever you want, but this isn’t going away. When companies can’t make money they have to raise their prices, or they fold. Insurance companies have figured out that insuring a canadian built condo is a loser..and they are going to charge through the nose, IF they even offer their service..which I suspect might not even happen in the very near future.

Sell it yesterday people…maybe you have a chance in a concrete build..but wood frame, you are toast.

#63 Stone on 01.20.20 at 8:26 pm

#16 Drill Baby Drill on 01.20.20 at 4:53 pm
Jees did we Boomers do anything right ??

———

Are you responsible for the Mills? Then the answer is no.

#64 Stone on 01.20.20 at 8:28 pm

#21 Sam on 01.20.20 at 5:11 pm
Sixty per cent of Millennials (18 to 37) have no savings. Zippo.
………

do people really believe these silly stats/surveys

good grief

———

Absolutely not! That percentage is way too low.

#65 DON on 01.20.20 at 8:28 pm

#24 Sail away on 01.20.20 at 5:22 pm

#14 IHCTD9 on 01.20.20 at 4:33 pm
#5 SoggyShorts on 01.20.20 at 4:00 pm
#63 IHCTD9 on 01.19.20 at 11:15 pm
#59 JuliaS on 01.19.20 at 10:09 pm

IMHO, any Man should be able to do the following (at least) work on their car:
Change a damn tire
Brakes
Wheel bearings
All fluids/filters
Wipers
Headlights/signals/tails
Ideally, a young guy should do a whole lot more than that.

————————

Change a tire, sure, but most of the rest are all included in regular oil changes which I won’t do myself…

————————

I still do my own brakes and wheel bearings though. The job is too quick and simple to not save the big bill involved.

————————

Yes. I’d also include muffler/tailpipe.

I try to earn $1,000/week outside of work; when I’m doing work myself that others would do, it works out double since I’m neither spending after-tax money, nor paying GST for someone else. So, saving $500 in labour equals $1,000 I’d otherwise need to earn.

Brakes pads and rotors- $1,000 savings front and back
Wheel bearings- $1,000 savings each
Muffler- $1,000 savings

I look forward to these jobs since a relaxing 2-3 hours equals an extra $1,000 earned. That’s far better than my engineering hourly rate. Same thing with home repairs.
******************

I am with you all on this one, brakes are expensive in the shop, disc are relatively easy to replace and well worth the savings. By the time I arrange an appointment, take the car in, pick it up etc…I would be done changing them.

Saving money as a DIY is a good feeling. Save all you can. Just have to start somewhere and slowly build up the tools required.

#66 TalkingPie on 01.20.20 at 8:33 pm

If I read correctly, Garth’s numbers suggest that no millennials have more than $25k saved, and while I’m sure my generation is pooched as a whole, that certainly isn’t the case for everyone. My spouse and I (29 and 36) each have more than that in savings and investments, in addition to a decent house (paid about three times household gross) that we put 20% down on. No bank of Mom and Dad, a couple of modest paid-off cars – the third one has a small loan outstanding on it because the dealer was offering 0.9% financing but wouldn’t budge on the price. DB pension on my end. Parents who are financially secure and believe that inheritance should be doled out to the kids only after they kick off. I enjoy doing as much work as I can on my cars and the house. I spent 40% of my take-home pay on flying lessons last year and still managed to increase my net worth (not including home equity). Needless to say, there are mills doing better than we are, but I’m feeling pretty thankful.

Renting for 10 years in the city was good at the time. Where we currently are in life, owning a house with a bit of space and peace is better, and I’m sure we’ll feel that way even more once kids arrive. I’m sure not about to feel guilty about it; if I wanted to live in a crowded box my entire life, I wouldn’t need to live outside of the city in the second largest country in the world.

#67 DON on 01.20.20 at 8:34 pm

#48 Ustabe on 01.20.20 at 7:37 pm

While all of you all are both polishing and using your man skills, never mind bragging about them, I’ll be in the kitchen marinating a pork butt prior to it hitting the smoker for pulled pork carnitas. We will toss in some wings for snacks while we wait and I might even whip up my chilled zabaglione for dessert.

Let me know when you have finished my oil change and I’ll feed you.

In a manly manner, I’m certain of that.
*****************

Being able to cook good tasty meals should also be added to the manly list.

#68 Dog Breath on 01.20.20 at 8:35 pm

#33 SoggyShorts
“…I didn’t know where the hood latch was on the front. Easy enough to find, but realizing that I had never popped the hood in almost 5 years of ownership…”
——————————————————————-
I remember when I was a young guy, if someone bought a new car, all his friends would come over and pop the hood and look at the engine. Young guys don’t do that any more. Hard to believe most Millennials don’t know how to change the oil or even a flat tire!

#69 IHCTD9 on 01.20.20 at 8:38 pm

#34 PK on 01.20.20 at 5:56 pm
——

I think you’re doing pretty good. With 156k at 36, if you can dump 1k/mo. till 65, you’ll have near 1.5 mil kicking out 66k/yr.

That’s better than what I can realistically expect even with dual incomes and living cheap. All my peers have near zero savings as far as I can tell, and we’re all in our 40’s.

Keep it up and you’ll be in good shape come 65. These kids emailing Mr. T with 200k+ incomes are just a sliver of the overall population, one divorce and/or job loss and the party is over. Likely more than 50% of these kids will be taking a hard financial front kick at least once before they hit 50. Ignore them, slow and steady wins the race.

#70 Shawn Allen on 01.20.20 at 8:39 pm

Cars – reliability and Delta 88s

Soggy above said:

I bought a new truck with the 5 years extended care package. About 4.5y later I wanted to check the washer fluid since there had been a stupid amount of slush lately and discovered that I didn’t know where the hood latch was on the front. Easy enough to find, but realizing that I had never popped the hood in almost 5 years of ownership was odd– my previous vehicles included a Delta 88 where adding a liter of oil each time I filled the gas tank was standard prcedure.

*********************************
Well vechicles are WAY more reliable than back in the 70’s. But now the dealers want to charge lots of money for preventative maintenance that does not even need to be done. I am starting to think pre-paid extended care package is a good idea.

My Dad has an Oldsmobile Delta 88 in the early 70’s. We made at least one long road trip from Cape Breton to New York City and a few other stops around 1972. Six kids plus the parents. No seat belts worn in those days. No air Conditioning. Towing a travel trailer. Many stops for gasoline.

Not sure about oil, but in those days you checked very frequently. I think that car had just over 400 cubic inches displacement. Also, families did not stay in Hotels in those days nor did we make a single stop for fast food or any kind of restaurant. Actually the vast-vast majority of families in Cape Breton in those days never traveled for vacation. Maybe a tent trip and not too far away. The standard of living was fine but vastly lower than today in so many ways.

#71 Dragonslayer on 01.20.20 at 8:43 pm

Re: the value of doing work yourself

Never forgot the message in “Zen and the Art of Motorcycle Maintenance “. Using the motorcycle as an example but applies to cars as well. Nobody cares about your bike or car like you do.

I worked in a garage long ago and while some of the mechanics were great some were not. I’d rather do the work myself than deal with the aggravation and cost of poorly done repairs or misdiagnosis.

There’s no better feeling than learning a new skill set and when you do have to resort to the dealership for a complex job you’re educated about your vehicle so it’s harder for them to pull one over on you.

And with no experience or knowledge you’re a lamb to the slaughter when you walk into the dealership.

#72 leebow on 01.20.20 at 8:51 pm

#31 Sail away

Which means you own a chain saw. A slippery slope. One day you realize that you also somehow own a screw driver.

#73 down and out on 01.20.20 at 8:57 pm

https://windsorstar.com/news/local-news/fear-and-resignation-along-southwestern-ontarios-battered-lake-erie-shoreline Can a owner just walk away ,not pay taxes etc.with no repercussions to credit etc. mortgage ,utilities,so sad .

The little cottage at Long Point pictured in the article is mine. At least, used to be. I built it many years ago, before selling it for over-asking in a bidding war. Apparently that was a good decision. – Garth

#74 Ronaldo on 01.20.20 at 9:04 pm

#1 Captain Uppa on 01.20.20 at 3:38 pm
A lot of Boomers, especially those that immigrated here from Europe or alike, do not sell their homes. In fact they plan to die in them. I personally don’t get it, but I’ll see when I’m a wrinklie.

But I bring this up because those Mills who are not saving will be getting a massive inheritance once their parents pass and they sell those homes (thinking GTA). It’s not something a good person wants to think about, but huge waves on inheritances are coming which will save the non-saving Mills.
————————————————————–
The Gen Xers will be first in line to get the inheritance…the mills will have to wait a bit longer, maybe another 25 years or so.

#75 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 01.20.20 at 9:06 pm

Dead duck. How appropriate an expression for today.

Wishing a sober Blue Monday to everyone, the saddest, most depressing day of the year.

For deluded fans of Toronto and the Make Believes, nothing special, this is just like each of the 19,256 days since they last won the Cup or even made the finals.

(On February 3, 2022, GTAHoles can celebrate 20,000 days of sports incompetence. Woohoo. Can’t wait.)

Today’s bleak seasonal despair and hopelessness is nothing compared to the pathos of “living” in the fake world class city of Toront-owe.

#76 Ronaldo on 01.20.20 at 9:09 pm

#2 Andrewski on 01.20.20 at 3:50 pm
Parents of Mills, please stop yammering on how renting where you live is lost money, so buying is the only option. Today’s young workers need some sensible financial direction that does not have them confused.
——————————————————————
The Mills have just as much opportunity as the Boomers and GenXer’s had if they are willing to relocate away from the frothy areas as many of us did. There are many places in this country that are extremely affordable at today’s interest rates. You just have to be willing to make the move cut the cord. The other option is to stay where you are and whine.

#77 Kat on 01.20.20 at 9:13 pm

@ IHCTD9 I can do all those things and more. When are my balls going to drop? Being self sufficient is not a man thing it is an adult thing. Grow up.

#78 ImGonnaBeSick on 01.20.20 at 9:16 pm

#16 Drill Baby Drill on 01.20.20 at 4:53 pm
Jees did we Boomers do anything right ??

——–

You guys only invented everything… the only knock I have on boomers is the coddling of the Millenials… I imagine that was a blowback from having absent parents.

Anyways, I wouldn’t worry about it. The millenials are just having the world’s biggest temper tantrum, because they’re finally being told “no” by the world.

#79 NoName on 01.20.20 at 9:42 pm

#34 PK on 01.20.20 at 5:56 pm

So you would like to measure… OK someone one sed: If you can’t measure it, you can’t improve it. I dont remember who sad that but Iam sure that dirndl wearing resident economist could help us with that.

https://www.getsmarteraboutmoney.ca/calculators/net-worth-calculator/

Go there and type your numbers in it’ll tell you exactly where are you comparing it vs province and country.

#80 Sail Away on 01.20.20 at 9:50 pm

#58 Sold Out on 01.20.20 at 8:13 pm
#51 Sail away on 01.20.20 at 8:02 pm
#35 Condo Building Risk

——————————–

Engineers deliberately defying Code requirements?

It’s cheaper for an engineer to overdesign than underdesign. All of the calcs have to be done in any case, so it’s much easier to upsize for safety.

And all calcs are reviewed and signed off- so double career suicide if engineers were to do as you think.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

It happens all too often.

https://www.cbc.ca/news/canada/british-columbia/john-bryson-engineer-surrey-high-rise-1.5125884

https://www.cbc.ca/news/canada/british-columbia/langford-danbrook-one-1.5406134

————————————

Mistakes happen, yes. Nobody does this on purpose. I’m familiar with one of the above and the engineer is absolutely crushed. His firm, his reputation, his livelihood in tatters.

The review is ongoing. It sounds like a couple of undersized (but fixable) beams. Terrible situations. Scares the heck out of me, tbh. If anybody in my firm makes a mistake and I don’t catch it… kaboom.

#81 IHCTD9 on 01.20.20 at 9:52 pm

#76 Kat on 01.20.20 at 9:13 pm

@ IHCTD9 I can do all those things and more. When are my balls going to drop?
——-

My guess is, not soon.

#82 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 01.20.20 at 9:55 pm

So good night, and happy Blue and White Monday, Toronturds!

But don’t worry that the sad day is over soon, because your team, like your city, sucks every day of every week, not just today.

See? It IS different there. Your team’s results will never go up, and your real estate will never go down.

Because you are special!

Bwahaahaahaahaaaaaaaaa!!!

#83 IHCTD9 on 01.20.20 at 10:03 pm

#66 DON on 01.20.20 at 8:34 pm
#48 Ustabe on 01.20.20 at 7:37 pm

While all of you all are both polishing and using your man skills, never mind bragging about them, I’ll be in the kitchen marinating a pork butt prior to it hitting the smoker for pulled pork carnitas. We will toss in some wings for snacks while we wait and I might even whip up my chilled zabaglione for dessert.

Let me know when you have finished my oil change and I’ll feed you.

In a manly manner, I’m certain of that.
*****************

Being able to cook good tasty meals should also be added to the manly list.

— ——

Ustabe has commented on his cooking talents here before.

I don’t think I’d refuse an invite to one of his BBQ’s, even if it cost me an oil change :D

#84 Gen-Xer on 01.20.20 at 10:04 pm

#75 Ronaldo on 01.20.20 at 9:09 pm
#2 Andrewski on 01.20.20 at 3:50 pm
Parents of Mills, please stop yammering on how renting where you live is lost money, so buying is the only option. Today’s young workers need some sensible financial direction that does not have them confused.
——————————————————————
The Mills have just as much opportunity as the Boomers and GenXer’s had if they are willing to relocate away from the frothy areas as many of us did. There are many places in this country that are extremely affordable at today’s interest rates. You just have to be willing to make the move cut the cord. The other option is to stay where you are and whine.

—————————————————————–

Both of you out to lunch kind sirs.

Millennials got screwed and screwed hard. Tell me, what is the real estate value upside of these non-frothy areas you speak of? Will they go up 10 fold like a home in the GTA or YVR did in 25 short years? What are the job prospects or aspirations of opening a successful business in these best kept secrets? Please name one major town or city in Canada where real estate has not at least doubled or tripled in price or far more, in the past 12 years alone, where a young couple can attempt to make the most of their careers.

And how would you like to fork out $45,000 + per year in rent plus utilities and rental insurance, for the same home you bought for $80K? Oh ya I forgot interest rates were 18% for the 1st 5 years of my $60K mortgage…cry me a river. But just have these whiners move right? Like you had to?

It’s so easy to disparage when you were literally handed everything in the lottery era isn’t it? As a Gen-Xer, I consider myself to be relatively fortunate and just wince when I see what Canada has done to the millennials and future generations. Sold them down the river. And all we can do is keep telling them how lucky and entitled they are. They’ll be dancing on our graves and rightfully so.

#85 Sail Away on 01.20.20 at 10:06 pm

#70 Dragonslayer on 01.20.20 at 8:43 pm
Re: the value of doing work yourself

Never forgot the message in “Zen and the Art of Motorcycle Maintenance “. Using the motorcycle as an example but applies to cars as well. Nobody cares about your bike or car like you do.

———————————-

Haha- that’s the exact example I use when explaining my reason for doing my own finances.

So fitting, though- the young mechanic breaking off cooling fins because he. just. doesn’t. care.

#86 DON on 01.20.20 at 10:11 pm

#76 Kat on 01.20.20 at 9:13 pm

I can do all those things and more. When are my balls going to drop? Being self sufficient is not a man thing it is an adult thing. Grow up.
***************

So can my wife, that’s why I married her, the interview was intensive on both sides. I had to provide proof of abilities that I bragged about at the time.

I don’t think any anyone intended any disrespect to women. Just a do it yourself and save to invest thread.

#87 Ultraman on 01.20.20 at 10:16 pm

A condo owner has sole control over everything from the interior paint inwards. Any owner can perform caulking repairs themselves. You are correct about everything else requiring a professional touch, though.

Sold out, I’m not so sure about that, I think the concept of common property is wide and large especially for electrical and plumbing. In the case the shower stalls leaking, it’s the unit below that were affected, therefore the work had to be guaranteed and insured: $$$$$

#88 SoggyShorts on 01.20.20 at 11:23 pm

#69 Shawn Allen on 01.20.20 at 8:39 pm

Hehe yep those Delta 88s had their upsides, the tough part was going in for a kiss at the end of a date: her being 3 feet away makes for a helluva lean-in ;-)

#89 Ponzius Pilatus on 01.20.20 at 11:32 pm

IHTC
How’s your trip to Virginia?

#90 Ponzius Pilatus on 01.20.20 at 11:38 pm

This is a car repair blog now?

#91 Ponzius Pilatus on 01.20.20 at 11:43 pm

#8 6manLikeLouWill on 01.20.20 at 4:09 pm
Can we get some more insight into what makes condos an “insurance timebomb”? Totally went over my head!
—————————
If you own a condo, you’ll be soo screwed.
Should have listened to Garth.

#92 fishman on 01.20.20 at 11:44 pm

Where does someone come up with engineers cutting corners & underdesignimg to cut costs. Thats like finding a crooked chartered accountant. Of course rare occurrences do occur but probably trending to incompetence. I’ve had a lot of engineers sign off on drawings & CA’s sign off on Co. tax filings. I call it the signature from God. Only a fool would risk life & liberty for such meagre advantage. Judges have no sympathy for their kin in the professions that break the code.

#93 Ponzius Pilatus on 01.20.20 at 11:58 pm

79 Sail Away on 01.20.20 at 9:50 pm
#58 Sold Out on 01.20.20 at 8:13 pm
#51 Sail away on 01.20.20 at 8:02 pm
#35 Condo Building Risk

——————————–

Engineers deliberately defying Code requirements?

It’s cheaper for an engineer to overdesign than underdesign. All of the calcs have to be done in any case, so it’s much easier to upsize for safety.

And all calcs are reviewed and signed off- so double career suicide if engineers were to do as you think.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

It happens all too often.

https://www.cbc.ca/news/canada/british-columbia/john-bryson-engineer-surrey-high-rise-1.5125884

https://www.cbc.ca/news/canada/british-columbia/langford-danbrook-one-1.5406134

————————————

Mistakes happen, yes. Nobody does this on purpose. I’m familiar with one of the above and the engineer is absolutely crushed. His firm, his reputation, his livelihood in tatters.

The review is ongoing. It sounds like a couple of undersized (but fixable) beams. Terrible situations. Scares the heck out of me, tbh. If anybody in my firm makes a mistake and I don’t catch it… kaboom.
———————
I thought you was a plantation owner.
Apologies.

#94 NoName on 01.20.20 at 11:58 pm

Here it is, links to free audio books and hundreds of them.

http://www.openculture.com/freeaudiobooks

#95 Al on 01.20.20 at 11:59 pm

“Some things are a rip-off, but largely I find that experts in a field can do things faster and cheaper than I can once I factor in how I value my own labor”

Yes depends on what you make and how much it costs. You must be well compensated to beat simple car work. Mechanic shop rate is $130/hr of after tax money. Say you work an extra 2 hours at your job rather than change the brakes. These 2 hours would be additional to your regular wage of 260k gross (roughly 130/hr). Tax rate on those additional hours would be about 50%. You’d only clear $65/hr. It would have to take you 4 hours to do the 2 hr job to break even (it most likely won’t, especially if it’s not your first time). Make any less than 130/hr, then it gets even worse. Less than 1% of people make that kind of money . Also an overlooked detail, if we are counting minutes, is that dropping off the car and picking it up can itself eat up 1 – 2, or more hours of your time (Ymmv of course). It makes financial sense for almost everyone to do simple car stuff yourself.

#96 Post on 01.21.20 at 12:30 am

Garth why are you posting a photo of that wonderful dog with those 2 damn critters?

#97 GBiddy on 01.21.20 at 12:49 am

#46 IHCTD9 on 01.20.20 at 7:07 pm

#24 Sail away on 01.20.20 at 5:22 pm

Yes. I’d also include muffler/tailpipe.

I try to earn $1,000/week outside of work; when I’m doing work myself that others would do, it works out double since I’m neither spending after-tax money, nor paying GST for someone else. So, saving $500 in labour equals $1,000 I’d otherwise need to earn.

Brakes pads and rotors- $1,000 savings front and back
Wheel bearings- $1,000 savings each
Muffler- $1,000 savings

I look forward to these jobs since a relaxing 2-3 hours equals an extra $1,000 earned. That’s far better than my engineering hourly rate. Same thing with home repairs.
——-

110%

I look at it the exact same way. Did the roof last spring, took my time and did it before it got too hot. Bought a nice air nailer just for the job, put down some top quality Owens Corning Fiberglass laminated shingles. Job would have cost 8k minimum before tax easy via a good contractor, I got it done for under 2k including the air gun. The job cost is almost all labour, a perfect job to save big by learning, and doing it yourself. Got the boys up there too so they could get some hands on roofing experience.

One of my BIL’s put 3 new exterior doors in, good quality and great workmanship. The bill was 6k. Those doors would have cost under 2k lot. The rest was a bit of moulding, flashing, trim, caulking and a pile of labour. That’s another job to learn.

I’ve never kept track, but I have undoubtedly saved many 10’s of thousands of after tax dollars by doing it myself instead of hiring it out. Just In 2019 from what I can remember doing, I’ve likely saved about 12 grand – minimum – seriously. That’s after tax dollars too! Add ~25% to that figure for what I would have had to earn to get the same work done by others.

I’m the same. There is no job I won’t tackle–either learn to do it and do it well, or realize I can’t do it (usually time and tools) and pay a man. Roofing, drywall, and body work I now leave to the pros, however, and if you saw any of the drywall in my house you’d understand…

It’s not just about just saving money, it’s about maintaining and developing capabilities–being useful, skilled, able, smart. But the after-tax dollar ROI is pretty significant.

When I was younger I used to use the “but my time is worth more, so pay someone” excuse, and then I realized that’s never true no matter what you earn.

Work being it’s own reward and hard work more so, nothing extends your sense of self as much as getting shit done when it needs to be done.

Other than those things mentioned above, my only caveat is if there is a high risk of injury that can’t be mitigated. In that case, I outsource the risk.

Millennials and Metrosexuals (‘member those?) reach for the phone or tablet when something needs to be fixed, built, sorted, repaired, rebuilt, dug up, dug out, pumped out, replaced, machined, etc…

Men reach for their tools.

#98 Treasure Island CEO - 99,943,043.88 Offshore on 01.21.20 at 1:29 am

BC is expensive. Rent or own. All of the good jobs are in Vancouver or around Vancouver. Alberta jobs are hard to come by in virtually every sector right now, not just oil.

My advice to mills is pay high rent in the city for career growth and at some point near retirement disappear to some rural area. Or find some way of making money in a small rural area where you can buy an affordable home for around 300k.

Or better yet, leave Canada altogether. This country is a joke. 30% claim they are insolvent while 2/3rds feel they will be insolvent within a year and no possible way to pay back debt. 3rd rate success right there. 3rd world country.

#99 Most over valued US market in history on 01.21.20 at 1:34 am

Let’s see how long they keep this gasbag of a market going. Paging J Powell.

#100 Dr V on 01.21.20 at 1:36 am

27 re 56 chev

Dad sold the belair when I was 12 so here’s the best I can recall.

Under the drivers side “boob” taillight there was a vertical metal bar that actually looked decorative. You would rotate it (counterclockwise?) and the taillight assembly would flop down part way exposing the gas
cap which was at about a 45 degree angle.

I’ll google it to see how close I got.

#101 Dr V on 01.21.20 at 1:40 am

So it looks like the little metal bar was above the “boob” but did turn CCW

https://www.youtube.com/watch?v=FauLQR5DPbA

#102 just snootin' on 01.21.20 at 3:13 am

Nonplused on 01.20.20 at 5:27 pm

What’s wrong with hot tubs? Especially if you are single they are a very good thing to have. Most of them are stand alone anyway so if the new buyer doesn’t want it you just unplug it and sell it.

….

For fun this year I bought a 150 gallon horse trough and a magnetic block heater. 4 hours later I’m stylin’. Neighbours laughed, but I know they want to. I even bought a rubber ducky.

#103 Johnny Peedoffovich on 01.21.20 at 3:30 am

Forced Savings ! Now that’s the greatest canard ever foisted on an ignorant public going back three generations. It fits the niche between Freedon 55 and Polyamory. In other words , ludicrous. When invented it was sold as a way to get a drunken husband returning from the war to leave a legacy to his legally penniless wife. Now it’s being sold as ‘savings’ to penniless people who can’t stay away from the bong long enough to open an investment account. The education system has failed, big time. And I suppose it’s because civil servants don’t have to save. They just float away on a pillow of public largesse, until the end, forever, never a care in the world. If it were teachers facing down the bitter reality of saving you’d be right to bet that Financial Literacy would be right up there with Medical School. What this country needs is forced responsibility not forced savings. My top picks last years earned 33% per , learn to read a balance sheet, its not rocket science.

#104 Robert Ash on 01.21.20 at 4:33 am

I believe I became financially independent by learning to Renovate and Build myself. I started off by helping any one at work with their projects… often pouring cement pads..then the Garage package… usually a BBQ and a few beers, and a lot of fellowship and bragging, followed, but it only took two or three help sessions, before any one can be confident enought to try this themselves… Like Garth mentions, above He Built a Cottage, and sold it… I have done this several times myself, and in my mid sixties, still swing the hammer, and mix my own Cement pilings, Frame a buildling, Reroof… I have three Nailers, if a pal, or a hand is needed… over my career, learning to do it myself, is not only gratifying, but saves… piles.. As a New Grad in 78, I had a Professional career and was offered a job in Van or Edmonoton.. It was a no brainer to take Edmonton.. Van was sky high price wise, in the 70s comparitively.. And then many of us learned a few hard knocks, as we were all targets of Downsizing… these problems have been around an long time… It always took an angle to climb above the crowd… How many sucessful people can look back and say they were Paper Boys… it started at 10 years old, helping my big Brother… Cheers.

#105 Corona Virus Outbreak on 01.21.20 at 5:13 am

BANNED

#106 Corona on 01.21.20 at 5:43 am

Truth

https://apnews.com/14d7dcffa205d9022fa9ea593bb2a8c5

Hurts

Wear a mask

Maybe you should worry more about this: “The CDC estimated that flu sickened 49 million people, hospitalized 960,000 and killed about 80,000 people (in 2019). The previous high for a regular flu season, based on analyses dating back more than three decades, was 56,000.” Had your shot yet? ‘ Garth

#107 Tater on 01.21.20 at 8:01 am

#63 IHCTD9 on 01.19.20 at 11:15 pm
#59 JuliaS on 01.19.20 at 10:09 pm

IMHO, any Man should be able to do the following (at least) work on their car:

Change a damn tire
Brakes
Wheel bearings
All fluids/filters
Wipers
Headlights/signals/tails

Ideally, a young guy should do a whole lot more than that.

————————————-

Huh. For a guy who believes gender is a purely biological, you’ve slapped a fair amount of cultural expectations on to your definition of a man.

Isn’t it just about the twig and berries?

And to head off the criticism, yep, I can do all the thing on the list. I vastly prefer earning enough that I never have to.

#108 crowdedelevatorfartz on 01.21.20 at 8:26 am

@#83 Gen X’er
“It’s so easy to disparage when you were literally handed everything in the lottery era isn’t it?”
+++

Well if you’re going to generalize about how “easy” it was for Boomers.
Perhaps a bit of a history lesson.
Any Boomer that was lucky enough to have a job. Kept it. Didnt move…ever.

I was hatched at the end of the Boom. Early 1960’s.
So … during my mid 1970’s teen years the economy was in recession, gas was expected to run out by the 1990’s, prices were through the roof. Interest rates were 12% and only the banks and shylocks loaned money.
No jobs, all taken by the Boomer cohort ahead of me.
Thats life. I worked at part time jobs while finishing school. University wasnt even on the radar.
In the 1980’s the recession was even worse….brutal, no work, I moved across the country to get a job, any job. Calgary had a 1% rental vacancy rate. My first rental was a room , under a garage in an old house, in the down town core, rats, mice, shared toilet, no kitchen.
Interest rates were 15 -18%. And banks wanted your first born as collateral.
Buy a house? Bwahahahaha.
Calgary’s economy was crushed by ’83. I moved again further west.
My first loan was a used 10 year old motorcycle at 19.75% just so I could get off the damn “loser cruiser” ( bus).
Was still renting in shared accommodation but there was a kitchen. Things were looking up.
I was eventually able to afford to rent my own place.
Hint: Small steps get you there, bitching and moaning about how shitty your life is doesnt.
Many jobs, many loans, many years later.
I am again renting. No shame in that. What’s the issue?
I refuse to pay insane money for a house that will require hundreds of thousand more in repairs and has probably reached “peak value”.
Prices are dropping. Sales suck.
Buyers have no more blood to give.
As for condos…pffft.
Not a chance i would buy one. And be locked in to a multi decade mortgage.
Between the shoddy construction, the nazi’s on the condo boards and idiots for neighbours…
I’ll keep renting and watch my balanced and diversified portfolio leap ahead of the “Greater fool” home “ownership/mortgage slave” pack.

I plan on moving back East when I retire in a few years. You Mills can have my job. It pays in the six digits but involves physical labour, people yelling at you, dirt, cold , lots of commuting, and your mom wont helicopter in to hand out pink T-shirts to hush the mean bullies.
Newsflash kids from an unsympathetic Boomer.
If you want to keep blaming Boomers because you have a job (or jobs) you hate and can’t afford to buy anything ……good luck with that.
We’ve already lived through it….decades ago.

#109 IHCTD9 on 01.21.20 at 8:30 am

#88 Ponzius Pilatus on 01.20.20 at 11:32 pm
IHTC
How’s your trip to Virginia?
___

It must have been very good because I don’t even remember being there.

#110 Dharma Bum on 01.21.20 at 8:52 am

#48 Ustabe

I’ll be in the kitchen marinating a pork butt prior to it hitting the smoker for pulled pork carnitas.
——————————————————————–

NOW your talking!

Smoking meat is the best and most useful manly pastime, ever!

Hey, you can’t make friends with oil changes. But a delicious smoked pork butt? MARON!!!

(Not to mention ribs, brisket, sausage, turkey, bacon…)

#111 IHCTD9 on 01.21.20 at 8:54 am

#106 Tater on 01.21.20 at 8:01 am

Huh. For a guy who believes gender is a purely biological…

___

I do?

Huh.

#112 David Hawke on 01.21.20 at 9:08 am

#105 flu shots are the biggest scam ever invented against the sheeple!

How is preventative medicine that you receive for free a scam? Are you one of those anti-vaxxer nutjobs? – Garth

#113 IHCTD9 on 01.21.20 at 9:17 am

#83 Gen-Xer on 01.20.20 at 10:04 pm

Both of you out to lunch kind sirs.

Millennials got screwed and screwed hard. [1.]Tell me, what is the real estate value upside of these non-frothy areas you speak of? [2.]Will they go up 10 fold like a home in the GTA or YVR did in 25 short years? [3.]What are the job prospects or aspirations of opening a successful business in these best kept secrets? [4.]Please name one major town or city in Canada where real estate has not at least doubled or tripled in price or far more, in the past 12 years alone, where a young couple can attempt to make the most of their careers.
___

I don’t get this logic.

1. Non frothy area = the entire country less the GTA and GVRD. The upside is nothing like what the GTA/GRVD experienced, and this is a good thing if Mils would like to buy a house. Missing out on big metro RE gains does not mean Mils are screwed, I missed out on them too, and I am not screwed.

2. No they will not. That’s great news. Again, Mils aren’t screwed because they missed out on the great Canadian Metro RE lotto. The vast majority of folks of every generation also missed out.

3. The prospects are not good. Good jobs in the sticks are scarce, new business odds anywhere you go are 80-90% chance of failure. Choose your poison.

4. Pretty much all RE goes up over time. The Mils have interest rates on their side. Just yesterday there was a post from someone who may buy an old house for 180K – a quick stab at a Mortgage calculator revealed their 2019 mortgage payment on 180K would be essentially the same as my 2001 one was on 123K. When you take inflation into account – they would definitely be paying less than I did.

#114 IHCTD9 on 01.21.20 at 9:28 am

#103 Robert Ash on 01.21.20 at 4:33 am

I believe I became financially independent by learning to Renovate and Build myself.
___

Good post, I know so many dudes like you. One of my bros has dabbled in RE since his mid 20’s, buying, severing, renovating, building, selling. He has not had a steady 9-5 job in 2 decades now. Works gigs here and there, has has a few small biz’s over the years too.

His RE dabbling made him his fortune. Did all the work himself, that was his 9-5. Mortgage was gone by ~30, and he owned a brand new (very nice) place on 100+ acres at that point.

A series of about 4-5 RE projects has him set for life, and lots of spare time in between to boot.

#115 Remembrancer on 01.21.20 at 10:13 am

Though this is more in tune with last weekend’s Blog post from Ryan, a bit on how some Albertan’s have buyer’s remorse works for multiple topics. That’s the thing about austerity, its popular as long as it doesn’t impact you…

https://calgary.ctvnews.ca/drug-program-changes-could-leave-46k-albertans-without-coverage-starting-march-1-1.4775956

#116 Sail Away on 01.21.20 at 10:15 am

Re: flu and investing

Every cloud has its silver lining. Look at Alpha Pro Tech (APT). They make protective clothing and jump during infectious outbreaks.

Always take advantage of a crisis.

#117 IHCTD9 on 01.21.20 at 10:20 am

#97 Treasure Island CEO – 99,943,043.88 Offshore on 01.21.20 at 1:29 am

My advice to mills is pay high rent in the city for career growth and at some point near retirement disappear to some rural area. Or find some way of making money in a small rural area where you can buy an affordable home for around 300k.
____

The general plan for winning in the sticks is as follows:

1. Get married/shacked to a working S/O

2. Get/create a desirable piece of RE into your possession for as little money as possible, with some land, and then get it paid off.

3. Sever from your original lot and build on it. Sell original house for 200+K more than what your new place cost you to erect.

4. Walk on Cake. House is paid, and you’ve got six figures in the bank – all tax free. The couple could get by even on two minimum wages from here on in.

Some do it again, some age in place while socking it away for retirement if they have decent wages. Either way is winning.

Most of the time when you see a couple in the boonies doing great, it’s not because of having a good career, it’s because of side hustles involving land and RE.

#118 Sail Away on 01.21.20 at 10:37 am

Hey Tater, you see Tesla?

#119 Sold Out on 01.21.20 at 10:58 am

I have to agree with the RE/Sweat Equity path to FI. I see many small houses in my over-priced town that take forever to sell, even at comparatively sensible valuations, because 1st time buyers don’t want to live with dated, worn interiors while they spruce the place up. If you don’t know how, offer to help friends who do and learn the ropes.

Anyone can learn to install new windows and doors, kitchen cabinets and counters, tile, flooring, etc. Materials represent about 20% of reno costs, so if you can provide the labour it’s virtually a guaranteed way to make bank on RE anywhere. Live in the house for a few years, rinse, repeat. You might even luck into a bubble and totally crush it, like me.

All tax free capital gains. There is nothing like the feeling of a 6 or 7 figure bank draft with your name on it, and knowing that no tax is coming off it.

#120 LP on 01.21.20 at 11:02 am

Vice grips, don’t forget vice grips. Those are a must have, especially as you get older and arthritic. When I assembled a small tool kit to take with me after my husband died, I included his vice grips. Didn’t have a clue why they might be handy. But now they reside in one of the kitchen drawers under the tea towels.

I need them to open those cursed plastic lids that are on bottles of juice. And the other night during book club, they helped me open the screw cap on a bottle of white wine.

#121 akashic record on 01.21.20 at 11:14 am

#105 Corona on 01.21.20 at 5:43 am

Truth

https://apnews.com/14d7dcffa205d9022fa9ea593bb2a8c5

Hurts

Wear a mask

Maybe you should worry more about this: “The CDC estimated that flu sickened 49 million people, hospitalized 960,000 and killed about 80,000 people (in 2019). The previous high for a regular flu season, based on analyses dating back more than three decades, was 56,000.” Had your shot yet? ‘ Garth

It’s not worry competition.
I personally prefer to keep my own built-in immune system in good shape. I offer my free shot in return for a free ear flash, which I heard is no longer covered by ohip.

#122 akashic record on 01.21.20 at 11:18 am

OK, let’s make that offer just a flush.

#123 Yukon Elvis on 01.21.20 at 11:21 am

Sub zero temperatures. Snow. The heater in my car quits. Curses. Hello Mr.Google. What could it be? Switch, fuse, relay, motor. Best guess is relay. Buy one at recycler. $4.30 cents. Re and re. We have heat. Took 2 hours including travel time. I’m still the king.

#124 Rossi 46 on 01.21.20 at 11:28 am

I had the opportunity after I purchased a condo a few years ago to serve on their Condo Board. That was an eye-opener.

This was one of the better condos in the City.

1. I learned that the elevator was being maintained by parts that were becoming scarce, and with the continual changes to various codes, if the elevator failed and had to be replaced it would cost millions and the reserve would not be able to cover the cost.

2. There is always a member of the Board that wants to improve everything, all the time.

3. The government kept increasing the insurance requirements for condos, (and the Boards) and the audits became increasingly ridiculous and too costly to even consider the audit suggestions.

4. The windows started to fail and you have no control over that repair cost either.

Scared me back to a detached.

#125 Tater on 01.21.20 at 12:04 pm

#117 Sail Away on 01.21.20 at 10:37 am
Hey Tater, you see Tesla?

———————————-

Really starting to remind me of Enron, Nortel and JDSU now.

I eagerly anticipate the Q4 earnings.

#126 saanichtonian on 01.21.20 at 12:04 pm

“IMHO, any Man should be able to do the following (at least) work on their car:

Change a damn tire
Brakes
Wheel bearings
All fluids/filters
Wipers
Headlights/signals/tails

Ideally, a young guy should do a whole lot more than that.”

“A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects.”

― Robert A. Heinlein

#127 Yukon Elvis on 01.21.20 at 12:11 pm

#123 Rossi 46 on 01.21.20 at 11:28 am
I had the opportunity after I purchased a condo a few years ago to serve on their Condo Board. That was an eye-opener.

This was one of the better condos in the City.

1. I learned that the elevator was being maintained by parts that were becoming scarce, and with the continual changes to various codes, if the elevator failed and had to be replaced it would cost millions and the reserve would not be able to cover the cost.

2. There is always a member of the Board that wants to improve everything, all the time.

3. The government kept increasing the insurance requirements for condos, (and the Boards) and the audits became increasingly ridiculous and too costly to even consider the audit suggestions.

4. The windows started to fail and you have no control over that repair cost either.

Scared me back to a detached.
……………………………………
Three story condo here. Over 55. Building and balance sheet A1 shape. Low strata fees and taxes. No fear.

#128 Damifino on 01.21.20 at 12:25 pm

#107 crowdedelevatorfartz

Dear Mr. Fartz:

I’m a Canadian ten years your senior with a similar tale. I’ve told it often. Whether your story is fact or fiction (I know it’s fact), it remains forever irrelevant to the present day where the young face unprecedented hardship in a system cruelly rigged against them.

I don’t tell my story anymore. I prefer to hunker down as the world about me persists in the age-old game of blaming those who’ve come before for every evil while denying credit for every improvement. All cohorts will eventually play the role of scapegoat.

I am not innocent. I had no appreciation whatsoever for the fantastic world of opportunity left by my father and his father before him. I thought they were misguided men. As I near 70, they appear as giants to me.

#129 IHCTD9 on 01.21.20 at 12:31 pm

#119 LP on 01.21.20 at 11:02 am
Vice grips, don’t forget vice grips. Those are a must have, especially as you get older and arthritic. When I assembled a small tool kit to take with me after my husband died, I included his vice grips. Didn’t have a clue why they might be handy. But now they reside in one of the kitchen drawers under the tea towels.

I need them to open those cursed plastic lids that are on bottles of juice. And the other night during book club, they helped me open the screw cap on a bottle of white wine.
___

You keep vice grips in the Kitchen?

You probably keep a loaded Mossberg 590 in the pantry under the table cloths too amirite?

I guess I need to up my game! :D

#130 oh bouy on 01.21.20 at 12:48 pm

@#113 IHCTD9 on 01.21.20 at 9:28 am
#103 Robert Ash on 01.21.20 at 4:33 am

I believe I became financially independent by learning to Renovate and Build myself.
___

Good post, I know so many dudes like you. One of my bros has dabbled in RE since his mid 20’s, buying, severing, renovating, building, selling. He has not had a steady 9-5 job in 2 decades now. Works gigs here and there, has has a few small biz’s over the years too.

His RE dabbling made him his fortune. Did all the work himself, that was his 9-5. Mortgage was gone by ~30, and he owned a brand new (very nice) place on 100+ acres at that point.

A series of about 4-5 RE projects has him set for life, and lots of spare time in between to boot.
_____________________________________

I recently graduated from renovating to building, as a side hustle no less. Just a fantastic hobby and source of income for the past 15 or so years.
Might quit my big city day job, liquidate and take my side hustle to the sticks.

#131 Sail Away on 01.21.20 at 1:06 pm

#124 Tater on 01.21.20 at 12:04 pm
#117 Sail Away on 01.21.20 at 10:37 am
Hey Tater, you see Tesla?

———————————-

Really starting to remind me of Enron, Nortel and JDSU now.

I eagerly anticipate the Q4 earnings.

————————-

I call it a 532% return since 2013.

Tesla profit literally bought my Tesla. It was worth paying the cap gains tax for the profound simplicity.

#132 IHCTD9 on 01.21.20 at 1:07 pm

#122 Yukon Elvis on 01.21.20 at 11:21 am
Sub zero temperatures. Snow. The heater in my car quits. Curses. Hello Mr.Google. What could it be? Switch, fuse, relay, motor. Best guess is relay. Buy one at recycler. $4.30 cents. Re and re. We have heat. Took 2 hours including travel time. I’m still the king.
___

I was at the bone yard years ago and noticed an old Clark Forktruck sitting there sunk into the mud. Upon closer inspection, I noticed it was powered by an old Continental F-140 Flathead, the same engine perched between the frame rails of my old ’52 Track loader.

It was a 60’s model, and I noticed it had factory provisions for a screw in disposable oil filter, my dozer still had the messy, leaky canister setup. It also had a sweet cast aluminum alternator bracket whereas my loader had some junky home made thing on there. Also, there was a sweet air intake system terminating in a mount and housing for a conventional (disposable) paper air filter, the old loader still sported an oil bath system complete with the mason jar sticking out of the hood.

An hour and 20.00 later, it was all mine! Got to love the old bone yards that still let you walk around and pull parts.

#133 IHCTD9 on 01.21.20 at 1:14 pm

#129 oh bouy on 01.21.20 at 12:48 pm

I recently graduated from renovating to building, as a side hustle no less. Just a fantastic hobby and source of income for the past 15 or so years.
Might quit my big city day job, liquidate and take my side hustle to the sticks.
___

That’ll be a tough hustle to lose, once you can secure the land you’re pretty much golden. Lot’s of peeps moving in – and they got money thanks to selling gta RE!

#134 AGuyInVancouver on 01.21.20 at 1:36 pm

The answer is clear: the Federal government needs to bring back some of the programs that existed to spur inventment in rental buildings in the 1970’s. That stock served us well into the 21st century.

#135 LP on 01.21.20 at 1:59 pm

#128 IHCTD9 on 01.21.20 at 12:31 pm
You probably keep a loaded Mossberg 590 in the pantry under the table cloths too amirite?
**********************************

Nah…a recording of me jacking one into the chamber will do me just fine. As long as it’s dark. As long as I’m right behind whoever.

#136 SoggyShorts on 01.21.20 at 2:00 pm

#83 Gen-Xer on 01.20.20 at 10:04 pm
#75 Ronaldo on 01.20.20 at 9:09 pm
#2 Andrewski on 01.20.20 at 3:50 pm
What are the job prospects or aspirations of opening a successful business in these best kept secrets? Please name one major town or city in Canada where real estate has not at least doubled or tripled in price or far more, in the past 12 years alone, where a young couple can attempt to make the most of their careers.
************************
One major Town? How about every town in Sask/Man/Ab?
Real estate has been flat since 2008, certainly hasn’t outpaced inflation.

As for work and small business, I’ve done very well out here as has almost everyone in my circle- in part due to super low overhead.
Blue-collar companies(like mine) are constantly hiring and white-collar ones can get downtown digs in Calgary at crazy rates due to the massive vacancies.

Most people in every generation missed out on the crazy RE gains in the GTA/GVA and yet only mills(and you) in those cities complain about it.
Do the math: Canada has about 70% homeownership and only 23% of Canadians live in those 2 areas.
That means roughly 16% of Canadians got lucky.

M40AB

#137 Tater on 01.21.20 at 2:45 pm

#130 Sail Away on 01.21.20 at 1:06 pm
#124 Tater on 01.21.20 at 12:04 pm
#117 Sail Away on 01.21.20 at 10:37 am
Hey Tater, you see Tesla?

———————————-

Really starting to remind me of Enron, Nortel and JDSU now.

I eagerly anticipate the Q4 earnings.

————————-

I call it a 532% return since 2013.

Tesla profit literally bought my Tesla. It was worth paying the cap gains tax for the profound simplicity.

—————————————————-
Heard the same from doctors in 99 (long all sorts of tech stuff), and from home flippers I knew in the US in 07.

Assets that can’t generate a return outside of price appreciation are doomed. Eventually. Some will get out before that, most won’t.

#138 NoName on 01.21.20 at 3:38 pm

I call it a 532% return since 2013.

Tesla profit literally bought my Tesla. It was worth paying the cap gains tax for the profound simplicity.

Tesla is funny heavily shorted, and all this little while shorts are buying in to cover short position and working against them self…

#139 Sail away on 01.21.20 at 3:57 pm

#136 Tater on 01.21.20 at 2:45 pm
#130 Sail Away on 01.21.20 at 1:06 pm

————————-
I call it a 532% return since 2013.
Tesla profit literally bought my Tesla. It was worth paying the cap gains tax for the profound simplicity.
—————————————————-
Heard the same from doctors in 99 (long all sorts of tech stuff), and from home flippers I knew in the US in 07.

Assets that can’t generate a return outside of price appreciation are doomed. Eventually. Some will get out before that, most won’t.

————————————

Whoops, sorry, I was just doing the cash dance.

But yes, I hear what you’re saying, uh huh. Remember you said the same thing back at 300% return?

Have you noticed SpaceX also continues to succeed wildly?

#140 Shaun the leprchaun on 01.21.20 at 4:08 pm

Found this interesting article about purchasing your first home from November 2013.

https://www.credit.com/blog/2013/11/how-much-money-do-you-need-to-buy-a-house-70932/

#141 JB on 01.21.20 at 4:11 pm

#123 Rossi 46 on 01.21.20 at 11:28 am

I had the opportunity after I purchased a condo a few years ago to serve on their Condo Board. That was an eye-opener.

This was one of the better condos in the City.

1. I learned that the elevator was being maintained by parts that were becoming scarce, and with the continual changes to various codes, if the elevator failed and had to be replaced it would cost millions and the reserve would not be able to cover the cost.

2. There is always a member of the Board that wants to improve everything, all the time.

3. The government kept increasing the insurance requirements for condos, (and the Boards) and the audits became increasingly ridiculous and too costly to even consider the audit suggestions.

4. The windows started to fail and you have no control over that repair cost either.

Scared me back to a detached.
……………………………………………………….
No control at all is the big kicker and the old farts that retire are super screwed but they just don’t know it.
Everything looks shiny and new until is breaks.

#142 Katherine on 01.21.20 at 4:28 pm

Mr. Fartz,

“No jobs, all taken by the Boomer cohort ahead of me.
Thats life. I worked at part time jobs while finishing school. University wasnt even on the radar.”

Hmmm. I am also at the tail end of the boomers….born in 1959. Many of my cohorts had no trouble getting good jobs and buying houses in the 1980s. Maybe you should have done post secondary. Yes, interest rates at 12% but I was able to purchase a 2200 sq ft. house for $107,000 in 1985. My husband and I saved 25% down payment….$80000 mortgage. I did university and he did college…business programs. BTW, we were able to pay off house in 7 years and still travelled, went out for dinners
and had a couple great kids.

Just saying.

#143 Hammerhead Hogger on 01.21.20 at 9:37 pm

This blog has not failed Mr Turner. It’s changed my life and some people around me who will listen. Thanks for all you do.

https://career.viarail.ca/en/job-detail/LEAP_012020–passenger-train-conductor-apprentice-locomotive-engineer-apprentice-1

If any blog dogs or blog dog kids are looking for a career in railroading, give it a shot.

#144 David Hawke on 01.22.20 at 8:55 am

#105 flu shots are the biggest scam ever invented against the sheeple!

How is preventative medicine that you receive for free a scam? Are you one of those anti-vaxxer nutjobs? – Garth

Not free to ex-pats, eh! Anyhoo, how’s a vaccine based on last year’s strain useful?

Not a nutjob, merely ai intelligent person who believes over-vaccination (30+ given to a child) breeds intolerance!

#145 oh bouy on 01.22.20 at 1:11 pm

@#143 David Hawke on 01.22.20 at 8:55 am
#105 flu shots are the biggest scam ever invented against the sheeple!

How is preventative medicine that you receive for free a scam? Are you one of those anti-vaxxer nutjobs? – Garth

Not free to ex-pats, eh! Anyhoo, how’s a vaccine based on last year’s strain useful?

Not a nutjob, merely ai intelligent person who believes over-vaccination (30+ given to a child) breeds intolerance!
__________________________

Nah, you’re definitely a nutjob.

#146 Ubul on 01.22.20 at 1:42 pm

#143 David Hawke on 01.22.20 at 8:55 am

#105 flu shots are the biggest scam ever invented against the sheeple!

How is preventative medicine that you receive for free a scam? Are you one of those anti-vaxxer nutjobs? – Garth

Not free to ex-pats, eh! Anyhoo, how’s a vaccine based on last year’s strain useful?

Not a nutjob, merely ai intelligent person who believes over-vaccination (30+ given to a child) breeds intolerance!

30+ for a child?!

How is it even possible to know with acceptable certainty the interference of 30+ vaccinations, which also have long lasting effects, unlike taking pills for a short time? Plus, interference with potentially other medicines, that a child might need to receive in the future?

Anti-vaxxers irresponsibly imperil everyone. This discussion is over. – Garth