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http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/when-should-millennials-buy-a-house/article21243985/quote:It took just six words for a financial planner who thinks millennials are maxxed out on debt to demolish one young man’s plan to buy a house.
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# ? Oct 23, 2014 20:57 |
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# ? May 10, 2024 06:58 |
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Btw, in case you didn't already know this, the above article was written by Rob Carrick, a man that Brad J. Lamb the condo king has described as dispensing 'moronic' advice. That's how you know Carrick knows what he's talking about.
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# ? Oct 23, 2014 21:09 |
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I never read Garth Turner because he's a loving moron. I had no idea he was this loving dumb: http://www.greaterfool.ca/2014/10/21/darwin-2/ quote:Almost nine million people born yesterday (between 1981 and 2000) which is roughly equal to the number of wrinkly Boomers. Incredibly, half of the M-people still live with their parents, and about a million of them who could work, don’t. Six years ago, the number living at home was just a third. Go figure. And that's all you need to know about Garth Turner. Young people aren't working because they're lazy.
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# ? Oct 23, 2014 21:19 |
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You maybe reading more into his tone than is really there, though he does have a drunk uncle style of writing. 50% of Spanish youth could, but don't, work. It is more that there isn't work than laziness. The over-educated kids working at my morning coffee shop aren't lacking ambition either.
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# ? Oct 23, 2014 21:39 |
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Lexicon posted:How do these folks raise the capital for the loans?
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# ? Oct 23, 2014 21:43 |
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I love Garth Turner's style, even if I disagree with his point of view fairly often. He treats all demographics with contempt and opprobrium, not just millennials.
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# ? Oct 23, 2014 21:48 |
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I got the sense that he was sympathizing with us, the last line seems to really nail that for me. We're supporting the sweet, sweet retirements of Boomers, but we'll be hosed when we get there. He wrote a column a while ago about good investing advice for Millennial. I think he thinks it sucks Millennial can't find jobs and how that's loving our country up.
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# ? Oct 23, 2014 21:48 |
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Cultural Imperial posted:I never read Garth Turner because he's a loving moron. I had no idea he was this loving dumb: Uhh...? He comes across as a total rear end in a top hat, but he mocks the idea that millenials should invest in real estate, rightly so, because its a terrible loving investment. I've never read his other stuff, and don't really intend to, but the article you link states: quote:Some months ago I gave you a Millennial Portfolio. It was met with thunderous neglect. So let’s try again. I mean, its not the best advice - ETFs have their issues - but its better advice than "buy a house".
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# ? Oct 23, 2014 22:00 |
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Laphroaig posted:I mean, its not the best advice - ETFs have their issues - but its better advice than "buy a house". So what characterizes the best advice in your estimation, then?
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# ? Oct 23, 2014 22:14 |
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Cultural Imperial posted:http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/when-should-millennials-buy-a-house/article21243985/ Rental income should be considered "extra" income, and definitely shouldn't be part of the home affordability calculation. melon cat fucked around with this message at 14:48 on Oct 24, 2014 |
# ? Oct 23, 2014 22:21 |
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peter banana posted:I got the sense that he was sympathizing with us, the last line seems to really nail that for me. We're supporting the sweet, sweet retirements of Boomers, but we'll be hosed when we get there. To me the tone was that millenials are just not working because they don't have to, and this was going to screw them and everyone else.
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# ? Oct 23, 2014 22:26 |
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melon cat posted:I don't understand why people think that renting out a room/their basement is a fool-proof way to reduce their mortgage burden. Sometimes renters leave abruptly during a bad time of the season, so your room is empty for a few months. Or sometimes they just stop paying rent, or can't pay it in full, or they're late. Or sometimes your get a bad tenant who damages the property, leaving you to foot an expensive refurnishing/remodelling bill. I had an investment property and ran into all of these problems. Anyone who thinks that renting out their room makes things "safer" for them needs to have their head examined. agree 100%
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# ? Oct 23, 2014 22:27 |
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Lexicon posted:So what characterizes the best advice in your estimation, then? Off the top of my head? A bit hard, since I am not an expert on Canadian tax law and I'm probably missing whatever various loopholes you crazy moose-wranglers have. but: quote:Second, these savings accounts are not for savings. Get out of the bank or the orange marmalade outfit and into a place where you can hold a bunch of low-cost ETFs – exchange-traded funds. Divide your money into five piles and buy a fund holding the TSX 60, another containing the S&P 500, one with a basket or preferreds, one comprised of a bundle of REITs and the last containing a good mix of bonds. Now you have balance, diversity and liquidity. ETFs are not something I would recommend without reservation - take a look at one of the best industry pages for ETFs, http://www.etf.com/etf-education-center/21004-what-risks-are-there-in-etfs.html This gives a good skivvy on it. ETFs have tax advantages, but there are risks. The difference between one ETF offering, say, the S&P 500 and another ETF offering the S&P 500 could be a lot of percentage points. The example the link above gives is "Last year, for instance, the difference between the best-performing "biotech" ETF and the worst-performing "biotech" ETF was more than 18 percent." Again, a lot depends on your Canadian tax vehicles, and whatever government sponsored dodges are popular. In the US for example, the Mortgage Income Tax Deduction is a MASSIVE federal subsidy to home ownership worth between about 70 to 100 billion annually. This is kinda off-topic but basically, real estate is not a good investment, unless you buy real estate under which is oil or gold, other mineral wealth etc, that other people do not know about, and your purchase includes rights to said mineral wealth etc.
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# ? Oct 23, 2014 22:53 |
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Lexicon posted:I love Garth Turner's style, even if I disagree with his point of view fairly often. He treats all demographics with contempt and opprobrium, not just millennials. Yeah this. He was throwing out some dumb memes (like that owning a smart phone is somehow an indicator of economic status), but it didn't seem too dumb otherwise. Laphroaig posted:This is kinda off-topic but basically, real estate is not a good investment, unless you buy real estate under which is oil or gold, other mineral wealth etc, that other people do not know about, and your purchase includes rights to said mineral wealth etc. That is the exact opposite of off-topic. The fact that real estate is a terrible investment, and the popular narrative asserting the contrary, is exactly the topic of this thread.
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# ? Oct 23, 2014 23:29 |
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http://www.smh.com.au/world/australia-set-to-seize-assets-of-corrupt-chinese-officials-20141020-118kl3.html#ixzz3Gw8nRrJiquote:Beijing: The Australian Federal Police are poised to seize assets of corrupt Chinese officials within weeks, in an unprecedented joint operation with their Chinese counterparts. GO AUSTRALIA GO
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# ? Oct 23, 2014 23:38 |
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Laphroaig posted:This gives a good skivvy on it. ETFs have tax advantages, but there are risks. The difference between one ETF offering, say, the S&P 500 and another ETF offering the S&P 500 could be a lot of percentage points. The example the link above gives is "Last year, for instance, the difference between the best-performing "biotech" ETF and the worst-performing "biotech" ETF was more than 18 etc. Somewhat off topic, but it's fairly easy to lookup the tracking error for different ETFs.
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# ? Oct 24, 2014 01:08 |
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Saltin posted:In the US they are starting to put immobilizers in cars and turning them off when people are delinquent. I've only ever heard this as a proposal or maybe a prototype, and the reaction to them has been pretty negative. What cars actually have these?
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# ? Oct 24, 2014 02:53 |
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Freakazoid_ posted:I've only ever heard this as a proposal or maybe a prototype, and the reaction to them has been pretty negative. What cars actually have these? All it will take is 1 malfunction that causes an accident or someone immobilized on the side of the highway to create enough of an outcry to ban them.
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# ? Oct 24, 2014 02:57 |
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Baronjutter posted:All it will take is 1 malfunction that causes an accident or someone immobilized on the side of the highway to create enough of an outcry to ban them. Get your outcry ready: Starter cut-off devices keep car payments coming quote:Ward, a married mother of two, didn’t think much about it until one day that winter.
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# ? Oct 24, 2014 03:26 |
Freakazoid_ posted:I've only ever heard this as a proposal or maybe a prototype, and the reaction to them has been pretty negative. What cars actually have these? Congrats on not being poor I guess. Have you ever seen a lot with a sign that says "buy here pay here"? Odds are every car that leaves that lot will have a remote starter disable. Here is a good article about the practice in the US. Not only do they allow remote disabling of the starter (but just the starter, they won't kill the engine while driving) but now they feature GPS which allows the dealers to track the locations of the cars at all times and even do things like this: quote:At its extreme, consumer lawyers say, such surveillance can compromise borrowers’ safety. In Austin, Tex., a large subprime lender used a device to track down and repossess the car of a woman who had fled to a shelter to escape her abusive husband, said her lawyer, Amy Clark Kleinpeter.
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# ? Oct 24, 2014 03:30 |
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I've never heard of those, seem a bit brutal. As long as it's not malfunctioning and stranding people who have been paying, that seems harsh but fair. And only disable the car after attempting to contact the person repeatedly and sending a written notice that their car is going to be disabled on X date if they don't pay. Of course the poor are the most likely to be stuck with such a system, and the poor are most likely to be totally auto-dependent to get anywhere so the poor have the most to lose by having their car turned off. Much in the way water and power can't just be turned off the second you're over due because those are essential services, a car is basically essential in most places. It's hosed we've built our cities around an extremely expensive way to travel and have been driving the poor deeper and deeper into the suburbs where the rich and middle class campaign tirelessly against transit and density.
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# ? Oct 24, 2014 03:41 |
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melon cat posted:I don't understand why people think that renting out a room/their basement is a fool-proof way to reduce their mortgage burden. Sometimes renters leave abruptly during a bad time of the season, so your room is empty for a few months. Or sometimes they just stop paying rent, or can't pay it in full, or they're late. Or sometimes your get a bad tenant who damages the property, leaving you to foot an expensive refurnishing/remodelling bill. I had an investment property and ran into all of these problems. Anyone who thinks that renting out their room makes things "safer" for them needs to have their head examined. the dude who bought the house I used to rent moved in upstairs (which wasn't up to rental code) and is fixing it up himself, even though he's just a paper pusher at CIBC and his wife doesn't work. He rents out the basement and our old unit. We recently moved back into the area to a place that doesn't have laundry. It was a little awkward running into him at the laundromat, since he bought the house 2+ years ago. I thought he'd at least be able to put a washer dryer in the house at this point. It must not be going as well as he thought it would
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# ? Oct 24, 2014 14:07 |
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Rutibex posted:Get your outcry ready: lol that was the most infuriating article. Just pay your loving bills on time!!
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# ? Oct 24, 2014 14:48 |
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triplexpac posted:lol that was the most infuriating article. Just Also, there's an interesting article on global property prices in today's FT: http://www.ft.com/cms/s/0/3df85be6-5abf-11e4-b449-00144feab7de.html#axzz3GzkYi7i7 quote:City dwellers around the world pay $650bn more in housing costs than they can afford yearly, as rapid urban growth meets a constrained supply, according to a new report. So far, so standard: urban house prices being pushed up by a combination of demand outstripping supply and speculative froth. However, there's a chart looking at the extent of the imbalance between supply and demand in the major cities of different countries: Canada's ratio is >1.0, which presumably implies that there's no demand/supply imbalance and the price increases are driven by nothing but speculative froth.
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# ? Oct 24, 2014 15:11 |
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With the insanity in australia I'm surprised construction is lagging so behind.
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# ? Oct 24, 2014 17:35 |
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Lexicon posted:How do these folks raise the capital for the loans? Issuance of notes to institutional investors, mostly.
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# ? Oct 24, 2014 20:02 |
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Kalenn Istarion posted:Issuance of notes to institutional investors, mostly. In which case those institutions would also be exposed to the auto loan market? Would the bonds be backed by all of Ford or just by Ford Credit?
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# ? Oct 24, 2014 20:19 |
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triplexpac posted:lol that was the most infuriating article. Just pay your loving bills on time!! Paying bills isn't exactly easy for everybody.
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# ? Oct 24, 2014 21:12 |
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Grand Theft Autobot posted:Paying bills isn't exactly easy for everybody. Personal responsibility, failure to make payments means instant removal of heart plug (now standard issue on all poors).
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# ? Oct 24, 2014 21:20 |
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Grand Theft Autobot posted:Paying bills isn't exactly easy for everybody. Well if people would stop being so lazy and educate themselves on the financial liberation of home ownership, we wouldn't have that problem.
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# ? Oct 24, 2014 21:21 |
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Laphroaig posted:This gives a good skivvy on it. ETFs have tax advantages, but there are risks. The difference between one ETF offering, say, the S&P 500 and another ETF offering the S&P 500 could be a lot of percentage points. The example the link above gives is "Last year, for instance, the difference between the best-performing "biotech" ETF and the worst-performing "biotech" ETF was more than 18 percent." 'Biotech' is a pretty nebulous descriptor but two ETFs which aim to track the S&P500 should produce virtually identical returns.
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# ? Oct 24, 2014 21:37 |
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blah_blah posted:'Biotech' is a pretty nebulous descriptor but two ETFs which aim to track the S&P500 should produce virtually identical returns. They would, but in reality those two biotech ETFs would be following different sublists of biotech firms. Even two S&P500 funds could track differently if say one underweights Apple (I believe there is an ETF that does this) since it has more of an impact that Johnson & Johnson. It does poorly when Apple goes bananas, and does better when Apple is crap. It is still a better way for a inexperienced retail investors to get diversified than directly purchasing a couple of stocks, which is why GT recommends them in the first place.
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# ? Oct 24, 2014 22:09 |
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ocrumsprug posted:Even two S&P500 funds could track differently if say one underweights Apple (I believe there is an ETF that does this) since it has more of an impact that Johnson & Johnson. It does poorly when Apple goes bananas, and does better when Apple is crap. If it isn't weighting the components by market cap then it's not tracking the S&P 500.
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# ? Oct 24, 2014 22:10 |
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blah_blah posted:If it isn't weighting the components by market cap then it's not tracking the S&P 500. Exactly. ETFs that aren't explicitly index-ETFs are where you run into trouble (assuming you subscribe to the correctness of passive investing for retail investors, as all right-thinking people should).
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# ? Oct 24, 2014 22:21 |
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It is not like they hide what they are doing though. If you buy a white-box S&P500 index, or if you buy a S&P500 that also has a bit of Samsung in it, what they are is listed in their prospectus. Not sure there's a big danger if the ETFs differentiate themselves from one another. I suspect that is why most of them don't call themselve index funds anymore.
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# ? Oct 24, 2014 22:42 |
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http://www.bloombergview.com/articles/2014-10-23/can-t-afford-a-house-don-t-buy-one Article is about the US, but it looks like they've already forgotten about 2008 and are lobbying government for a repeat. "When legislators and activists say that we need low-down-payment loans because most people couldn’t possibly save up for a 20 percent down payment, what they’re really saying is that people can’t actually afford to buy a house. Helping them to go buy one anyway is not a great idea; it will work out well for some, to be sure, but it will have tragic consequences for others, and for the housing market as a whole if there’s another downturn. We just spent six years learning, the very hard way, that you can’t borrow yourself rich. That knowledge is too expensive to throw away so easily."
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# ? Oct 24, 2014 22:50 |
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ocrumsprug posted:They would, but in reality those two biotech ETFs would be following different sublists of biotech firms. Yes things like stock weighting can lead to tracking error. However a good fund or ETF will still have solid tracking error over time
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# ? Oct 25, 2014 01:49 |
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http://www.theglobeandmail.com/life/home-and-garden/real-estate/vancouver-co-housing-movement-gains-traction/article21288424/quote:
Holy loving poo poo vancouverites are literally the dumbest loving people on earth. 700k so you can live in a frathouse.
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# ? Oct 25, 2014 07:51 |
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https://twitter.com/BenRabidoux/status/525793044701126657
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# ? Oct 25, 2014 08:00 |
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# ? May 10, 2024 06:58 |
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Cultural Imperial posted:http://www.theglobeandmail.com/life/home-and-garden/real-estate/vancouver-co-housing-movement-gains-traction/article21288424/ I looked up "co-housing" and I have to think that whoever came up with it was probably sniffing glue. It's like a lovely hippie commune, but still expensive and with none of the sexual liberation.
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# ? Oct 25, 2014 08:35 |