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Condo market report from a REALTOR (TM). http://www.shuchatgroup.com/blog.mobi/vancouver-condo-market-reportcode:
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Jan 13, 2014 21:04
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Nice chart. That investment advice thread from last page was hilarious: Poster 1: Your ROI would be better if you just put your money into a thrift savings account. OP: But CHINESE INVESTORS and PICTURESQUE MOUNTAINS Poster 2: Income levels in Vancouver don't support this gasbag of a real estate market OP: PICTURESQUE MOUNTAINS!!!!!
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Jan 14, 2014 21:41
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TD's [retiring] CEO Ed Clark: banks ought to be worrying about real estate. http://m.theglobeandmail.com/report...b+Article+Links Welp.
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Jan 15, 2014 03:45
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This cbc video is hilarious. http://www.cbc.ca/news/canada/canadian-home-prices-rise-prompting-creative-solutions-1.2496971 and by hilarious i mean sad
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Jan 15, 2014 07:41
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Cultural Imperial posted:This cbc video is hilarious. That could've been a propaganda piece for CREA. Absolutely no nuance or attempt to place within historical or international contexts.
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Jan 15, 2014 14:11
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The CBC and Globe seem to be internall split on home reporting. Kirk Williams at CBC Vancouver is one of the worst loving housing reporters but I guess that's to be expected when his husband works in real estate. That old guy who write economy articles in the globe in nuggets of poo poo is obviously banking his retirement on housing. I really like watching The National's economics panel, especially when they have Preet Bannerjee and Amanda Lang on.
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Jan 15, 2014 18:40
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I hope all y'all are maxing out your RRSP contributions. http://business.financialpost.com/2014/01/15/jan-15-pay-off-your-debts-or-make-an-rrsp-contribution/?__lsa=15b3-d6b2 quote:A recent poll from Bank of Nova Scotia finds only 31% of Canadians plan to contribute to an RRSP, down from 39% just a year earlier. The same poll found 74% feel they can’t afford to make a contribution.
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Jan 15, 2014 18:48
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I think a lot of people assume the government will basicaly take care of them at the minimum in retirement, and personal retirement savings is just 'extra' for luxuries and stuff. Why do I need to have an RRSP I don't need to go on European cruises and poo poo when I'm retired!
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Jan 15, 2014 18:51
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Interesting fact.quote:It seems every quarter there’s a new headline stating Canadians are deeper in debt than ever before. Statistics Canada said in December household debt had reached 163.7% of disposable income in the third quarter — a record. Also, this is one of the most terribly constructed paragraphs I've ever read in a national newspaper.
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Jan 15, 2014 18:53
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Baronjutter posted:I think a lot of people assume the government will basicaly take care of them at the minimum in retirement, and personal retirement savings is just 'extra' for luxuries and stuff. Why do I need to have an RRSP I don't need to go on European cruises and poo poo when I'm retired! Need money? Just take out a reverse mortgage lol CBC newsworld needs to go to hell for packing in all these loving shyster financial ads.
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Jan 15, 2014 18:54
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Cultural Imperial posted:I hope all y'all are maxing out your RRSP contributions. There's also $5500 of TFSA contributions per year that I doubt anyone but the most wealthy are maxing out. Also I'm kind of busy spending most of my meager income on rent and apparently the rest of the country is doing the same for rent or mortgage
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Jan 15, 2014 18:55
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Cultural Imperial posted:Need money? Just take out a reverse mortgage lol That's the scary thing, it seems basically every of my parents generation retirement plan is their house value. They can't afford to save for retirement because their mortgage and general living expenses are so high. If that poo poo crashes when they are needing to retire or when they need the money from their house they are hosed. "My house value" really seems to be a huge amount of people's retirement plan and it scares the poo poo out of me. For their sake and for mine since their financial mismanagement and resulting bailout is going to most likely gently caress my chances of ever seeing a penny of my government pension.
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Jan 15, 2014 18:58
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It is pretty alarming how ill-prepared some people are for retirement. My mom owns her house outright, has been contributing the max to an IRA since basically 1975, has an employer pension, and has a 401k with some outrageous total she's yet to reveal to me. My mom-in-law doesn't know what an IRA is, has no savings of any kind, and her employer doesn't offer a pension. She also has roughly $40k in student loans and about 15 years to retirement. Her retirement plan is basically: Live in Grand Theft Autobot's garage loft.
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Jan 15, 2014 19:02
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My wife and I are already supporting one set of parents. I expect we'll have to do the same for the other before the decade is out. As immigrants they didn't have enough work history to get much canadian pension. So yeah, saving for kids college, saving for your own retirement, and saving for your parents' retirement. :iamafag:
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Jan 15, 2014 19:14
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Baronjutter posted:That's the scary thing, it seems basically every of my parents generation retirement plan is their house value. They can't afford to save for retirement because their mortgage and general living expenses are so high. If that poo poo crashes when they are needing to retire or when they need the money from their house they are hosed. "My house value" really seems to be a huge amount of people's retirement plan and it scares the poo poo out of me. For their sake and for mine since their financial mismanagement and resulting bailout is going to most likely gently caress my chances of ever seeing a penny of my government pension. There's no problem, you just pay off your mortgage and watch your house appreciate at 5%+/yr and then when you retire you sell up and retire to some quiet little hamlet with good amenities where house price inflation hasn't yet caught up with that in [metropolitan area where you used to live]. Your retirement fund is the difference between the inflated price of your old house and the uninflated price of your new house. It's pretty much foolproof. I mean, what could possibly go wrong?
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Jan 15, 2014 19:18
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Fuzzy Mammal posted:My wife and I are already supporting one set of parents. I expect we'll have to do the same for the other before the decade is out. As immigrants they didn't have enough work history to get much canadian pension. So yeah, saving for kids college, saving for your own retirement, and saving for your parents' retirement. :iamafag: Whoa dude, exactly what do you mean by supporting? I'm asking because I'm assuming this set of parents are still able bodied.
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Jan 15, 2014 19:21
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Cultural Imperial posted:Whoa dude, exactly what do you mean by supporting? I'm asking because I'm assuming this set of parents are still able bodied. Probably exactly what it sounds like. I have a number of acquaintances whose parents are flat broke, retired and either currently are or soon to be financially dependent on their children. Thanks god my parents got religion about retirement planning 20 years ago. (I hope.)
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Jan 15, 2014 21:37
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Cultural Imperial posted:This cbc video is hilarious. What the gently caress, "the selected item is not currently available"? It didn't stop you displaying those stupid ads to me, did it? loving pricks.
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Jan 15, 2014 21:54
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Cultural Imperial posted:This cbc video is hilarious. Ahahaha! Yes, your $1200/month in basement suite rental income (more like $900 after maintenance, vacancy, tax, etc) is totally gonna help you out with the $5-8K/month you'll be paying on your $1.2m mortgage. How do they manage to present this stuff with a straight face?
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Jan 15, 2014 22:02
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Don't be silly. No one pays tax on the rental revenue from their lovely basements.
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Jan 15, 2014 22:05
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Lexicon posted:Don't be silly. No one pays tax on the rental revenue from their lovely basements. To be fair, you do need to be in the black for there to be income to pay taxes on. Not that they would pay them taxes if they didn't have a mortgage, or pay the city for the permits and licenses that rentals are required to have. ocrumsprug fucked around with this message at 22:27 on Jan 15, 2014 |
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Jan 15, 2014 22:23
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ocrumsprug posted:Probably exactly what it sounds like. I have a number of acquaintances whose parents are flat broke, retired and either currently are or soon to be financially dependent on their children. Yeah pretty much. It'll be more and more common as the boomers get into retirement.
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Jan 15, 2014 22:31
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ocrumsprug posted:To be fair, you do need to be in the black for there to be income to pay taxes on. I'm pretty sure you are obliged to pay taxes on rental income at your full marginal rate, regardless of whether you have a mortgage or not. Not that anyone does, of course.
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Jan 15, 2014 22:47
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Lexicon posted:I'm pretty sure you are obliged to pay taxes on rental income at your full marginal rate, regardless of whether you have a mortgage or not. Yes, but you get to deduct all of your expenses need to obtain that rent. I would imagine that if you are renting at a loss, it should be fairly trivial to get net rental income to be $0. ocrumsprug fucked around with this message at 23:35 on Jan 15, 2014 |
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Jan 15, 2014 23:33
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In the US you can also count capital depreciation of 1/27th the assessed value of the property against your income, plus mortgage interest, plus upkeep & expenses. It's nice. vv depends on your perspective of course. Fuzzy Mammal fucked around with this message at 00:01 on Jan 16, 2014 |
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Jan 15, 2014 23:41
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Fuzzy Mammal posted:In the US you can also count capital depreciation of 1/27th the assessed value of the property against your income, plus mortgage interest, plus upkeep & expenses. It's nice. That sounds like the opposite of nice.
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Jan 15, 2014 23:52
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Lead out in cuffs posted:Ahahaha! Yes, your $1200/month in basement suite rental income (more like $900 after maintenance, vacancy, tax, etc) is totally gonna help you out with the $5-8K/month you'll be paying on your $1.2m mortgage. How do they manage to present this stuff with a straight face? I love the home builder guy, "I don't think there's a ceiling" etalian fucked around with this message at 02:38 on Jan 16, 2014 |
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Jan 16, 2014 02:34
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There's a thread in the personal finance section of RFD called "RRSPs are for people who plan to be poor when they retire" and I'm saving it for a day when I have popcorn and half an hour to kill making myself feel better about myself by reading the red flag deals personal finance forum.
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Jan 16, 2014 03:39
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It's been a while since I've gone to RFD as I don't live in Canada right now, but the title is exactly right? The point of RRSPs is to reduce one's tax liability when one is at a higher income bracket, and move income to a point in life when one's overall income is in a lower tax bracket. Since RRSP contribution room carries forward, it makes little sense for young people to put money into them at earlier, lower wage stages in their life.
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Jan 16, 2014 04:13
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Throatwarbler posted:It's been a while since I've gone to RFD as I don't live in Canada right now, but the title is exactly right? The point of RRSPs is to reduce one's tax liability when one is at a higher income bracket, and move income to a point in life when one's overall income is in a lower tax bracket. Since RRSP contribution room carries forward, it makes little sense for young people to put money into them at earlier, lower wage stages in their life. Except that those tax savings can themselves be invested and begin earning compounded returns immediately. If anything, it's more akin to an interest-free loan you invest now in addition to the prospect of being able to pay less in taxes than you "borrowed" by deducting your contributions. Edit: Also the adage that "Money now is worth more than money later"
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Jan 16, 2014 04:23
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Oh man rfd.
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Jan 16, 2014 04:37
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PhilippAchtel posted:Except that those tax savings can themselves be invested and begin earning compounded returns immediately. If anything, it's more akin to an interest-free loan you invest now in addition to the prospect of being able to pay less in taxes than you "borrowed" by deducting your contributions. This is a derail, but... you realize that regardless of the order you multiple and divide a number, you come up with the same end result, right? And that you're converting what would be capital gains (taxed less) into income, so you're generally being less efficient and paying MORE taxes, indeed ironic if your objective is to just "compound returns". How is $1000 (pretax, RRSP$) * 1.08^20 * .65[tax] (when taken out) any different than 1000 * .65[tax] (money you've paid tax on and now invested in a regular investment account) * 1.08^20 any different? (It's not). The 'rebate' you get from RRSP contributions just ensures that this formula works out- if you invest the rebate, you aren't getting free money, you're investing pre-tax money. RRSPs only make sense when you are pretty certain you are contributing to them in a year in which you will earn less money than the year you will withdraw them fro the RRSP. They are there to normalize your tax burden, at the cost of converting capital gains and eligible dividends into regular income. I'm 27 and I earn 60k/yr and I don't contribute a cent to my RRSP. I am saving the RRSP room for when my tax bracket is higher than it is now- I don't even think my tax bracket will be lower than it is now in retirement, at my current pace of savings. I contribute instead to my TFSA (maxed) and a taxable account, which I don't really pay any taxes on because it's almost all Canadian eligible dividends at this point. Just because it has retirement in its name does not necessarily mean it's the best place to put your money for retirement. A tax free savings account is also not just a savings account for cash, it's pretty amazing for investments. rhazes fucked around with this message at 05:11 on Jan 16, 2014 |
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Jan 16, 2014 05:09
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rhazes posted:This is a derail, but... you realize that regardless of the order you multiple and divide a number, you come up with the same end result, right? And that you're converting what would be capital gains (taxed less) into income, so you're generally being less efficient and paying MORE taxes, indeed ironic if your objective is to just "compound returns". You have it right. Anyone adding to an RRSP who doesn't also receive a substantial tax reduction in the year of contribution due to their already high income has failed to understand the mathematics and/or taxation rules.
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Jan 16, 2014 05:42
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I'm in a similar boat. I have an employer defined-benefit pension, max my annual Roth IRA, and put a few grand in a 457, which I plan to work towards the max as my salary increases. Including my wife's savings, my household saves roughly 23% of our income toward retirement. This might be a little overkill given that we're in our late 20's, but we'll say the Great Recession has made me a thrifty motherfucker.
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Jan 16, 2014 06:05
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Jesus christ guys. How old are you? I'm guessing nowhere near 40. How have you subjected yourselves to the realization that you won't be making more money by the time you're ready to retire? Where the gently caress do you all live because if 60k/year is all you can hope for by retirement, you need to loving move.
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Jan 16, 2014 06:29
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Where do you move in the country with median total income barely above 30k?
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Jan 16, 2014 08:52
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iv46vi posted:Where do you move in the country with median total income barely above 30k? Sadly, if I were a new grad, Saskatchewan or Alberta.
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Jan 16, 2014 09:27
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PSA: there is a Canadian personal finance thread: http://forums.somethingawful.com/showthread.php?threadid=3569987&perpage=40&pagenumber=18
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Jan 16, 2014 12:45
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My retirement plan is a combination of my works DC pension plan and working until I can't and then being poor.
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Jan 16, 2014 14:36
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Cultural Imperial posted:Jesus christ guys. How old are you? I'm guessing nowhere near 40. How have you subjected yourselves to the realization that you won't be making more money by the time you're ready to retire? Where the gently caress do you all live because if 60k/year is all you can hope for by retirement, you need to loving move. Right, I plan on retiring at a high tax bracket, so I'm making Roth contributions today at a much lower tax bracket. Is a TFSA the Canadian Roth IRA?
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Jan 16, 2014 15:13
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