At 28, Maria has a BF, two degrees (chemistry and psychology) a job and a problem. “I am struggling,” she says. “I want to move out and rent with my partner of 2 years, but also have fears of that setting me back in paying off my high interest student loan and saving for a down payment.”
Did I mention she lives in Kelowna?
Yes, where prices exploded during Covid and are now headed south. The average detached, as reported here, may be on its way to a 47% decline, according to a local analytics outfit.
So Maria wrote me for advice. Simply put: stay at home into her early 30s and save up a downpayment, or move out, be an adult, rent and delay real estate – indefinitely? By the way, she’s a government worker now, earning $67,000 a year, paying off some debt from her Master’s degree and socking away $500 a month.
“I have been watching the market closely and am very worried that I may miss the buying window as prices start to come down in the next while, as I will not have enough for a down payment for about 3 years if I were to move out and rent, 2 years if I stayed home. I am wondering if you have any financial/saving advice! A home is very important to me. Feeling quite hopeless and frustrated with myself being 29 and still living at home with little savings.”
So I wrote. How much, exactly, do you have, I asked? Where do you want to buy real estate? How much?
Turns out, it’s a disaster, and a lesson. “Currently I have little to nothing saved,” she replied. “Just one thousand dollars.”
“I would like to buy in Kelowna as my parents live here and my family is the most important part of my life. I have my eye on new townhomes being built in Kelowna that are currently $720,000. I have talked with my partner of 2 years, we have mapped out our income and a savings plan, and our financial goal/plan is to save 60,000 in the next 3 years. My parents have very generously agreed to match our savings for a down payment.
“My question would be do you think that I should be preparing to buy in 2 years (stay at home and save more than I would if I moved out and rented with my partner, due to less expensive rent)? Or if I have a down payment ready in 3-4 years, would it still be a reasonable time to buy or would I potentially miss the buying window of the market coming down?”
There’s so much wrong with this. In three years Maria will be 32 and, together with a partner she will have no legal relationship with (they do not cohabitate) plans to throw all of her savings (and his) into a townhouse with a $60,000 obligation to her parents and a $600,000 mortgage. They may both be on title and on the mortgage, but if the relationship fractures and he walks, she’s 100% responsible for the debt. Without removing him from title, she could not even sell.
And how is staying at home into one’s thirties not the ultimate adult failure? Maria is working. She has undergraduate and graduate degrees. She’s obviously in love (or otherwise connected) to a partner equally as broke. And yet the goal of them both is not to enjoy their youth, privacy and freedom by moving into a rental love nest together, but to sacrifice everything for… a townhouse in Kelowna.
Okay, K-town is not a bad place. Geography. Big lake. Maybe with a monster in it. Cool bridge. Coy little downtown. The servers at Joey’s. But with only 150,000 people, a long drive to Vancouver and lost industry, this place epitomizes Canada’s condo economy. During the pandemic gobs of money flowed out of YVR into this place. Those townhouses Maria covets sold for barely more than half the current ask just a few years ago. Incongruous towers now sprouting on the waterfront erase what was left of the small-town, beach-bum patina Kelowna had. Big city overhead. But no big city opportunities.
However, this is not about place. Rather, attitude. When people this age decide having a piece of indebted real estate is the goal of life, it’s yet another sign we’ve lost our way. Just look at this…
Now that 2% mortgages are gone for an entire generation (likely longer), that heaping pile of debt will become more significant. Almost four in ten people with home loans face a renewal in the next 18 months. It’s estimated the average monthly payment will increase by 40%, even if rates freeze at this level. Given $1.7 trillion in outstanding loans, more than $600 billion will be coming up for renegotiation. Do the math. It’s a terrifying drain on household finances.
As this blog recently proved – without the shadow of a doubt – in the absence of capital appreciation renting is vastly cheaper than owning. Plus, it provides more freedom, flexibility and mobility. Maria’s being victimized by her own biases. Maybe the pressures are cultural. Perhaps familial. Maybe she’s trapped in that hellish vortex called Reddit. Whatever.
Best advice: leave home. Get your own space. Think for yourself. Relish being young. There will always be a house to buy. But you will never again be 28.
About the picture: “Love the blog, read it every morning,” writes Tom. “This is Maggie Mae. She was found alone and starving near Pickle Lake Ontario, but now she spends her time eating and lounging near our Nation’s Capital. She can’t wait for her people to retire and move to Bunnypatch, where there should be even more squirrels to chase.”
151 comments ↓
#31 Ponzius Pilatus on 08.01.22 at 3:47 pm
#11 Sail Away on 08.01.22 at 2:18 pm
“The world may be an indebted, messed-up, climate-challenged and politically-ripped place with problems your grandchildren will regret…”
———-
Actually, the world (the natural world, anyway) is pretty good.
People are just drama queens.
———————-
Actually, nature and people don’t mix very well.
God is no match for the developers.
—————-
The planet is fine, Trudeau just wants to control more and more of people’s lives (and most Canadians are happy to give it to him).
This story is playing out everywhere. We were having a conversation with our neighbors who are being pressured by one of their married kids and spouse to loan them money to buy. They don’t want to, but the kids are laying it on thick apparently and are putting off having kids of their own until they’re home owners. The guy and his wife just retired in June and were planning to sell their house, rent a cheap condo, and travel most of the year. Now the entire plan is in peril.
The psychology degree should be the bell ringer.
Sever the umbilical cord Maria.
Fly from the nest.
Rent.
Pay off your debt..
Wait for the housing prices to reset to something reasonable.
Great advice. Someone that young with that little in disposable income after their current financial obligations ought to focus on (1) living, and (2) paying back the loan on the education that supports their current income.
One day, this obsession with real estate will end, and maybe this will come sooner as other necessities become harder to afford, and harder to find.
Happiness.
Be that first.
Never compare yourself to others.
And youth is fleeting. Keep it while you can.
—————–
Always lived life to the max with happiness at the core so that even if I were keel over tomorrow, I will die with a smile on my face.
Still smiling.
And money does not buy happiness (nor youth).
“This is Maggie Mae. She was found alone and starving near Pickle Lake Ontario, but now she spends her time eating and lounging near our Nation’s Capital.”
Garth, surely that’s not a dog – more like an appointed Canadian Senator methinks…..
#119 TheDood on 08.02.22 at 1:43 pm
#30 Quintilian on 08.01.22 at 3:35 pm
I would also add that suddenly “the shortage of supply” myth will soon be dispelled, along with the thousands and thousands of rich immigrants will save the market fantasy.
_______________________
These have already been dispelled.
Those narratives – not enough land, supply shortage, rich immigrants, etc. – are known and understood by people who have the intelligence to question a ‘mainstream’ narrative. Unfortunately for the dumb sheep/lemming masses, it will take a big drop in market prices (sledgehammer) to communicate the same message.
__________
So to clarify, you believe you can tell whether there is an over or under supply of housing based on the price of real estate? If prices are still high but dropping this means there is an oversupply of housing? Do interest rates or the price of rent impact your analysis? Was your mind made up before the price of housing started to fall? What criteria did you use to reach this conclusion?
Thanks, always interested in understanding an opinion which is different than mine and how it was reached. I see rents continue to rise and consider this evidence that there MAY be a shortage of housing in Canada.
My daughter will be 28 this year, shares a rented condo just west of T.O with her BF. She just started her career and their combined income is over 150k.
Unlike most of their friends, they have no urgency to buy. If I didn’t follow this blog I’d probably be pushing them to go all in. Instead, they want the freedom to change jobs at will, maybe move to another country, travel, live life while they are young.
Maybe their timing will work out if the market continues to correct and in another 10 years they settle down into something more permanent. It wasn’t how I did it back in the late 80’s when I got married, bought a home, raised a family. It worked out for me but prices were 3-4x household income back then. Buying now is Housing Roulette.
I married a girl with $1000 saved up (from a lotto ticket), 41 years ago. It has gone well. She also had a car and a sewing machine though.
She never got paid $67,000 until twenty years later.
Nor has we ever paid housing above a weeks pay/month.
That Kelowna pay/rent ratio is not going to lead to much improvement in Maria’s life situation.
Other parts of Canada are screaming for people with her qualifications, with a better ratio than Kelowna gives her, plus an easier journey to the capitol city and it’s health care, should a need arise. I’d hate to drive the Cocoloco highway a second time in my life, and I only did the downhill run that time in the summer!
I’d decline the bank of Mom offer, and relocate with the partner. Adventure beats indenture every time.
My experience at 26 was moving a 24 hour drive away in a $100 car, to where I knew three people. Still here.
This entry hits close to home. The Mrs. and I faced a similar decision in our late 20’s. Now approaching our mid-thirties, we have the benefit of hindsight as well as friends who made opposite decision to compare to.
Conclusion it only matters what you want.
We made the decision to leave the nest. We have fond memories together from our flight out of the nest and now have three kids and a pile of money we can do what we want… invest/vacation/put a down payment down, etc…
We decided to get life (at least what we consider it to be) underway and not let real estate hold us back or influence our decision making. That was a decision we made together and ensured we were both on the same page.
On the flip side we have friends who decided to do the opposite. Put their lives on pause while they tried to amass down payments. This meant delaying things that (at least they say) they want like marriage, kids, pets,trips,etc. all in order to afford real estate. Some of them have managed to purchase and are just starting their “adult” life (at 34/35) now that they have the stability that they perceive owing real estate gives them.
They are happy with their decisions, and we are happy with ours… it’s all about what YOU want. To sum it up “different strokes for different folks”
Hilliard MacBeth
Persistent and Large Rate Hikes by the Fed Signal the End of an Era
https://www.howestreet.com/2022/07/persistent-and-large-rate-hikes-by-the-fed-signal-the-end-of-an-era/
that’s my feeling, it’s the end of an era.
I personally know a young family. They moved into a row house, a year ago. The father has worked very hard at fixing it up. We’re talking major work. Just heard last weekend. Three mortgages. They went all-in on real estate and now see that property values can drop.
A generation has been mislead.
USA= 1, CCP= 0
Kelowna is borderline unliveable at the moment unless you own a home or are a student. I know, I’m here. Most rentals are either airbnb, seasonal, hyper expensive 2000-3000/mo or something a rat would be ashamed to live in. Most people I know in the service industry are looking for a way out. Bars and restaurants close early for lack of stafff, the food is gatbage, the traffic is horrendous, and the air looks like it’s been pumped in from Beijing Most summers thanks to the place being constantly on fire. I spent all of June and July in the Bahamas because it was just as costly to get a condo on the ocean as some shoebox downtown surrounded by bums and street thugs stealing whatever they can find that isn’t nailed down. The rcmp don’t even respond to petty crimes anymore. Why anyone would buy a place here is beyond me.
This woeful tale says it all. Educated does not equal smart, and common sense is becoming very uncommon. My sympathy and empathy for these greater fools is gone. She at least was smart enough to get a good taxpayer funded teat sucking career. Woe, Canada.
BEST ADVICE EVER!!!
Enjoy being young, healthy, footloose and house free! You will never have the opportunity to relive your youth. Enjoy it!
Dear Maria,
I will turn 43 years old in October and still don’t own a house. Shocking for a Canadian, I know. I left home at 17, married at 23, have 3 (too many) university degrees and 1 kid. I probably should have had more kids, I digress. ‘Growing up’ does not equal a house/mortgage despite what family/friends may say. Alternatively, you may just end up appreciating a plump B&D portfolio of freedom.
Brett
The War on Small Business continues. Inflation – the silent foe.
(And not a finger will be lifted in help of Ukraine.)
https://www.cbc.ca/news/canada/calgary/calgary-restaurant-inflation-rising-food-cost-1.6537781
Calgary restaurant owners say they are being forced to hike up their menu prices and cut staff hours due to rising food and material costs.
Since the start of the war in Ukraine, the cost of living has soared for millions across the globe — and Calgary’s food service industry is feeling the pinch.
—— Our high taxes, for our Social Safety Net. We are superior (especially to the USA of A)!
Some say this is the man-made crisis to push us into For-profit health care. An aging population, a majority employer w/benefits (the government). Think of the profit potential.
When our rulers tell us they act for “public health” flip this 180 degrees to make sense.
.’People are suffering’: ICU nurse says staffing shortages at hospitals are getting worse (ctvnews.ca)
—
—
Life in Kanada. Remember guys, The Truckers were going to overthrow democracy [sic] simply by parking & honking. Wink wink. The Truckers.
https://twitter.com/ryan_p_alford/status/1554476812364877824
“A stunning article by the National Post’s @rupasubramanya on @bariweiss
‘s must-read Common Sense News: Canada’s travel vaccine mandate was purely a political decision; the facts and the science just didn’t matter. Everyone should read and reflect on this.
I would say get the hell out of Kelowna! Every year the fires get worse and so does the heat. Even if you don’t have to evacuate, you still have to breath in the smoke. Correction or not, it will not be pleasant as the climate continues to heat up.
How can I put this Maria – if you absolutely must live where you clearly can’t afford to, you have to make some sacrifices. I suggest forgetting about the house until your debt is gone, till after you’ve lived with the BF for at least 2 years on your own, and till after you have saved up a DP on your own without bleeding your parents and putting them at financial risk.
Yes, you’ll probably be damn near 40 by then.
Sacrifices, remember?
There is a downtown tower in Kelowna….$2,000 per sqft
600ft = $1.2M to live in a shoebox.
Goodbye, Canadian middle class. It was awesome growing up and living in it while it lasted. Once Generation X passes, it will be all over bar the shouting. Cue the revolution.
Inflation is about to go to the next level:
China – full lock down b/c of covid and now counter sanctions for the Pelosi trip.
Russia – 100% guarantee the gas will be off in the fall.
Crazing inflation and perhaps world recession.
Where does that leave interest rates at?
#13 KuatoLives on 08.02.22 at 3:44 pm.
Why anyone would buy a place here is beyond me.
____
Not me, I hear the reason all the time. It goes like this:
“Must live near family”
Hear it all the time. Yes, it’s crazy talk – but it seems to be very common crazy talk these days.
OMG Maria
MOVE out.
Tell the dude, let’s get married or look for a new guy.
Probably best to move to Alberta. Your BF does not want to live in the same town as his mother in law, believe me, especially not in a case where you lived at home till ’28. Clearly a momma’s girl.
It’s fine to rent for now.
…”this is not about place. Rather, attitude.”
Bullseye Garth!
I thought the best thing about Kelowna is the local TI branch, is it not?
The best part about this post is that you may actually be coming around to the idea of 50% real estate haircut (which was previously, vociferously mocked in the steerage section).
Signed,
A loser renter.
Its a sad indictment of our society that its reached this point.
The point being, a young educated couple with two incomes must stay at home well into their thirties to have any hope of owning a modest home (not even detached).
Then you have the thick condescending attitude from places like this blog, on a young couple for wanting the same things that this blog’s author enjoyed. The difference is today’s youngins have to make real sacrifices (like living at home well into their thirties) to save enough to have an even remote chance of achieving their goals.
It seems the economic realities of wages continuously decreasing in real terms are leading to multigenerational living arrangements becoming much more common.
The cherry on top though is the condescending attitude from the rich baby boomer blog author whose generation is so far removed from the current struggles of the youth coming of age. One of the few persons who benefited massively from the banking regime that inflates asset prices and leads to perpetually lower wages in real terms.
In my opinion, this young couple is doing it right. They have a financial plan, and they are making real sacrifices to achieve it.
So Maria, there is nothing wrong with aspiring to owning a home. Reduce your expenses and save save save (you’ve got the right idea, but your timing might not be right, might take longer than you are anticipating) If you are lucky there will be a big price slump that you can move on. But, to have that opportunity you must save.
Dorothy and I married at 21 and rented for years. Dumpy places. It was great. We were together. – Garth
We left Kelowna in 2014 for Calgary and haven’t looked back since
Jobs in Kelowna pay 30-50% what you can earn in bigger cities and houses are 2-3x as much. Plus it’s completely full of drug addicted homeless people, criminals, brutal traffic, flaky people, endless smoke in the summer and cloudy skies from November to May
Sure, Calgary is colder, but it’s sunny almost all the time. And the climates aren’t THAT different. It’s not like Kelowna is like Hawaii or anything. We were in Kelowna in December and it was -20. About the same as Calgary.
Living in Calgary allows our family to earn a very good living, own a house with a yard, travel south every year, and save for retirement. These are things that simply weren’t possible for us when we lived in Kelowna.
I never had stable employment prospects. So I had to frequently move and always went into a rental situation. I saved and invested for over 15 years.
Got married at 35, stayed in a rental situation again and finally bought a house at 40. Cash no mortgage. Been in the house now for 22 years.
Patience has its benefits!
stay at home until you get married and save up
#1 Jesse on 08.02.22 at 3:04 pm
The planet is fine, Trudeau just wants to control more and more of people’s lives (and most Canadians are happy to give it to him).
^^^^^^^^^^^^^
It’s absolutely astonishing that Trudeau has made so many people(really smart people even, like highly regarded scientists) think that Climate Change is actually an issue. The power that man has over minds throughout the entire world is boggling!
There’s something wrong if she’s living at home, earning $67,000/year, and only has $1,000 saved. Her problems go way beyond the rent vs buy decision (obviously she should rent). She needs to take a long, hard look at her cash flow and where her spending is going.
“Maybe with a monster in it.”
Maybe?
There is a monster in it, I took a picture of it ,but my phone fell into the lake.
But to the wider issue…Yes Maria you should buy. Kelowna is the best place on earth, honestly.
If you don’t believe me, ask Christy Clark or Rich Coleman, you know those two have never lied.
What Maria needs is perspective. Save like crazy for the next 6 months then take a 1 year sabbatical and go travel the world.Live in one country for a month. It will open oneˋs eyes to what really matters in life.
I would say that given current RE prices if one really,really wants to own a place, one should plan to buy a modest place at 40 and pay if off by 55-60 ,than call it a day from the full time working world.
Financial independence should be the goal not slavery to the bank.
My children grew-up in rental condos here in the Lower Mainland and turned out just fine ,responsible adults with good incomes.
How do you live at home and still have no money?
Live on your own before moving in with your boyfriend is what l would add to Garths advice.
We are in a rising interest rate phase, with likely prolonged interest rates closer to historical norms and structural long term inflation. There is a possibility of wide spread famine and a long, slow recovery of both agriculture and our supply chains. It would be a bone head move to get bogged down in real estate — this is probably not the smart play.
Our esteemed blog host has decreed unto us several maxims. The most oft repeated Decree of Garth (DOG) is that of balance and he isn’t referring to hopscotch or the circus high wire act. No, in these troubled times that may continue for some years, balance in how we structure portfolios and balance in how we live our lives is going to be very important.
For those that still think that WFH is here to stay forever, a cautionary story…if even the pioneer Google is finally looking at productivity, that tells you something .
https://fortune.com/2022/08/01/google-sundar-pichai-warns-bloated-staff-productivity-concerns/
Not debating that some jobs can’t or won’t be done from home ,but fact is that even those will come with a lot of strings attached and a lot more control over what and when things get done.
Management did/will adapt and staff will find the “freedom” illusory.
Most will wish they can go back to “work from work” where they can use their personality and team spirit to make up for reduced productivity.
Better get a podcast subscription for your commute,learn new things ,rather than waste time at home stretching your day.
If not for the obscene policies of a traitorous government she could buy a home in Kelowna.
Instead the gets diversity and inclusion.
Oh well, us wealthy Canadian families appreciate your sacrifice, loser.
@27 whining dog
“The cherry on top though is the condescending attitude from the rich baby boomer blog author whose generation is so far removed from the current struggles of the youth coming of age.”
+++
Hmmm
One of the kiddies earning $67k per year.
Living with mommy and daddy ( cheap rent or rent free?)
The parental units are willing to match what ever they save over the next 3 years ( $60k between 2 of them equal $120k after 3 years?).
Sacrifices?
Bwahahahahahaha
Spare me your entitled whining.
I lived in shared accommodation for the first 5 years after I moved out at 18.
Then lived on my own for another 5 years with the occasional roomie.
Time to suck it up buttercup.
The more I read this blog, the less I want to own a home.
+5 points to today’s protagonist/antagonist for mentioning not the term ‘forever home’.
What are K-wa’s nicknames? Hell-owna? Sell-owna?
Never-be-an-Owna?
——-
— Winding down the Former First World Countries. We have another perpetual War On (after Drugs, T3rror, Corvid) now it is War on the most populous element in the Table. Carbon.
“”Globe/CP say Imperial CEO pans Ottawa’s emission plan
The Globe and Mail reports in its Saturday, July 30, edition that Imperial Oil chief executive officer Brad Corson said Friday Ottawa’s strategy to reduce emissions and reach net-zero amounts to overreach. A Canadian Press dispatch to The Globe reports that Mr. Corson said, “It is very aggressive and stretches the capability of what is technically and economically feasible.” Earlier this month, Ottawa released a statement outlining ways it could potentially design the oil and gas emissions cap, which is part of its 2030 emissions-reduction plan, and launched consultations on the matter. (stockwatch.com)””
18yo I was out of the house, working on a roofing crew with a crappy car and learning life is tough. Joined the army 6 months later. Loved it and learned many things… one being that ladies liked muscles.
Then engineering school, then marriage, then career and kids, then Canada, then company ownership.
Life is long and can go all over the place. Sometimes you’ll be the ball, sometimes the bat. Do things that make you happy.
What’s wrong with her parents, that she has outstanding high interest student debt, that they’re not giving her the 60K for? They won’t give it to her to settle existing debt, but they’ll give it to her contingent on her digging herself into a much deeper hole?
#28 Waystar Royco Shareholder on 08.02.22 at 4:28 pm
We left Kelowna in 2014 for Calgary and haven’t looked back since
Jobs in Kelowna pay 30-50% what you can earn in bigger cities and houses are 2-3x as much. Plus it’s completely full of drug addicted homeless people, criminals, brutal traffic, flaky people, endless smoke in the summer and cloudy skies from November to May
Sure, Calgary is colder, but it’s sunny almost all the time. And the climates aren’t THAT different. It’s not like Kelowna is like Hawaii or anything. We were in Kelowna in December and it was -20. About the same as Calgary.
Living in Calgary allows our family to earn a very good living, own a house with a yard, travel south every year, and save for retirement. These are things that simply weren’t possible for us when we lived in Kelowna
———-
There you go Maria. Move out of your parents’ house, but don’t stop there. Move out of Kelowna too. Take heed of Waystar’s words, and Shawn’s steadfast advice to move to Alberta (it’s good advice).
No more excuses. Time to kiss Mommy and Daddy good-bye and strike out on your own.
#7 Love_The_Cottage on 08.02.22 at 3:35 pm
#119 TheDood on 08.02.22 at 1:43 pm
#30 Quintilian on 08.01.22 at 3:35 pm
So to clarify, you believe you can tell whether there is an over or under supply of housing based on the price of real estate? If prices are still high but dropping this means there is an oversupply of housing? Do interest rates or the price of rent impact your analysis? Was your mind made up before the price of housing started to fall? What criteria did you use to reach this conclusion?
Thanks, always interested in understanding an opinion which is different than mine and how it was reached. I see rents continue to rise and consider this evidence that there MAY be a shortage of housing in Canada.
___________________________
We have differing opinions that’s all. I believe the narratives pushed by any/all connected to the RE industry in some way are nonsense – not enough land (In Canada? Really?), supply shortage, rich immigrants, etc. I believe the industry is manipulated to a large extent through creative marketing developed to keep the gravy train moving along. It’s been allowed to happen and here we are.
In my opinion, the rise in rents are due primarily to amateur landlords who overpaid and now look to cover their mortgage payment – which they can’t afford in the first place. Competing ‘professional’ landlords see this and automatically raise their rents side by side with the amateurs! Good deal for them yes?
Follow Garth’s advice.
I would also hold back on making extra student loan payments and save the money instead since its free money for the time being. BC eliminated interest on student loans and no interest is being charged on federal student loans until 2023. That being said, student debt may affect how much you can borrow once you’re in a position to buy.
Here we go again, plans for parents matching their down payments, if Maria can’t stand on her own two feet at 29 years old, regardless of what her loan is to pay back, she will have hand out expectations for the rest of her working career. Maria needs to sky away from money gifts and let her parents enjoy their savings in retirement and become a self contained grown up herself, no pity here.
Good advice. I moved out at 27 and while I’m saving a lot less, I’m living a lot more.
Took that long to be able to afford Toronto rent though.
Buy a dump. Gut it.
Work 16 hour days seven days a week and fix the dump up. Work all your holidays on your shell (that includes Christmas Day).
In 5 years you’ll have a lovely home for cheap.
There are tough men out there, find one and learn to work as hard as he does and don’t complain.
That’s what it takes. Nothing less.
the writer may be a reader, but comprehension is another story…
Maria I’m late 40s, happily married with a 2 year old, and still rent.
Renting a quite modest, but still comfortable, 2-bedroom apartment in fact.
A late bloomer due to a long period of study… sure, even an abject, pathetic failure according to some..
… but then again we now have $600K invested in a ‘Garth-Approved’ B&D portfolio, and a total net worth that has climbed to some $950K.
We all actually sleep quite easy, in our humble 2 bedroom apartment.
Unlike this unfortunate family, who are now residing on struggle street-
—–
“Nothing left’: Mum’s bank account emptied from interest rate hike
An Aussie single mum has zero dollars and zero cents left in her bank account after having her hopes and dreams “ripped away” from her.”
https://www.news.com.au/finance/money/costs/nothing-left-mums-bank-account-emptied-from-interest-rate-hike/news-story/b5e65f73e4101756b7dd444553142d65
—-
#21 – agree … middle class will be gone in 20 years.
Rich or Poor… nothing in-between
Back in the day my youngest threatened to move back in with us at 22 years old. We sold the house before he made the move.
We love him but didn’t want him to experience the loser stigma attached to one living with his parents.
Thankfully he pulled his socks up.
Living with your parents after 30…well…lol
#116 Wrk.dover on 08.02.22 at 1:15 pm.
IH, you need to get out in the world and see what your talk is about. Arm chair generalization is not going to cut it in the long run. The hourly cost of operating a self owned a float plane is, unfathomable.
My guess is you will retire within a one hour drive of your grand children. That’s what people do. (Unless the spawn brain drains to the USA.)
——
Ultralight permit allows you to fly 1200 lb MTOW and Cat 4 Medical (ie. you declare it, no physical). Ultralight registered aircraft require no annual inspection, owner maintenance is fine, and no float endorsement is need. There are operational restrictions, but IMHO, Transport Canada has taken a lot of effort to allow private aircraft ownership and operation to be feasible for regular folks. Ontario and BC are full of bush/float planes that are privately owned, flown, and even built by regular dudes.
Planes like these typically have about 100hp, weigh 5-700 lbs, cary 5-600lbs, have 100 mph or so cruise speeds, and burn 6-8 gallons per hour on floats. Without floats some use less than 5 GPH. You can buy a good used one for 30k. They are cheaper to run point A to point B than my 3/4 ton pickup that I drive every day, and they don’t really depreciate if kept up. You’d be amazed just how many great backcountry aircraft were designed and built right here in Canada, including the most famous one of all.
Might retire near my offspring, maybe not. Dad retired 1500 km away from his Parents. Grandpa retired 6200 km away from his whole family. My relatives are spread across Canada from Kingston to Kitsilano, and everywhere in between. The extended IH clan went where it made sense to go, and used the telephone, and now of course – the Internet.
Kelowna is really a fabulous Canadian city, unless you hate skiing, water sports, golf, fishing, a small international airport, and mild (albeit cloudy) winters. In which case there is something wrong with you.
Def not perfect, the smoke has been brutal the past few summers (great right now). Food scene is improving but not as good as the biggest cities. And industry is somewhat lacking, although there are endless opportunities in service, the trades, and hospitality. Looking for a cubicle type job, not your place.
RE is strange here, it goes flat for a decade, goes nuts, softerns and then flattens for a decade. I’d say no rush for anyone to get in here quick, it WILL go back 40% – I’d argue we are already there from peak. And then it will be quiet for 5-10 years, then probably have a monumental 3 year run then repeat. The play here is save and wait until interest rates soften, should be a big window.
All that said there is still, and always has been, value to be found here. You can still get a stones throw from the water, large lot, reno’d house for under 1.5MM (if not now soon) Water view, walk to beach, in a city like this for 400 a sqft is incredible value when you compare to basement walkout in Maple Ridge, Mission or Milton.
Interestingly some bank employees I’ve recently spoke to mentioned there is a very good chance current clients will not face the new interest rates when renewing existing mortgages, could this be the lifeline our RE market is given in times of stress?
Should have added, rents here are horrific. 3K for a POS house on Springfield, or you can have the basement suite in said house for 1500. We were looking for a house in a nice area that would take two dogs and it didn’t exist – nice homes w/ small pet, 4K. Cheaper then buying today, but the value is really poor here.
DELETED (Anti-vaccine)
Really great post today. Kelowna is becoming quite the overpopulated over developed city we used to live in and know.
Maria may very well want to spread her wings and off she goes. Parents are leveraging money to keep her near, even if they are close, then that means they will always be there for her.
Like the dog Dug in the movie ‘UP” distractions happen in the blink of an eye and at 28 you want no regrets you missed out. Rent, live, enjoy, travel…..
The US economy may need to undergo a deeper and longer recession than investors currently anticipate before inflation can be brought under control, according to Zoltan Pozsar of Credit Suisse Group AG.
Fed may have to hike to 5% or 6% as inflation now structural
Economic war has broken out and wars are inflationary: Poszar
https://www.bloomberg.com/news/articles/2022-08-02/pozsar-says-l-shaped-recession-is-needed-to-conquer-inflation#xj4y7vzkg
I think Maria will be too busy treating the traumatized psyches of home owners who are likely to see all their equity and more go poof to worry about anything but work. If she is lucky her work will make her enough to pay off that student debt and pay cash for a home and then some. Plenty of potential patients and plenty of distressed property to pick from. There really is too little income support for the real estate market as we know it…
About Net zero
The greens will never be satisfied with NET zero. If you achieve that through any kind of sequestration or certainly purchased offsets they will demand zero emissions, not net zero. Purchasing the reduction of cow farts in Africa as offsets will never cut it. TransAlta literally did that, must be over 20 years ago. I knew then that they were brain dead.
Carbon reduction is reasonable. net zero or certainly zero may never be reasonable.
Would not the price of the condos drop as RE prices erode? There have been some recent examples of pricey new builds being sold for far less on this very blog, with the commentary about how those that had already purchased the exact same product were stuck paying the much higher price.
I know nothing about the RE or rental markets in Kelowna but seems to me that the true issue here is someone in their late 20’s wanting to live a millionaire lifestyle. Are there not older but still sound & possibly far less expensive properties for sale? Does it have to be right on the lakefront? I have visited Kelowna & been to that lake; there are any number of properties within easy walking distance. Or biking distance for that matter. That government job may or may not be secure, but $67K before tax isn’t going to fund a millionaire lifestyle. Especially not with student debt & who knows what other loans to pay off.
The secret to success is work ethic. All our three children
have degrees and work ethic. Our youngest daughter and husband worked very hard so they could afford a custom built house in Victoria BC Some years she did 55 overtime shifts including stats of 12 hour days. They paid their house off 4 days before her 34th birthday. The hours are there you just have to take them and work them.
#32 Caffeine Monkey on 08.02.22 at 4:45 pm
There’s something wrong if she’s living at home, earning $67,000/year, and only has $1,000 saved.
__________________________________
Funny someone with your name would mention that, here’s the segway; Starbux reports record income because…drum roll…Maria’s generation likes their icy drinks. Should that be spelled icky?
When I was a houseless working stiff, I re-decanted large soda bottles into smaller ones, and lugged a thermos of coffee to work, even though there were roach coaches coming by. The hardest part was getting out of bed five minutes before the commute, to spread the peanut butter and prep the drinks! I smartened up and kept the loaf of bread and pb jar in the car for an extra minute in bed.
Come to think of it, they hadn’t even invented bottled water yet. Imagine the suffering, tap water!
PTSD aplenty,
Ok, I know it is a conspiracy theory and all, but it would be really really terrible if people knowingly followed the path most taken instead of standing up for what they knew was good, beautiful, and true. We all can agree with that. It is as simple as the market always recovers from a downturn. Eventually.
I lived in shared accommodation for the first 5 years after I moved out at 18. Worked very hard doing part time shifts at Safeway. Soon after, I bought my first home for 65k. Then bought a 2nd one at 72k. Now they are both worth more than 1.5 million. The new generation are lazy and pathetic. Don’t know how to invest and are spoiled. I bought two houses and made millions. Kaching. Kaching.
Hate gov’t workers and unions. Entitled laziness. Everyone needs to work 24/7 so I can make more money off them like China. No weekends off for them, only for me.
Time to suck it up snowflake buttercups. Love Biden as he loves open borders bringing in millions of legal immigrants driving wages down. Down with Trump.
DELETED
Dear Marie,
First of all, I’m sorry you live in Kelowna. All those conservative white hairs, tumble weeds and forest fires make for a life experience akin to pulling ones fingernails out with a dental instrument…unless there hasn’t been many other experiences…then, you’re good!
Second, where’s the imagination? Oh right, Canadian…in Kelowna…sorry I asked. But, just to shed some light on you – and hugs, if you’re willing…the other one is welcome too but the focus is on you – there ARE cheaper places in Canada and the WORLD (no joke) to live. That are WAAAAAAYYYY cooler than Kelowna. How much do you covet your govy job? Pension, no doubt. Bored out of your mind by 40, for SURE. Suicidal thoughts by mid 40. What the hell have I done with my life by 50. Fat and unhealthy by 55….MADE IT by 58!!! YAY! Gotta house tho!
Hey, don’t know what you look like (matters) but 1K saved by 28 beats me by about 42K…G man is right. Despite what the parents say now is a great time for you and yur squeeze to live life…and maybe seek out other connections…you know? And stuff like that, right? Open mind…hugs…not a house…gag me with a car salesman (full.dis. never met a carsaleswoman…not sure how that would go…but REALLY looking forward to it).
Think about your values for a year, how to achieve them and kiss Kelowna goodbye, for now.
Og
Flop Drops.
Can you get a detached property on the Westside for 1.5 million?
Stuffed if I know, I just work here, voluntarily.
The details…
4497 Belmont Ave, Vancouver.
Original ask 1.89
Now asking 1.49
Assessment, brace yourself, 3.07 million.
This one has a caveat, as one would suspect, it’s a leasehold property with 18 years left on the lease.
Being such a dramatic price reduction, and less than 50% of assessment, we’ll stick here on the Flop Drops list and see what happens.
The list is getting a bit full, it’s almost as if sales have fallen of a cliff…
M48BC
https://www.zealty.ca/mls-R2706185/4497-BELMONT-AVENUE-Vancouver-BC/
Jesus Christ said that Canadian societies at the end of the age would parallel those in the days of Trudeau and Diefenbaker.
Regarding the time of Lot, Jesus said, “They ate, they drank, they bought condos, they sold, they flipped, they built skyscrapers.
Paul called the period just before Christ’s return “perilous times.” He said they would be filled with pleasure-seeking, materialism, immorality, violence, idleness and rejection of the things of God, such as refusing to read Greater Fool articles on a daily basis. Such material will be deemed blasphemy by the TREB.
The Canadian housing bubble will crash, and there will be a century of teeth gnashing and civil decay before Christ returns and carries his believers into heaven where home ownership is more accessible.
House sales dropping off a cliff in my local hood of Nanaimo.
68% less homes sold in July compared to July 2021. Listing have exploded, more than double same time last year. And average price down 12% from Jan peak
https://www.nanaimore.com/blog/nanaimo-real-estate-market-july-2022/
I wonder if Maria Learn a lesson, or if she join the sheep and get into a lifetime of debt for a crappy townhouse in Kelowna
I always get a kick out of so many Kelowna haters.. lived here most of my 57 years.. love it.. wouldn’t leave for anything. When my wife and I got married we lived 2 years in an old picker shack for almost free (no heat) saving for our first half duplex.. It was hard but we did it..
Today it is even harder “let’s face it” but you can commute, Penticton, Vernon’s only 45 minutes out..
It’s expensive .. yes.. absolutely awesome living here! And yes I travel, I see other places..… I don’t see the point people saying such bad things about our beautiful valley, especially the ones who live here, just move then !
BBC UK
16000 businesses go under leaving the taxpayers on the hook for approx. 500 million pounds of COVID ‘Bounce Back’ loans.
Kids these days… yes, they’ve got time on us, but for Christ sake enjoy your days of poverty and quit running to mom and dad. Embrace some discomfort and it’ll lead you to a much better place, both metaphorically and literally.
Remember when everyone used to buy pianos?
So our advice to Maria is to rent, where she’ll be able to afford to save $500 per month – if she lives with her boyfriend. And if she has to live on her own, she’ll probably be going into debt even to rent. With a savings rate like that, perhaps she’ll be able to retire when she’s 150. And what about the dignity of adult-ness of living with roommates into your 40s and beyond!
Let’s face it, Maria’s generation faces few good choices when it comes to housing. Another commenter said goodbye to the middle class in Canada earlier in this thread, and that’s about the size of it. Maria should consider getting out of this mess. Maybe there will be a place for her generation in Canada down the road if the country ever comes to its senses.
Here is the real advice…
Get your income up – quick. Go looking for another job right now. With your education, you can’t afford to be making that little at this point. The rest will work itself out.
That old Simon & Garfunkel song keeps rolling around in my head.. “… Where have you gone, Joe DiMaggio?Our nation turns its lonely eyes to you..woo woo woo”.
Most likely those desperate eyes are turning to the [email protected] Bank these days, looking for the money equivalent of a life jacket as appraisals come in far, far lower than legal contracts signed. Oh, oh. Thought it was smart to buy over list and now you are 150m short or more to close the deal? Sure hope there is a ‘Bank of Mom” in the background or some other kind and benevolent loan shark to save your patootie.
All the news, good and bad doesn’t make the daily headlines Maria. We can’t spook the herd or have monsters roaming the quiet landscapes of the nation, can we?
Take Garth’s advice. Get out of Kelowna and just visit in the summertime. There’s a big world out there just waiting to help you build the character that comes only from experience and life’s lessons…
The days of free money have come to an end. Love it!
It’s ok Garth. Hey, who the heck was that making Bill Blair dance the other day. Now that is my kind of woman.
Where’s all the Taiwan discussion? Maybe China can retaliate by sending a delegation to Hawaii? They could meet Dog rather than eating dog.
Hey Trackie, Wrk Dover, Crowdie, thanks for the advice on New Brunswick.
I could tell you how Vancouver has changed since I got here, but I’ll let you read the CEO of B.C Housing’s Retirement letter instead…
M48BC
/////////////////////////////////
“Good morning everyone…I am writing to let you know that I have decided to retire as the CEO of BC Housing.
On Saturday morning, May 7th, something shifted. I watched out my window as police descended on Crab Park. I had just returned, minutes earlier, from taking our dog Fred for our regular morning walk. On the beach, a man lay fatally stabbed. My neighbour, who lingered a bit longer than Fred and me, was bowled over by the two young men accused of his murder as they ran across the park to get to him.
Over the past week, people who were homeless and formerly homeless were murdered, and a women was intentionally lit on fire just a block from where I live. Then, last Tuesday afternoon, after talking to the media about my closing remarks at the Arbutus public hearing, I was swarmed by opponents and threatened with physical violence. I had to be escorted to a private elevator, for my safety. Security at the City have since advised that after reviewing the video footage, they believe the swarming and threatened punch amounted to assault. This time it was angry words and a fist, next time it could be worse.
These incidents are not isolated, nor are they the only incidents that have caused me to lay awake at night. From the Interior to the West Side, doubtless small but vocal groups of people are increasingly angry and increasingly volatile.
While one community faces the almost certain prospect of poverty, poor health, violence, and pre-mature death, others are now unwilling to provide a welcoming space, a space that could save lives.
I think the shooting on Hastings Street, surrounded by the encampment and during another heat wave, finally did it for me. I no longer have confidence I can solve the complex problems facing us at BC Housing.”
https://news.bchousing.org/bc-housings-ceo-announces-his-retirement/
She’s 28 and living at home?
Really?
What has she been spending her money on?
Lots of want’s going on here.
Get another job, same goes for your BF if he’s serious.
It’s not easy but millions of people have or are doing it.
I’m not trying to sound like the big bad wolf here but you have to realize that in this world people make sacrifices to be able to acquire RE, it’s not a prerogative.
The housing lottery has come to an end. The days of buying a house so you could retire in 5 years is no more. Love it!
I use to be good at math, but I don’t get it. Socks away $500/month, but only has $1000 saved up?!
Did she start 2 months ago? Something does smell right here.
I watched adult bald eagles practically dismantle a nest to the point where a remaining eaglet was left with only two options.
It took the second option and did not crash to the ground.
Adult children living at home into their late 20-30’s has become a norm it seems, expected.
Any parents out there care to chime in about having adult kids living at home because they are “saving money”
Kids who have reasonably well paying jobs to boot.
How about the flip side of the coin here, like the parents or parent who have worked their butts off and never expected to have adult kids at home.
And now they are subsidizing them.
News alert adult children, most parents like having the children around for visits.
Not full time.
They don’t deserve that, they have done their time.
Start flapping kids it’s big pants time.
Job 1 get out of Kelowna. Unless you are in the public sector, you are stuck with low paying service jobs, serving drinks to the old rich folks, or running a chair-lift at Big White. Alberta would be my choice for opportunities.
Canada has done serious sytemic harm by allowing and encouraging the absurd cost of housing. It has been great for the lenders, and landlords but it has crushed a generation, who are still in their parents basements.
Raising rates even higher is a good first step. It encourages savings and investment and lowers the cost of housing.
@#69 Overcrowdedelelevaterfartz
Bwahahaha
My fans my fans.
Impersonation is the height of Flattery.
Instead of demanding your own apartment and your own house because “you deserve it”.
How about earning it all by your widdle self instead of expecting free handouts from mommy, daddy and Trudeau.
Even whiners hate whiners.
P.S.
You left out that I pull wings off flies and kick small puppies.
#76 JPN on 08.02.22 at 8:38 pm
“I always get a kick out of so many Kelowna haters.. lived here most of my 57 years.. love it.. wouldn’t leave for anything”
Hey JPN, so you have bragging rights over Prince George for having more crime, drugs, shootings, gangs and prostitution problems. It doesn’t justify a premium sky-high cost of living.
Great advice Garth. Time to move out, grow up and stand on your own two feet. Don’t do any major purchases until after you are married, and please no kids until you have a ring on your finger. Old fashioned I know, but still great advice.
Flop Drops.
Can you get a block of land in the Inner Ring of Vancouver, Richmond or Burnaby for a million bucks yet?
Not quite, but the race to a million is back on.
The details…
6591 Goldsmith Dr, Richmond.
Asking 1.29
Just sold for 1.1
Assessment 1.45
Inner Ring, sounds painful, but it’s not…
M48BC
https://www.zealty.ca/mls-R2710147/6591-GOLDSMITH-DRIVE-Richmond-BC/
#56 IHCTD9 on 08.02.22 at 6:35 pm
#116 Wrk.dover on 08.02.22 at 1:15 pm.
_________________________________
Times have changed things, your mellow reply was after office hours, and you didn’t refer to me as Homie!
I have always assumed an ultralight on any day that you can’t hold a lit match outdoors, is like showing up to Port Dover on a Schwinn. They only fly over my house in mid September, because of that small detail.
Your wife might have a stronger opinion than you on retirement beyond the sound of the Grandchildren’s wail.
As for you Floppy Dude, NB was not far enough East. You could do well to become a gentleman with crafty skills in great demand in SW NS, where the weather is sweet, and retirees with cash abound.
The worst memories of my last 43 years are of passing through NB, off season. St John, is where even the Devil won’t show his face. One February night, when the Digby ferry crossing was cancelled due to wind, we could have slept on the boat, as it pounded the wharf all night with snoring truckers and all, but took the visa card uptown to the Delta instead. Left a nearby bar at last call all warmed up, and at the door we were assailed by the gale, which bowled us repeatedly over and over, sending us a few blocks UP the very steep hill on inches of glare ice, curbs and fireplugs be damned, until we crumpled up against a storefront. It was hellish getting back down to the hotel, all bruised and sprained up, through alleys and parkcades. Lost no teeth though.
You don’t know frost heaves either. Out on the Airline Hwy from Bangor, I have rounded by one as large as a BMW Mini in the dark, no word of exaggeration. The TCH from Sussex to Amherst is like a rollercoaster in March and April.
Druggies are one thing, but the elements of which you know little, and Jack London so romantised, are nothing to be embraced.
And NB abounds with them.
If she’s only got $1000 to her name I wouldn’t even think renting is feasible until she figures out where the rest of the $$ are going.
#69 crowdedelevatorfartz on 08.02.22 at 7:58 pm
I lived in shared accommodation for the first 5 years after I moved out at 18. Worked very hard doing part time shifts at Safeway. Soon after, I bought my first home for 65k. Then bought a 2nd one at 72k. Now they are both worth more than 1.5 million. The new generation are lazy and pathetic. Don’t know how to invest and are spoiled.
———
You will always see what you expect. Could somebody work at Safeway now and buy a $1.5M house?
Just listen to the first line of our unofficial national anthem Maria.
https://music.apple.com/ca/album/four-strong-winds/1015778690?i=1015779910
Of all the people I’ve known who have moved to Alberta, very few have regretted it. Calgary is world class. If you want really cheap housing compared to wages, Edmonton ain’t to bad either, although it’s no Calgary. Too far from the Mountains, fewer white collar jobs, crappy flight connections, even worse weather. And I say that as a lifelong Edmonton-area resident.
Sailo,
Blackberry season is upon us.
I have already 10 kilos picked and in my freezer.
It’s a bumper crop this year.
And all free for the taking.
Inflation. what inflation?
https://www.theguardian.com/australia-news/2022/aug/01/australian-property-prices-tumble-at-rates-not-seen-since-gfc
Move to Kamloops. It’s cheaper and still starts with a “K”.
#86 Flop… on 08.02.22 at 8:57 pm
——
Yikes, sounds like Van is going the way of Portland.
I’d be planning an exit too. That’s what happens when Law and Order get put on the back burner…
#100 Ponzius Pilatus on 08.02.22 at 10:39 pm
Sailo,
Blackberry season is upon us.
I have already 10 kilos picked and in my freezer.
It’s a bumper crop this year.
And all free for the taking.
Inflation. what inflation?
———
Not ripe here yet. Huckleberries and thimbleberries, yes, but the blackberries need another week or two.
As usual, it will be a month of 2-3 liters per day so around 20 gallons. Completely free. Blackberry jam, blackberry cobbler, blackberry wine, blackberry crumble. Oh man.
@101
Let real estate prices collapse some more. Haha
Phylis Remember when everyone used to buy pianos?
it was a dark and stormy night. In 1952 when some men wrestled a piano into our living room. $40. It was my mother’s pride and joy. We went to piano lessons. Came home to practice.
Today you can buy a digital piano. for $1700.
https://www.long-mcquade.com/280976/Keyboards/Digital-Pianos/Yamaha/YDP-145-ARIUS-Standard-Digital-Piano-with-Bench-and-3-Pedal-Unit—Rosewood.htm
the difference is the digital model is in tune!
#96 Wrk.dover on 08.02.22 at 10:13 pm
Times have changed things, your mellow reply was after office hours, and you didn’t refer to me as Homie!
I have always assumed an ultralight on any day that you can’t hold a lit match outdoors, is like showing up to Port Dover on a Schwinn. They only fly over my house in mid September, because of that small detail.
Your wife might have a stronger opinion than you on retirement beyond the sound of the Grandchildren’s wail.
——
You’d be better served getting a little knowledge of the topics you choose to discuss before you do so. An ultra light is what a manufacturer may refer to as their “flying kite” type aircraft, but more importantly, it is a classification for Aircraft by Transport Canada.
Here is plane that can be registered as a basic ultralight in Canada, and piloted with the most elementary permit available:
https://en.wikipedia.org/wiki/Denney_Kitfox
You’ll note it’ll do 190 km/hr, carry 550 lbs, climb at 1200 ft/min, and has a range of almost 1300 km. Not really a flying kite is it? It’s a perfect float plane for private ownership with camping, fishing, and exploring in mind. There’s a souped up 670 Rotax powered one on Kijiji right now for 28K, already on floats:
https://www.kijiji.ca/v-cars-other/sault-ste-marie/kitfox-3-float-plane-rotax-rick-670-ultralight-airplane/1626050438
Land on water or snow. Perfect for Ontario. Folding wings so you don’t need to rent a hangar. There are tons of planes built to suit the US rules for an LSA that also happen to fit into TC’s rules for a basic or advanced “ultralight” in Canada. If you knew the rules here in this country, you’d know there’s little reason to buy the flying kite type aircraft beyond low cost and simple flying. There’s no other benefit, unlike in the USA.
As for Ms. IH’s thoughts on having some distance between us and the kids/grandkids, you and I have obviously married very different Women…
@#96 wrk.dvr
“The TCH from Sussex to Amherst is like a rollercoaster in March and April.”
+++
Ah yes the Tantramar Marshes.
That windswept swamp that seperates NB from NS.
I drove through there 2 weeks ago on my way to PEI.
Trivia time kids.
You can drive in 3 provinces in Canada in less than 60 minutes if you leave Amherst , N.S. and drive through a short part of N.B. on to the Confederation bridge to arrive in P.E.I.
Is there any other place in Canada you can drive through 3 provinces in less than an hour?
@#98 Sail Away
Wasnt me.
One of my fans.
I’m pretty sure even a part time worker at Safeway in the early 1980’s Vancouver wouldnt have qualified for a mortgage.
Banks were a bit tighter about down payments and the interest rates were in the high teens.
A friend financed a new Toyota pickup in 1981 at 22%
@#99 T-Rev on 08.02.22 at 10:35 pm
University of Alberta in Edmonton is first class T-Rev.
And there are some decent lakes for recreational properties north of Red Deer. Weather for sure is worse. Political mindset is like night and day. We co-exist and get along out of necessity. It’s all good.
Maybe keep a lid on this ‘move to Alberta ‘ thing.
That goes for you too, Shawn. This slow resurgent percolation of the economy is just where we want to be.. Let’s attract the long term talent versus the carpetbaggers this time.
Already there are so many signs. The framers from BC, the outside of province license plates. It isn’t about oil and gas at all…. Way more complex than that. Will be quite interesting to see who takes over from Kenney.
Math is hard as Jim Prentice once said. But destiny is undeniable.
Kelowna ?????? I spent a week there one afternoon….’ nuff said. BTW, in Japan the concept of the adult parasite single as well as intergenerational mortgages are pretty much standard due to outrageous real estate prices and a penchant for Gucci handbags.
https://en.wikipedia.org/wiki/Parasite_single
Wait…what? She earns $67,000 a year and wants to buy a house that costs how much??? Clearly math is not a requirement for a chemistry degree. Even without the student loans she should be able to figure out what 4×67 is.
#24 Shawn on 08.02.22 at 4:17 pm
OMG Maria
MOVE out.
Tell the dude, let’s get married or look for a new guy.
————————————————————
How true.
Everything else is of trivial concern.
Not just talking about a wedding. It needs to be a clear understanding that this is for the rest of your lives, whatever happens. Best that all of the in-laws understand that as well.
Plenty of divorced 40 somethings who used to own a house…..
The whole western world is going to have a couple decades of shocks as the oldies expect to be looked after by someone else’s children and families…. and they will be sorely disappointed when it doesn’t work out.
Look at the mess with nursing homes and loneliness, especially during Covid!
Many people back in the day got married with 50 bucks to their name, and had 3 or 4 kids by the time she was 28. We never had a car with air conditioning until the mid-’80’s (and survived!).
You live in a world of white people, you need to expand your worldview. How many people from India/China etc. living in suburban houses in YVR have 3 generations inside, maybe even a 4th? The 20 somethings are encouraged to get married and have children. Grandparents doing daycare, everyone gets ahead as a family.
Move north (as a married couple) and make some real money. Take a road trip up to Terrace/Kitimat/Prince Rupert and see what’s going on. Maybe even Alberta…
“But you will never again be 28.”
Don’t listen to him, Ive always been 28.
#109 crowdedelevatorfartz on 08.02.22 at 11:32 pm
@#98 Sail Away
Wasnt me.
One of my fans.
———
Ah yes, the troglodytes. It seemed a bit ludicrous and it seems for a good reason, but not totally out of the question since…
…I have a number of acquaintances who have built succesful careers in grocery, and don’t really have a sense of historical Vancouver RE. And a financial blogger I respect from Drumheller works part-time retail while earning most of his money from rentals and investments.
“After 22 years as head of B.C. Housing I am no longer confident I can solve B.C.’s housing crisis.” Trumpistas are coming after the shitrats & their enablers. Selfish taxpayers are complaining that their running out of money. First I’ll have a hissy fit, then its off to a cabin somewhere on the water with my indexed government pension. After much introspection, I’ll hesitantly decide to run as a Dippers or a Lib. Then me, the Jaegermeister & lil potato will solve this housing crisis for once & all time.
Same unit.
Middle listing is a failed closing.
Revealing times.
2022-07-19 2022-08-01 $482,000 Sold 40297480
2022-02-16 2022-02-22 $760,000 Sold 40201547
2021-03-04 2021-03-10 $473,333 Sold 40076069
#35 Leo Trollstoy on 08.02.22 at 5:04 pm
How do you live at home and still have no money
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How times have changed. Eldest of the baby boomers. Worked full time from age 17 plus going to high school and during those 2 years worked 6 days per week and 45 hours per week. Left home immediately after graduation, worked at several different jobs with a general contractor then 8 months with Forest Service. At 19 started my first career which lasted 12 years. At 28 I was married with 2 sons aged 3 and 4 and managing a railway terminal. Had two other careers and retired at 54 in 2000. And the boomers had it easy? Yea right.
28 and living at home free of expenses making $67,000 per year. Something seriously wrong with this picture.
#98 Sail Away
https://www.ovlix.com/property/duusr4-416-4th-Avenue-Castlegar-BC
If she moved it would not be that hard to buy a place, at this price it comes with a suite.
Do government workers that qualified really make labour/sanitation type pay, I see ads for sanitation workers in plants for over $25/hr to start and mechanically inclined(no ticket required) positions paying over $40/hr.
Just listen to the first line of our unofficial national anthem Maria.
https://music.apple.com/ca/album/four-strong-winds/1015778690?i=1015779910
Of all the people I’ve known who have moved to Alberta, very few have regretted it. Calgary is world class. If you want really cheap housing compared to wages, Edmonton ain’t to bad either, although it’s no Calgary. Too far from the Mountains, fewer white collar jobs, crappy flight connections, even worse weather. And I say that as a lifelong Edmonton-area resident.
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Calgary is world class! Are you insane! You think that Calgary is the same as London, Rome or Paris? Have you ever been to an actual world class city? I was in Copenhagen for a week last week and even that is third tier on the world city ranking.
I once took a tourist bus tour of Calgary and upon returning I demanded and got our money back pointing out that there was nothing to actually see. The receptionist tried to put up a fight for the 1920s historic district but I pointed out that I had never lived in anything that new in either England or Italy. I received a full refund. World class city! You need to see the world!
What would the great Smoking Man have done in Maria’s position?
Well, first, he would’ve put Johnny Cash on the ear buds.
Then, he woulda taken his $1,000 in life savings, and smacked it all down on #26 black on the roulette wheel at Casino Niagara.
With those winnings, he would have spent $50,000 on wine, women and song, and taken the other $50,000 and started up his own company.
With those profits, then the great Smoking man would have retired in Schlong Branch, and started writing a novel.
What a legend..
#119 TheDood on 08.02.22 at 1:43 pm
__________________________
We have differing opinions that’s all. I believe the narratives pushed by any/all connected to the RE industry in some way are nonsense…
In my opinion, the rise in rents are due primarily to amateur landlords who overpaid and now look to cover their mortgage payment – which they can’t afford in the first place. Competing ‘professional’ landlords see this and automatically raise their rents side by side with the amateurs! Good deal for them yes?
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Thanks for the reply. I agree most of what the real estate industry turns out is just spin, but maybe they stumble on 1 point of truth. Even a blind squirrel will find a nut occasionally.
If amateur landlords can just raise rent why didn’t they just do it sooner to make more money? If there is a lot of supply why don’t renters just move to a cheaper place? Do you believe in the economic concept of supply and demand when it comes to housing?
Vacancy rates are extremely low, I think this means something and leads to higher rents and indicates a shortage of supply. My son looked for a place to rent a few months ago and there was almost nothing available. That’s not spin. That’s reality. Have a great day.
#107 IHCTD9 on 08.02.22 at 11:28 pm
You’d be better served getting a little knowledge of the topics you choose to discuss before you do so.
_______________________
How’s that personal daily transportation system you planned to run on the gasifier fueled by free wood, as per hundreds of your past postings here working out for you thus far?
Will your libertarian regulated flight system be a branch of that?
#120 Jane24 on 08.03.22 at 3:00 am
I once took a tourist bus tour of Calgary and upon returning I demanded and got our money back pointing out that there was nothing to actually see. The receptionist tried to put up a fight for the 1920s historic district but I pointed out that I had never lived in anything that new in either England or Italy. I received a full refund. World class city! You need to see the world!
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You took a tour, then demanded a refund because you didn’t like what you saw, even though you saw what was there to see? Hmm…
Your story reminds me of a whitewater rafting tour a girlfriend and I took with a buddy and his wife. Another passenger fell out, got dragged to the bottom, and drowned. All rafts pulled to the side until he popped up 10 minutes later. My friend’s wife demanded a full refund because her trip was ruined.
Get the government to transfer you to Podunk, Saskatchewan.
Buy a place there for $300K.
Live like a queen.
If your family actually cares about you, they can come and visit.
Get over it.
Marla……make sure your political reps know that you’re pissed at the amount of crime happening and you’re not going to take it anymore. In my black and white world, young folks like you should be showing up at the Saturday auction and bidding om properties confiscated from criminals.
https://www.vicnews.com/news/b-c-money-laundering-report-calls-for-new-law-enforcement-unit-provincial-commissioner/
@#116 fishman
“First I’ll have a hissy fit, then its off to a cabin somewhere on the water with my indexed government pension.”
++++
Yep.
I was actually impressed that the head of BC Housing….quit.
An ounce of integrity goes a long way.
Most of these govt hacks wait to be fired so they can draw a massive severance cheque.
OR
Take the fully funded “stress leave” train out of town.
Perhaps he’ll write a “tell all” book while sitting at the cottage on the water in retirement.
@#115 Sail Away
“…I have a number of acquaintances who have built succesful careers in grocery, and don’t really have a sense of historical Vancouver RE.”
+++
True.
Its amazing what happens when one actually leaves the safety of the family nest and tries different things.
But then, they would only have themselves to blame if their perfect world wasn’t…..perfect.
@#124 Jane24
“Calgary is world class! Are you insane! ”
+++
I disagree.
The concrete dinosaur statues by the zoo are epic!
Nosehill Park…. to die for.
The outlying subdivisions at all points of the compass, world class.
The Bow River floods, the dust storms, the -40 cel daily bus stop commutes, the endless road kill gophers…..all world class.
Ktown. You sound like a real estate agent. A REALTOR(c)
#120 Jane24 on 08.03.22 at 3:00 am
Just listen to the first line of our unofficial national anthem Maria.
https://music.apple.com/ca/album/four-strong-winds/1015778690?i=1015779910
Of all the people I’ve known who have moved to Alberta, very few have regretted it. Calgary is world class. If you want really cheap housing compared to wages, Edmonton ain’t to bad either, although it’s no Calgary. Too far from the Mountains, fewer white collar jobs, crappy flight connections, even worse weather. And I say that as a lifelong Edmonton-area resident.
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Calgary is world class! Are you insane! You think that Calgary is the same as London, Rome or Paris? Have you ever been to an actual world class city? I was in Copenhagen for a week last week and even that is third tier on the world city ranking.
I once took a tourist bus tour of Calgary and upon returning I demanded and got our money back pointing out that there was nothing to actually see. The receptionist tried to put up a fight for the 1920s historic district but I pointed out that I had never lived in anything that new in either England or Italy. I received a full refund. World class city! You need to see the world!
…
Of course the best aspect of Calgary is that we don’t have a lot of Lady Jane’s here….
#46 IHCTD9 on 08.02.22 at 5:41 pm
There you go Maria. Move out of your parents’ house, but don’t stop there. Move out of Kelowna too. Take heed of Waystar’s words, and Shawn’s steadfast advice to move to Alberta (it’s good advice).
////////////////
Then who is going to do her laundry?
No more excuses. Time to kiss Mommy and Daddy good-bye and strike out on your own.
#69 crowdedelevatorfartz on 08.02.22 at 7:58 pm
I lived in shared accommodation for the first 5 years after I moved out at 18. Worked very hard doing part time shifts at Safeway. Soon after, I bought my first home for 65k. Then bought a 2nd one at 72k. Now they are both worth more than 1.5 million. The new generation are lazy and pathetic. Don’t know how to invest and are spoiled.
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You will always see what you expect. Could somebody work at Safeway now and buy a $1.5M house?
******
Seriously, how tone deaf can the esteemed crowdedelevatorfartz possibly be?
A person could work 24 hours a day, 7 days a week, 365 days a year at Safeway and be lucky to afford a home of $500,000, let alone $1,500,000.
I am so sick and tired of hearing entitled boomers boast about how hard they worked and sacrificed to buy their first home. I am here to tell you that young people don’t have that option anymore – they can work hard and sacrifice as much as they want. That’s why people are so angry – the HELOCing boomers pulled the ladder up after them.
Yup, agreed, the numbers of ‘20 somethings’ who’ve been crammed into a deep dark debt hole is that screaming sound you hear in a nightmare. 99.9999% are dead from the neck up, never to live, experience, travel, pretend. They have nothing but soul sucking debt slavery pulling them deeper underwater as real estate continues to fail them and the ratcheting of rates has the effect of cracking bones.
I could almost consider feeling something like sympathy for these people, but I don’t. The Reddit Rush , that these persons use for 99.999% of their news and information is their own damn fault. Real estate, Crypto, and Robinhood, didn’t any see the pattern? The financial crippling of this generation will likely have devastating political consequences. Desperate people vote for sleazy pols promising free stuff. That event horizon is already sucking in the weakest who can’t exist with welfare and food banks.
Good news for Maria though. As a government worker sticking around long enough , she’ll eventually dovetail into the nexus of savings and falling prices. The Okanagan is a civil servant ghetto, but there’s no where near enough bodies to fill the number of condos that will saturate the market for this entire burgeoning cycle, ten years or more in duration, so hang in there kid.
Statistics Canada has released its annual report on crime and things are not looking good in the Central Okanagan.
Metro Kelowna, which includes all communities from Lake Country to Peachland, reported a crime rate per 100,000 last year of 11,112.
That is by far the worst crime rate of any census metropolitan area in Canada, and an increase of 10 per cent from 2020. Nationally, the crime rate per 100,000 rose just one per cent to 5,375 in 2021.
Behind Kelowna, Lethbridge (9,836) and Moncton (9,168) round out the top three most crime-ridden cities in the country.
#121 Steve French on 08.03.22 at 6:40 am
What would the great Smoking Man have done in Maria’s position?
Well, first, he would’ve put Johnny Cash on the ear buds.
Then, he woulda taken his $1,000 in life savings, and smacked it all down on #26 black on the roulette wheel at Casino Niagara.
With those winnings, he would have spent $50,000 on wine, women and song, and taken the other $50,000 and started up his own company.
With those profits, then the great Smoking man would have retired in Schlong Branch, and started writing a novel.
What a legend..
———————
Right you are.
All we have now is Furz, who’s already a legend in his own way.
I bought house #1 in K 1990 #2 next door in 1991 both with legal suites cash flow pos. They were $120k and
K town was nice then. I call it California north. It’s crazy there now and that’s without the smoke. RE is way over priced.
Our town on the coast waaaay nicer. Ocean views, 27 lakes un polluted. 300 float cabins on the big one.
No insane prices and very safe.
K town long in the review mirror.
I’d find a better town.
#124 I once took a tourist bus tour of Calgary and upon returning I demanded and got our money back pointing out that there was nothing to actually see. The receptionist tried to put up a fight for the 1920s historic district but I pointed out that I had never lived in anything that new in either England or Italy.
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Jane, I usually am a little horrified at the way CEW goes after you with snide comments about your European comments. However, I really hope that this story of you asking for a full refund on this bus tour is incorrect. As otherwise it really explains well how you think (snob personified). I would never in a million years ask for a refund on a situation like this.
Frankly, the southern outskirts of Calgary (Okotoks) are really good communities for families and the outdoors. I visit inlaws every year who love it there. I have travelled all over the planet and lived abroad (Oxford, Hong Kong, Paris, Amsterdam). Many of us could care less about living in so-called “world-class” cities.
The housing prices have zip to do with the rental market. We don’t have enough period. Rock on cash flow!
https://financialpost.com/real-estate/mortgages/prices-are-falling-but-rents-are-rising-in-canadas-paradoxical-housing-market
I cant stand Pelosi but the CCP is an ugly outfit and telling her she can’t visit Taiwan is out of control.
Its to bad Biden is useless.
CCP takes Taiwan then others are next. They crushed Hong Kong.
Stop buying Chinese crap…oh too late.
A war threat to shoot down Mrs P plane if entering Taiwan!?
Why the hell are we doing business with them.
Where the hell our western leaders.
With this kid of leadership its going to be a different place in time and not in a good way.
T2 busy with his carbon tax while Military’s burn zillion of liters of Jet A and diesel. Its all a farce to me.
Kelowna’s crime rate surges to the highest in Canada… https://www.castanet.net/news/Kelowna/378413/Kelowna-s-crime-rate-surges-to-the-highest-in-Canada Don`t be fooled by the Kelowna hype…. Kelowna is a very overrated city,, of course then there is the usual summer smoke and the bloody God awful traffic as the hicks make their way to the redneck riviera …
#123 Wrk.dover on 08.03.22 at 7:45 am
#107 IHCTD9 on 08.02.22 at 11:28 pm
You’d be better served getting a little knowledge of the topics you choose to discuss before you do so.
_______________________
How’s that personal daily transportation system you planned to run on the gasifier fueled by free wood, as per hundreds of your past postings here working out for you thus far?
Will your libertarian regulated flight system be a branch of that?
____
The wood is heating my house instead.
Are we done discussing how unfathomably expensive a privately owned float plane is to run now?
It is funny that people think there is a housing solution.
Enjoy what you have. Now.
My RV was stolen from my front driveway by public enemy #1 from Medicine Hat. The guy got 8 months. My RV was reimbursed by insurance. I live in Calgary NW where houses are ridiculously overpriced by $400K($600k is the avg detached).
Now my neighbour says my downspout is flooding their back window on their basement(the house is 1998 so this has been happening since then or is climate change suddenly to blame?) I take my other neighbours trash and recycling in/out because I offered to in 2011(bad move). I dislike all my neighbours. People complain if I have dandelions on my front lawn.
I feel like I live in Brooklyn, NYC the claustrophobia is so bad. I am surrounded by animals(people).
If I buy a house in rural I will probably get ambushed by Alberta whackos(my coworker in Langdon on her farm has seen people wandering on her property repeatedly uninvited, looking for things to steal).
Calgary is a rat race with too many rats.
People should not worry about real estate. Instead focus on mental strategies and attitude to minimize physical and mental stressors and protect your health. You will need your sanity in the years ahead.
https://www.youtube.com/watch?v=IJAAEYrkMG8
@#133 Sick Citizen
“I am so sick and tired of hearing entitled boomers boast about how hard they worked and sacrificed to buy their first home. ”
++
I guess you really hate uber Boomer David Dingwall.
Former head of the Canadian Mint.
Being roasted live on tv for charging thousands of dollars on his govt expense account…..
https://www.youtube.com/watch?v=UIo-bEsoMgA
As for us Boomers “pulling the ladder up behind us”…
How else are you going to learn its not easy to take a risk and jump and grab that first rung?
:)
If you are going to bash Kelowna you should be required to state where you live. If there are a whole bunch of places in Canada that have amenities like a modern hospital, international airport, vibrant city + a 175KM lake, skiing + great weather and have NO issues like crime, please post these paradises up.
And why the need to knock where people live? I’ve been all over Canada and could find enjoyment living in any of the provinces, there are probably 100 places I would be happy to live ranging from downtown Toronto, to rural NS, to Northern Saskatchewan. I don’t get why people feel the need to knock down other places, says something about the individual.
So… just how high CAN a dead cat bounce?
So far, so good.
I dunno who the “partner” is but run! That’s a huge red flag, stay away from women that call you “partner”. Old school = gold school!
@#109 Crowdedelevatorfartz
“I’m pretty sure even a part time worker at Safeway in the early 1980’s Vancouver wouldnt have qualified for a mortgage.”
I had friends who worked at Safeway in Victoria in the early eighties, one of the best jobs on the planet at the time. Full time was $16 per hour, part time was $18 per hour no benefits. Sundays were double time. Benefits went all the way to a pension.
A Safeway clerk with seniority could rack up the overtime and make more than a teacher. How times have changed, and not all for the better. Labour that is too weak, is as bad for society as labour that is powerful enough to bankrupt a company.
#147 Shawn on 08.03.22 at 3:39 pm
So… just how high CAN a dead cat bounce?
So far, so good.
above the 50 day ma so that’s a plus.. I still got lots of dry powder if a retrench.
Greater Vancouver home sales down 43% from last July, 23% from June: REBGV …. https://www.castanet.net/news/Business/378577/Greater-Vancouver-home-sales-down-43-from-last-July-23-from-June-REBGV#378577
Can you provide the numbers fir Victoria? They are tellung us the prices actually went up last month.