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Maybe they realize that the end of capitalism is nigh and they want to get their fun in before they meet their ignoble end in a mass grave.
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# ? Sep 27, 2014 06:00 |
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# ? May 13, 2024 09:35 |
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ductonius posted:Accounting for compound interest and a very modest 5% return (historically, returns on capital have been around 9%) with 2% inflation, if you saved 800,000 of your income over 7 years, you'd get to about $877k in your seventh, and you would most certainly have over $1,000,000 in your eighth. In just under a decade, you could have $1.3 million in equity and four years after that have just shy of $2mil (assuming you saved as consistently as you had). All figures in today's dollars, adjusted for inflation. Did you even read the post? Taxes take you down to ~110k. Spending money on things like rent, a car, a spouse/children, and food probably takes you to something around 70-80k assuming a reasonable level of frugality. That + investments gets you to the number that he mentions. Saving 800k of your income over 7 years is not reasonable on a 165k pretax salary. Jobs that pay in the 165k range typically are situated in high CoL areas. Your coworkers generally will spend money like crazy, and while imitating their spending habits is generically poor, you probably will want to partake in some number of the expensive activities that they do, because they help you climb the corporate ladder within the company (people who nobody likes have a hard time getting promoted) and also help you build up a professional network.
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# ? Sep 27, 2014 06:11 |
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Expensive hobbies and activities ain't poo poo compared to the cost of kids. You could even buy a plane, get a pilots license, and fly regularly for less than the cost of a child. DINK couples can elect to live in a studio apartment all their lives, which drastically cuts living expenses as well.
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# ? Sep 27, 2014 06:14 |
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on the left posted:Expensive hobbies and activities ain't poo poo compared to the cost of kids. You could even buy a plane, get a pilots license, and fly regularly for less than the cost of a child. DINK couples can elect to live in a studio apartment all their lives, which drastically cuts living expenses as well. Sure, I agree -- kids cost a lot of money. But it's not like a DINK couple can live in a high CoL area on $2k combined per month either. $3k a month is a pretty low bound for two people that aren't eating lentils.
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# ? Sep 27, 2014 06:23 |
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ductonius posted:Accounting for compound interest and a very modest 5% return (historically, returns on capital have been around 9%) with 2% inflation, if you saved 800,000 of your income over 7 years, you'd get to about $877k in your seventh, and you would most certainly have over $1,000,000 in your eighth. In just under a decade, you could have $1.3 million in equity and four years after that have just shy of $2mil (assuming you saved as consistently as you had). All figures in today's dollars, adjusted for inflation. If we're going to do ridiculous hypothetical math lets at least do the right math. You'd save at best 74k a year over that period, not $110,000. blah_blah posted:Did you even read the post? Taxes take you down to ~110k. Spending money on things like rent, a car, a spouse/children, and food probably takes you to something around 70-80k assuming a reasonable level of frugality. That + investments gets you to the number that he mentions. Saving 800k of your income over 7 years is not reasonable on a 165k pretax salary. So, what he said.
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# ? Sep 27, 2014 07:59 |
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I'm assuming their house has a market value of $800k, and they didn't take out their original mortgage on it for $800k. Because who the gently caress would give somebody an $800k loan on $165k income? Especially when you consider their credit card debt, that mystery loan, student loans. Once you factor in their line of credit, their monthly debt-to-income is 48 loving %. Are you goddamn kidding me? Oh, and kids can pay for their own loving cellphones by mowing lawns, shoveling snow, and raking leaves. When I was 12-14 I pulled in roughly $150 a month doing simple poo poo like this a few hours a week. Kids, if they need loving phones (they don't), don't need iPhones, they need burners and prepaid cards, and they can pay their own bills. If they've got a problem with that, they can pound sand.
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# ? Sep 27, 2014 15:13 |
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# ? Sep 27, 2014 15:48 |
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Grand Theft Autobot posted:I'm assuming their house has a market value of $800k, and they didn't take out their original mortgage on it for $800k. Because who the gently caress would give somebody an $800k loan on $165k income? Especially when you consider their credit card debt, that mystery loan, student loans. Once you factor in their line of credit, their monthly debt-to-income is 48 loving %. Are you goddamn kidding me? Similar to the USA the current bubble is driven by lax credit underwriting standards since everyone should have a house. Until fairly recently you could also get a CMHC backed loan for a second home too. etalian fucked around with this message at 16:32 on Sep 27, 2014 |
# ? Sep 27, 2014 15:50 |
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Yeah, but how many people put 20% down these days? I would hope - though I'm certain this thread will crush it - if you've got the scratch for a 20% downpayment you can afford the payments on a 20- or 25-year amortization.
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# ? Sep 27, 2014 16:52 |
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Albino Squirrel posted:Yeah, but how many people put 20% down these days? Another sign of a nice bubble is people avoiding big down payments due to credit being so cheap.
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# ? Sep 27, 2014 17:08 |
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Albino Squirrel posted:Yeah, but how many people put 20% down these days? If I sold my townhouse, it would form a 20% down payment on something I couldn't really afford. The 30-35 year amortization would make the monthly possible I assume.
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# ? Sep 27, 2014 17:23 |
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ocrumsprug posted:If I sold my townhouse, it would form a 20% down payment on something I couldn't really afford. The 30-35 year amortization would make the monthly possible I assume. Yeah longer loan periods means lower montyhly payments but you give more interest money to the bank
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# ? Sep 27, 2014 17:33 |
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etalian posted:Yeah longer loan periods means lower montyhly payments but you give more interest money to the bank If you gain income over time (or if the higher payments are more of a burden when you start the loan) you can start out with a 30 year loan and then refinance into a 20 year, at least if it's like the US. This was especially a good idea to do around 2009-2010 because interest rates were incredibly low.
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# ? Sep 27, 2014 17:39 |
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Sassafras fucked around with this message at 07:01 on Oct 3, 2014 |
# ? Sep 27, 2014 19:38 |
Sassafras posted:According to affordability calculators, "everybody". Put a single income of 165k in this affordability calculator and it spits back a max purchase price of 1.4 million, (1.123m loan). 800k loan? They're being downright responsible! Affordability calculators on the internet have absolutely no relevance to the ones the banks actually use. My husband was a mortgage broker in Australia, which is currently in the same sort of property bubble as Canada. He would constantly get people coming in going "oh well I know you said the banks will only lend us up to $700k but we found this caculator online that said we could afford $1.3 million so we went ahead and put an offer on a 1.4 million property because it's our dream home" That affordability calculator is ridiculous, it's based on 1/3 of your gross income (pre-tax) and factors in nothing at all.
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# ? Sep 27, 2014 20:14 |
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Yeah I went through a bunch of those back when I wanted a condo and they all told me we could afford a 300k ish condo on like a 28 and 40k income.
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# ? Sep 27, 2014 21:33 |
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Yeah, I have friends who want to buy a place that, coupled with existing debt, would take them to the fha 45% limit. 45% loving percent of their pre-tax income going to debts, before they even factor in actually living in the goddamn thing, and fixing poo poo, and driving downtown to work each day from their hellish bedroom community.
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# ? Sep 28, 2014 00:27 |
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Grand Theft Autobot posted:Yeah, I have friends who want to buy a place that, coupled with existing debt, would take them to the fha 45% limit. 45% loving percent of their pre-tax income going to debts, before they even factor in actually living in the goddamn thing, and fixing poo poo, and driving downtown to work each day from their hellish bedroom community. So what have you been telling them? Are you avoiding telling them not to buy?
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# ? Sep 28, 2014 00:39 |
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Cultural Imperial posted:So what have you been telling them? Are you avoiding telling them not to buy? I tell him, as the owner of a comparatively extremely affordable house, to "Do Never Buy" on a loving weekly basis.
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# ? Sep 28, 2014 00:48 |
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I've stopped even telling people not to buy. If they ask my opinion I'll even avoid it. I always try to frame it as "I wouldn't buy in this market right now" ie not "YOU shouldn't buy in this market" because people get really really weirdly defensive about home buying. Like once they've crossed that line and decided it's a thing they want, there's no talking them out of it. Yet they have to ask everyone if it's a good idea, but they only want to hear that yes it's a great time to buy and build equity and get out of rental slavery. If you don't get excited and tell them that's awesome and they're making a great choice they either accuse you of being jealous, a "housing crash conspiracy nut", or "well my mother in law's sister is a realtor and she disagrees with everything you've said". I don't argue though. I just say "Ok, I'm just saying _I_ wouldn't buy in this market." It's weird because the moment they finally meet someone who says it's a bad idea they will then keep coming back to you trying to "prove" you wrong, like they can't handle that there's any dissenting opinions.
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# ? Sep 28, 2014 01:06 |
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I've got an acquaintance who's an urban planner in surrey and a huge new urbanism shithead. I guess that's why he bought an apartment near main st in 2010 and drives to work every day. I see him once in a blue moon and he's always asking me where I'm living and assumes that I bought my place. He knows my income significantly higher than his and is noticeably confused and worried when I tell him no.
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# ? Sep 28, 2014 01:12 |
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Sassafras posted:According to affordability calculators, "everybody". Put a single income of 165k in this affordability calculator and it spits back a max purchase price of 1.4 million, (1.123m loan). 800k loan? They're being downright responsible! The affordability calculator doesn't take into account things like the couple's horrible spending habits. It's pretty much using the 30 percent rule without looking at things like after tax income or pre-existing debt load. etalian fucked around with this message at 02:39 on Sep 28, 2014 |
# ? Sep 28, 2014 02:35 |
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http://business.financialpost.com/2014/09/27/first-time-homebuyers-are-feeling-the-weight-of-canadas-housing-boom/quote:First-time homebuyers are feeling the weight of Canada's housing boom This home buyer's plan, gently caress that poo poo. Also, just loving burn Vancouver to the ground and lay a trail of crucified realtors and mortgage brokers to victoria, pointing in the direction of the legislature. We need a year zero. quote:
This is the biggest loving load of BS I think I've ever loving seen in print. Yeah, SOME PEOPLE SHOULD loving BUY NOW BUT HERE'S WHAT'S GONNA HAPPEN TO THE HOUSING MARKET SO SOME PEOPLE SHOULD SIT THIS poo poo OUT AND UH gently caress you sadiq you loving piece of poo poo namaste friends fucked around with this message at 04:34 on Sep 28, 2014 |
# ? Sep 28, 2014 04:19 |
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Can you guys tone it down a bit? You come off as sky-is-falling idiots. People should have budgets and spend responsibly but it doesn't warrant the spiteful hate and exasperated incredulousness.
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# ? Sep 28, 2014 05:49 |
Cultural Imperial posted:This is the biggest loving load of BS I think I've ever loving seen in print. Yeah, SOME PEOPLE SHOULD loving BUY NOW BUT HERE'S WHAT'S GONNA HAPPEN TO THE HOUSING MARKET SO SOME PEOPLE SHOULD SIT THIS poo poo OUT AND UH
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# ? Sep 28, 2014 06:10 |
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Canada Housing Bubble: One Man's decent into incomprehensible range. PS the market is frothy right now
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# ? Sep 28, 2014 06:14 |
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HookShot posted:Uh if you bothered to read the article instead of angrily hitting your keyboard and hoping it made words you'd realize Sadiq thinks young people shouldn't be buying now. I'm angrily hitting the keyboard precisely because he thinks the conditions under which young people should not be buying doesn't apply to those people who "should be taking advantage of low interest rates". That's the most loving baldfaced lying I've ever seen typed out by some guy who has a loving C in his job title e: you're absolutely correct, i can't read namaste friends fucked around with this message at 06:47 on Sep 28, 2014 |
# ? Sep 28, 2014 06:17 |
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Cultural Imperial posted:I'm angrily hitting the keyboard precisely because he thinks the conditions under which young people should not be buying doesn't apply to those people who "should be taking advantage of low interest rates". That's the most loving baldfaced lying I've ever seen typed out by some guy who has a loving C in his job title He didn't say that.. its the author, hes advising first time home buyers to wait till house prices crater because he thinks they will before interest rates rise.
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# ? Sep 28, 2014 06:24 |
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i've lost my mind
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# ? Sep 28, 2014 06:25 |
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Cultural Imperial posted:Also, just loving burn Vancouver to the ground and lay a trail of crucified realtors and mortgage brokers to victoria, pointing in the direction of the legislature. We need a year zero. You're ok in my book.
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# ? Sep 28, 2014 07:14 |
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ocrumsprug posted:You're ok in my book.
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# ? Sep 28, 2014 14:03 |
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guys chill. We're all cool here. No subprime here. http://conservatorygroup.ca/properties/the-infinity-condominiums-phase-3/#content
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# ? Sep 28, 2014 22:30 |
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Cultural Imperial posted:i've lost my mind That's okay, because you just gave us this: Cultural Imperial posted:Also, just loving burn Vancouver to the ground and lay a trail of crucified realtors and mortgage brokers to victoria, pointing in the direction of the legislature. We need a year zero. If only the rage you felt could be felt across our nation, so that we might understand our illness.
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# ? Sep 28, 2014 22:49 |
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Was hanging out with my parents' realtor who's a family friend from SE Asia. I asked him why we don't see any listings in MLS for the Potemkin Village. He confirmed (as was previously explained here) that developers are engaging realtors directly with wine and cheese events, giving them 'exclusive' access to the stocks of units. Apparently the prices are quite variable for the inventory, which is part of the reason they don't list them. It seems that developers don't really know how to price their units.
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# ? Sep 28, 2014 23:35 |
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peter banana posted:guys chill. We're all cool here. No subprime here. Preserving this for posterity.
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# ? Sep 28, 2014 23:38 |
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Connected to the PATH** ** not actually connected to the PATH.
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# ? Sep 29, 2014 00:13 |
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etalian posted:It's pretty much using the 30 percent rule without looking at things like after tax income or pre-existing debt load. Which is stupid but its by playing such dumb word games and being dishonest that they've been able to confuse and misinform people on how much they can afford.
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# ? Sep 29, 2014 00:26 |
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http://www.thestar.com/business/real_estate/2014/09/26/the_lawyer_who_is_taking_on_torontos_condo_developers.htmlquote:
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# ? Sep 29, 2014 01:14 |
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188 pages and here's what I've learned: loving Vancouver man. God drat those rich Chinese people buying out Vancouver. loving baby boomers man. God drat Vancouver, I hate you. Student debts a birch up the butt. How about we hate on Toronto now? I love how the commuter cities have insane rent and house prices...
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# ? Sep 29, 2014 04:17 |
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# ? May 13, 2024 09:35 |
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Defenistrator posted:188 pages and here's what I've learned: Cultural Imperial posted:i've lost my mind But no, I think the thread regularly discusses Toronto (see the last few posts).
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# ? Sep 29, 2014 05:55 |