X-it
Active VIP Member
All I inherited was 5 funeral bills
Canadian Household Debt at all-time high.
- Thread starter Catman10
- Start date
All I inherited was 5 funeral bills
imdoo'n
Active VIP Member
yup, people finding their inflated lifestyle is coming to an end, wondering how they are going to pay it off? or why they can't get financed for the caddy and have to settle for the cavalier. lol.
pfi572
Active VIP Member
Absolutely!!
Moderation between living and living past a persons means.
You can do just as much with a lot less invested if you don’t need the,
-$115000 dollar SUV
$100000 dollar diesel truck
$ mortgaged RV
$ huge mortgage payments
Buy what you can afford and go have fun as it doesn’t need to be the latest and greatest?
the_real_wild1
Active VIP Member
Absolutely!!
Moderation between living and living past a persons means.
You can do just as much with a lot less invested if you don’t need the,
-$115000 dollar SUV
$100000 dollar diesel truck
$ mortgaged RV
$ huge mortgage payments
Buy what you can afford and go have fun as it doesn’t need to be the latest and greatest?
I wish I could afford the latest and greatest. I also wish I could afford to give away machines at what people think they are worth on Kijiji vs what I think they are worth lol
gunner3006
Active VIP Member
Well. Here’s something else that always got me fired up. I am a tradesmen. I did an apprenticeship and worked my way up to great money. I have three very close friends that all went to university. So basically 4 years of ramen noodles and extremely light beer. They all graduate and are now making over $100k/year. Boom. Get big houses and then reality and life hits them. They have no idea how to ha dale money, how it works etc etc. Massive mortgages and no clue how to cope and handle. More people are renting. Let the homeowner worry about that leaky water heater or the windows that need to be changed. Pricing on houses in city’s and suburbs were out of hand anyways.
X-it
Active VIP Member
This really bothers me too, so dam many dogooders making changes to the building codes add 20000 here and 30000 there. Needs to be reset so people can afford...."small" homes again.
LennyR
Active VIP Member
Do you guys think it was easier for the average homebuyer to buy a home in the 50's , 60's , or 70's ? I mean home price relative to average income ? Gross debt and total debt service ratios have been very similar to what they are now for years. Do you remember your Dad telling you stories about the crazy bugger friends of theirs that were borrowing to buy that new camper/cabin/trailer/boat/motorcycle/Vette/big fancy house ........ Etc. not really sure if it's actually worse now or if our perception is different .
gunner3006
Active VIP Member
Yea. House poor. Beautiful house. Can’t afford a Dairy Queen.
gunner3006
Active VIP Member
I believe those were in hose were my dads exact words. Crazy buggers. What blows me away is that these students roll out of 4 years of poverty and have $100k worth of debt in education and get a mortgage. A $450k mortgage. Maybe that’s what’s changed.
the_real_wild1
Active VIP Member
Better to have a mortgage over 30 years then to pay rent for 10 years and then get a mortgage for 30 years. Over that 10 years you paid rent that money could have went into your pocket instead of someone else’s
To the OP I think the reason we don't see any fire sales is that they are trying to sell higher for what the owe to get some equity out of it OR that is what they owe on it cause they financed over such a long period. I keep trolling kijiji as well for smoking deals the ones i usually find is for something i don't want.
He is an example of a 23 yr old millennial I work with he make good money bought a house a yr ago (good on him) with his parents help. Owes 90k and a 3 yr old lifted chev duramax he thinks is worth 60k he wanted to get a loan for 30k to pay down his truck to where he can sell it so he will only have a 30K loan payment. Or sell his house to get the equity out to pay down the truck to sell it. He also has a big sport bike thats parked that he cannot sell bought it 2 years ago for 8K insurance was for him was 6K for the summer took out a loan next summer another 6k and another loan so he is not riding this year so far he owes 20k on a bike thats worth less than 5k he also owns an older corvette he keeps sinking money into as well as 2 dirt bikes a quad and an older sled sure he owes money on all.
He is an example of a 23 yr old millennial I work with he make good money bought a house a yr ago (good on him) with his parents help. Owes 90k and a 3 yr old lifted chev duramax he thinks is worth 60k he wanted to get a loan for 30k to pay down his truck to where he can sell it so he will only have a 30K loan payment. Or sell his house to get the equity out to pay down the truck to sell it. He also has a big sport bike thats parked that he cannot sell bought it 2 years ago for 8K insurance was for him was 6K for the summer took out a loan next summer another 6k and another loan so he is not riding this year so far he owes 20k on a bike thats worth less than 5k he also owns an older corvette he keeps sinking money into as well as 2 dirt bikes a quad and an older sled sure he owes money on all.
pfi572
Active VIP Member
Different up bringing I guess as we had food and shelter and lots of work . Lol
Very small house , one vehicle and tools to feed livestock that we used for food .
Wood heat ,big garden and wild meat .
Don’t remember Mom and dad having next to nothing for dept as we didn’t need much and wants where something that was useful and a tool.
Traps for trapping , old tractor , saddle horse or farm equipment etc.
If people are really struggling, it would only been a matter of time before it catches up and things are sold, or taken. Unless they can pull equity out of house, etc, the late payments would pile up.
I will admit I built a massive house on spec and overdid it, and coupled with the downturn the timing with awful, and fed up with the massive mortgage payments and moving back into one of my rental houses this year. A single guy doesn't need a 5000 sq/ft house.
I do remember in my early 20's buying my first place and not having a lot of disposable income after mortgage, truck payment, etc. But if you're responsible it's worth it for the short term for having that stuff. Then again I sold the sled and lifted truck before I bought the house. I don't buy the whole ratio's though, they are so skewed. They don't factor things in like kids, etc. A single person needs a lot less to live well then people with kids.
Rent instead of own? Awesome I love that. I just got a $500 bill for fixing 2 appliances, big deal. I've had one for 4 years, another for 3, and another for 2. In all that time this is the first repair that's cost me money. My rentals are combined cash flow negative of $800/month, but pay off over $30k in the mortgages a year. With no rise in property value i'm making $20k a year. In it for the long term where they will end up all paid off. And hopefully rents will go up this year and cut the negative cash flow in half or better.
I fondly remember the times of only having $8k in monthly payments
More like $18k now. All the payments can get somewhat stressful, but overall not bad. Renters are pretty good as the rentals are a decent chunk.
I will admit I built a massive house on spec and overdid it, and coupled with the downturn the timing with awful, and fed up with the massive mortgage payments and moving back into one of my rental houses this year. A single guy doesn't need a 5000 sq/ft house.
I do remember in my early 20's buying my first place and not having a lot of disposable income after mortgage, truck payment, etc. But if you're responsible it's worth it for the short term for having that stuff. Then again I sold the sled and lifted truck before I bought the house. I don't buy the whole ratio's though, they are so skewed. They don't factor things in like kids, etc. A single person needs a lot less to live well then people with kids.
Rent instead of own? Awesome I love that. I just got a $500 bill for fixing 2 appliances, big deal. I've had one for 4 years, another for 3, and another for 2. In all that time this is the first repair that's cost me money. My rentals are combined cash flow negative of $800/month, but pay off over $30k in the mortgages a year. With no rise in property value i'm making $20k a year. In it for the long term where they will end up all paid off. And hopefully rents will go up this year and cut the negative cash flow in half or better.
I fondly remember the times of only having $8k in monthly payments
More like $18k now. All the payments can get somewhat stressful, but overall not bad. Renters are pretty good as the rentals are a decent chunk.
pfi572
Active VIP Member
^^^^
And now the good old Gov. will want a big chunk when you decide to sell at later date.
Cash is king and just making enough to pay payment. Lol
And now the good old Gov. will want a big chunk when you decide to sell at later date.
Cash is king and just making enough to pay payment. Lol
If they do change, it the end still won't pay much if anything in taxes. I claim the income every year so the sale is tax free. If they changed it, I would have the benefit of the bit of income i've claimed the whole time. Plus I lived in each one for a bit, so you can skew the initial price a bit. On top of it all, I have no intention of selling any of them. Keep them till the mortgages are paid off.
Caper11
Active VIP Member
Exactly!!!
I was not part of the Pierre Trudeau interest rate era, but I remember lots of stories about double digit mortgage rates. Guys throwing their keys on the desk etc, could I have the latest and greatest every year??? Oh yah! But I chose not to.
I dont think the perception has changed, but maybe it got worse, due to the low interest rates on borrowing. How many new trucks and sleds would be sold if the interest rate was at 10%......
LennyR
Active VIP Member
What's it worth today ?
LUCKY 7
Active VIP Member
My wife was a receptionist at a bank in Fort Mac back in the mid 80 when Suncor went out on strike and she had guys throwing keys on her desk and walking away. She figured having all the new toys and new truck with a big house and TONS on debt was too much for these guys. After that time if I needed a new whatever I needed to work more overtime and save for the new toy. If I didn't have most of the cash I didn't get it. Sure was tough back then but sure is sweeeet now.
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