Onward & downward

“This is a very first world problem,” writes 30-something Julie, “but I was wondering if you can ever have too much invested where it would make sense to purchase a residence?”

Her question comes on a day when we heard inflation’s likely peaked. That means the central bank’s next rate increase will be tempered a little when it happens on September 7th. It does not foretell a rate cut. That will only come if (a) the economy tanks (not happening) or, (b) inflation falls from over 7% to maybe 3% (a very long shot in 2023). So, kids, the housing anguish is far from over.

Julie’s thing: “A family member says they will make it possible for me to buy their condo at a discounted rate when they can no longer live in it. The cost would be $350,000, or approximately 60% of its current value, but the condo fees are hefty – about $900/month.”

Julie’s doing great for her cohort – $450,000 in liquid investments and a DB pension, single, with an income north of $140,000. “I am happy renting, and would carry on doing so forever (my rent is around $1500/month), however, I’m wondering if in this unusual situation, it makes sense to purchase. Running the numbers, it doesn’t seem to make sense given my low cost of renting and the cost of the mortgage, condo fees and lost investment potential, but I’m also being hit with taxes on my investments that I’m not even sure I will need to fully utilize to live comfortably in retirement. I would appreciate your thoughts if you have time!”

Ah, and J has an MSU: “I appreciate all your posts and they have definitely helped over the years to increase my appreciation for the importance of a better understanding of economics and the implications for daily life. You may not care whether people love you, but I do!”

Young, single, flush, pensioned, with a big income and bestowed with common sense. Could Julie be the ideal woman?

Well, here’s the context.

CREA admits the benchmark Frankenumber price dropped almost 2% last month alone. Sales are down year/year by a third. The slaughter is worst in the burbs and especially Bunnypatch communities in SW Ontario. Yesterday BMO’s new housing report said it simply: “So, where is the correction playing out? Almost everywhere.”

“This correction is well on its way, and is so far playing out very much as expected in terms of intensity, timing and regional distribution. Recall that the BoC hit the market with a 100-bp rate hike in the middle of July, so these figures don’t fully reflect that move. We continue to see another 100 bps of tightening through the remainder of the year, which should keep this housing market adjustment running into 2023. Onward and downward for now…”

Onward and downward. That begs the question of why anyone would buy a property in August of 2022, just prior to the next round of rate hikes, with affordability levels in the ditch? As mentioned, the downtick in July’s inflation number will not put the Bank of Canada on pause nor lead to any rate moderation. In fact the CB knows the feds are about to launch their shiny new FHSA in a few months, which will run counter to the bank’s efforts to get real estate values under control. It’s a classic case of monetary stimulus being withdrawn and fiscal stimulus being applied by politicians who think only about the next election (which probably won’t go well).

But, but, Julie can get a condo (location unknown) for a discount from a family member in the future. Should she commit?

Buying it with cash would suck off most of her impressive liquid portfolio. Financing the purchase with a mortgage of $350,000 would, along with condo fees and taxes, result in a monthly of about $3,500 – a huge premium over her premium rent, plus she’d be taking on debt of several hundred thousand. Condo fees are too steep, potentially impacting the value of the unit in the future (also suggesting this is an older building where a special assessment might roll around).

Besides, Julie is (as stated) a highly impressive person. Will she stay single? If not, would owning a condo in that location//building be an asset or a detriment? If she’s a happy renter now, saving oodles, why buy something that costs far more to carry and reduces her cash flow – unless there’s a guaranteed capital return? Moreover, buying would eliminate her mobility, and if the real estate decline is bound to continue, will condos be the next big casualty? Is this really an opportunity or is her family trying to pawn off a property without having to market it and pay a sales commission?

We know rates will go up again. At least once. Maybe three times by the end of 2022. We know the housing market is losing altitude faster than Jagmeet Singh. More risk. We can see that financial markets, in contrast, have been reversing and improving fast. We know Julie is living cheap and assume her rent increases are capped. And we can tell from her note she’s not infected with FOMO and takes an analytical approach to things.

Besides, she has superb taste in blogs.

No, Julie, you do not have too much invested. Your portfolio today could easily pay your rent and still grow impressively. You do not need anyone’s beater condo unit. Stay a goddess.

About the picture: “These are our 2 Rough Collies enjoying a beautiful hike in the Paddy’s Flats trail and then a dip into the beautiful Elbow River,” writes Catherine. “They enjoy a great life of being walked several times a day and love the endless mountain trails and dog parks that Calgary has to offer. My husband, Doug, and I moved from BC 3 years ago to the Calgary area and absolutely love living here. Calgary offers a great life for dogs and we are so grateful for all of the restaurants too that allow them on their patios. We have been enjoying The Greater Fool since 2009 and we are very grateful for all that you do.”

133 comments ↓

#1 Mean Gene on 08.16.22 at 3:06 pm

Julie = smart cookie.

#2 crowdedelevatorfartz on 08.16.22 at 3:12 pm

$900/month in condo fees?
Yikes.
Sounds like an older building to me.
Best to avoid the “deal” a relative is offering.
Any building 20+ years old will begin to have roof issues, Plumbing ( rotten pipes,etc) issues, elevator issues (parts not manufactured any more), Fire panels, sprinklers, electrical upgrades.
Yikes. Yikes annnnd Yikes.
No shame in renting….unless Ponzie is the landlord.

#3 Elon Fanboy on 08.16.22 at 3:17 pm

#111 Love the cottage….yesterday….

“ The airlines did a great job of blaming the government. Airlines don’t have enough trained baggage handlers after layoffs during COVID but it’s Trudeau’s fault. ”

It is the governments fault for 2 reasons :-

1) Anyone that works ‘airside’ requires government approved security clearance. This clearance is taking months and months to get currently. So even after the staff are trained, they cannot work until they get their clearance. Many got fed up with waiting and moved onto other jobs.

2) Same deal with pilot medical clearance.

General lack of security cleared staff causes major knock on effects nationally. E.g. Flight crews time out because flights not allowed to deboard due to lack of staff, planes thus end up in the wrong location, etc, etc.

#4 crowdedelevatorfartz on 08.16.22 at 3:18 pm

@#100 Summertime
“You are absolutely in control of your wages in a very tight labour market for high quality jobs. ”

+++
Sorry.
I don’t consider shelf stockers and cashier as bar code scanners at the BC Liquor store in that description of “high quality jobs”.

#5 Wrk.dover on 08.16.22 at 3:20 pm

#109 Penny Henny on 08.16.22 at 1:20 pm
#91 Dave on 08.16.22 at 9:24 am
My unbalanced and undiversified portfolio still at a boring 2.95%, yielding $57,000 annually. Annual living expenses at $18,000. Happy to be retired!

/////////////

Hey big spender ;)
_____________________________

$18,000 is what it costs to get out of bed and meet fixed commitments/overhead, is what he probably meant.

The rest of spending is optional. Travel, TSFA’s, and fun can get $13 grand each on $57,000 net.

We are on the same budget here.

As for Julie, I think she had better read up on special assessments lurking in the condo jungle, if she wants to stay upwardly mobile.

PS: Garth, thanks for the encouragement to place buy orders before opening bell this AM. Another 1% tranche of our entire worth, out of cash, now in better places.

#6 Ment on 08.16.22 at 3:20 pm

Buying it at the 60% discount and then selling it market price is not a good option?

“ family trying to pawn off a property without having to market it and pay a sales commission?” why would the family take a 60% reduction to avoid sales commission ..?

#7 IHCTD9 on 08.16.22 at 3:26 pm

That condo fee is murder. That unit will be near unsaleable in 10 more years. Huge increase in COL over renting. All bad, no good.

#8 ogdoad on 08.16.22 at 3:32 pm

J,

I’d have to see a picture first – ’cause peeps that seem too good to be true def’n got some hidden baggage goin’ on…like omg stuff….- but I’m always willing to find out!

1) Do you like hugs?
2) Do you like guys with chiseled abs, hair and over 6′?
3) What’s the first thing that comes to your mind when you think of a kitchen………?

When you’ve passed screening test #1 we can move on to phase 2 – I can’t divulge much except it involves slurpees.

As for the condo – I agree with G. And never do business with family members.

Og

#9 Sail Away on 08.16.22 at 3:40 pm

Regarding Julie’s possible condo purchase from a family member… we did a similar thing in Vancouver:

A family oldster couldn’t keep up the house anymore, so we bought it for $900k via payment agreement in 2009, rented it for handsome rates around the 2010 Olympics, then rented it residentially for about 8 more years until our son and friends moved in while attending university, then sold August 2020 for $2.3M.

It worked out ok, but mostly because of RE appreciation. What a relief to sell. Residential landlording is painful. Wouldn’t do it again.

For Julie, though: even if you did want your own place, why buy a condo? It’s basically as restrictive as renting, but you’re tied to it, and buying it at a discount from family would probably mean an expected obligation equal to the value of the discount- meaning bruised feelings if you sold and reaped full market value for yourself.

Likely better for all if they sell at market rate and get full tax-free benefit, also allowing you freedom to do your thing.

#10 Julie, listen to Garth on 08.16.22 at 3:46 pm

Apart from the great advice from the many-splendored Garth, you would do well to question why a family member would choose to “make it possible to buy the condo at a discounted rate”. This is a classic sales approach, implanting a suggestion to make you think there is a deal here. Maybe there is and maybe there isn’t. Investigation would be needed to ascertain if this is a true statement.

If the condo were hard to sell on the open market because it is an older building, has high maintenance fees, and no doubt property taxes as well (unless they are part of the fees), then the relative may just be lining up someone to make it possible to sell the place so that they can get access to the money that, presumably, they would not otherwise have. Assuming the worst, perhaps the relative is trying to take advantage of you.

#11 TurnerNation on 08.16.22 at 3:50 pm

Re. today’s protagonist/antagonist. All condos are JUNK and monthly fees will approach $1/sq foot as time passes.

Re. Yesterday’s blog, did our Forum Host emulate our Glorious Leader’s bowl hair-cut? Pics or it didn’t happen :)

–Re. weekend blog: Not even close. This damage will take years of unwinding. If ever.
Many will own nothing and be happy, their credit and savings in ruins for decades to come.

>#39 Ryan Lewenza on 08.13.22 at 4:18 pm
Dave “The question is when is the housing market going to bottom out?”
I would venture a guess of spring 2023.

>#44 Ryan Lewenza on 08.13.22 at 4:26 pm
I bought a pre-construction condo a few years ago and it’s slated to be completed next March.

————————–

Back to the Stone ages in the Former First World Countries go! Almost 85 years later and Germany once again makes the focal point in a global war.
We know that the Second and Third World Countries get bom’d (See Ukraine) while the First World Countries get Economically Bom’d (pssst this is us).

How long until a QR code + personal gas/carbon allowance ration is announced? (Sri Lanka is using this currently)

https://www.zerohedge.com/geopolitical/german-officials-warn-draconian-energy-regulations-extremists-fueling-mass-protests
As queries for “firewood” have exploded on Google in Germany, and Deutsche Bank predicting that “wood will be used for heating purposes where possible,” German officials are now warning of extreme energy rationing measures, along with the potential for “extremists” to fuel national unrest over the deteriorating situation.

#12 paddy on 08.16.22 at 3:54 pm

I would keep renting. She has so much disposable income because she rents. $900/month in condo fees??…good lord. Impressive numbers though for someone of her age. Smart and has assets.

#13 Sail Away on 08.16.22 at 3:54 pm

Well, here’s a one-year update on my four miners BHP, VALE, LIF and NTR, originally purchased Aug 19, 2021:

Average dividend: 10.2%
1 year average CAGR: -1%

Beneficial? Yes. +9% is a fine one-year return, and the regular dividend payments kept pumping cash during troubled times.

Compared to mining ETF XBM? XBM CAGR=3%; div=1.44% for total one-year return of +4.4%

Looks like four individual stocks beat by +4.5% this year. Continuing to hold and expecting good recovery. BHP just reported excellent earnings and profit.

#14 PBrasseur on 08.16.22 at 4:00 pm

« Inflation’s likely peaked  »

Been reading chicken’s entrails again have you?

Did you burst? – Garth

#15 DC on 08.16.22 at 4:01 pm

Those who think inflation is anywhere near under control need to read my cautionary tale:

Purchased a Mama Burger combo at my local A&W last night. The total with tax was a whopping $13.85 (though I did substitute the soft drink with a bottle of water…..not sure if that cost me extra or not).

#16 Dave on 08.16.22 at 4:05 pm

Dave, it sounds like you have GICs and maybe bonds. If you are retired making $57,000 a year and your expenses are only $18,000 and retired, you are ahead of the game. I am in a similar situation as I am almost retired and have all my investments in GICs, OSBs and making $50,000 a year income from interest all tax deferred, tax free, RRSPs, TFSAs. My wife and I will soon retire next year, get our early CPP as my wife too and with $70,000 a gross, $45,000 yearly net income left over after living expenses, taxes, we are a okay.

Xxxxxxxxxxxxxxxxxxxxxxxxxxxx

Correct all in GIC’S. $1,100,000 in RRSP and TFSA. $800,000 in non registered GIC. Not taking CPP till 70 because it will affect my GIS and my wife’s supplement eligibility when I turn 65 next year. OAS and GIS and the supplement will increase my spending money by $15,000. Then I will also be entitled to an additional $1800 annually from Trillium, GST credit and carbon credit. So that’s a total of around $17,000 more for fun money. I don’t care about inflation because it doesn’t affect me…I hate going out for dinners. I dont want to travel to distant and exotic locations.

CPP at age 70 will pay me $18,000 which is nicely indexed. So the plan is to live off non registered interest, OAS, GIS, Supplements without touching the principal. Of course house is paid off. Worth $1,500,000 hereein bunnypatch

Saving all my money up for the future when we are old and infirm and need homecare

Should somebody with $2 million in liquid investments and a $1.5 million house in conscience be taking the GIS supplement intended for poor seniors? Just asking. Maybe you should, too. – Garth

#17 Prince Polo on 08.16.22 at 4:13 pm

Run. Run as fast as you can away from this condo albatross!!

Signed,
A loser winner renter with bulging portfolio

#18 Linda on 08.16.22 at 4:20 pm

The condo fee is a real deal breaker. I’ve little doubt the ‘family discount’ is at least in part due to the excessive condo fee. Would not want to be the owner of said unit trying to offload it given that condo fee. If I were paying that much money I’d expect everything about the condo property to be a) in as new, mint condition at all times; b) have additional amenities such as concierge, butler, indoor spa/fitness facility etc & c) have grounds/gardens that were swoon worthy to the point that passing professional photographers would pay an access fee in order to be able to take photos. Because with fees like that, the service had better be triple A+! Otherwise a complete rip off or a way around slamming the residents with a ‘special assessment’ in one fell swoop. More like ‘pay as you go, for decades’. Which is why I will never own a condo. Rent one? Yes. Buy one? Only if I literally lose my ability to make rational decisions.

#19 DON on 08.16.22 at 4:29 pm

@Mattl

i would like to hear more about the info you have access to…maybe once in a while you can give a high level update on what you are seeing.

The outstanding HELOCs are also a watch point. How many financially prudent folks dipped into their house equity to buy the new trucks, high end cars, boats, trailers, quads and investment properties.

As for inflation peaking I am in agreement. Last year October/November inflation dipped before going up and up. Core inflation still rising. Not sure what will happen as the experts toggle from transitory inflation and now maybe peak. The euphoria that got us to this point has not been stamped out in my opinion. There are also geo-political events that could make gas prices go up again. The World is not the same friendly place it appeared to be prior to the shock and awe of the Ukraine War. Will have to wait and see…but individual angst should not be directed at Garth…that’s my real point.

#20 Søren Angst on 08.16.22 at 4:33 pm

#13 Sail Away

Div strategy works for me and you prove the point as well. Kept my head above water overall this year.

Lewenza recommended go Divs along with Value stock rebalancing (away from Growth stocks this year) and he was BANG ON.

ETF, ETN price appreciation (incl. TWTR Albatross) YTD for me is +7.5% and thanking my lucky stars for that (S&P 500 YTD is -10.4%). Avg Div Yield YTD (I like risk more than you) is +27.6%.

Still a Threadbare Portfolio for me (vs. you with a $2.3M – $0.9M home capital gain to play with), but getting there.

——————

65+ in Canada a Mess

A lot of my lucky stars thanks to this Blog. I have more than enough monthly cash flow to do as I please without ever having to look over my back which for a Paleo retiree like me, is a good thing. And still saving while having fun here in Italia (not hard to do).

Which for my cohort is pretty darn good.

65+ years old in Canada is an ongoing disaster in savings and disposable income (StatCan 1st Qtr 2022).

Negative savings rate for the past 2 years:

https://www150.statcan.gc.ca/n1/daily-quotidien/220803/cg-a004-eng.htm

and Negative disposable income in the past 1 year:

https://www150.statcan.gc.ca/n1/daily-quotidien/220803/cg-a002-eng.htm

Pretty sure there are going to be a lot of angry Paleo voters come next election.

#21 AM in MN on 08.16.22 at 4:39 pm

I still hold to my best example of the future being to look at Argentina.

As mentioned first a couple years ago, it’s going to be “that ’70’s show”.

All govt. workers now demanding 25%-30% over the next 3 years in upcoming negotiations. This due to all of the money printing by the BoC.

There is no more tax revenue to pluck from the dreaded private sector, only taxes on residential RE. Thus, the default will be for more money printing to pay the bill for the last round of money printing.

Remember that half of people with a job in Canada are directly or indirectly employed by some level of Govt.

You don’t need a crystal ball to see where this goes.

#22 Paul on 08.16.22 at 4:39 pm

May want to clarify some high Condo fees include heat,hydro,water,even basic cable, not just maintenance.

#23 Millennial 1%er on 08.16.22 at 4:48 pm

way to go julia!

#24 charlie Angus on 08.16.22 at 4:57 pm

‘We know the housing market is losing altitude faster than Jagmeet Singh’ Garth , you actually made me crack a smile..well done

#25 NOSTRADAMUS on 08.16.22 at 5:02 pm

CANARIES ARE DROPPING LEFT, RIGHT, AND CENTRE.
In the coal mine the loss of the canary was a warning, a beacon to everyone else around. It warned them of the danger that could engulf them all if they didn’t act with urgency and exit the mine immediately. Well, the real estate canary has hit the deck and passed away in his cage. His twin brother, the stock market canary is getting light headed, one day he is chirping away, happy as can be, the next day he is having trouble breathing and gasping for air. The miners ( stock speculators) all saw him get wobbly in June, and inexplicably decided to stay down below, blissfully unconcerned that the carbon monoxide that killed his real estate brother is eventually coming for him too. The mine owners (bankers) are quietly removing the gas masks (liquidity) from the mine. Not a good sign. It might be a good idea to hop on the elevator and go above ground for a spell. Just because you can’t see or smell the gas doesn’t mean it’s not there, R.I.P. Real estate canary, you will be sadly missed by all.. Are you not entertained?

#26 Mummy Burger on 08.16.22 at 5:04 pm

The only way inflation will come under control is if we all stop buying burgers at exorbitant prices now. And get the drama queen and historian out from power so they stop the free lunch. It’s going to get much worse before it gets much worse. Yes. But in the end we will purge all that is cancer. A great reset if you will. Not his one though.

#27 Sasha Povit on 08.16.22 at 5:07 pm

Omar Alghabra has covid, he’s the transport minister enforcing ArriveCAN vaccine mandate forcing travelers to vaccinate or quarantine for 14 days upon return. Let that sink in.

So what? Vaccines keep you alive. They are not preventative. – Garth

#28 Dave on 08.16.22 at 5:07 pm

Dave, it sounds like you have GICs and maybe bonds. If you are retired making $57,000 a year and your expenses are only $18,000 and retired, you are ahead of the game. I am in a similar situation as I am almost retired and have all my investments in GICs, OSBs and making $50,000 a year income from interest all tax deferred, tax free, RRSPs, TFSAs. My wife and I will soon retire next year, get our early CPP as my wife too and with $70,000 a gross, $45,000 yearly net income left over after living expenses, taxes, we are a okay.

Xxxxxxxxxxxxxxxxxxxxxxxxxxxx

Correct all in GIC’S. $1,100,000 in RRSP and TFSA. $800,000 in non registered GIC. Not taking CPP till 70 because it will affect my GIS and my wife’s supplement eligibility when I turn 65 next year. OAS and GIS and the supplement will increase my spending money by $15,000. Then I will also be entitled to an additional $1800 annually from Trillium, GST credit and carbon credit. So that’s a total of around $17,000 more for fun money. I don’t care about inflation because it doesn’t affect me…I hate going out for dinners. I dont want to travel to distant and exotic locations.

CPP at age 70 will pay me $18,000 which is nicely indexed. So the plan is to live off non registered interest, OAS, GIS, Supplements without touching the principal. Of course house is paid off. Worth $1,500,000 hereein bunnypatch

Saving all my money up for the future when we are old and infirm and need homecare

Should somebody with $2 million in liquid investments and a $1.5 million house in conscience be taking the GIS supplement intended for poor seniors? Just asking. Maybe you should, too. – Garth

Xxxxxxxxxxxxxxxxxxxxxxxxxx

Yeah I was surprised that this program even existed. Wife and I have been honest tax payers. Both born in Canada. Parents paid life long taxes too. We have lived far below our means. We have worked like dogs. If the money is out there, available and you do your financial planning correctly such that you are eligible then why not?

There are lots of tax saving schemes out there which are devised by lawyers which somehow save their clients money.

Yup. What I expected. – Garth

#29 Chanty Binx on 08.16.22 at 5:11 pm

Trudeau’s feminist policy is working. A young woman in her 30s earning six figures. You go girl!

#30 Doug t on 08.16.22 at 5:12 pm

Julie take my son PLEASE

#31 TheDood on 08.16.22 at 5:13 pm

#6 Ment on 08.16.22 at 3:20 pm
Buying it at the 60% discount and then selling it market price is not a good option?

___________________

The point is she doesn’t need to even consider it. Discount or not, buying RE in Canada at this point in time and for near-medium future is a suckers bet.

#32 Condochick on 08.16.22 at 5:18 pm

So many people knock monthly condo fees, but seem to “forget” about ongoing maintenance costs of a house. We are in a high-end, mid-sized 8-year-old condo in a very desirable 416 ‘hood. Our unit is 1300 sqft with a huge 550 sqft private terrace, 2 parking spots and locker. We have a 24-hr concierge who collects our Amazon deliveries, awesome gym, pool, hot tub, theatre room, etc., etc. The building is wonderfully maintained with a very attentive Property Manager and Board. Our monthly fees are about $1100/month. We are happy to pay these fees and live a relatively “turn-key”, maintenance-free life. (Also the condo is only about 20% of our total net worth at the age of 50, so we are well within Garth’s “rules”!) It’s a lifestyle decision.

#33 Søren Angst on 08.16.22 at 5:22 pm

Further to the 65+ Mess

On average Paleos income is negative and their savings are negative. Savings eroded due to a lack of income.

And that’s as of 1st Qtr 2022.

Imagine now with high inflation and higher rates what is happening to this cohort. It will have only gotten worse for them.

What I cannot believe is that no one in Gov or even the MSM seems to give a damn.

Trudeau to increase OAS by 2.8% for the +75 yrs old crowd (about 2.84M Cdns).

https://www.canada.ca/en/employment-social-development/news/2022/07/increase-to-the-old-age-security-pension-for-seniors-aged-75-years-and-older-begins-this-month.html

Avg OAS is $7800/yr so 2.8% = about $220 more per year.

Whoop-de-do.

Meanwhile 3.86M Cdns 65 to under 75 yrs old are SOL.

Maybe Asset Rich (as Cdn RE values decline, -23% Feb to Jul per CREA today) and certainly Cash Flow poor.

I wonder how long this can last?

#34 Daveyboy on 08.16.22 at 5:23 pm

Way to go Julie, just keep renting!

#35 West New We6st on 08.16.22 at 5:37 pm

Julie, if a family member was trying to help you get ahead, try to find a way to convince them to sell the condo at market price and gift the difference to you to really boost your savings. That could be 200 to 250K, added to your 450K, putting you on track to a mil in savings before you turn 40……then it gets really interesting

#36 Søren Angst on 08.16.22 at 5:42 pm

#28 Dave

If you qualify for GIS then the income you say you’re earning is in reality much less.

https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/guaranteed-income-supplement/benefit-amount.html

‘If your spouse/common-law partner receives the full OAS pension, Your annual income plus the annual income of your spouse/common-law partner must be

Less than $26,688’

[If so, the Maximum monthly payment amount = $599.53]

If you get it let me know.

#37 Bezengy on 08.16.22 at 5:44 pm

Julia. Get a professional appraisal on the property before you consider your next move. If it checks out then do the deal. If someone is wants to give you 200k plus because of whatever reason you would be a fool to pass it up. Good lord folks, someone wants to give her $200k. Take the money!

btw…..always do business with a high ethical standard. It goes without saying.

#38 Flop… on 08.16.22 at 5:50 pm

Flop Drops.

#62 robert james on 08.15.22 at 8:57 pm
#38 Flop… on 08.15.22 at 5:39 pm ……. Mr. Flop ,, Keep those Flop Drops coming !! I enjoy them…

///////////////////////////////

Robert, I am happy to feed your addiction!

Shoutout to 45North as well then.

Do you have a certain area you are interested in?

I’ve been trying to avoid The Pink Snow, but this case is worth the walk through the blood and guts, I guess.

Let’s have a look at this case that happened on The North Shore.

The details…

753 E 15th St, North Vancouver.

Seller paid 1.32 September 2022.

Just sold again for 1.25

Original ask 1.49

Assessment 1.53

So someone bought a vacant block on a pretty good street, drew up plans to build, and then the real estate situation changed in some way that made them uncomfortable to continue.

North Vancouver just got rated 6th best small city in Canada to live, but that didn’t stop these guys taking a likely 100k loss, after costs, in a short amount of time, when the real estate band decided to play at a slower place.

It’s pretty hard to get a block of land under 1.3 million within this proximity to downtown, so it’s right at the bottom of the market and they still took a beating like a rented donkey…

M48BC

https://www.zealty.ca/mls-R2703418/753-E-15TH-STREET-North-Vancouver-BC/

#39 DMC on 08.16.22 at 5:50 pm

#20 Soren Angst & #13 Sail Away

Blinded by the ol’ dividend yield are we? I can understand the appeal of collecting eggs from your chickens and not relying on the market price of a chicken to an extent, but if your chicken is laying 4,5,10x the amount of eggs an average chicken does…I’d start questioning what the hell is wrong with my chicken…disease? Parasite? Possessed?

As for Julie, she sounds like a 10. Garth, any interest in playing matchmaker? Send that woman my way!

#40 Diabolical? Naaah…. on 08.16.22 at 5:54 pm

Meanwhile in the USA…

87,000 new hires for I.R.S. announced under the “Inflation Reduction Act”

The weaponization of the I.R.S. is already demonstrated by the help wanted advertisement for “Special Agents” that appeared on the three-letter agency’s website that appeared almost simultaneously with the legislation:

“Major Duties

• Adhere to the highest standards of conduct, especially in maintaining honesty and integrity.
• Work a minimum of 50 hours per week, which may include irregular hours, and be on-call 24/7, including holidays and weekends.
• Maintain a level of fitness necessary to effectively respond to life-threatening situations on the job.
• Carry a firearm and be willing to use deadly force, if necessary.
• Be willing and able to participate in arrests, execution of search warrants, and other dangerous assignments.”

Are there really that many billionaires to chase after??

It’s the end of the middle class.

#41 Overheardyou on 08.16.22 at 5:58 pm

If I had $2M portfolio and a $1.5M house and was eligible for any government funds I’d either donate it to a good cause or reject the payments.

#42 Ed on 08.16.22 at 5:59 pm

I don’t think Dave should be chastised for taking GIS by living frugally…look at his mentor rolex wearing Jagmeet propping up the Liberals to ensure his pension.

Or Hinshaw taking a cool quarter mill bonus of tax payers money for basically doing the job she was hired for.

No wonder everyone ends up in it for themselves.

#43 Penny Henny on 08.16.22 at 6:00 pm

#33 Søren Angst on 08.16.22 at 5:22 pm
Further to the 65+ Mess

////////////////

It seems that you are very happy that you moved to Italy.

So are we.

#44 Dave on 08.16.22 at 6:11 pm

Soren…..our taxable income this year will be $24,000. The other $33,000 is in registered. So next year I will get OAS, GIS and supplement for wifey. I have $400,000 non registered coming due next year so I hope to put these into 5% to 6% 5 year GIC. if that happens then my wifes supplement eligibility will go away. I should still be eligible for my own GIS, but it will be reduced.
Once we have to convert to a RRIF we will once again be tax payers but for now we will be enjoying the government handouts we are legally entitled to.
The idea is to live within our means and save up for when we have to be put into an old age storage facility.
Maybe Garth could do a piece on the cost of old age care. I’m sure that it would be an eye opener.
I subscribe to the Frederick Vettese theory of inflation and interest rates as well as taking CPP at age 70.

#45 KNOW IT ALL on 08.16.22 at 6:16 pm

Garth – Time to give the G&M a call.
This is why people think the way they do.
“Those who control the media control the population”

https://www.theglobeandmail.com/investing/personal-finance/household-finances/article-how-renting-could-financially-damage-a-generation-of-young-adults/

#46 Dave on 08.16.22 at 6:29 pm

Soren….check out the amount eligibility for $24,000 on this link..
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/payments/tab4-31.html

My GIS and OAS would be $945 monthly
Wifey is entitled to $278 monthly
Total $14,676 annually

Then we are also eligible for Trillium, GST and carbon credits of $1878
Annually.

Now I would not be getting all of this if I had followed the advice of most financial advisers. Take CPP at age 60 they all preach. Why should I? Mom is doing well at age 99 thanks. CPP is indexed. Every year I defer past age 65 my CPP increases by 8.4% guaranteed! Where else can you get an 8.4% guaranteed rate of return?

You have $3 million in net worth. Shame on you for gaming the system. – Garth

#47 Caffeine Monkey on 08.16.22 at 6:42 pm

Don’t forget that condos in Canada, especially those constructed during periods of housing mania (in other words, all of them), are constructed of glue, old pizza boxes, and duct tape. If you live in one long enough, most likely you eventually get hit by a “special” assessment to repair whatever building envelope or mechanical failure that is nearly inevitable to occur. You gotta price that into the equation.

#48 Tony on 08.16.22 at 6:52 pm

Re: #15 DC on 08.16.22 at 4:01 pm

A year ago the same combo was $5.99 with a coupon. Less than two months ago $6.49 with a coupon.

#49 Dill Pickle Chips on 08.16.22 at 6:54 pm

What happened to the expectation that post pandemic would be a return to the roaring 20’s? Is that still something anyone expects?

Absolutely. – Garth

#50 Wrk.dover on 08.16.22 at 6:56 pm

#13 Sail Away on 08.16.22 at 3:54 pm
Well, here’s a one-year update on my four miners BHP, VALE, LIF and NTR, originally purchased Aug 19, 2021:

Average dividend: 10.2%
_____________________________________

NTR divvy is a paltry 2.1% on scandalously YUGE earnings!

The real divvy is in the 200 billion dollar stock buyback, currently depressing the price 25% whilst they complete that fiasco.

They are more than a miner, retailer too. They also just bought 25 store (or so) equivalent to Tractor Supply in Brazil.

We own a bigger % of NTR here than we should.

2.1% div, what a sick joke!

#51 dosouth on 08.16.22 at 7:00 pm

You poor people in Ontario. A gov’t that purports to protect home buyers and yet Briarwood wants another 30% + before you get the house or hit the bricks…..

Stunned home buyers or is it home buyers stunned…

https://ca.style.yahoo.com/ontario-homebuyers-stunned-extra-175k-080000106.html

#52 jakethesnake on 08.16.22 at 7:08 pm

DELETED (Sexist)

#53 Steven Rowlandson on 08.16.22 at 7:09 pm

“it’s Trudeau’s fault.”

There’s a phrase that is easy to say and perhaps more often.

#54 Ponzius Pilatus on 08.16.22 at 7:09 pm

#15 DC on 08.16.22 at 4:01 pm
Those who think inflation is anywhere near under control need to read my cautionary tale:

Purchased a Mama Burger combo at my local A&W last night. The total with tax was a whopping $13.85 (though I did substitute the soft drink with a bottle of water…..not sure if that cost me extra or not).
—————————
People like you are a main cause of inflation.
Clueless consumers.

#55 Cramer on 08.16.22 at 7:14 pm

Anyone heard of the inverse Cramer etf? Apparently it has been performing better than the s&p 500 it’s just a guy on Reddit who does the opposite of what Jim Cramer says.

#56 Ponzius Pilatus on 08.16.22 at 7:20 pm

#114 jess on 08.16.22 at 2:57 pm
the term 3-6-3 Rule describes how the United States retail banking industry operated from the 1950s to the 1980s.[1]: 51  The name 3-6-3 refers to the impression that bankers had a stable, comfortable existence by paying 3 percent interest on deposits, lending money out at 6 percent, and being able to “tee off at the golf course by 3 p.m.”

https://www.theguardian.com/business/2009/feb/15/banking-deadly-sins

===========
reframing?
https://www.theguardian.com/environment/2022/aug/16/most-damaging-farm-products-organic-pasture-fed-beef-lamb
———————————
“To every problem, turn, turn, turn.
There is a solution, turn, turn, turn”
In this case:
Eat less beef and lamb meat.

#57 Sail Away on 08.16.22 at 7:21 pm

#39 DMC on 08.16.22 at 5:50 pm
#20 Soren Angst & #13 Sail Away

Blinded by the ol’ dividend yield are we? I can understand the appeal of collecting eggs from your chickens and not relying on the market price of a chicken to an extent, but if your chicken is laying 4,5,10x the amount of eggs an average chicken does…I’d start questioning what the hell is wrong with my chicken…disease? Parasite? Possessed?

———

Leave our chickens alone, bro.

#58 Shawn on 08.16.22 at 7:22 pm

CPP Math Error on delay to 70

Dave said:

Every year I defer past age 65 my CPP increases by 8.4% guaranteed! Where else can you get an 8.4% guaranteed rate of return?

***********************************
It is an 8.4% increase but that is not an 8.4% return since you must account for the fact that you collect it one fewer years.

It’s meant to be a wash if you survive the average age that a 65 year old survives (which is higher than average life since you already made it to 65 without death).

It will never work out to be an 8.4% return but will approach an 8.4% return is you live to say 400. And you will win with this strategy is you simply live longer than average.

I agree with Dave that it can be good to delay to 70 in some cases. Really healthy and counting on the money let’s say and maybe planning to work till 70.

In general I like the idea of take at 65 for most healthy people but to each their own. The full indexation could come in handy for many people.

For many as Garth says its no a big deal either way if you have ample other income.

#59 Ponzius Pilatus on 08.16.22 at 7:27 pm

#49 Dill Pickle Chips on 08.16.22 at 6:54 pm
What happened to the expectation that post pandemic would be a return to the roaring 20’s? Is that still something anyone expects?

Absolutely. – Garth
———————
There is a small chance that we skip the roaring 20’s and go straight to the depressing 30s.
I hope not.

#60 JEFF13 on 08.16.22 at 7:31 pm

What happened to the expectation that post pandemic would be a return to the roaring 20’s? Is that still something anyone expects?

Absolutely. – Garth

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

Not realistic- the economy is headed in one direction – recession and then money printing, mainly to solve the pension issue. The unemployment rate is really a terrible indicator with the mass retirement of boomers. What really matter is the employment rate and it is slowly going down. It just doesn’t make any sense to have a supposedly booming economy with less people working.

#61 Shawn on 08.16.22 at 7:38 pm

CPP delay to 70 Math

hmmm let me think about this…

To get the 8.4% extra CPP which is a life annuity you in substance invest a year of CPP benefits by not taking it.

Whether this is a good deal (it may well be) can be determined by comparing it to the rate available on life annuities for a 65 year old. Is it 8.4% or more likely closer to 6%?

And a 6% life annuity is not a 6% return since there is no return of principal at the end. The return on a 6% life annuity would range from minus 100% (you die on day 1) to approaching the 6% if you live an infinite life.

So we have a case where some people are probably buying life annuities at 65 and getting what 6% and others are not willing to take the 8.4% deal. A lot depends on health and need for funds now and later. No easy choice.

Again I like the default option of taking CPP at 65 though I took it early due to the way it works for me having retired at 55. My penalty for taking early was less than the standard 36% due to the way additional non-contributory years between 60 and 65 was impacting the amount I would get.

#62 Mattl on 08.16.22 at 7:38 pm

Don – we track same store sales (YOY). They are falling fast – in Canada SSS were Jan (YOY) + 19%. June was +6% so when adjusted for inflation, negative and down almost 70% from peak.

US, looks a little better, from around 15% to 8%. Still declining and maybe positive adjusted for inflation, but trending the wrong way. Merchants are mostly consumer discretionary – retail, restaurants, service.

My overall concern is how dependent the economy is on the domestic consumer. I’ve seen dependencies as high as 70% of US GDP dependent on consumer spending.

Even with full employment I don’t see how an economy so dependent on consumer spending can absorb +10% cost for staples while availability to credit disappears. Feels like consumer spending is going to disappear, and that is what SSS data shows is happening today.

And I know economists want to ignore it, but we likely get out of Q3 in the US with zero growth YTD (-1.5, -1, +1). I think this is the end of the beginning rather then the beginning of the end.

#63 Shawn on 08.16.22 at 7:44 pm

About A&W inflation

Shoula bought the A&W income fund units. God what a bargain when they tanked 2020.

Boston Pizza should do okay as well but the A&W has a better track record and sounds like better same store sales growth.

Remember someone wrote here quite a few years ago: “Buy the means of production for what the masses consume” It was good advice. Think banks, telcos, grocery stores, pepsi, coke, Visa, A&W, costco, Dollarama, Netflix, Amazon, insurance companies.

Ties in too with Peter Lynch of What Works on Wall Street who said buy the shares of companies producing popular products.

#64 Shawn on 08.16.22 at 7:46 pm

Sorry, Peter Lynch wrote, One Up on Wall Street not What Works on Wall Street.

#65 Dana on 08.16.22 at 7:53 pm

Garth, I take issue what you are saying about Dave. If he was not getting 2.95% interest but a decent rate, he would not get the GIS, other benefits. It is not until just now GICs are in the 4.25% to 5% range. They lost alot of money over the years with lower interest rates, probably $250,000 to $450,000 over the last decade. If this money matures soon and he gets this in at say 4.5%, plus the RRSP money will be taxed alot so they are going to pay lots of taxes anyway.

GIS is for poor people, not wealthy Boomers with $3 million in net worth. Shame on those who take from people in need. – Garth

#66 Dragonfly58 on 08.16.22 at 7:56 pm

Paddy, #12. She has so much disposable income because she rents. Perhaps, but she is also in the top 4 or 5% of all Canadians with a $140,000.00/ year income. I certainly would expect her to have a relatively large disposable income.
That sort of income would be enough to support a family of four with careful budgeting
Many are even somehow getting by with less.

#67 baloney Sandwitch on 08.16.22 at 8:03 pm

Read an interesting article in the G&M today. Advice for asset rich – cash poor seniors, sell your house and put some money into an annuity enough to pay the rent. Good idea to cash out and have secure rent payment for life. Any surplus can be invested.

#68 The Gold Standard on 08.16.22 at 8:14 pm

You have $3 million in net worth. Shame on you for gaming the system. – Garth

Why should he be ashamed? You preach this same thing “tax avoidance vs. tax evasion”. He is legal.

Far from the only consideration. In no way is this an ethical position to take. – Garth

#69 Quintilian on 08.16.22 at 8:23 pm

Hey Julie,
When confronted with an intricate question regarding real estate it’s best to consult a highly trained professional.

Your local realtor is the best source of unbiased advice.

He, she It, is likely to lead you to the best decision of your life.
And the advice will probably be prefaced with wisdom such as:

Now is a good time to buy real estate, but the best time to buy real estate was yesterday.

Cause you know they aren’t making any more land/sky…..

#70 Jens on 08.16.22 at 8:24 pm

“Julie is doing great for her cohort. Thirty-something and … single.”

Tick, tock, tick, tock.

Of course, looking at some of the other comments, this blog post could change all that, lol.

#71 The Gold Standard on 08.16.22 at 8:29 pm

Don’t hate the player, hate the game.

#72 Dr V on 08.16.22 at 8:30 pm

“You have $3 million in net worth. Shame on you for gaming the system. – Garth”
—————————————-

Don’t hate the player.

Hate the game.

If Dave can meet the requirements, fly at ‘er. I am sure they will add asset testing soon. Why don’t you make a call?

#73 Armpit on 08.16.22 at 8:37 pm

Why would anyone, who is paying $1500/month rent, wish to purchase a condo that has condo fees of $900 and taxes perhaps $300, wish to leave their apartment is they are happy with it?? Consider yourself lucky. You are technically renting for $300 a month, no repair costs, and very mobile if you wish.

Decline politely with thanks and let them sell it at market price.

#74 CJohnC on 08.16.22 at 8:45 pm

Re #40 You have $3 million in net worth. Shame on you for gaming the system. – Garth

With utmost respect….except for yourself, there is not a rich person on the planet who hasn’t “gamed the system” to get there.

#75 Shawn on 08.16.22 at 8:49 pm

Buy Annuity?

#67 baloney Sandwitch on 08.16.22 at 8:03 pm
Read an interesting article in the G&M today. Advice for asset rich – cash poor seniors, sell your house and put some money into an annuity enough to pay the rent. Good idea to cash out and have secure rent payment for life. Any surplus can be invested.

*************************************
Buying an annuity would seem to be the antithesis of Garth’s advise.

He has suggested commuting pensions to get control of the cash value and eliminate the risk of corporate bankruptcy and of leaving nothing from it at death.

He advises taking a lower CPP annuity in exchange for an earlier start.

I don’t recall him ever talking about annuities but I am fairly confident he is no fan of that.

So there’s a new topic idea for the blog: “Why I hate annuities and so should you, and so will your kids”

#76 Shawn on 08.16.22 at 8:59 pm

GIS?

Glad I will never come close to qualifying for that. As Garth said, that’s for poor seniors.

I had hoped I’d be in a position to have all of my old age pension clawed back. Not sure that will happen but would be a nice stretch goal. I will not likely be there at 65 but likely when I start mandatory RRSP withdrawals at 71 I might be there.

Given his stated average (not marginal but average) tax rate of about 53%, it certainly sounds like Garth is in a position to have all of his old age pension clawed back. A great problem to have.

#77 DON on 08.16.22 at 9:16 pm

https://www.cbc.ca/news/canada/british-columbia/greater-vancouver-zoo-wolf-escape-1.6553146

Head for the hills…Dog Speed.

@Mattl …thanks for the overview. We will finf out soon enough, my family is cutting back on the non essentials, for the next while. Addicted to saving.

#78 YVR Renter on 08.16.22 at 9:28 pm

Bunnypatch report!
Here in CTown, Ontario, a house built in 2020 on Tracey Lane just sold for $815K. It was listed in March at $1.359M, and price changes chased the market down until desperation clearly set in. We almost rented this house, but zolo lists someone else did. Teeny yard, the most basic of builder outfitting, 1500-2000 sq ft, the garage takes up more than 1/4 of the house. Similar house sold in 2020 for $589K. The insanity of asking for $1.359 for a base builder claptrap?! This was owned by a young Brampton couple as investor/speculators.
Point is, they got $544,000 less than they thought they would in March, a 40% drop. Feel bad for them, but not for seeing some semblance of reason returning to real estate.

#79 Faron on 08.16.22 at 9:29 pm

#50 Wrk.dover on 08.16.22 at 6:56 pm
#13 Sail Away on 08.16.22 at 3:54 pm

2.1% div, what a sick joke!

Why? It’s beneficial for a corp to put excess cash into the business. If it gets paid out as a dividend or through share buybacks that’s not helping the underlying business operations.

#80 crowdedelevatorfartz on 08.16.22 at 9:30 pm

Another day.
More stats from “The Best Place on Earth”
British Columbia
1100 overdose deaths IN THE FIRST 6 MONTHS of 2022
Most OD’s are single men 30-60 years old.
80% die alone, at home.
Govts seem to be powerless to stop the Fentanyl.
Or to deal with the dealers.

#81 Flop… on 08.16.22 at 9:39 pm

#77 IHCTD9 on 08.15.22 at 11:50 pm

Not much GF time this past weekend Flop, sorry for the late reply. Don’t know St. Cat too well, only been by there a couple times. It may be an idea to just camp out and watch the MLS out here for the next year or so.

[I still give T-Bay two thumbs up, it’s a little rough, dated, cold, and the Mill stinks things up some days, but the package deal is there for a good standard of living. I see Kingston is #3 on the list. It’s a seriously great town still. It’s got it all, and then some – except cheap houses. There is a lot of money in Kingston. I’d live there myself – and that’s saying a lot from a hillbilly like me]

//////////////////////

Hey Trackie, yeah I did stare at the Kingston photo for a while with the all the historical buildings.

I thought that St Cats would get much less snow than Kingston, but the information I came across showed the difference was negligible.

I don’t know what is the best place for an Australian with glass ankles is in Canada, probably only got Vancouver and The Island to choose from.

You always seem open to new music suggestions, with my Dads passing a couple of songs from the 80s from a guy named Daryl Brathwaite, that he put out around the time my old man was trying to mould me into the guy I am today, have been coming to me when I try to sleep at night.

As The Days Go By.

“My love of life just gets stronger
As the days go by
And some things I wish they would last
Just a little bit long longer
As the days go by”

“Sure as the wind keeps on changing direction
I’ve come to understand, there’s no such a thing as perfection
And what went on before
Doesn’t matter anymore”

https://www.youtube.com/watch?v=0DYVyJrmns4

All I Do.

“All I do … All I do and all I want to say
All I do … Is lay awake until the night is day
All I do … If I be close, if I be far away from you”

https://www.youtube.com/watch?v=1NSrBz-FLHE

He’s still banging out the hits to this day, even though he’s in his 70s, still got that strong voice, here’s one of his latest efforts with a bit of country twang that might hit your hillbilly heart.

Love Songs.

https://www.youtube.com/watch?v=UrqeFCB_ig8

If you want to envision me walking on snow, just watch any muppets episode where Fozzie Bear is on roller skates…

M48BC

#82 Summertime on 08.16.22 at 9:48 pm

I would need sanity check after reading some of the today’s comments.

Inflation is under control and we are going to have a soft landing?

Roubini stated it clearly: We are either going to get a hard landing or uncontrolled inflation.

You can’t have the cake and eat it too.

CPP is nicely indexed? In which parallel reality do we live here? Inflation of necessities is horrific, food and energy around 15-20 %, this is what seniors spent their money on and how much is the CPP ‘indexed’?

We have many supposedly educated and intelligent people totally disconnected from the reality. Wishful thinking is not a good log term strategy.

It is not central bank’s fault, we have world inflation?

As Friedman stated: Inflation is always a monetary phenomenon. Who controls the money supply and created tons of easy money not based on savings and past labour?

Why with the current decline of oil, prices of necessities are not declining and reverting back to trend, and excessive inflation is not reverted into deflation in order to normalize prices?

How on earth can we contemplate the ‘normalization’ of rates as to have positive real rates with these debt levels?

Real bond market is long dead, price of money is determined by the lender, not by the borrower, the central bankers are essentially overriding the historical money fundamentals with incompetent excessive meddling based on ‘hope’ and not past experience.

I have the very bad feeling that we continue to slide on a very slippery slope here, nearing the huge bottomless hole ahead (it seems we even already fell in it) in a hope that there is no bottom, until there suddenly is, redefining historical definitions, rules and experiences, in a futile attempt to redefine reality, lead by extreme form of charlatans and snake oils salesmen disguised as ‘experts’.

Smoke and mirrors cheap trick after which your pockets will be empty and essentials like housing become completely out of reach, with intergenerational mortgages and other financial ‘innovations’.

The question here is: When will we and specially our ‘leaders’ face reality?

#83 Ponzius Pilatus on 08.16.22 at 9:59 pm

#72 Dr V on 08.16.22 at 8:30 pm
“You have $3 million in net worth. Shame on you for gaming the system. – Garth”
—————————————-

Don’t hate the player.

Hate the game.

If Dave can meet the requirements, fly at ‘er. I am sure they will add asset testing soon. Why don’t you make a call?
———————-
My motto has always been:
Because you can, does not mean you should.

#84 crowdedelevatorfartz on 08.16.22 at 10:04 pm

@#81 Flop
Halifax gets a lot of rain in the winter.
I keep an eye on the weather on both coasts for personal amusement and if its a mild winter……very similar to Vancouver for rain.
If its a bad winter….. Huge dumps of snow.
The ocean brings in a lot of moisture.
It all depends upon the cold fronts washing in from Ontario and Quebec as to how much snow accumulates.

#85 Summertime on 08.16.22 at 10:05 pm

Calling people with net worth of 3 millions ‘wealthy’ is bold. It might but most likely will not last all the way to the planned 99 years of age.

As for the call for ethical behavior, it should go to politicians, central bankers, real estate professionals, analysts, CHMC etc. first.

Being ethical in an unethical world is a suicide.

#86 Julie from the post on 08.16.22 at 10:06 pm

A couple of things to clarify for commentators:
– I genuinely believe that my family member is not trying to pawn off the condo. The market is still quite hot here, and their motivation would be trying to help me get into the market if it was something I was interested in.
– I agree 100% that it doesn’t seem to make any sense for me to purchase the condo, when I’m fine where I am, and my rent is quite affordable.
– As to why I would even consider it? With my current investments, if I were only to top up my TFSA annually and factored in a reasonable (though possibly conservative rate of return of 7% annually) I would be looking at an investment of approximately 2 mill in 20 years. If I took out 4% annually in retirement, in addition to my DBPP, I would have more than enough to live comfortably. Therefore, the question becomes, is it sensible to use the remainder of my disposable income that I currently put towards investments towards a condo instead? Especially if said condo was being sold at a discounted price, and I’m being taxed at a relatively high rate.

I do appreciate my freedom and the flexibility afforded by not owning something that could be hard to sell in the future. It is, as suggested, an older building which has both pros (more solidly built, bigger units, etc.) and cons (expensive to maintain, risk of special assessments, etc.)

I appreciate all the input!

#87 BobinKits on 08.16.22 at 11:01 pm

#72 Dr V on 08.16.22 at 8:30 pm
“You have $3 million in net worth. Shame on you for gaming the system. – Garth”
—————————————-

Don’t hate the player.

Hate the game.

If Dave can meet the requirements, fly at ‘er. I am sure they will add asset testing soon. Why don’t you make a call?
———————-
My motto has always been:
Because you can, does not mean you should.

***************
Totally agree with both Garth and PP. Dave is starting to sound and act like some of the other regular braggarts on this blog….sheesh!!

#88 Sail Away on 08.16.22 at 11:05 pm

#117 the Jaguar on 08.16.22 at 6:59 pm
@ #116 Bandit’s Owner on 08.16.22 at 6:31 pm++

Hey, I didn’t say the cat wasn’t attractive, just that the head looked large for the body and was possibly photo altered. Sheesh. I’m one of the cat supporters here…

———

Yes, the cat is a bit of a jughead, but if you really want big, you need to see the size of Ponzie’s noggin. Geez Louise.

#89 Dr V on 08.16.22 at 11:14 pm

83 Ponzie

“Because you can, does not mean you should.”
——————————————————–

What I am now wondering, is if Dave keeps his income so low as to qualify for GIS, his RRSP will remain intact, and his CPP will be juiced when he takes it at 70. So as he’ll have to do a minimum RRIF withdrawal, and have fully taxed interest from his giant GIC at a probable higher rate, his tax bill will increase by a good bit.

So not sure how much GIS he’ll get over those 5 or 6 years, then get pounded with tax after that. Dave seems to realize this in comment 45. So in the end, perhaps no net gain.

#90 Mattl on 08.16.22 at 11:14 pm

#78 – why would you feel bad for someone that turned 200k+ gross on a few year hold? Who cares what they were asking, per yourself they sold for significantly more then a similar house 2 years ago. 10k per month gross profit + rental income, not bad.

#91 Leo Trollstoy on 08.16.22 at 11:15 pm

I hope my daughter grows up to be as smart as Julie

#92 Leo Trollstoy on 08.16.22 at 11:33 pm

#16 Dave on 08.16.22 at 4:05 pm

I read comments from the bottom up so I was curious to know what people were talking about

I don’t have any hard feelings against this for a few reasons

1. He’s living poor and getting what poor people get. It’s not something I would do but that’s the cost he wants to pay

2. The amounts are ok (it’s not even a third of the way to be a member of the 1%) and if he doesn’t us it, the money will get recycled to family or government, who will spend it

Again, it’s not how I would live my life. I have much more and I spend much more so I’ll never get GIS because I don’t want to live like someone who qualifies for GIS

But if someone wants to live like a pauper that’s their right. For better or worse the rules say that living like a pauper gets you GIS.

For me, that’s a hard pass

#93 Jay Shore on 08.16.22 at 11:41 pm

To Julie: A long long time a ago, in a land far far away I was involved in negotiating real property assets out of contentious estates, aka, a true vision of the wicked hell that hides in the human heart when money is involved. I’ve seen enough ‘ sister sues brother’ and mother sues daughter’ to say, in conclusion, “ Never buy property from the ones you love “ and always remember what Shakespeare said “ Never a lender be”, sage and ultimately practical advice.

Instead, live far enough away to have an excuse to say ‘No’. I say this well intentioned but if experience signing documents in the palliative and cancer ward when things were already going very wrong among family members. BTW, you never get the smell of death out of your memory nor the disgust of greedy siblings biting the hand of the near dead.

#94 Ponzius Pilatus on 08.17.22 at 12:00 am

Further to the Dave discussion:
It’s a Tragedy of the Commons problem.
I hear that there are people picking up groceries at the Food Bank in their Mercedes.
It’s legal.

#95 fishman on 08.17.22 at 12:19 am

The Trumpster has now taken out three American political dynasties, Bush, Clinton & Cheney. All this while fending off a couple impeachments, Russia,Russia, Russia fakealouies & legal challenges up the ying yang. His home base, doubling as the two centres of power in the States, if not the world, Manhattan & Washington D,C. voted over 90% against him. The power of these dynasties after the collapse of the USSR. Their world was unilateral. Unapposed, though China was rising, no meaningful contenders. To be crushed & broken by an intellectually lazy, feral, narcissistic, golf hustling R/E pimp. Epic!

#96 Nonplused on 08.17.22 at 1:20 am

““A family member says they will make it possible for me to buy their condo at a discounted rate when they can no longer live in it. The cost would be $350,000, or approximately 60% of its current value, but the condo fees are hefty – about $900/month.””

Nonplused says: “Better get an appraisal.”

Nonplused’s dear father always says: “Never do business with family.”

Just why does said “family member” want to unload this condo at 60% of value? Are there no other heirs who might be disenfranchised by this move? Do the family member still get to live in it? Rent free? For how long? Is this an alternative to a reverse mortgage? Why? Why, why, WHY? I foresee many spoiled Christmases ahead.

Besides, who the heck wants to own a condo? Anything with common walls should be rented.

#97 Tom from Mississauga on 08.17.22 at 2:06 am

A futures contract to buy their real estate? Sounds way too messy to get involved with. Tell them no immediately, don’t string along family.

#98 Mr. Subtlety on 08.17.22 at 3:14 am

#23 Millennial 1%er on 08.16.22 at 4:48 pm

way to go julia!

Who’s Julia?

#99 Wrk.dover on 08.17.22 at 5:48 am

#79 Faron on 08.16.22 at 9:29

Why? It’s beneficial for a corp to put excess cash into the business. If it gets paid out as a dividend or through share buybacks that’s not helping the underlying business operations.
___________________________________

The purpose of a business is to pay the shareholder to own it, my friend.

Or I am just subsidizing a greedy CEO?

#100 KLNR on 08.17.22 at 6:54 am

@#82 Summertime on 08.16.22 at 9:48 pm

Roubini stated it clearly: We are either going to get a hard landing or uncontrolled inflation.

lol, what else did you expect noted doomer roubini to say?

#101 Armpit on 08.17.22 at 7:45 am

Dear Julia,

I get it. You would like to own real estate. A home. But a condo is not truly real estate. It is a roof over your head with many rules and regulations. Another level of government in which you only have one vote regarding matters. You may have more rights living in an apartment.

If you want to get into real estate where you have control, (i.e. decoration, landscaping, upgrades) buy a single family home. If you cannot afford one, wait until you can, or buy a duplex. At least you can write off a percentage of homeownership expenses.

Otherwise, forget about it. It was a tempting idea for the month.

Bring your family member a chocolate cake and enjoy your time with them.

Soon, a suitor will come along and things will change. Trust me.

#102 Dave on 08.17.22 at 8:22 am

You have $3 million in net worth. Shame on you for gaming the system. – Garth

Xxxxxxxxxxxxxxxxx
So I guess you would let your emotions interfere with your fiduciary responsibilities as a Financial Advisor by not letting clients be aware of alternate income streams in retirement provided your clients are prepared to live frugally? Instead you advise clients to invest in ETFS which are of questionable safety. These ETF trades line your pockets. The client loses everything in the stock market crash which Nostradamus predicts. That doesn’t sound ethical to me.

An advisor has no fiduciary duty to encourage clients to claim government benefits not intended for them. That’s self-evident. As for ETF trades ‘lining my pockets’ a fee-based advisor pays for a client’s trades, rather than collecting a fee for executing them. Stock market crash so people lose everything? An asteroid strike is more likely and clients with balanced portfolios do not actually own stocks nor have an undue market exposure. Defending your decision with an uninformed ad hominem attack makes you appear churlish as well as greedy. Perhaps you stand down and reflect upon your morals. – Garth

#103 Shawn on 08.17.22 at 8:35 am

Dividends?

#99 Wrk.dover on 08.17.22 at 5:48 am
#79 Faron on 08.16.22 at 9:29

Why? It’s beneficial for a corp to put excess cash into the business. If it gets paid out as a dividend or through share buybacks that’s not helping the underlying business operations.
___________________________________

The purpose of a business is to pay the shareholder to own it, my friend.

Or I am just subsidizing a greedy CEO?

********************************
Both points are valid. A dividend is a return of money from a pot of money that you already own a share of.

Berkshire Hathaway has done pretty well by shareholders with nary a dividend in over 50 years.

A company must first and foremost make money from customers.

Dividends are nice but not always necessary.

Share Buybacks, by the way, are in no way equivalent to dividends. They return money to departing now former share owners.

Buybacks are good for continuing owners if they were done at a good (low enough) price.

#104 the Jaguar on 08.17.22 at 9:14 am

#88 Sail Away on 08.16.22 at 11:05 pm
#117 the Jaguar on 08.16.22 at 6:59 pm
@ #116 Bandit’s Owner on 08.16.22 at 6:31 pm++

Hey, I didn’t say the cat wasn’t attractive, just that the head looked large for the body and was possibly photo altered. Sheesh. I’m one of the cat supporters here…

———

Yes, the cat is a bit of a jughead, but if you really want big, you need to see the size of Ponzie’s noggin. Geez Louise. +++

Ha ha. I’m sure that little cat is a sweetheart. Just an unfortunate photo angle. ++

@#95 fishman on 08.17.22 at 12:19 am……….

Bolt the doors and windows fishman. The ‘indignant’ will be coming at you with everything they’ve got momentarily. Dare to have another viewpoint and you risk ‘poking the bear’ of brainwashed mainstream opinion. Don’t ever change. ++++

@#96 Nonplused on 08.17.22 at 1:20 am

You’re just too damned sensible, Nonplused. +++

#105 the Jaguar on 08.17.22 at 9:35 am

Guess who penned a column in today’s National Post?

“Tiff Macklem writes that the Bank of Canada recognizes that for many Canadians higher interest rates will add to the difficulties they are already facing with high inflation, but he adds that it’s by raising borrowing costs in the short term that we will bring inflation down for the long term.”

Sounds like he and his counterpart in the US Fed have just decided to pull on their steel underpants and ‘do the right thing’. Fasten you seat belts.

P.S. Thanks Catherine, for that nice write up about Calgary and the inviting photo of Paddy’s Flats. We may need to ‘deputize’ you as a defender of the province and this great city.

#106 IHCTD9 on 08.17.22 at 9:49 am

#81 Flop… on 08.16.22 at 9:39 pm

Hey Trackie, yeah I did stare at the Kingston photo for a while with the all the historical buildings.

I thought that St Cats would get much less snow than Kingston, but the information I came across showed the difference was negligible.

I don’t know what is the best place for an Australian with glass ankles is in Canada, probably only got Vancouver and The Island to choose from.

You always seem open to new music suggestions, with my Dads passing a couple of songs from the 80s from a guy named Daryl Brathwaite, that he put out around the time my old man was trying to mould me into the guy I am today, have been coming to me when I try to sleep at night.
_____

Huh, I can’t believe I’ve never heard of this guy – especially coming of age in the 80’s. That’s some Casey Kasem quality stuff right there. Those old 80’s tunes are pretty nostalgic.

You’re not going to come anywhere near BC’s Climate anywhere in Canada, but a place like T-Bay is definitely going to be tough on those ankles :). They get a real winter, and winter nights in the -30 to -40 zone happen on occasion. They’re also close to the trailing edge of our time zone so you get late sun ups and late sun downs which makes the Winter even harsher, but is great in the summer. Sun up on Dec 21 is damn near 9:00 am. Sunset on June 21 is after 10 PM.

Here’s an honest appraisal of T-Bay set to a surprisingly good tune:

https://www.youtube.com/watch?v=mrqg1oqfg_Y

#107 OK, Doomer on 08.17.22 at 10:23 am

#29 Chanty Binx on 08.16.22 at 5:11 pm
Trudeau’s feminist policy is working. A young woman in her 30s earning six figures. You go girl!

+++++++++++++++++++++++++++++

I’ll assume that you are blind to the offensive patronizing and promotion of stereotypes to score cheap political points.

I say this as a father of a very successful daughter, whose success surprises no one.

#108 Faron on 08.17.22 at 10:33 am

#99 Wrk.dover on 08.17.22 at 5:48 am
#79 Faron on 08.16.22 at 9:29

Why? It’s beneficial for a corp to put excess cash into the business. If it gets paid out as a dividend or through share buybacks that’s not helping the underlying business operations.
___________________________________

The purpose of a business is to pay the shareholder to own it, my friend.

Or I am just subsidizing a greedy CEO?

You forgot “sustainable” as in “pay the shareholders to own it with sustainable growth over years or decades”. Short sighted buybacks and phat divvies may goose the share price, but long term CapEx, R&D and talent seeking are expensive but also what gives a business a durable edge that allows long term growth in the share price. i.e. Apple (granted they also buy back shares).

Look at Berkshire’s dividend. Papa Warren has it at zero. Why? Because if gives his business the cash to do what it does. Simpol.

#109 Faron on 08.17.22 at 10:36 am

#104 the Jaguar on 08.17.22 at 9:14 am
#88 Sail Away on 08.16.22 at 11:05 pm
#117 the Jaguar on 08.16.22 at 6:59 pm
@ #116 Bandit’s Owner on 08.16.22 at 6:31 pm++

@#95 fishman on 08.17.22 at 12:19 am……….

Bolt the doors and windows fishman

Why? fishman is as incoherent as would be expected from a guy bathed in high CO diesel exhaust day in/day out. Can’t get worked up over lathered blather.

#110 Senator Bluto on 08.17.22 at 10:45 am

#95 fishman on 08.17.22 at 12:19 am
The Trumpster has now taken out three American political dynasties, Bush, Clinton & Cheney.
============================

You also need to add in the 14 Hoaxes that Leftists will swear are true because they only watch NBC/CNN.

Note that ALL of these hoaxes are proven hoaxes and are easily confirmed by watching the original video or reading the original unaltered transcripts.

The hoax was ALWAYS created by the editing.

https://twitter.com/ScottAdamsSays/status/1559894632800178176/photo/1

Once you see the “Hoax Pattern” and it’s foot soldier, the “Wrap Up Smear” you’ll recognize it in almost all MSM political stories.

They almost always follow the same pattern, starting with “Anonymous Sources” saying something unverifiable, followed by media amplification and then Bob Woodward trotting out to swear that this is “Worse than Watergate”. Same players, same writers, same message.

Very predictable and staged, and funny in a sad and depressing way once you realize it.

Not unlike watching 14 dark, mean, vicious, episodes of Teletubbies.

#111 Shawn on 08.17.22 at 10:48 am

Bank of Canada balance sheet shrivels

Check out the decline in the Bank of Canada’s balance sheet. Peaked $575 billion March 2021. Now down to $439 billion, a 24% decline! in 16 months! and the trend is down. At this rate they hit zero in four more years.

Where is the love from all those who hated the increase?

If the swelling balance sheet was printing money, then is this not the opposite? Is the Bank of Canada withdrawing liquidity? What do those things even mean?

Dear Bank of Canada haters, please explain if they are now on the right track.

https://www.bankofcanada.ca/rates/banking-and-financial-statistics/bank-of-canada-assets-and-liabilities-weekly-formerly-b2/

#112 Quintilian on 08.17.22 at 11:07 am

Julie, based on your profile and post, I think you need balance, but not in the sense as promoted by Garth.

You don’t need money advice; seems you are doing well with you satisfying your avarice.

You need to read Spinoza or Kierkegaard, and a sprinkling of Kant.
If that proves to be a bit too difficult, perhaps a contemporary such as Mitch Albom.

You do need some answers, but not from the finance committee.

#113 Gr on 08.17.22 at 11:12 am

Speaking of downward, just heading out to hopefully find some new unexplored cave entrances to explore with friend later. But first thought,

Some might find this interesting, perhaps fun, to contemplate. Includes original meaning of scholar, and has some nice photo clips too. From After Skool 13min

The Benefit of Living With No Purpose – Alan Watts
https://www.youtube.com/watch?v=dx4yW0mjezw&t=1s

#114 Dharma Bum on 08.17.22 at 11:45 am

#113 Gr

The Benefit of Living With No Purpose – Alan Watts

https://www.youtube.com/watch?v=dx4yW0mjezw&t=1s
———————————————————————————————————

Now you be speakin’ MY language!

Alan Watts was the greatest.

#115 Singles Unite on 08.17.22 at 12:04 pm

Garth is the king of advice for people who are single and want to remain as such for the remainder of their lives, eventually dying in a shoebox that they leased from someone else.

And just when you thought this blog could not sink lower. It did. – Garth

#116 Catalyst on 08.17.22 at 12:06 pm

Garth, how come you’re getting so riled up over a few hundred bucks to a well off person? You’re whole motto around taking CPP early is take government money when offered.

Plus, he’s probably not even coming out ahead as he’s loading more taxes payable into future years in his RRIF.

Plus, you got people making billions like buffet who joke about paying less (as a %) than their secretary but I don’t see them offering up 50% of their income every year to the alter of government coffers.

The world is basically a look out for #1 mode right now. As long as Jagmeet is using his office to rake in millions on instagram and JT has a motorcade of 50+ tanks to drive around the GTA, I cant get riled up by a few hundred bucks to some boomers.

#117 Steerage on 08.17.22 at 12:21 pm

Dave is basically immoral… .. GIS is for genuinely poor people.. how could anyone in good conscience game their finances to scoop that money.. shame.

I’m stunned anyone would pull such a stunt

#118 Ponzius Pilatus on 08.17.22 at 12:40 pm

#115 Catalyst on 08.17.22 at 12:06 pm
Garth, how come you’re getting so riled up over a few hundred bucks to a well off person? You’re whole motto around taking CPP early is take government money when offered.

Plus, he’s probably not even coming out ahead as he’s loading more taxes payable into future years in his RRIF.

Plus, you got people making billions like buffet who joke about paying less (as a %) than their secretary but I don’t see them offering up 50% of their income every year to the alter of government coffers.

The world is basically a look out for #1 mode right now. As long as Jagmeet is using his office to rake in millions on instagram and JT has a motorcade of 50+ tanks to drive around the GTA, I cant get riled up by a few hundred bucks to some boomers.
———————-
A few hundred bucks here, and a few hundred bucks there, and soon………
And BTW, JT, a leader of a G7 country makes a whopping 379 K.
I think, my doctor makes more.

#119 Sasha Povit on 08.17.22 at 1:09 pm

DELETED (Anti-vaccine)

#120 Bdwy on 08.17.22 at 1:29 pm

GIS is for genuinely poor people

……
The govt of Canada , on its overview of the program says its for everyone with an income below a certain level.

Seems exactly the same as oas to me.

Retire at 55. Use up registerd investments before 65. RE worth a few mil but produces no income. Sell some RE at 80 when tfsa and non reg run out.

Collect govt cheese. Oas and gic.

Any big gains/sales on non reg/non principal res would be income , ergo no gic for those years.

Are some suggesting that one should sell some realestate and restructure investments so as not to qualify?

From canada .ca…
Do you qualify for the Guaranteed Income Supplement
You may be able to get this benefit if:

you are 65 or older
you live in Canada
you receive the Old Age Security (OAS) pension
your income is below $20,208 if you are single, widowed, or divorced
your income plus the income of your spouse/common-law partner is below:
$26,688 if your spouse/common-law partner receives the full OAS pension

OAS is universal. GIS is for poor people. Having folks with a net worth in the millions apply is unseemly and greedy. – Garth

#121 Faron on 08.17.22 at 1:30 pm

#110 Senator Bluto on 08.17.22 at 10:45 am
#95 fishman on 08.17.22 at 12:19 am

Word of the day today is hoodwinked.

Let’s use it in a sentence. “Senator Bluto and Fishman have been hoodwinked by the Jones, Carlson, Bongino, Rogan, Gorka disinformation spewers.”

Another sentence: “Hoodwinking serves the far right by using cheats conspiracy theories backed by untestable and thereby flawed logic to manipulate the dolts produced by an eroded US (and increasingly Canadian) educational system to deliver the far right money and power.”

Let’s do another: “Because the hoodwinked cannot accept even the most basic, well documented and obvious factual information — such as that Trump lost the 2020 election or that Jan 6th was a we’ll orchestrated coup attempt — the likelihood of mending the rift between the hoodwinked and the rest of us is ~0.”

You’re welcome.

#122 Highlander on 08.17.22 at 1:51 pm

#115 Singles Unite
Garth is the king of advice for people who are single and want to remain as such for the remainder of their lives, eventually dying in a shoebox that they leased from someone else.

And just when you thought this blog could not sink lower. It did. – Garth
*******************
#115 If you truly believe that, then why are you following this blog? If you do not truly believe that, then why post such crap………either way you are less of a person for thinking\posting such garbage

#123 Bdwy on 08.17.22 at 2:04 pm

Fed to back off on hikes. Buy all the things? Good land included.

#124 Mattl on 08.17.22 at 2:04 pm

US retail report not great today. Full employment , zero growth.

The roaring 20s did come, and have passed.

I’m fairly confident consumer spending continues to erode which will put pressure on corps to cut. 1st inning folks, Q4 is when it gets interesting.

ps. i’m staying invested, this is not a call to go to cash although I will be rebalancing next week to get back to 10% cash for the inevitable sale coming up.

#125 Mattl on 08.17.22 at 2:11 pm

Regarding Dave and GIS, the most pathetic thing isn’t the taking of GIS, it’s having squirrelled away enough to have 3mm NW, utilizing GIC’s, and has no interest in anything other then a sweet long term care stay.

Left prob 1.5mm on the table, and is living like a poor person. Like come on man, you are saving to melt away on an old folks home. You have no hobbies or interest that require more then 26k a year?

#126 Dave is Bonkers on 08.17.22 at 2:24 pm

Accumulate $3.5M.. then do nothing with it…living like a pauper just so you can scoop GIS money from poorer old seniors… boggles the mind.. immoral and stupid.

Life is to be lived dudette.

#127 SHANE GALLANT on 08.17.22 at 2:27 pm

Garth, Would a commercial property in NS be a good investment? Or do you wait a bit for more of a down turn?

It’s all about cash flow. – Garth

#128 Bob on 08.17.22 at 2:27 pm

Since Dave is both unethical and immoral than maybe he should run for politics.

#129 jess on 08.17.22 at 2:35 pm

to the reference of a byrd’s song ….”Under heaven?
….why are humans below when our feet are already on it. ;)

summertime wrote: “Being ethical in an unethical world is a suicide.”
not according to rebranded political action committee , new PAC, Cheney will have a public forum for her campaign against Trump as vice chair of the committee investigating the former president’s role in the Capitol insurrection until she leaves Congress in January.
Cheney and her ,”Great Task ” “I will do whatever it takes” to deny Trump a return to the Oval Office.
==========

so does the newly elected President get to view what is on the server which contained be the “perfect phone call?”

On Jan. 19, the day before he left office, Mr. Trump sent a letter to David S. Ferriero, the archivist of the United States, naming seven senior officials as his representatives to handle all future requests for presidential records. They included Mark Meadows, his chief of staff, and several White House lawyers, including Pat A. Cipollone and Patrick F. Philbin.

In April, the Justice Department instructed the National Archives not to share any further details about the materials found at Mar-a-Lago with the House Oversight Committee, suggesting that the F.B.I. was in the preliminary stages of a criminal investigation.

are they on the footage
If he’d seen what Trump had in that storage room, Wheeler points out, Trump could be further criminally implicated. The same goes for Solomon: as a news writer, he would not have had clearance to view those documents.

Kash P. Patel/John Solomon — as “representatives for access to Presidential records of my administration.”
https://www.washingtonpost.com/politics/2022/08/15/trump-fbi-search-solomon-patel/?utm_source=rss&utm_medium=referral&utm_campaign=wp_politics

#130 The Awakened One on 08.17.22 at 9:41 pm

@ Dave, with 3-mil net worth.

Sounds like you’ve done great for yourself Dave. But I gotta say your moral values really reflect why we as a nation is not doing so great.. free-loading selfishly, doing things just good for ourselves and not caring about society.

The pyramid is already getting top-heavy with Canada’s population of Boomers.. who the hell will continue to carry on paying for the system in the next 10-20 years if everyone is free-loading?

Have some self-reflection man: even if it’s legal, doesn’t mean it’s the right thing to do. Think of those imbeciles following Putin’s orders now – it’s legal, isn’t it?

How about donating some to charities and health care, like the Guide Dogs Assn’t of BC and Alberta? You’ll get tax break for it :)

#131 DJT on 08.17.22 at 11:56 pm

Remember Biden just sold off US strategic petroleum reserve to try and save the Midterms. That was a month’s supply. Any pause in inflation is likely to be transitory.

#132 Prince Polo on 08.18.22 at 7:01 am

#86 Julie from the post on 08.16.22 at 10:06 pm
Therefore, the question becomes, is it sensible to use the remainder of my disposable income that I currently put towards investments towards a condo instead? Especially if said condo was being sold at a discounted price, and I’m being taxed at a relatively high rate.
I do appreciate my freedom and the flexibility afforded by not owning something that could be hard to sell in the future. It is, as suggested, an older building which has both pros (more solidly built, bigger units, etc.) and cons (expensive to maintain, risk of special assessments, etc.)
I appreciate all the input!

Not sure if Julie is still around. Perhaps you can speak more in-depth with Garth about investing in REITs or publicly-traded private equity companies (if you are looking for additional diversification). Tying yourself down to a discounted condo albatross (that will likely be difficult to sell later) is probably not the best use of available funds. Fortunately, the best problem in the world is having TOO MUCH cash and taxes to pay. :)

#133 chalkie on 08.18.22 at 3:17 pm

Julie, it sounds as if you are one or perhaps the only beneficiary of your parents’ estate, convince them to Sell publicly and wait it out, let the profits of the sell make its rounds and perhaps you get to keep your 450K and your parents 500 K in the end. Convince your parents to invest in a good sound private Reit, they should easily be able to pay their rent in an apartment with the monthly dividends and most often get a nice bonus a couple times a year, plus you don’t have to worry about any yearly taxes, at least for 10 plus years.