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Mandibular Fiasco posted:Alberta is significantly cheaper with generally better compensation. Yeah but you have to live in Alberta.
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Feb 2, 2022 07:49
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Moving this to finance thread. Joink fucked around with this message at 09:43 on Feb 2, 2022 |
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Feb 2, 2022 09:31
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Alctel posted:These unironically own btw and I can't wait till they put in the Shelbourne one My wife loves them for getting to work, I find them mildly annoying when driving downtown but whatever. Shelbourne seems way too narrow to add one but it's sketchy as hell driving on it with cyclists north of hillside right now so I hope they figure something out.
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Feb 2, 2022 15:17
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Finished reading "The Lost Bank" about Washington Mutual. Great book, about a Warren Buffett kind of business that eventually went off the rails in the 2007 housing crisis due to some really dumb decisions. Found this page and I thought about the current Canadian housing market: House in Hamilton was selling for $999 sold last month for 1.2 million. One story 1970s suburban house with basement. Still vacant. This is just insane, there's no way this can keep going...
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Feb 2, 2022 21:19
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https://twitter.com/SteveSaretsky/status/1488953426532659203?s=20&t=mgXx8XRlpaK2-NeGkP92TA Now this is nuts.
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Feb 3, 2022 01:53
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a 2 bedroom brick bungalow here in peterborough 2 houses down from me, that neighbours a homeless shelter sold for 840k lol
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Feb 3, 2022 12:54
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RBC posted:a 2 bedroom brick bungalow here in peterborough 2 houses down from me, that neighbours a homeless shelter sold for 840k lol Convenient for when rates climb and they get foreclosed on.
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Feb 3, 2022 16:38
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I still love reading posts like this: https://www.reddit.com/r/PersonalFinanceCanada/comments/sjngs4/worst_financial_decision_of_my_life/quote:Wife and I bought a house.
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Feb 3, 2022 21:43
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That just reads like a couple of naive kids who have no idea what owning a house is like. The fact that he lists an unfinished basement first is pretty telling.
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Feb 4, 2022 00:19
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If I were them I would sell ASAP. They might even make a small profit.
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Feb 4, 2022 00:42
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I've never actually looked at r/PersonalFinanceCanada beyond what was linked to me but holy poo poo that subreddit is cancer and filled with really really awful financial advice.
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Feb 4, 2022 00:46
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qhat posted:I've never actually looked at r/PersonalFinanceCanada beyond what was linked to me but holy poo poo that subreddit is cancer and filled with really really awful financial advice. Any examples? I don’t want to look.
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Feb 4, 2022 03:56
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No, not really, I don't have the patience to look at it again either. There's a lot of acceptance of heavy debt loads and people recommending risky leveraged investment strategies. "Don't pay off the mortgage, invest in stocks", "buy house and immediately take out HELOC", and "Do the smith maneuver" type of advice. Basically a lot of recommendations for things that are absolutely not for the average joe, which is undoubtedly 90%+ of that subreddit.
qhat fucked around with this message at 09:57 on Feb 4, 2022 |
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Feb 4, 2022 09:54
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jettisonedstuff posted:That just reads like a couple of naive kids who have no idea what owning a house is like. The fact that he lists an unfinished basement first is pretty telling. so is drawing on savings to pay property taxes and taking on a 700000 mortage with 120k of income
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Feb 4, 2022 13:00
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735k-20%down (147k) =588k. that seems a bit high for 120. likely they just borrowed thier maximum amount. they kept 24k for closing and repairs but I'm not sure if those taxes include closing. maybe they mean GTA land transfer tax. 2 people with 60k income each had to borrow everything possible to get a house and skipped the inspection because the market is so hot. Thier bid would have been rejected with an inspection since the owner was trying to unload a lemon. it sucks, inspections are important.
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Feb 4, 2022 13:23
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RBC posted:I still love reading posts like this: https://www.reddit.com/r/PersonalFinanceCanada/comments/sjngs4/worst_financial_decision_of_my_life/ They definitely shouldn't have bought a house at that price at 120k total salary, that's insane. Going by the text they used almost all their retirement savings just for down payment, I'm amazed they even qualified for that mortgage. There's a lot more here than a couple of people not knowing what owning a home is like. This SFH FOMO crap is ruining people and driving the market at the same time.
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Feb 4, 2022 14:54
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Fidelitious posted:This SFH FOMO crap is ruining people and driving the market at the same time. How can it ruin people and drive the market? Unless by 'ruin' you mean something other than 'no longer owns the house'. If they are up to their eyeballs in debt, stressed because there is a sewer pipe leaking into their basement, but still have the title, are they really ruined?
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Feb 4, 2022 15:51
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Boot and Rally posted:How can it ruin people and drive the market? Unless by 'ruin' you mean something other than 'no longer owns the house'. If they are up to their eyeballs in debt, stressed because there is a sewer pipe leaking into their basement, but still have the title, are they really ruined? more like they've simultaneously have their arms in a jammed wood chipper, trying to clear the jam, while carefully balancing on a live power line. They're not ruined immediately, but have chosen to place themselves in an incredibly precarious position, likely to become more so over time.
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Feb 4, 2022 16:47
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qhat posted:There's a lot of acceptance of heavy debt loads and people recommending risky leveraged investment strategies. "Don't pay off the mortgage, invest in stocks", "buy house and immediately take out HELOC", and "Do the smith maneuver" type of advice. Basically a lot of recommendations for things that are absolutely not for the average joe, which is undoubtedly 90%+ of that subreddit. Isn't that just Canada, though? The belief that rates will always be low, and that there's no problem with leveraging yourself as much as possible against an asset that can never decrease in value, leading to dumb decisions so you can pretend you have money? (Side note: investing in stocks instead of paying off the mortgage isn't particularly bad advice in the U.S., where you can still be sure you'll be paying 3% in 2050.)
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Feb 4, 2022 17:01
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it's high, but you basically need to borrow to the hilt to get anything right now so that's not unusual. They got screwed. better to not get the house if you can't inspect it. it's a big risk.
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Feb 4, 2022 17:08
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Philman posted:Thier bid would have been rejected with an inspection since the owner was trying to unload a lemon. lol, the house isn't a lemon, it just has moisture getting in somewhere. Fixing that isn't a 6 figure amount unless the whole foundation is hosed, which it probably isn't. The rest of the stuff is pretty minor. Yeah the mold is bad but unless the air quality is affected you can wait a bit on that after the source of the moisture is gone.
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Feb 4, 2022 18:08
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tagesschau posted:Isn't that just Canada, though? The belief that rates will always be low, and that there's no problem with leveraging yourself as much as possible against an asset that can never decrease in value, leading to dumb decisions so you can pretend you have money? (Side note: investing in stocks instead of paying off the mortgage isn't particularly bad advice in the U.S., where you can still be sure you'll be paying 3% in 2050.) Whether it is the norm for Canada is irrelevant. In the context of completely random people on the internet who you don’t even know, recommending leveraging to invest in highly volatile assets is really awful advice. This is why there are strict regulations on giving financial advice, people think it’s just about asset allocation, but that’s like one tenth of the process. The point of regulations is to force advisors to sit people down and fully explain the risks of a strategy and understand their risk tolerance, which 9 times out of 10 ends up being much less than the person actually thinks it is. Then based on that information make prudent decisions in the persons best interest, and crucially, be accountable for the trouble they can get people in during severe downturns when suddenly the bank doesn’t want to lend you another dime. Maybe leveraging is within the person’s capability? The point is it is impossible to know that from a stupid thread on Reddit (if you have to ask on Reddit, you’re not ready for it) and that person should be immediately directed to a professional. qhat fucked around with this message at 18:41 on Feb 4, 2022 |
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Feb 4, 2022 18:30
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Philman posted:it's high, but you basically need to borrow to the hilt to get anything right now so that's not unusual. They got screwed. better to not get the house if you can't inspect it. it's a big risk. I think some folks would rather gamble on getting a house the size that meets their expectations/desires and put in bids like this, as opposed to going for something smaller with conditions attached. There is a massive amount of social pressure from friend group, peers, family and social media. Pair that with the YouTube uptick of "HEY MOTHER FUCKER WITH ZERO SKILLS YOU CAN TACKLE ANY PROJECT WITH ENOUGH GUSTO". A friend of mine fell foul of this - spent a year trying to reno his own house, went in way over his head and then hired people.... 2 years in, not a single room in that house is finished, not to mention strain on their relationship.
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Feb 4, 2022 18:32
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qhat posted:Whether it is the norm for Canada is irrelevant. In the context of completely random people on the internet who you don’t even know, recommending leveraging to invest in highly volatile assets is really awful advice. My point was that it's only slightly worse than the advice your friends and family will gladly offer you. A lot of people have bought into the idea that housing is the be-all and end-all of investing because it goes up forever without risk, and will gladly advise you to base your investment decisions on this "truth." tagesschau fucked around with this message at 18:49 on Feb 4, 2022 |
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Feb 4, 2022 18:46
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I can definitely understand the social pressure. It’s really intense when your family keeps insisting it’s the best financial decision they ever made and they really want you to believe you should make it too. Rejection of that advice is unsettling because I think internally people often know they are in a precarious situation and the way to get over that is to have constant confirmation from others that it isn’t. Hence the constant barrage of “have fun staying poor” bullshit around on social media and even to a smaller extent irl these days. But that’s just my opinion.
qhat fucked around with this message at 19:01 on Feb 4, 2022 |
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Feb 4, 2022 18:59
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tagesschau posted:My point was that it's only slightly worse than the advice your friends and family will gladly offer you. A lot of people have bought into the idea that housing is the be-all and end-all of investing because it goes up forever without risk, and will gladly advise you to base your investment decisions on this "truth." Fully agree. I have never once listened to friends and family for investing advice because it really is all uneducated horse poo poo that could get me in trouble.
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Feb 4, 2022 19:00
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ARTPUP posted:This is just insane, there's no way this can keep going...
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Feb 4, 2022 20:00
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Paying the minimum down payment on a variable rate mortgage and throwing all the rest of your savings into equities when we will likely see interest rates increased by 200-400 basis points in the next few years seems like a good way to become... financially uncomfortable at the very least. Hope your mortgage payments are less than 20% of your post-tax earnings!
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Feb 4, 2022 20:07
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Just curious, why is listing the unfinished basement first a red flag? Is mostly because you’d expect it to be finished in an older building and the fact it isn’t suggests some issues with foundation or whatever?
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Feb 4, 2022 21:23
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Anti Plum posted:Just curious, why is listing the unfinished basement first a red flag? Is mostly because you’d expect it to be finished in an older building and the fact it isn’t suggests some issues with foundation or whatever? Usually means they flood a lot
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Feb 4, 2022 21:32
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Anti Plum posted:Just curious, why is listing the unfinished basement first a red flag? Is mostly because you’d expect it to be finished in an older building and the fact it isn’t suggests some issues with foundation or whatever? The OP will correct me if I'm wrong, but to me, them listing the unfinished basement first on their list of issues shows that they don't actually know what they're doing at all, because an unfinished basement isn't inherently bad and is pretty common. It just means the developer didn't think it was worth the money of finishing it off. Some of the things on that list are potentially actual issues that should be addressed, but there's nothing wrong with an unfinished basement, and they certainly should have known it was unfinished going in because they would have, you know, seen it.
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Feb 4, 2022 21:42
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by "unfinished" it's very possible they mean, literally a dirt floor.
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Feb 4, 2022 22:00
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Anti Plum posted:Just curious, why is listing the unfinished basement first a red flag? Is mostly because you’d expect it to be finished in an older building and the fact it isn’t suggests some issues with foundation or whatever? For me, I assume it's because lack of finished basement = no ability to start getting passive income which is a much beloved idea in r/personalfinancecanada.
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Feb 4, 2022 22:02
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https://www.bbc.com/news/business-60206564 It's the UK but I'm actually lmao'ing at this pretty hard. You see all this inflation is actually all the fault of the consumer, the average person should not expect their pay to rise in lockstep. If only there were ways of tampering down this incessant demand for more money by the peasants. This is 100% going to be the position of the BoC in a few months.
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Feb 4, 2022 22:30
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jettisonedstuff posted:Paying the minimum down payment on a variable rate mortgage and throwing all the rest of your savings into equities when we will likely see interest rates increased by 200-400 basis points in the next few years seems like a good way to become... financially uncomfortable at the very least. Hope your mortgage payments are less than 20% of your post-tax earnings! I wish this was true. But Tiff whiffed when he didn't raise interest rates earlier this year. The powers that be don't give a poo poo about housing prices. They're managing their mystery inflation number that doesn't match to anything. They'll look for every excuse in the book not to do anything, or they'll do less than the minimum. What difference does an increase of 50 basis points make when the rate is already zero? So interest is slightly more than zero? So what? How is this consequential to create anything except a modest slow down in growth, let alone a backslide? The only way out of this mess is a devaluation of the currency and I increasingly suspect this is what they're trying to engineer here.
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Feb 4, 2022 22:31
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qhat posted:https://www.bbc.com/news/business-60206564 I like that they mention that the guy saying it makes like 575,000 pounds a year, so you should be sure to tell him to gently caress off. If you see him.
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Feb 4, 2022 22:42
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HookShot posted:The OP will correct me if I'm wrong, but to me, them listing the unfinished basement first on their list of issues shows that they don't actually know what they're doing at all, because an unfinished basement isn't inherently bad and is pretty common. It just means the developer didn't think it was worth the money of finishing it off. Some of the things on that list are potentially actual issues that should be addressed, but there's nothing wrong with an unfinished basement, and they certainly should have known it was unfinished going in because they would have, you know, seen it. This is what I was getting at, yes. You generally finish the basement in an older house so you can have your TV and style-over-comfort furniture away from the front window of your living room. They may as well have put "garage only has room for one vehicle" at the top of their list.
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Feb 4, 2022 23:22
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Mandibular Fiasco posted:I wish this was true. But Tiff whiffed when he didn't raise interest rates earlier this year. The powers that be don't give a poo poo about housing prices. They're managing their mystery inflation number that doesn't match to anything. They'll look for every excuse in the book not to do anything, or they'll do less than the minimum. What difference does an increase of 50 basis points make when the rate is already zero? So interest is slightly more than zero? So what? How is this consequential to create anything except a modest slow down in growth, let alone a backslide? The only way out of this mess is a devaluation of the currency and I increasingly suspect this is what they're trying to engineer here. Could you explain what this means to me? I'm not seeing how that's going to do anything...
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Feb 4, 2022 23:41
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jettisonedstuff posted:This is what I was getting at, yes. You generally finish the basement in an older house so you can have your TV and style-over-comfort furniture away from the front window of your living room. They may as well have put "garage only has room for one vehicle" at the top of their list. Ah yeah, you both said pretty much what I thought. Growing up we typically had unfinished basements (both dirt floor and concrete slab) but these days it seems rare not too have second living room or suite. I kinda thought it’s just a really nice to have feature, but not indicative of much beyond that. But for a house built in the 70s it’d definitely seem odd these days I guess.
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Feb 4, 2022 23:46
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qhat posted:https://www.bbc.com/news/business-60206564 In the US, Larry Summers pitched restarting student loan repayments explicitly (as in he literally said this was his goal) to take money out of the pockets of consumers to try to tamp down inflation. The greatest injustice in the history of the world is that a rich person's hoard might be worth less tomorrow than it is today.
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Feb 4, 2022 23:47
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