Too safe?

Selena’s got a problem. It’s about life. “How safe is too safe,” she asks me. “Do we need to live a little?”

No, this is not about getting a new Harley, doing missionary work in China or volunteering as a virus vax volunteer. Alas, it’s about a condo. When you’re 35, living in a 640-square-foot apartment in house-horny Canada, what else is there to obsess about?

Here’s the back story. S is an engineer earning ninety thousand. Hubs makes $102k. Two cats. One dog. Five-year-old car. Net worth just over four hundred thousand. Big savers. But she’s not sure about her career. “I’m burnt out and might want to make a career change which could involve a paycut.”

The rent is $800 a month, two bedrooms, big shared back yard, great hood, iffy LL – even though he hasn’t increased the monthly in ten years. “Yes we save a ton, but the neighbors are hell and the landlord is completely uninvolved. Kitchen is falling apart. We do minor repairs ourselves. We are the only ones who clean the entrance and do some landscaping to make it nice, and it’s getting old.”

Well, they did what a lot of tenants do when they crave space and control. They went shopping. On Wednesday they visited a ground floor condo in a duplex listed for$740,000 – bigger, but an unrenovated basement and only one bedroom. “On Thursday, our agent calls us to tell us there is an offer that expires at midnight, and that there is a second one coming in. So we offered $752K with 20% down, wrote a nice letter, and somehow got chosen.”

“After an all-nighter drafting some preliminary drawings + costing to convert the layout to get another bedroom, bathroom and office (total 30K), and dig the basement (5-year horizon, around 90K), I got cold feet. The co-ownership agreement stated that you couldn’t rent out the place on “tourist” platforms, and since both my husband and I travel quite a bit for work under normal circumstances, it would have been nice to have that option. So we passed. Of course now I have regrets and feel like we could have done it. Can you tell me if we were fools for letting that place go?”

What about the costs?

Selena tells me the monthly overhead (financing, taxes, utilities) would be $3,600. The down payment would equal $150,000, plus another fifty grand in closing and immediate reno costs. Now she’s anguished at not moving ahead and has turned to a pathetic blog for reassurance, or a spanking. “Are we being too cautious? Do we need to live a little? WWCAGD? (What would chiseled-abs-Garth do?).”

Well, let’s be realistic. S and her hubs are doing well compared to their cohort. Good incomes. No debt. Four hundred saved. The current rent (in Montreal) is cheap. They save gobs of money. This financial cushion allows her to even consider getting out of a career she no longer enjoys. That’s huge.

Buying this unit would change everything. Yes, they’d get more space, but albeit after a period of costly and disruptive renos. The tab, however, is large. Added to the $3,600 monthly nut for basic ownership costs would be the lost opportunity cost of not investing $200,000 needed for closing, down payment and renos. That’s a thousand a month, for a total true cost of $4,600. Yikes – a $3,800 monthly increase over their existing rent, or a 475% bump in living costs.

Now let’s imagine they took that $3,800 and invested it over the next 20 years and earned a reasonable 6%. That would amount to an additional $2.38 million by age 55. Add in their existing savings and meagre pensions and this would create a lifetime retirement income of somewhere between $180,000 and $220,000. At age 55 – with thirty years to enjoy it.

Or they could buy the condo with the raw basement for $750,000 and $600,000 in debt.

Hmmm. But the choice does not need to be this stark. It’s not about spending twenty years in a 600-foot apartment (although it would be far more spacious without the cats). S and her husband could easily double their rent budget (or triple it) and land a townhouse or even a little detached place, and still save big. They could take the closing money for the failed deal (which would be flushed away in fees and taxes) and reno the kitchen in their rented apartment in exchange for a promise of no rent hike for a few more years. Or they could decide that the freedom to choose a new career, to have personal flexibility or possibly retire years earlier with lifelong financial security might outweigh owning anything.

So, Selena, have no regrets. ‘Living a little’ does not mean a six hundred thousand dollar mortgage and a hobbled future. It is the polar opposite.

Now, have you considered a motorcycle?

135 comments ↓

#1 TurnerNation on 11.26.20 at 12:58 pm

– Keep an eye on your Property Rights: Did you think that UN Agenda and loss of property right is just a hoax? As I’ve said oftentimes there will be no more spending at the level of Cities save for the ‘Poverty Industry’. Everything else will be left to crumble. Mainstream sources:

https://www.boston.com/news/local-news/2020/11/23/boston-homeless-shelters-coronavirus-private-property?event=event51
“With limited Boston homeless shelter beds this winter, could taking private property be a solution?
“Lives certainly take precedence over private property interests, especially when private property owners will be compensate”
“When you commandeer a property, there is no preliminary process. The government just comes in and takes over private property,” Beletsky told the outlet.
“There’s a long tradition of doing that in the United States,” he added. “This is not some radical idea.””

— @#132 David Davidoff on 11.26.20 at 10:21 the new Van condo taxes: I’d noted this in January – listen once you get the UN plan everything else is easy. Hint: Check your history books for how this plays out.

“#6 TurnerNation on 01.12.20 at 2:20 pm
Things will speed up SO fast in 2020-2021 to roll out the plans. Nobody will come to your door and take away your property no. They’ll just take 5-10% of its value away in Tax each year, and empty home tax, land transfer tax, capital gains on sales taxes (stay tuned!), carbon taxes. In a down market this would prove fatal.”

— The Old System and your ways of decadence, traditions and fun must end Comrade. Work work work only. We have new national debt to be paid. House arrest keeps you healthy in the New System. Christmas is next to be cancelled. For your health! The proof is here in mainstream sources:

Sask. suspends team sports, activities along with other tweaks to existing COVID-19 restrictions
https://regina.ctvnews.ca/sask-suspends-team-sports-activities-along-with-other-tweaks-to-existing-covid-19-restrictions-1.5203803

“SoCal Edison could shut off power on Thanksgiving due to high winds, fire dange”
https://abc7.com/power-shutoff-southern-california-edison-sce-wildfire-danger/8238640/

https://www.ctvnews.ca/health/coronavirus/how-to-tell-family-their-christmas-gathering-is-too-risky-and-you-re-not-going-1.5205435
“How to tell family their Christmas gathering is too risky and you’re not going”

https://www.americanthinker.com/articles/2020/11/first_they_came_for_thanksgiving_now_they_are_coming_for_christmas.html
We might recall that citizens of the Soviet Union were not permitted to celebrate Christmas until 1991, when the USSR collapsed
“Initially, the Soviets tried to replace Christmas with a more appropriate komsomol (youth communist league) related holiday, but, shockingly, this did not take. And by 1928 they had banned Christmas entirely, and Dec. 25 was a normal working day

#2 Faron on 11.26.20 at 1:18 pm

$800/month rent. Wow. We pay $2300 for only a few hundred additional feet and a slab of concrete for a yard.

And they complain about having to do some maintenance work around their rental. What do they think owning a home is going to entail?

I’ll also go out on a limb an guess that the duplex wold be a compromise on their neighbourhood too. You can’t put $ figures on that, but living in a part of town you love is worth much.

I maintain that leveraging one’s status as a good tenant to negotiate long-term leases with landlords is a good middle ground. Housing stability for you, and stable income for the landlord.

#3 Roial1 on 11.26.20 at 1:19 pm

Humph! would not have a Harly if you paid me. Buddies is 2019 Had to have the engine rebuilt aiready. Nope! getting a Suzuki. Lots of go. No shop time.

#4 T-Rev on 11.26.20 at 1:29 pm

I stopped reading at $800/month. You’d have to be delusional to give up digs that are costing you less than some peoples truck payments, plunk down $150k, and take on $600k in debt. Plus renos. Gag. She damn near ruined what she’s spent a decade building with one bad decision.

Stay renting. Stop whining about your landlord, it ain’t gonna kill you to do a bit of maintenance to stay at $800. And for gods sake, live a little and buy a Harley. You can get a great bike, 10-15 years old, fuel injected, with less than 25,000km on it for what you were about to spend in two or three months ownership costs.

#5 JohnMacDonald on 11.26.20 at 1:30 pm

https://www.youtube.com/watch?v=xoLjB8tzKAs

Rebel News. Yes I know.

We’ve invited the state to micromanage and bully us. Putting small companies out of business and allowing Wal-Mart down the road to remain open. It’s a total joke. This is going on in Britain, Canada, Australia and the USA. The so-called “free world”. All for a virus that’s vastly overhyped. Cheered on by a programmed and complacent public.

#6 mike from mtl on 11.26.20 at 1:31 pm

Selena respectfully stop being a cheapass.

Getting a better rental, say 1500/m is the going rate for a reasonable 4.5… your current 800$/m for a 4.5 on the island proper is most likely a dump.

At your combined salaries that should not be a big stretch. Don’t buy into a strata unless you’ve done a LOT of due diligence, Montreal is not Toronto, Condos are very hard to resell on a good day and location dependnt.

#7 JohnMacDonald on 11.26.20 at 1:36 pm

https://www.reddit.com/r/toronto/comments/k1jhtz/adam_skelly_adamson_bbq_owner_was_just_arrested/?utm_source=share&utm_medium=web2x&context=3

It isn’t about protecting you or your health. Masks are a symbol of a compliant gagged and bound public. A party affiliation badge worn on the face.

It’s about controlling your movements. Telling you whether you can conduct business and when you can leave your house. It’s about making people dependent on handouts.

Scamdemic

#8 TurnerNation on 11.26.20 at 1:37 pm

A buddy of mine is live on the scene at the giant BBQ protest in Mimico/Long Branch. That Adamsons BBQ.
People being bussed in. Out of towners. Why?
Endless cops .Yesterday someone suggested it might have been a scripted event.

…..

BTW Toronto’s lockdown czar doctor began at the UN natch : https://en.wikipedia.org/wiki/Eileen_de_Villa

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

— Covid checkpoints reported in BC per screen shot below. Fundraising . Cities are broke.
#NewSystem things.
https://media.omegacanada.win/post/QIHcF7ES.png

—- Watch your FOOD sources & supply. Brampton’s mayor Patrick Brown said this, I heard? Does this sound like the UN taking over the food supply. Amazon is a global superpower like no other. Yep the #s do this, too:

“If Canadians are willing to give up having food in the grocery stores and being able to order their goods on Amazon, you shut down those sectors, you know maybe you could see those numbers go down more dramatically, ”Brown said.”

—- Yesterday I was opining that this is almost deliberate — seeing as almost all CV deaths are in care homes.
Now you have the proof. Goodbye Granny. The New System is brutal isn’t it?

https://www.cbc.ca/news/canada/montreal/families-worried-long-term-care-homes-1.5769337
“Regional health agencies in Quebec are asking public long-term care homes to establish “hot zones” to accommodate COVID-19 patients who don’t live in those facilities.
But some staff and family members, scarred by treatment of residents during the first wave, worry the move could lead to cross-contamination and more outbreaks inside the home.
“Why would you let them in where there’s so many vulnerable people?” said an employee of a long-term care home in Châteauguay. CBC News agreed not to publish the person’s name because they fear professional repercussions.”

https://www.cbc.ca/news/canada/montreal/families-worried-long-term-care-homes-1.5769337https://www.cbc.ca/news/canada/montreal/families-worried-long-term-care-homes-1.5769337

—-As mentioned elsewhere, look at the shape of this ‘lockdown zone’ in France. They are just playing with us at this point. Toying with us like a cat holding a mouse in its sharp claws:
https://twitter.com/Bobby_Network/status/1329885160729440260

#9 JohnMacDonald on 11.26.20 at 1:41 pm

“And how we burned in the camps later, thinking: What would things have been like if every Security operative, when he went out at night to make an arrest, had been uncertain whether he would return alive and had to say good-bye to his family? Or if, during periods of mass arrests, as for example in Leningrad, when they arrested a quarter of the entire city, people had not simply sat there in their lairs, paling with terror at every bang of the downstairs door and at every step on the staircase, but had understood they had nothing left to lose and had boldly set up in the downstairs hall an ambush of half a dozen people with axes, hammers, pokers, or whatever else was at hand?… The Organs would very quickly have suffered a shortage of officers and transport and, notwithstanding all of Stalin’s thirst, the cursed machine would have ground to a halt! If…if…We didn’t love freedom enough. And even more – we had no awareness of the real situation…. We purely and simply deserved everything that happened afterward.”

– A. I. Solzhenitsyn

#10 Maskless on 11.26.20 at 1:46 pm

I hate these types of posts the most and I suspect they’re fictional.

I’ve never met anyone in my age cohort with $400k in cash saved up, unless it’s some kind of inheritance from a relative popping their clogs or getting in early on Bitcoin.

I do not write fiction. – Garth

#11 Millennial Investor on 11.26.20 at 1:50 pm

Garth, I vaguely remember you saying that Montreal isn’t as overpriced as Toronto or Vancouver and one should consider purchasing in that market.

Based on my personal experience in the GTA, buying something affordable in a desirable area is never a bad idea. Selena shouldn’t count on below average rent indefinitely and seems ready to put down roots based on her income / saving rate.

Maybe so. But that’s the case now, and she’s good to milk it. – Garth

#12 FriedEggs on 11.26.20 at 1:55 pm

No mention about starting a family.

Seem like a young couple in prime, any plan to have children soon. One or Two, Boy or Girl.

Bunk bed or separate rooms? Education fund or are they going to borrow.

Motorcycles, trips and the latest electronic gadgets are a lot of fun for self gratification.
What about the ultimate entertainment and stress and so you know can say you’ve arrived on this planet – children.

I have no children. Have I not arrived on this planet? Be careful about foisting your emotional needs on others. – Garth

#13 Doug in London on 11.26.20 at 2:05 pm

I would forget about buying that place for 740 grand. Where do they live? While that $800 a month is quite cheap for larger cities, if you’ve had enough of it then what would it cost to rent a comparable place in a better neighbourhood? That’s the option they should be looking at.

#14 Mean Gene on 11.26.20 at 2:06 pm

If doing some maintenance keeps the rent low and there is minimal out of pocket costs and you enjoy pottering around, why not, I do it for my landlord without him asking and bill him for any materials.

#15 Alex on 11.26.20 at 2:07 pm

@ #10

in same cohort, wife and I over a million net worth, similar background and story as the posters of the day…

Being super savers has perks. Gainfully employed and able to delay gratification are the tools.

#16 Flop... on 11.26.20 at 2:09 pm

What’s going on with Vancouver condos reminded of an old song I haven’t heard for years.

They were a good investment for a lot of people for a decade or so, now with all the rule changes, they have turned into an anchor.

Make that a brick…

M46BC

As weeks went by
It showed that she was not fine
They told me son it’s time to tell the truth
She broke down and I broke down
‘Cause I was tired of lying
Driving home to her apartment
For the moment we’re alone
She’s alone
I’m alone
Now I know it

She’s a brick and I’m drowning slowly
Off the coast and I’m headed nowhere
She’s a brick and I’m drowning slowly…

https://m.youtube.com/watch?t=0s&v=Wt5EHAqhR1c

#17 Prince Polo on 11.26.20 at 2:14 pm

Another example of falling into “grass is greener on other side” mindset. What happens when Selena or hubby lose her/his job and have $600K mortgage payments to make?

Stay on your current side Selena, as $2.4M by 55 sounds a helluva lot better!

#18 calgary rip off on 11.26.20 at 2:27 pm

Garth your logical assessment of this persons housing situation is accurate, however humans are emotional creatures. They will list logical reasons to justify real emotional needs influencing decision making. If the emotional benefit outdoes the logical benefit the decision to buy the $600K condo will happen. And therein lies the human dilemma and problems on many levels. Everything on this planet can be explained by emotion. And this is exactly why I left sales. Most things are driven by bs and I dont have the patience. Just last month the guy doing payroll at the hospital forgot to put in two calls for emergencies. So Im out having that $600 for over a month. No compensation for bank interest lost. And I had to threaten quietly union intervention as they were attempting to not pay me. How did I cope? Emotionally. I told myself that I would get my money eventually. I also thought Im grateful I have any job at all. The latest covid panic justifies shutting businesses down and there are no vit d3 and C recommendations in sight for the common folk.

Ive learned lately a hard lesson: Let others do what they do. I dont have to like it. And most often dont. Im not perfect either. As long as what Im doing doesnt impede or harm others its ok. If Im offensive to others however that isnt my problem as being offended is a personal choice.

At least right now the realtors are going crazy with house sales and bidding wars in Ontario. Again, human emotions.

The best way to avoid emotions of humans? Play chess/Go against computers. Zen meditation breathing, cold showers and Wim Hof training.

#19 YVR renter on 11.26.20 at 2:31 pm

Selena needs to learn how to count her blessings, not look a gift horse in the mouth, and all adages of that ilk. We pay $4050 for a 2 bed/2bather in 4 yr old building in rainy Vancouver . Cheaply built to look sexy, we do a lot of repairs ourselves. The completely useless but pretty Bosch glass cooktop cracked and broke the other night when we were no where near it. LL is Trying to blame us but let it slip they’ve replaced a number of them already. PoS. It was a piece of crap, worst stove ever, ditto all the other kitchen appliances. We had to buy a countertop oven because the Bosch wildly vacillates up to 40 degrees, brutal. We have to do our own planters, outdoor clean up etc too. So be quiet about your $800/month. We’ve owned or leased 14 homes over the years. A couple had unpotable water and oil heating bills of $1000/mth. I’d say you made a good escape on that semi. There will be many more out there, not requiring Reno’s, and with finished basements. You’re young, take your time and find that gem. You will learn a lot while looking along the way.

#20 Paul on 11.26.20 at 2:33 pm

#10 Maskless on 11.26.20 at 1:46 pm
I hate these types of posts the most and I suspect they’re fictional.

I’ve never met anyone in my age cohort with $400k in cash saved up, unless it’s some kind of inheritance from a relative popping their clogs or getting in early on Bitcoin.

I do not write fiction. – Garth
————————————————————————————————

No need to write fiction! The truth is more of a head scratcher!

#21 Brian Ripley on 11.26.20 at 2:35 pm

“Garth, I vaguely remember you saying that Montreal isn’t as overpriced as Toronto or Vancouver and one should consider purchasing in that market.” #11 Millennial Investor on 11.26.20 at 1:50 pm

According to Demographia (http://www.chpc.biz/demographia.html) as of Q3 2019 the 6 biggest cities ranked from least to more affordable are:
Vancouver 11.9
Toronto 8.6
Montreal 4.7
Ottawa 4.1
Calgary 3.9
Edmonton 3.8

The Montreal median housing cost to median household income ratio I suspect will move up a few notches in the upcoming Q3 2020 report. Montreal SF Detached median prices hit another new record high price OCT 2020.

For years I have been pointing out that:
“It remains interesting to note that the average of the summed prices of Vancouver + Calgary + Toronto condos (black plot line) is 20% higher than a median priced Montreal SFD (gold plot line).
Ex-Calgary it was 52% higher.” (OCT 2020 data)
Chart here: http://www.chpc.biz/6-canadian-metros.html

Notice also that on the same page, the tabled rents for these 3 cities have Montreal 1 bedroom median rental prices are down 9.1% Y/Y and 2 bedroom units are down 8.5% Y/Y

Since the crash into MAR 2009 earnings have increased 40% nationally, 44% in QC, 40% in ON, 39% in BC and 34% in AB.
http://www.chpc.biz/earnings-employment.html

De rien.

#22 Overheardyou on 11.26.20 at 3:03 pm

#10 Maskless on 11.26.20 at 1:46 pm

———————

Hey, I’d recommend you widen your circle. Some of us aged 30-35 save diligently like the above, remember you would have had 10-15 years of working already by then. Being frugal is important in achieving long term wealth.

I will be honest, I have friends that are in the same cohort as you suggest. We don’t have much to talk about these days though.

#23 Frustrated saver in Toronto on 11.26.20 at 3:04 pm

Hi Garth, I have been reading this blog for a while now and I just feel stuck. We love the financial advice in regards to saving and having a balanced portfolio. Me and my partner (early 30s) have a combined $130 000 income but we feel stuck here in Toronto. We also have around $120 000 saved up half RRSP and half TFSA. I work in IT downtown and she is a teacher. We follow your advice and live frugally saving around 3000$ per month. But it feels like it is not enough. We live in a run down place where the rent is cheap and we have no car expenses as we paid it off recently. We started looking to buy at least a 2 bedroom place but the price creep is just nuts. The 2 bedroom condos are 800 000 and up. No matter how much we save, I just feel like we are falling further behind. Our realtor tells us to go to bank of mom and dad, but that is absolutely not an option (they need their savings for their retirement).

We have been reading this blog for a while and were hoping this appreciation of housing in Toronto would dip, but nothing ever materialized. I feel now that the government will do anything to not negatively affect housing prices for homeowners. The interest rates are super low now and now prices are through the roof. During the pandemic you were talking of all of the mortgage deferrals, but I don’t see a glut of for sale signs. None of these logical predictions ever materialized. When an event was about to happen that would negatively affect prices, there is always some form of help from the government what allowed the homeowners tide it over.

I just don’t see what is the point now. We save and save and live frugally, but feel we can never catch up. We just cant compete with friends who had help from “mom and dad” years ago, never had the savings discipline we have, and are now reaping the rewards. I guess we will have to leave Toronto before the neighbouring regions become unaffordable for Toronto transplants.

Why anguish over buying a condo for a price you cannot afford when you can rent it? Same condo. Is this just an emotional need? – Garth

#24 ElGatoNerodeYVR on 11.26.20 at 3:06 pm

And this is exactly the reason why I despise most renters and slowly other amateur landlords will feel the same and get out of this “business “. If you increase their rent they whine,if you don’t they still want you to do everything for them. If you don’t like the ‘hood move someplace else, you cannot have nice , full maintained and cheap. People like this should just go away and buy , bury themselves in debt ,work till they drop to afford where really want to live if that is what matters to them, personal choice and all. Just please stop being a renter.Rant done .
Now on a more positive note clearly the work burn-out makes us do terrible choices. This couple should just take a 2 weeks all inclusive in Mexico every single year, move to a nicer neighborhood and truly live a little. With money left to spare for investing.

#25 SoggyShorts on 11.26.20 at 3:18 pm

#10 Maskless on 11.26.20 at 1:46 pm
I hate these types of posts the most and I suspect they’re fictional.

I’ve never met anyone in my age cohort with $400k in cash saved up, unless it’s some kind of inheritance from a relative popping their clogs or getting in early on Bitcoin.

*************************
Your cohort sucks then.
It’s pretty simple math, they are paying 800 rent while making 200K.
Assuming that essentials are another $2,500 every month
Assume another $5,000 on dumb stuff every single month
That STILL leaves over $4k per month to invest.

So 400K while spending a ridiculous amount on god-knows-what only takes 100 months or just over 8 years assuming zero interest instead of the huge market gains they could have made.

Reduce that $2,500 in essential expenses and pare down the $5K in bonus monthly spending and you can do it in 4 years.
————————
200K income = 150K after tax (Max RRSP)
x4 years = 600,000
Savings = 400,000
Left over = 200K
800 rent = 40K total over 4 years
that leaves 160K for 4 years
=40K per year
=$3,333 per month for utilities, food, gas, etc.

#26 Frustrated saver in Toronto on 11.26.20 at 3:28 pm

Hi Garth,

Thank you for the reply. Renting a bigger place is another option we are exploring (also moving cities but that is dependent on me finding work there). Our savings would fall to roughly $2000 a month until I get a better position, but it sure beats having to be house poor and worrying about what to do if one of us ends up laid off.

We’re in a pandemic that is worsening. Be smart. – Garth

#27 yvr_lurker on 11.26.20 at 3:30 pm

Rent something bigger for the moment so that you can live a bit and don’t feel as cramped. I would not worry about buying anything yet; just save as much as you can despite the more spacious digs (no need to be a “good consumer”). Interest rates will go up and prices will come down a bit when that occurs. However, if kids are in the works, I do think that is the time to take more of a risk and to find a home you can raise them in and keep them in the same schools and in an environment where they have continuity in friendship groups etc… In my view it is not great having to move every few years with kids in tow, possibly uprooting to new schools etc….

#28 Elon Fanboy on 11.26.20 at 3:30 pm

So can anyone give me a straight answer on when Canadians will start receiving the vaccine?

Our government is avoiding answering that very simple question…unless I’ve missed it somewhere.

#29 Linda on 11.26.20 at 3:49 pm

So I note today’s example apparently lives in Montreal. I was under the impression housing costs there were quite reasonable compared to many other cities in Canada. Has that changed so quickly? Has Covid ensured Montreal prices are more like GTA/Vancouver prices these days? Regardless, seems like ‘Selena’ could easily ‘live a little’ by finding better rental digs. If she is indeed contemplating a career change that might see a reduction of income it would be prudent to keep renting rather than embrace a pile of debt.

#30 S.Bby on 11.26.20 at 3:52 pm

Keep renting.

#31 willworkforpickles on 11.26.20 at 3:58 pm

Globe and Mail opinion columnist Andrew Coyne just coined (pun intended) a name for those who drink the Kool-aid of a WEF conspired global reset as “simpering chumps” He included the Prime Minister of Canada as one of them.
He went on to say the PM lacks either the ability or the nerve to implement that kind of sweeping change.
Just a tidbit for the posters silly drunk on the same Kool-aid around here.

#32 SoggyShorts on 11.26.20 at 3:59 pm

#28 Elon Fanboy on 11.26.20 at 3:30 pm
So can anyone give me a straight answer on when Canadians will start receiving the vaccine?

*******************
Of course not, how could anyone possibly know the exact answer for that?
There’s plenty of estimates, and that’s all you can realistically hope for with so many variables.

#33 Eco Capitalist on 11.26.20 at 4:09 pm

As Garth has said many times, housing is emotional. Selena, if you walk into a place and don’t immediately get a “Yes! This is the one!” vibe, then pass; you won’t be happy living there.

If you can suppress the emotion a little longer, do as others here have suggested: double your rent budget and go shopping; there are likely some nice places you could upgrade to.

#34 Ken M. on 11.26.20 at 4:16 pm

Better yet, could live in a cardboard box and be a billionaire.

#35 I’m stupid on 11.26.20 at 4:21 pm

I can understand where Selena’s coming from. My wife and I were renting a 1 bedroom apartment for $1300 a month all in. We were saving 12k a month there. Then we wanted to have kids and struggled, $100k in fertility treatments and we got a son.

Now a 1 bedroom apartment is far to small for 3. So we bought a house that needed Reno’s. A word of advice for anyone that wants to Reno a house; the nickname given to Reno dust is divorce dust. Luckily my wife and I are too stubborn to quit marriage, but it was rough.

Move forward to today. The home is finished it cost $400k with reno’s(I did the entire job), down payments, closing costs etc. Plus 100k in fertility treatments and this happened in less than 2years.

Positives; nice home, big yard, good hood, near in laws for babysitting.

Negatives $4500 a month to carry this place. We haven’t saved a penny in 2 years and we’re out $400k. Plus we argued more during the reno’s then we have our entire relationship. My wife drove me nuts, the worst person to work for and I’ve been in construction for over 20 years.

Remember renos= divorce dust! You better have a strong relationship otherwise you’re in trouble.

#36 Ottawan on 11.26.20 at 4:36 pm

Neighbours are hell??

Imagine discovering the new neighbours are much worse, locked into a 5-year term,

#37 Marc Roger on 11.26.20 at 4:41 pm

“Now let’s imagine they took that $3,800 and invested it over the next 20 years and earned a reasonable 6%. That would amount to an additional $2.38 million by age 55. ”

What’s the tax assumption?

#38 Barb on 11.26.20 at 4:46 pm

Stay put, Selena and H.
It’s the job you hate. Get something you love to do, and you’ll realize you’re on the way to financial utopia. Best wishes.

#39 Ponzius Pilatus on 11.26.20 at 4:46 pm

#26 Frustrated saver in Toronto on 11.26.20 at 3:28 pm
Hi Garth,

Thank you for the reply. Renting a bigger place is another option we are exploring (also moving cities but that is dependent on me finding work there). Our savings would fall to roughly $2000 a month until I get a better position, but it sure beats having to be house poor and worrying about what to do if one of us ends up laid off.

We’re in a pandemic that is worsening. Be smart. – Garth
———-
I agree with Garth.
Wait until the pandemic is over. You don’t need the extra stress of moving.

#40 Selena will retire very rich and very poor on 11.26.20 at 4:48 pm

Selena and her hubby have done very well to save that amount of $$ for so young. But this reeks of an extreme level of cheapness that few should aim for. It’s possible to be financially stable, and also enjoy life before you retire. Don’t sweat the latte price at the cafe. Buy a round of drinks for your friends every once in awhile. Go and have a nice dinner. When covid is over go and experience life a little. Deep pockets and short arms are more a curse than a blessing, and leads to unhappiness…. Trust me – I’ve seen it a million times. It’s only money.

#41 Ponzius Pilatus on 11.26.20 at 4:51 pm

#28 Elon Fanboy on 11.26.20 at 3:30 pm
So can anyone give me a straight answer on when Canadians will start receiving the vaccine?

Our government is avoiding answering that very simple question…unless I’ve missed it somewhere.
————-
No vaccine has been approved yet.
Be patient. And stay safe.

#42 IHCTD9 on 11.26.20 at 4:51 pm

#23 Frustrated saver in Toronto on 11.26.20 at 3:04 pm
Hi Garth, I have been reading this blog for a while now and I just feel stuck. We love the financial advice in regards to saving and having a balanced portfolio. Me and my partner (early 30s) have a combined $130 000 income but we feel stuck here in Toronto. We also have around $120 000 saved up half RRSP and half TFSA. I work in IT downtown and she is a teacher.
— ——

GFG, wife is a teacher? GTFO of the gta, she will make the same anywhere else. Move to a lcol area, she can teach for 60-80k, you get a job doing whatever and you are set.

Don’t start telling me about how there’s nothing to do in a small town, can’t leave family, don’t want rednecks for neighbours etc… if that’s the problem, stop griping about the costs of the gta because it is obviously worth the price to you.

You will not see the total cost of sfd ownership in Toronto decline without a super volcano eruption or a 9.5 earthquake. The only other thing is higher rates, and then sure, you’ll pay less for the house, but the bank more. Same.

You’ve options many don’t have because of your wife, exercise them, or don’t (but then no more bellyaching).

#43 Melissa, 24F, Moscow on 11.26.20 at 4:52 pm

Montreal is cool. If a man chooses to shack up in Toronto and his lover is friends with Toronto cops, then goodbye to his house!

Toronto Police will do anything, and I mean anything, for their friends, including a man’s wife. As a law artilcing student, I’ve read dozens of documents where Toronto cops were being used to take over entire houses for the ex-spouse. It’s terrible. No property rights in Toronto.

#44 Dolce Vita on 11.26.20 at 4:53 pm

#8 TurnerNation

“…look at the shape of this ‘lockdown zone’ in France”

It’s not just France, it’s pretty much ALL of Europe. I was watching NBC Nightly News last night portraying the UK, France and Germany as if they were COVID-19 free and ready to party on for XMas.

As if.

ECDC “slightly less chocolaty” Cases/100K map:

https://i.imgur.com/Q1EVNkF.png

A mistake by UK, France and Germany I think but time will tell. Improving in Italia as well but Italia not letting up on the near lockdown restrictions.

Europe had a kanipshit during Wave I about deaths and now you look at Wave II deaths eclipsing Wave I with the result:

party hearty for XMas. “Say what?”

https://i.imgur.com/laEYbTO.png

Each his own, what else can I tell you?

#45 Steve French on 11.26.20 at 4:55 pm

Don’t get me wrong, I was Smoking Man’s #3 top fan on this blog.

Smokey was an absolute legend. never to be forgotten.

But it’s not speaking ill of the departed to observe that he made some questionable decisions in his day.

Can we not learn from some of those lessons? Surely just because someone has passed doesn’t mean they become a saint. Smokey himself would have hated that.

He did it his way, sure.

But that doesn’t mean the rest of us should!

I think the secret is for all of us to incorporate just a little bit of Smoking Man into our everyday lives.

Take a risk, do something gonzo, question your teacher, down a 40 pounder once in your life.

Just not every day.

#46 Gramps on 11.26.20 at 5:01 pm

Dear S
Live a lot!
Move somewhere where you can get a nice place for less than what you have saved already.
Air travel is cheap for 2-3 visits a year

#47 Dolce Vita on 11.26.20 at 5:01 pm

Good advice to Selena on her 1st World “problems”. It must be hell for her.

When you read her dilemma you know Canada is doing just fine, pandemic and all.

—————————

What’s up with the Barbecue Place in ON and masks Brouhaha I saw on your news last night Canada?

CANADESI, risk infection for some barbecued food from a guy that looks like

Bob and Doug McKenzie. Coo roo coo coo, coo coo coo coo.

…you really need to come to Italia and learn how to eat Canada, you poor things you.

Oh wait a minute, you can’t ’cause you’re on the EU’s “dung list” which is pretty rich of the EU if you were to ask me per their ECDC “Chocolate Colored Cases/100K Map”.

Just another Bob and Doug McKenzie COVID-19 day on Planet Earth.

#48 TalkingPie on 11.26.20 at 5:09 pm

#6 mike from mtl on 11.26.20 at 1:31 pm
Selena respectfully stop being a cheapass.

Getting a better rental, say 1500/m is the going rate for a reasonable 4.5… your current 800$/m for a 4.5 on the island proper is most likely a dump.

At your combined salaries that should not be a big stretch. Don’t buy into a strata unless you’ve done a LOT of due diligence, Montreal is not Toronto, Condos are very hard to resell on a good day and location dependnt.

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

I can tell that Mike really is from Montreal. $800/month is not unheard of in Montreal, but it’s definitely towards the bottom of the market. Two years ago I left a nice, professionally managed 640 sq fter in which I was the first resident, literally on the Lachine Canal for $1250, indoor parking space included. Friends thought I was nuts for paying “that much” for a one bedroom apartment. From what I hear, there’s lots on the current rental market due to Covid. Dumping $750k to live in a shoebox in downtown Montreal because you don’t like your $800/month apartment is flat-out crazy.

Or, if they don’t want to live in the city core, with their $400k saved they could buy a decent house off-island (in cash, if they wanted) and have a whole lot of leeway to pursue a more enjoyable career.

#49 Guelph Guru on 11.26.20 at 5:32 pm

A classic first world problem. Too much dough with a low financial IQ.
Get a motorcycle and see the world. Go to a 3rd world country see the other world.

#50 Ponzius Pilatus on 11.26.20 at 5:32 pm

#44 Steve French on 11.26.20 at 4:55 pm
Don’t get me wrong, I was Smoking Man’s #3 top fan on this blog.

Smokey was an absolute legend. never to be forgotten.

But it’s not speaking ill of the departed to observe that he made some questionable decisions in his day.

Can we not learn from some of those lessons? Surely just because someone has passed doesn’t mean they become a saint. Smokey himself would have hated that.

He did it his way, sure.

But that doesn’t mean the rest of us should!

I think the secret is for all of us to incorporate just a little bit of Smoking Man into our everyday lives.

Take a risk, do something gonzo, question your teacher, down a 40 pounder once in your life.

Just not every day.
————
The biggest mistake he made was moving to the States with his health conditions.
The hospital costs were astronomical, according to his family.
Only, goodwill towards him, though.

#51 Catalyst on 11.26.20 at 5:35 pm

You should buy asap. Just not a half of a duplex or some weird setup. Get a town, semi, or detached based on your budget and desired location.

You must listen to time tested Garth logic of buy when you can afford it, and you can afford it.

Don’t bite on the math given as principal payments are just shifting money from the left pocket to the right pocket and not an actual expense so long as housing doesn’t crash (and it wont).

Compare your interest cost to the cost of renting new digs and it will be a no brainer that renting sucks. You can always sell the property with all your built up equity and re-invest in digital bits if required but I promise after 5 years of owning, you wont go back to renting.

#52 Catalyst on 11.26.20 at 5:40 pm

Also, meant to say, we’re not gamblers here. We don’t recommend shorting the market as it goes up over time but right now you are short housing.

If you saw a stock that went basically straight up for 30 years would you short it? That would be dumb but is what you are doing by renting. Every year you must save more to break even to the higher house prices.

All this being said, I hate how high housing is in Canada but that doesn’t mean you should bet against it. The real estate cabal and government have proven to be fine bedmates and will pull out all the stops to see it keep going. Right now it seems higher house prices is propping up our debt rating but let’s see that holds post budget next week.

#53 Lower mainland millenial on 11.26.20 at 5:54 pm

Hey Garth,

Thank you for educating, and sharing your thoughts. You’ve helped me become more financially literate. We are in our early 30s and have grown our portfolio to $1 million so far. I enjoy how you tell it how it is, please don’t change and give in to all the overly sensitive people (or the crazies).

So far the CMHC prediction of prices dropping by 9-18% on average and begin to recover in the first half of 2021 has not played out. Nor has the mortgage deferral cliff leading to more defaults and then to foreclosures. Maybe my patience is running thin or FOMO is getting the best of me and I fear getting squeezed out. I certainly see sales lowering with a second covid wave, but the prices stay firm!
Do you think once the vaccine is well into the Canadian population, does confidence and the status quo come back and house prices continue their trajectory? If covid and indebtedness didn’t burst this housing bubble, then what will?!

P.S. Tangerine has a smokin’ 2.14% 10 yr fixed rate.

Take care and thank you for your insights, inspiring, and entertaining posts.

Y&S

#54 Squire on 11.26.20 at 5:55 pm

Keep renting. Or at most, get a better rental place if you’re complaining so much about it. Renting is easy, no closing costs or lawyers. Sheesh.
$600K in debt. How will you sleep at night ?

#55 calgaryPhantom on 11.26.20 at 5:58 pm

Hi Blog community,

Sharing my situation in hopes of getting some guidance.
I am currently a non-resident ( for tax purposes) and working off shore. We have our rsp and tfsa maxed and i have some 200k sitting in cash which is accumulating fast thanks to no taxes;). All the money comes in canadian account.
Whats the most efficient way to invest that money and not being dinged a 25% non res tax on gains?
Its a long shot, but hoping some people here might have similar situations.

#56 Rent the podium on 11.26.20 at 6:04 pm

Really interesting idea to offer to reno kitchen in exchange for no rent increase. A friend did similar, but prior to signing lease and was able to negotiate lower rent as a result. We’re in a position where we would also like to help with renos, but keeping rent the same over a few years is maybe a few thousand dollars. I was trying to think of a framework that would allow both parties to come out feeling whole in a potentially larger transaction: like a $10k reno.

#57 Elon fanboy on 11.26.20 at 6:17 pm

#40 Pontious Pilatus…” No vaccine has been approved yet. Be patient. And stay safe.”

You sound exactly like the government.

Both US and UK have publicly said they are rolling out vaccines mid December, pending approval, which should be just after 8th Dec.

Canada on the otherhand has just said “in 2021”.

Is that because in actuality they were tardy in signing distributing agreements with the drug manufacturers, and are now back of the line?

#58 Paul on 11.26.20 at 6:18 pm

Adamson Barbecue owner put in handcuffs.??

Wow there must have been 50 cops six on horse back shoulder to shoulder. To arrest one guy for opening to bbq shack.

#59 JohnAB on 11.26.20 at 6:22 pm

Have listened recently to a podcast on FT with Stephen Poloz. He talks about rates there a little, and it is very clear saying that the goal of central banks is to keep the rates a little higher than the inflation. The inflation goal is 2% pe year, which makes the rates be about 2.25%. That would mean a mortgage no more than 3.5% on avg.
Also let’s not forget the RE is still 18% of Canadian GDP, so nobody is interested to bring it down to normal.
Considering all that, let’s face it: houses always go up in a long and middle run. The rates won’t have a huge impact since we won’t see mortgages for 4% and more. Also consider the immigration. This is huuuuge! The family who immigrated 5 years ago, today has the downpayment to buy a house.
But you know what’s the biggest argument here? Your life goes on! And it is you who chooses to live in a crappy apartment where your landlord doesn’t give a damn, or in a place you can call yours and you can do whatever you want.

#60 JohnAB on 11.26.20 at 6:31 pm

Another example I want to give to the anti RE buyers.
I have a friend who bought a house in Mississauga in 2015. To buy that house myself I’d had to take a 600k mortgage. Five years later, to buy that same house, I have to take the same 600k mortgage! And I was saving like crazy all these years!
What was the logic of not buying then?
So, don’t wait to be “smarter” that others with RE in Canada. It doesn’t go by the logic…

#61 Phylis on 11.26.20 at 6:33 pm

#46 Dolce Vita on 11.26.20 at 5:01 pm

What’s up with the Barbecue Place in ON and masks Brouhaha I saw on your news last night Canada?

—————-
Make sure you catch the next episode, giddy up!

#62 dogwhistle on 11.26.20 at 7:01 pm

#7 JohnMacDonald on 11.26.20 at 1:36 pm

“Scamdemic”

————————————————-

Garth,I thought this kind of #bbqanon trash wasn’t allowed any longer on your site?

PS: TurnerNation is embarrassing enough…

#63 espressobob on 11.26.20 at 7:02 pm

The Adamson barbeque scenario?

Dude has chops to say the least and reflects the ignorance of a minority that has no respect for the matter at hand.

The worst thing about this approach is the possibility more will follow, like a certain gym in the east end of town.

An invisible enemy that seems to have the upper hand on reason.

This should prove to be an interesting winter.

#64 Pete from St. Cesaire on 11.26.20 at 7:03 pm

Makes me laugh to hear people say that Selena is being a cheapskate with her $800 rent.
I live in a small town 30 minutes south of Montreal and my rent is only $425 with snow removal and parking included.

#65 dogwhistle on 11.26.20 at 7:08 pm

#32 SoggyShorts on 11.26.20 at 3:59 pm
#28 Elon Fanboy on 11.26.20 at 3:30 pm
So can anyone give me a straight answer on when Canadians will start receiving the vaccine?
*******************

“And The vaccine will balance itself, sorry produce itself”

Justine Trudeau November 27 2020

Seriously, 8 months to do something, hope the voters will remember, most probably won’t. lol

#66 Stormy Daniels on 11.26.20 at 7:18 pm

“I have no children. Have I not arrived on this planet? Be careful about foisting your emotional needs on others. – Garth”

Hmmm. “I have no children.”

That you know of….

$130,000 will buy a lot of diapers and formula, Garth. That will help keep things quiet.

#67 Wrk.dover on 11.26.20 at 7:19 pm

I’d throw a month’s worth of the cost difference of the upgrade place into lip stick for the rental pig on the sly, and enjoy improved $800/mo living space thereafter.

Plus pay someone to keep the public space in order regularly, if we made that 180k/yr or only 80k/yr.

#68 Wrk.dover on 11.26.20 at 7:24 pm

Chances are Dear Leader will lock rent control into the new “budget”.

$800/mo. (rubbing palms together….) Oh boy!

#69 Habitt on 11.26.20 at 7:34 pm

Where are the blogs about people earning average wages and how they are to secure their retirement sir? I get it you have your TARGET group. Let them eat cake nes ce pas? Some balance would be nice.

#70 tkid on 11.26.20 at 7:40 pm

Selena, 740k in Montreal ought to get you a really nice house with at least 3 bedrooms. Keep looking!

#71 Bk on 11.26.20 at 7:41 pm

#23 frustrated saver. I’m in the exact same boat. As are many others our age. Obviously leaving town is not always an option. It’s easy for all these rich boomers on this blog to just say leave your home and live elsewhere… my recommendation, somewhat similar to Garths. Be fully invested. Line of credits are for rainy days. Make your money work for you. Youre young, take on a little more risk, especially with markets “potentially ” looking good for the next few years. Compounding investments are a great thing. You’ll thank yourself 10 years down the road. Home ownership is overated and dumb when prices are so high. Be patient, invest and good things will happen. I promise

#72 Time to Turn on 11.26.20 at 7:43 pm

“Thousands and thousands of businesses being shuttered”.

“Massive wave of new layoffs coming soon”. Stores are shuttered but it’s OK to burn and loot that store if it happens to be a politically righteous event.

Screw your BBQ !! Handcuffs for small business while Walmart cash lines are snaking down the dog food aisle. Stock up with all the non essentials you’re banned from buying elsewhere!

But, loot and intimidate the small family business guy, get front page accolades.

Massive new taxes announced. CPP up another 10%.

Crazy debt and deficit as a Trudeau dances for the globalist crowd who are delighted to take more of your money. His overhead covered btw, but yours is likely a casualty of faulty liberal logic and no known end to the imported Wuhan Crisis. And no vaccine production in sight because Trudeau was busy elsewhere.

This is the front page of some national rag out of Toronto today. And this is the environment that makes you want to buy a million dollar shack? Are you insane?

Are you insane? The rot is spreading.

#73 crowdedelevatorfartz on 11.26.20 at 7:47 pm

@#6 mike from mtl.
“Selena respectfully stop being a cheapass.
Getting a better rental, say 1500/m is the going rate for a reasonable 4.5… your current 800$/m for a 4.5 on the island proper is most likely a dump.”

+++

Total agreement.
If the neighbors are pigs and the landlord is a slumlord….
Keep renting there and suck it up.
Buy a condo in a precarious economy.
Take the option behind door #3…. rent a nicer place.

#74 AGuyInVancouver on 11.26.20 at 7:52 pm

#1 TurnerNation on 11.26.20 at 12:58 pm
– Keep an eye on your Property Rights: Did you think that UN Agenda and loss of property right is just a hoax? As I’ve said oftentimes there will be no more spending at the level of Cities save for the ‘Poverty Industry’. Everything else will be left to crumble. Mainstream source………
_ _ _
Oh dear God.

Really Garth, really?!

#75 Squire on 11.26.20 at 7:53 pm

All this talk of a Great Reset seems to be snowballing:
https://financialpost.com/opinion/terence-corcoran-can-ottawa-resist-the-great-reset

https://www.weforum.org/great-reset

and now this
https://financialpost.com/entrepreneur/small-business/huge-layoffs-expected-in-wake-of-second-lockdown-in-canada

Keep renting. Look at the winds of change, are ya nuts ? $740k in Montreal.

Garth, would you mind elaborating more on why you believe the Great Reset is a nothingburger ? Thanks !

#76 crowdedelevatorfartz on 11.26.20 at 7:55 pm

@#23 frustrated in TO
“We save and save and live frugally, but feel we can never catch up. ”

++++

You are waaaaay ahead of the majority of the population.
Money invested.
No mortgage.
Keep doing what you are doing.
There is no shame in renting.

#77 BC Renovator on 11.26.20 at 7:55 pm

#10 Maskless on 11.26.20 at 1:46 pm
I hate these types of posts the most and I suspect they’re fictional.

I’ve never met anyone in my age cohort with $400k in cash saved up, unless it’s some kind of inheritance from a relative popping their clogs or getting in early on Bitcoin.

I do not write fiction. – Garth

—————–

Get some new friends, we exist.

#78 KLNR on 11.26.20 at 7:59 pm

@#57 Paul on 11.26.20 at 6:18 pm
Adamson Barbecue owner put in handcuffs.??

Wow there must have been 50 cops six on horse back shoulder to shoulder. To arrest one guy for opening to bbq shack.

you missed all the wackjobs protesting there eh?

#79 zoey on 11.26.20 at 8:03 pm

Take your 200k and put into monthly paying ETF’s , like XRE, FIE, XTR, REI.UN …generate ~6%/yr today or $1000 month and bank your paychecks for a few more years. Move to a better place. If you don’t get addicted to the juicy monthly dividends , go buy the house.

Make sure you look at the run these ETF’s have made if you could have bought them in March you would probably be up 40K just in capital gains now.

Create a forever paycheck and you have more feedom to change careers or do whatever.

#80 Drinking on 11.26.20 at 8:08 pm

#44 Steve French

Great post, I am also amused by those who ridicule and roast the guy, hell, he was not perfect, he said it himself in almost every post, he himself said many times that he was a fictional character that preyed on those who scorned him. He had his points but he went out exactly the way he wanted; “the last laugh”! Ok, Smokie haters time to move on, seriously, just move on!

#81 Ustabe on 11.26.20 at 8:33 pm

#61 dogwhistle on 11.26.20 at 7:01 pm

#7 JohnMacDonald on 11.26.20 at 1:36 pm

“Scamdemic”

————————————————-

Garth,I thought this kind of #bbqanon trash wasn’t allowed any longer on your site?

PS: TurnerNation is embarrassing enough…

Hey, Dogwhistle, recall Sarah Palin. Let her speak so we can really tell who she is? Only reason McCain wasn’t president probably.

Anyway, these politically motivated screeds on matters of public health are a product of poor mental health.

“According to the psychologists who study it, conspiracist ideation is often associated with low self-esteem and feelings of powerlessness. The conspiracist feels empowered by these beliefs because s/he becomes part of an “elite” who know the “truth” (what they don’t want you to know!).

This also produces a confirmation bias where they seek the echo chamber of supporting evidence. Contradictory evidence is dismissed because it is viewed as a personal attack by undermining the thing that gives them power and esteem.

All of this forms a self-feeding cycle where they not only double-down on their beliefs but become prone to believe in other conspiracies. Once their insecurities drive them across the initial threshold of irrational thought, each additional conspiracy becomes easier to believe.” Quote not attributed as the psychologist wishes to remain anonymous so as to not have his family or work harmed.

My mother was a clinical psychologist back when women were expected to be nurses and shop keepers help. Sounds about how she would parse the current situation tho…

#82 McSteve on 11.26.20 at 8:36 pm

Here’s a question I’d love an answer to; are bonds in a bubble?

#83 KaleyCat on 11.26.20 at 8:43 pm

#59 John AB

What would your monthly payment be in that $600k in 2015? Take a mortgage with the same (inflation adjusted) monthly payment today, at 1.5% interest, and invest the rest of your savings.

#84 Keen Reader on 11.26.20 at 9:03 pm

Almost 7 years of renting a brand-new, nice 3BD SFD for $1600/month, just 35 min N of YUL or downtown Mtl, in the foothills. Our caring and reliable landlord rectifies any problem and mows our lawn (huge backyard!). Good nearby school and park, daily walks along a beautiful riverside trail, easy drive to many ski hills and fishing spots… If able to avoid peak traffic times, Selena should broaden her search, me thinks…

#85 willworkforpickles on 11.26.20 at 9:09 pm

The deferral cliff still exists as long as government stands back without further intervention.
If government stands back, delinquencies will begin to make the news in January.
If governments stay out of the picture, foreclosures will mount in the Spring as all avenues of recourse to save those that will slip beneath the waves are exhausted.
The US is headed for an extended period of stagflation in the not too distant future. Canada will follow.

#86 Steve on 11.26.20 at 9:22 pm

Housing is all emotions and little common sense. Burnt out, I was burnt out during the tech meltdown and I keep my nose to grind stone. Why? You don’t know much money you’re are going to need and make money while you can. Btw I live a small house for the past 25 years, no debts, love driving my 10 year old Toyota. My fun is buying equities.

#87 willworkforpickles on 11.26.20 at 9:23 pm

With regard to the long forgotten issue pertaining to the fallout of 2020 extremes…as it always was, and due to rear its ugly head in 2021, the nightmare still looms no matter how hard people try to put it out of their minds as if it has magically gone away.
Stagflation Stagflation Stagflation comes to mind.
A glut of RE listings soon to come on the market does also.

#88 Felix on 11.26.20 at 9:38 pm

‘It’s not about spending twenty years in a 600-foot apartment (although it would be far more spacious without the cats). ‘

STOP THE ANTI-FELINE RACISM!

#89 Lead Paint on 11.26.20 at 9:38 pm

#81 McSteve on 11.26.20 at 8:36 pm
Here’s a question I’d love an answer to; are bonds in a bubble?

Everything’s a bubble these days… houses, stocks and bonds. Gold is high, Btc is high… Time to diversify.

#90 Tyberius on 11.26.20 at 9:46 pm

#80 Ustabe on 11.26.20 at 8:33 pm

and I guess you’re one of those who believe that conspiracies never happen!

#91 crowdedelevatorfartz on 11.26.20 at 9:46 pm

BC’s NDP Premier Horgan flashed the Vulcan “Live long and Prosper” hand sign at his swearing in ceremony today….

https://dailyhive.com/vancouver/horgan-star-trek-salute

Perhaps he’s a closet capitalist?

#92 april on 11.26.20 at 9:46 pm

EitelInsights Vancouver real estate.”…. Real Estate Values are Overbought”

#93 P.Ooched on 11.26.20 at 9:48 pm

#120 Nonplused on 11.26.20 at 1:26 am

|| Blackberry was the last hurrah for Canadian tech and they didn’t build anything here or design the chips they used.

Does Shopify(SHOP) not count as “Canadian tech” in your books? Their market cap is still greater than Canada’s big blue bank(RY), even as RBC share prices have returned to glory day highs. Counts as a “hurrah” for Canadian tech in my books

As to Blackberry(BBRY) surprise surprise they are still around and IIRC they did manufacture some of their earlier models in Canada and others in NA(Texas, Mexico) before everything got outsourced overseas.

Today they sell software and while they are certainly not a big player on the global tech scale, they do still employ some 3,500 people and are still headquartered in Waterloo, ON.

#94 april on 11.26.20 at 9:49 pm

ps: #52 – LowerMainland Millenial. EitelInsights

#95 dogwhistle on 11.26.20 at 10:01 pm

#80 Ustabe on 11.26.20 at 8:33 pm

“Anyway, these politically motivated screeds on matters of public health are a product of poor mental health.”

—————————

Amen, and of a poor economy.
What I don’t know is if letting him/her go on endlessly
either validates him or if he’s just being played for laughs

Watching the bbqanons today 99% middle aged white men. The only thing Trump was right about and a situation that existed before him: deaths of despair due to an endless cycle of unemployment or bad-employment, alcohol, divorce etc

Sad and really not lol

#96 dogwhistle on 11.26.20 at 10:03 pm

#73 AGuyInVancouver on 11.26.20 at 7:52 pm
#1 TurnerNation on 11.26.20 at 12:58 pm
– Keep an eye on your Property Rights: Did you think that UN Agenda and loss of property right is just a hoax? As I’ve said oftentimes there will be no more spending at the level of Cities save for the ‘Poverty Industry’. Everything else will be left to crumble. Mainstream source………
_ _ _
Oh dear God.

Really Garth, really?!

—————————————-

Seems I’m not the only one who no longer finds this amusing.

#97 Long-Time Lurker on 11.26.20 at 10:05 pm

Zoolander 3. Script update.

Location: The Prime Minister’s Office.

Prime Minister Zoolander receives a phone call.

Fake Geeta Thunderborg: “Hello, Prime Minister Zoolander!”

PM Zoolander: “Hello, Geeta. It’s nice to hear from you again.”

Fake Geeta: “Prime Minister Zoolander, climate change is going to kill us all in 10 years! We’re all going to die!”

PM Zoolander: “We are?”

Fake Geeta: “Yes, we are! We’re all going to die!”

PM Zoolander: “We’re all going to die!”

Fake Geeta: “We’re all going to die!”

PM Zoolander: “We’re all going to die!”

Fake Geeta: “Ha, ha! I fooled you! I’m not the real Geeta!”

PM Zoolander: “Oh, how dare you! How dare you!”

#98 MCG on 11.26.20 at 10:48 pm

Regarding the Great Reset:
It is not a conspiracy if they tell you what they want to do.

#99 Faron on 11.26.20 at 11:13 pm

#81 McSteve on 11.26.20 at 8:36 pm

Here’s a question I’d love an answer to; are bonds in a bubble?

What kind of bonds? I’d venture govt that bond prices are a crosa of the pinned overnight rate and the ongoing demand for low risk assets. Prices will almost certainly fall but it isn’t a bubble.

Investment grade and junk corporates are another matter. High yield may be mispriced if the risk of default is underestimated. Corporare debt is at long term highs right now. Spread between the two is very low indicating the market thinks default risk is low. Manias in junk can occur, but this looks more like mispricing if anything.

But, I’m far far from am expert here. Leave it to the suspender snappers!

#100 Karlhungus on 11.26.20 at 11:36 pm

#78 Zoey
Dividends aren’t magic. Selling shares is the same as collecting dividends. Stick with index funds, higher returns.

#101 the frog on 11.27.20 at 12:09 am

#10 Maskless on 11.26.20 at 1:46 pm
“I hate these types of posts the most and I suspect they’re fictional.

I’ve never met anyone in my age cohort with $400k in cash saved up, unless it’s some kind of inheritance from a relative popping their clogs or getting in early on Bitcoin.”

It’s actually very possible from my own experience. I am also renting in MTL with a good job and a cheap rent. Montreal is still better than other big cities if people make some effort to find apartments. And with Covid, it should be easier the next few months (hopefully).

This couple, if they have no kids, should keep renting and spend a few more hundreds of dollars, to upgrade to something nice.

#102 SWL on 11.27.20 at 12:25 am

#80 Ustabe

Wow a quote from an anonymous psychologist. Sounds legit. Did you know that there is a theory that the CIA developed the term ‘conspiracy theory’ in the 60’s after too many people started poking around about the JFK assassination. I won’t bore you with the detail as it seems you already have it all figured out, and with a plethora of ‘official stories’ to back you up why bother peeling back the layers any further

How about we just take a look at history to see that it is littered with people and groups of people conspiring against one another. Many in horrendous ways. So does your theory suggest that all this behaviour has been snuffed out and we no longer need to worry?

Enlighten us please

Think about it and take your blinders off. Won’t belong before we can’t not see it, but by that time (pretty much now) it’s already too late. At least your self esteem is on par

I think in this modern world with 24hr digital surveillance we should be very concerned and question everything. Especially the knee jerk reactions being made for our own ‘safety’ by politicians who lack even the most basic moral ethics. History might not repeat, but it definitely rhymes. If you look back close enough you will see that indeed entire populations have been, and can be easily brainwashed with much less sinister techniques sans algorithms

Now enter the 21st century

Cheers

#103 Alphonse Kehaulic on 11.27.20 at 12:30 am

Yesterday’s Greater Fool headline: ‘Missing The Mark.’ Indeed. Forego the jab and you’re missing the mark. Life’s usual routines will become troublesome if not impossible.

#106 SWL on 11.25.20
Just sharing my observations. Deniers and mockers will react how they will. When you switch off the PR (aka news) your vision comes back.

Kudos, though, to Mr Turner for not succumbing to the Cancel Culture that even several commenters on this ‘maverick’ blog seem to favour.

#133 David Davidoff on 11.26.20
Your home weaponised via taxation — AND squatters? Huh? Could be a plausible coup. Doubtful that Vancouver would be the only city. Just look at that Boston.com article. A brilliant piece of Predictive Programming. Buttering the chute.

‘COVID doesn’t have to be the Grinch that stole Christmas.’ It sure doesn’t, CTV News. Let’s leave that title to the muppets in office!

#104 Ron the Elder on 11.27.20 at 12:31 am

Man there is a lot of “topic drift” on the blog today, so I will not comment on our renters……….

Instead let’s talk VAX. Stop worrying about supply, Putin is selling SPUTNIK V for $ 20 USD For not one but both shots. Sure it’s made from fermented potatoes, but it works, and if it doesn’t you feel better anyway.

#105 Garth's Son Drake on 11.27.20 at 12:33 am

Some clueless people reading this blog – who would spend 700+ for strata? Come on. Move away where you can afford a house. Once you need a cane a million dollars does not matter. Live a little. Get a nice house.

Furthermore, are people in Canada really known for being polite?

Just give them a mask policy to follow to find out their true colors.

All I am seeing on the news is people beating the crap out of one another due to mask disputes.

Anyways, that is almost my entire rant for the day – time to go back to the war with Coinbase over freezing my account during a dip buy today. Don’t worry, after 72 hours my account will be available again after the dip to buy at all time highs.

However, Coinbase is going to be in for a surprise because instead of buying at all time highs through their platform when my account unlocks I am going to be using PayPal to withdrawal all of my money and flip it into the hole I had to dig to cover for today on Canadian exchanges.

I hope everyone else has been buying crypto today. Who knows how much it will dip – Mnuchin supposedly going to try to kick it in the head, but regardless it is going up.

#106 Re: McSteve on 11.27.20 at 12:39 am

This is my answer, since Garth glossed over…

For every investor today, the starting point must be the bond market. Just a few weeks ago, we had $17 trillion of negative yielding debt. We’re now down to about 15, but even that is way too much. This is investment money that is guaranteed to produce a loss of capital. These extreme levels in today’s bond market can only have three possible explanations. One, the world faces an economic meltdown of epic proportions. Two, the bond market is the biggest bubble we have ever witnessed, and three, we have just experienced a massive buying panic in bonds.

Which explanation is the right one?
A combination of the second and the third. Yes, we had a massive buying panic this summer – and yes, the bond market is the biggest bubble of our lifetime. This is bigger than the tech bubble of 2000 and the real estate bubble of 2007.

#107 EmmEmm on 11.27.20 at 1:51 am

classic penny-wise-pound-foolish scenario. the couple seems to be pretty big on the savings probably super thrifty. they could easily get someone to do the landscaping and maintenance twice a month for 200 bucks total.

We used to pay $780 a month for a big 1 bedroom apartment (990 sq ft) in Hartford CT in 2008 and at any given point of time there were at least 12-15 names on the waitlist. one of the best places we ever lived on rent and I’d go back in a heartbeat (even though the rent is now USD 1450 for a 2 bedroom 1150 sq ft).

#108 SoggyShorts on 11.27.20 at 3:02 am

#68 Habitt on 11.26.20 at 7:34 pm

Where are the blogs about people earning average wages and how they are to secure their retirement sir? I get it you have your TARGET group. Let them eat cake nes ce pas? Some balance would be nice.

***********************
I used to earn an average wage. The secret to securing earlyretirement was to earn more.

Even a minimum wage couple could do it though, just not as fast.
$15/h is about 30K each
60K is 50K after tax
12K for rent
12K for TFSA (2.7m after 40 years)
2K for toys
============
2K per month left over to buy food and pay bills

Probably not in Toronto or Vancouver, but how silly is it to stay in the highest cost place making the lowest income?
——————————–
We lived verywell the last few years and did it on
20K rent
20k Vacations & toys
20K bills & food

That’s what a couple on minimum wage plus a few overtime shifts would earn, so cutting 12k out of that gangsta vacation budget for TFSA pretty much solves it.
Bonus if you find cheaper digs than we did.

#109 BillyBob on 11.27.20 at 4:45 am

Live within your means and run your personal finances like a private company, not a government. Keep your costs and taxes as low as possible and your income as high as possible. To find that combination you may have to leave your comfort zone both literally and figuratively.

It’s not rocket science but it takes discipline and time. And yes a bit of luck. Funny though how the “luckier” usually seem to have common attributes like being willing to forego instant gratification for longterm success.

$800 pays our entire fixed living costs here for two months. But that situation didn’t come about by chance, or overnight.

These people dodged a massive bullet and they regret it. A perfect illustration of the suicidal Canadian RE mentality.

#110 David Davidoff on 11.27.20 at 6:04 am

DELETED

#111 maxx on 11.27.20 at 7:33 am

@ #15

“Being super savers has perks. Gainfully employed and able to delay gratification are the tools.”

100% correct. In the early days of saving, the goal is practically invisible and seems improbable. As time goes on, you move through a longish gray area of sizeable assets, but still short of the goal. Eventually, still in the quiet times of the saving continuum, you realize you’ve actually made it. Your first MM.
Then, as much a cliché as it is, the rest comes easier.

Most people never get past the image of near impossibility of becoming financially independent. Independence takes unwavering vision, desire and determination.

Life is tough. We’ve experienced job loss, crappy economies and health challenges. Sometimes we’ve only been able to put a buck into the bank. But that single buck was the point of the exercise: never to break the cycle of saving.

Nearly 200K of income at 55 sound a little bit like heaven. Whatever the choice, never abandon saving and stay the heck away from unnecessary debt.

Garth’s numbers would then allow one to live a lot.

#112 the Jaguar on 11.27.20 at 7:47 am

Interesting article in National Post today.

https://www.pressreader.com/canada/national-post-latest-edition/20201127/281483573939676

I especially like this part:
‘“It’s amazing. Everything we’re doing is figuratively and literally on the backs of these highly skilled oilfield workers. We couldn’t do this without this expertise in this part of the world.”

Hope. Faith. Charity.

#113 Alpha on 11.27.20 at 8:01 am

Oh great “chiseled-abs-Garth”!

I completely understand them, we were promised a great wrecking a shear drop up to 18% in home values.
We got instead is rise of 30%. How come no one saw that coming?

There has been no 30% rise in Canadian real estate values, and CMHC’s time line was 2021. Don’t be too hasty. – Garth

#114 zoey on 11.27.20 at 8:14 am

#99 Karlhungus

The goal is a monthly stress free paycheck, pick your horse.

#115 David Hawke on 11.27.20 at 8:41 am

#23 Frustrated saver in Toronto on 11.26.20 at 3:04 pm
Hi Garth, I have been reading this blog for a while now and I just feel stuck. We love the financial advice in regards to saving and having a balanced portfolio. Me and my partner

Oh, my Great Turtle it’s utterly amazing the bad grammar some people use!

@dogwhistle saying you thought something was not allowed to be posted, obviously not as you’re still here, eh!

#116 Johnny N on 11.27.20 at 9:09 am

Montrealer here, the problem is the location, I would presume the borrough of NDG by the sound of it. A smart person would get off the island of Montreal (city proper) and buy a beautiful house in the burbs for 500K. From the South Shore to downtown it’s a 30 minute bus ride or a 20 minute drive or a 15 minute light rail ride (as of next year, when the REM goes into service). Why people buy shared duplexes in NDG built in 1910 and in heavily need of renos for this amount of money is beyond me.

#117 IHCTD9 on 11.27.20 at 9:12 am

S and Hub’s 400K egg is a super-win simply because they posses it at 35 years old. Blow it on a roof and the pile, the huge time advantage, and the 2+ Mil retirement windfall all go bye-bye. For what? A half house condo with a cellar? Doesn’t sound like much value there for a 475% increase in the cost of living imho.

S, almost no one gets 400K together by 35 – you are set with this even if you never put another dime in it. Invest it, and leave it be.

As far as the crummy digs and taxing career go, I suggest a lcol area not too far from a decent sized city. You won’t need to make 200K, do whatever appeals and pays the bills. Your standard of living will still go up huge even at 100K.

#118 Jesse on 11.27.20 at 9:18 am

If you want to live, don’t get a Harley – get a Gixxer!!

#119 Dharma Bum on 11.27.20 at 9:31 am

#48 Guelph Guru

Go to a 3rd world country see the other world.
——————————————————————–

They already live in a 3rd world country. It’s called Quebec.

But I agree with the idea of buying a Harley.

I have a 2000 Heritage Softail. Low mileage. I’ve ridden in to California and back. Runs like a charm still. It’s fun.

#120 Captain Uppa on 11.27.20 at 9:33 am

Big 6 are not returning to the office until April 2021 at the EARLIEST.

When they do return, at what capacity?

#121 Dharma Bum on 11.27.20 at 9:36 am

#111 The Jaguar

I especially like this part:
‘“It’s amazing. Everything we’re doing is figuratively and literally on the backs of these highly skilled oilfield workers. We couldn’t do this without this expertise in this part of the world.”
——————————————————————-

Interesting.

Should we worry, though, that Justine Trudeau might kaibosh the project because it doesn’t address the emotional sensitivities of transgendered LGBTQ peeps in Moosejaw?

#122 dogwhistle on 11.27.20 at 9:55 am

#114 David Hawke on 11.27.20 at 8:41 am

Oh, my Great Turtle it’s utterly amazing the bad grammar some people use!

@dogwhistle saying you thought something was not allowed to be posted, obviously not as you’re still here, eh!

————————————————-

Are you happy having #bbqanon / conspiracy / spamdemic BS on what used to be an interesting blog?

Remind me when was the last time you said something of any value?

Reminder:

I helped out people asking questions about robo advisors, I posted links to the Santa clause fund for people that need help (and not just a shrink…)

What did you accomplish?
Take a look in the mirror buddy.

#123 IHCTD9 on 11.27.20 at 10:04 am

Here’s lcol area rundown for S

Perfectly fine sfd on an acre 450K – $1800.00/mo
taxes, heat, hydro, insurance – $600.00/mo
Save for retirement, you don’t need to – $0.00
Nice Grizzly 700 SE – $250.00/mo.
GMC Sierra AT4 6.2L double cab 4×4 – $950.00/mo.
Food and fun – $1000.00/mo.

55K after tax dollars to eventually own a sweet truck, great ATV, and a SFD. Once everything is paid off, your col will be so low it’ll be funny. I live in my paid for house for about 550.00/month on about 9.5K/month net hh income.

My job is just what I do for $ – you’re learning this too. The fun and contentment in life come from relationships and things outside the office. For me life got better and better as the bills dropped and incomes grew cumulating in what amounts to “easy street”. For a couple to cover 55K in annual expenses, you could pick just about any job that might appeal and it’ll be enough.

#124 Sara on 11.27.20 at 10:08 am

#80 Ustabe “Anyway, these politically motivated screeds on matters of public health are a product of poor mental health.

“According to the psychologists who study it, conspiracist ideation is often associated with low self-esteem and feelings of powerlessness. The conspiracist feels empowered by these beliefs because s/he becomes part of an “elite” who know the “truth” (what they don’t want you to know!).

This also produces a confirmation bias where they seek the echo chamber of supporting evidence. Contradictory evidence is dismissed because it is viewed as a personal attack by undermining the thing that gives them power and esteem. ”

Indeed! I know of someone like that who recently blocked me on his facebook for daring to politely challenge some of his “facts”. He has a whole following of not so smart people who seem to think he is a genius. Quite scary how they live in their own little echo chamber of untruths. Any attempt at debate is shut down, the opposition being accused of working for Bill Gates, big pharm, the government, etc. It would be funny if it wasn’t so sad.

#125 Spectacle ( front row seats) on 11.27.20 at 11:18 am

The bigger piece to consider as we peel back the cover of the rent/buy dilema ::

Consider just the Canada wide mortgage deferrals soon coming due. Why would anyone buy knowing such an influence is just moments away.

#126 Tommy on 11.27.20 at 12:06 pm

Why do people feel the need to censor comments and discussion? Why can’t readers just keep scrolling past the comments they don’t like? I couldn’t stand Smoking Man’s commentary, but I never once called for his comments to be censored or for Smoking Man to be banned from this site. Live and let live.

I wish I could convey the harm that is caused by censorship. Censorship really does cause harm to individuals and society. Annoying comments can be scrolled past. Just keep scrolling. Stop trying to control what other people are allowed to say.

You can’t extract economics from the rest of current events. So COVID19 and lockdowns and testing and the debates about the numbers… all of that has serious implications for the economy. So it’s impossible to distill this blog to a pure discussion about economics and finance. Economics and finance don’t happen in a bubble, pardon the pun. They affect and are in turn affected by what goes on in society and what goes on in our natural world as well. I wouldn’t want to read a discussion solely about economics/finance that is detached from what is going on in the world. How boring would that be? But more importantly, such a discussion would have huge blind spots and would inevitably lead to very wrong conclusions. Because economics is about people and is a social science at the end of the day. You can’t separate it out from other domains of human experience.

This is my personal blag. Every word I allow to be published here reflects on me, my reputation, my colleagues and my ethical view of the world. You are my guest. I do not censor you from saying anything. But I do not allow you to say everything. Significant difference. Live with it. – Garth

#127 SWL on 11.27.20 at 12:41 pm

@123 Sara

You do realize that people form the same confirmation bias and echo chambers on either side of the debate

Sounds like your mind is also made up and closed to any contradictory points of view

2020 – The year any logical debate was lost. R.I.P you will be sorely missed

#128 Friend of the Mayor on 11.27.20 at 12:53 pm

#80 Ustabe “Anyway, these politically motivated screeds on matters of public health are a product of poor mental health.

“According to the psychologists who study it, conspiracist ideation is often associated with low self-esteem and feelings of powerlessness. The conspiracist feels empowered by these beliefs because s/he becomes part of an “elite” who know the “truth” (what they don’t want you to know!).

This also produces a confirmation bias where they seek the echo chamber of supporting evidence. Contradictory evidence is dismissed because it is viewed as a personal attack by undermining the thing that gives them power and esteem. ”

Indeed! I know of someone like that who recently blocked me on his facebook for daring to politely challenge some of his “facts”. He has a whole following of not so smart people who seem to think he is a genius. Quite scary how they live in their own little echo chamber of untruths. Any attempt at debate is shut down, the opposition being accused of working for Bill Gates, big pharm, the government, etc. It would be funny if it wasn’t so sad.

____________________________________________

Just to confirm. You are talking about Liberals right.

#129 Real Men Drive Kias and Wear Man Buns, They Don't Ride Harleys on 11.27.20 at 1:11 pm

“Now, have you considered a motorcycle?”

*Don’t forget the most important accessory for all those geriatric Harley riders:

https://www.pinterest.ca/bagwithstyle/harley-davidson-diaper-bag/

#130 bdwy sktrn on 11.27.20 at 2:23 pm

#117 Jesse on 11.27.20 at 9:18 am
If you want to live, don’t get a Harley – get a Gixxer!!

—————–
got an older katana750 (a slightly tamed gixxer?) after my xr650l got swiped. great decision for an old guy(50+) ! sea to sky is splendid. will get a cruiser for long trips when i get old but never a harley.

#131 Jim on 11.27.20 at 3:29 pm

Tommy #125, completely agree.Free speech without profanity and disrespect, collective different points of view are very constructive. So sorry Garth that you feel this is not important. Your sandbox,you control it.Hmmm.

The blog will not be a platform for anti-vaxers, anti-maskers or Covid deniers if that’s your drift. Buzz off. – Garth

#132 Need a view on 11.27.20 at 3:33 pm

#23 Frustrated saver in Toronto on 11.26.20 at 3:04 pm

Hi Garth, I have been reading this blog for a while now and I just feel stuck. We love the financial advice in regards to saving and having a balanced portfolio. Me and my partner (early 30s) have a combined $130 000 income but we feel stuck here in Toronto. We also have around $120 000 saved up half RRSP and half TFSA. I work in IT downtown and she is a teacher. We follow your advice and live frugally saving around 3000$ per month. But it feels like it is not enough. We live in a run down place where the rent is cheap and we have no car expenses as we paid it off recently. We started looking to buy at least a 2 bedroom place but the price creep is just nuts. The 2 bedroom condos are 800 000 and up. No matter how much we save, I just feel like we are falling further behind. Our realtor tells us to go to bank of mom and dad, but that is absolutely not an option (they need their savings for their retirement).

We have been reading this blog for a while and were hoping this appreciation of housing in Toronto would dip, but nothing ever materialized. I feel now that the government will do anything to not negatively affect housing prices for homeowners. The interest rates are super low now and now prices are through the roof. During the pandemic you were talking of all of the mortgage deferrals, but I don’t see a glut of for sale signs. None of these logical predictions ever materialized. When an event was about to happen that would negatively affect prices, there is always some form of help from the government what allowed the homeowners tide it over.

I just don’t see what is the point now. We save and save and live frugally, but feel we can never catch up. We just cant compete with friends who had help from “mom and dad” years ago, never had the savings discipline we have, and are now reaping the rewards. I guess we will have to leave Toronto before the neighbouring regions become unaffordable for Toronto transplants.

Why anguish over buying a condo for a price you cannot afford when you can rent it? Same condo. Is this just an emotional need? – Garth
‐‐————————————————————————–

Sometimes Frustrated saver, you gotta go for it.

If you can get some place really nice place in a good location for a fair price, you’ll be happy. Mortgage rates are low so take advantage of that. I’m and looking at doing a 10 year fixed.

I’m looking at Toronto waterfront myself. Want to buy it, rent a boat in the summer and enjoy what downtown T.O. offers which is a lot. Only problem is condos over 800 sq ft with a lake view command a million bucks and up, except this one, https://youtu.be/ofv4ktw2Y5o

Some other examples of prices that don’t seem to come down https://condos.ca/toronto/quay-west-90-stadium-rd

Go to MLS yourself and type in waterfront to do the research yourself.

I worry that, as Garth says, pandemics aren’t forever and when it is, condo prices are going north again. Looking for static pricing, a cheap mortgage and a view.

#133 Cici on 11.27.20 at 6:38 pm

#5 John MacDonald

Yeah, whatever. Calm down. This is temporary.

No government wants to erode their tax base by punting small business.

The simple fact is that as cases rise and hospitals reach or exceed full capacity, something’s gotta give and not everything can remain open. The big boys have warehouses to ensure stock capacities, can provide a greater variety of essential products and services, have online shopping and payment options, as well as curbside pickup.

In a pandemic, you want less people out and about contaminating each other. Watch what happens when case numbers drop dramatically and the vaccine becomes available. We’ll be back to business as usual.

#134 Drinking on 11.27.20 at 7:08 pm

Christina, rock my world! I have no idea what to say but that delete option that was included will be the greatest moment of my life. I am going to have a great time pushing that button (especially anything to do with a Felines), it will be a record low in your posters section Garth, maybe one or two, hell, I will even delete my own!! :)

Live within your means and stay safe, easiest post I have ever sent!

#135 BLACK DEATH FRIDAY on 11.30.20 at 7:47 am

BLACK DEATH FRIDAY HAS ARRIVED