Vancouver's Real Estate Market

[RabidRat]

Originally Posted by Gerbs

The renter would probably need to cop a 2-3 BR tent at MEC ASAP.

I keep thinking back to a reddit thread I saw years ago where some guy in med school - swimming in debt - built himself a sweet treehouse out in the forest, and lived out of that + showered at the gym. Had the time of his life.

Wish I saved that link.

[hud 91gt]

Originally Posted by lowside67

Net worth is assets minus liabilities. In the context of a person/family, it is reasonable to assume they could choose to sell assets, pay off debts, and still have approximately that same figure left over as they started with, so I think it's pretty fair to say if you have a significant net worth, you have a pretty limited risk.

For a business, it's not as simple since you often have contractual obligations (such as Westbank's obligation to build the buildings they have taken deposits for, etc) that mean you couldn't as easily just purify back to nothing but cash in an account.

-Mark

That doesn’t exactly make sense. To sell your assets to pay your liabilities with zero change to your “net worth” as pre recession, likely means you were under zero risk or invested in something that was not affected by said recession.

Whether you’re a millionaire or not doesn’t have much to do with it. The leverage which one lives is the risk/reward one receives. A millionaire likely got to where they are using “risk.”

[Badhobz]

Originally Posted by RabidRat

I keep thinking back to a reddit thread I saw years ago where some guy in med school - swimming in debt - built himself a sweet treehouse out in the forest, and lived out of that + showered at the gym. Had the time of his life.

Wish I saved that link.

Vanlife baby !!! It’s the only way to live in Vancouver. Find a Chevy Astro, grab a Mr buddy heater and go to town moving from spot to spot hoping they don’t knock on your window.

Or go down to Spanish banks and squat there. Lousy squatters. I tried to take the wife there last summer at night to view the stars / beach / fuck on the beach but all the squatters ruined it.

[Great68]

Originally Posted by Gerbs

My direct neighbour on my floor is an admin clerk / executive assistant, parents got him the condo at $330K in 2013 by putting $30K down and he pays mortgage. Mortgage only has $180k remaining but it's going from $700 > $1,513 a month.

That monthly increase seems a quite bit high for only 180K remaining... Something doesn't seem right there.

[underscore]

Originally Posted by Gerbs

You think so?

I can foresee, cashing out equity at $300K @ 6% ROI = $18K/year. Renting @ $1,000-1,250 basement shared or $1,500 condo w roomie. Rebuying later when your income is higher.

Turning that condo to equity boosts his income from $52K > $70K. Lifestyle is important too, can't be living pay cheque to pay cheque if you don't have to.

Does he have a plan for how that's going to happen? If not that seems like it might be pretty unlikely given how real estate has been going vs income.

Based on the numbers you've got the value has gone from $330k to $550k in 10 years? What has his salary done in that time?

[Traum]

If I were the A4 guy, I'd either find a roomate or a GF to split the housing costs. With a GF/wife, in particular, he would effectively be doubling their household income while reducing operating/living costs.

[Gerbs]

Originally Posted by Great68

That monthly increase seems a quite bit high for only 180K remaining... Something doesn't seem right there.

15 year amort remaining?

Originally Posted by underscore

Does he have a plan for how that's going to happen? If not that seems like it might be pretty unlikely given how real estate has been going vs income.

Based on the numbers you've got the value has gone from $330k to $550k in 10 years? What has his salary done in that time?

Went from $15/hour to $52K salary, same company for last 10 years. I told him he can get better at another job for exec assistant / government clerks. I think he's too weeded out to as he smokes every morning.

[Great68]

Originally Posted by Gerbs

15 year amort remaining?

Still doesn't add up.

I'd have to imagine his last term was somewhere in the 3.5% range.
Say he's he'll renew this year at 6.5%. On 180k, 15yr, that should only be like a $260/month increase at most. Not $800+

[AstulzerRZD]

Originally Posted by RabidRat

What's it like living in NYC? Does the magic of Christmas, NYE, and riding that subway ever get old? Can you speak the New Yorker accent? Can you get away with having a fun car in NYC, or is it the cost & inconvenience so prohibitive that you probably really have to give it up? New York pizza: how do you really feel about it?

1) I think the east coast is less about an accent and more about telling it straight but kindly. I've mostly learned how to introduce myself to people at bars/functions while getting a feel for them in under 3 minutes ... this behavior at a bar or even on the street to get new friends/a date is something that I feels is very New York.

The magic is meeting a couple strangers at a networking event, hitting up a club and a bar afterwards together, then going home at 2-3AM on a Wednesday/Thursday. That, or pulling 20 people who came to a cocktail event I threw on a Monday as strangers and all left as friends..... or booking out a club and throwing a music festival for my birthday party.....

There are many days where living in the city still makes me consider whether I belong - the only limitation is myself since possibilities are unlimited and that idea is kind of daunting sometimes. The anxiety when introducing myself to someone super well dressed/more socially valuable feels less like my feet being cemented into the ground and more like a pebble or two in my shoe these days. I feel like I've grown up a lot and have become a lot more steady about who I am through the adversity and hard choices about who/what/where I spend my time I've had to make after moving here.

2) Getting around on a CitiBike is hella liberating - no waiting for a subway on a humid summer day with no A/C or being at the mercy of MTA delays. 19MPH at about $3/20 minutes... and I'll get places in half the time.

NGL most of the New Yorkers that I know are out of the city between Thanksgiving and end of Jan. The interns during the summer also crowd restaurants/bars/clubs.

3) I think most of the fun here is in people you meet, their wit and energy. Car hobby tends to be more solo and I find most people will prioritize group/people based things with how much rent they're paying. I do have access to an EM1 and AP2 in Queens but it's rare I'll make the trip just to drive something.

There are ways to do it for cheap (i.e. store it out in Queens/Jersey) or find a block with free street parking. You can also join Manhattan Classic Car club - they've got one hell of a fleet for less than the cost of garage parking in the city.

4) Meh. Not my first choice even after a night of going out. I usually down a protein shake and some electrolytes instead of going for Joe's/Bleecker St Pizza

[Gerbs]

Originally Posted by Great68

Still doesn't add up.

I'd have to imagine his last term was somewhere in the 3.5% range.
Say he's he'll renew this year at 6.5%. On 180k, 15yr, that should only be like a $260/month increase at most. Not $800+

https://ibb.co/RgxDSVn
https://ibb.co/jTQrnBP

This is what I have

1.49% @ 25 Years
6.30% @ 15 Years

Imo, wipe my ass money both at 1.49% and 6.30%, because half the price of market rent

Refi @ 25 Years puts him only at $1,184. Which easily saves him, Idk if you can qualify for $180K @ $52K. I assume yes even if stress test is 8.2%

EDIT: Ran the math and refi might fail without selling the car to clear your debt to lower GDS/TDS. Strata around $400/month for 1BR.

[PeanutButter]

Originally Posted by KayC

Honestly, this resonates with me a bit since I've been constantly thinking about moving to a lower cost of living city. Currently, in my situation as a family of 3 (with a toddler), we operate on a single income household. I am fortunate to be in the tech industry and still have a well-paying remote job from SF/US, netting 12k a month after taxes, cpp, ei, etc. Currently, I pay almost 5k a month for my mortgage (it increased from 2.7k to 5k due to variable rates; I know I should have locked it in when I had the chance).

With my current income, it's still definitely doable. However, the uncertainty of my longevity in the tech industry is a concern. Its getting harder and harder to land remote US tech jobs and if i get laidoff and if I can only land a local tech job, my pay will most likely get slashed in half, making it seem impossible to cover our current mortgage and other expenses. Therefore, we've been contemplating a move to Calgary—selling our current place and pocketing 700-750k after paying back the mortgage. We would then purchase an 800-900k place in Calgary, resulting in a very small mortgage. It will allow us to go from a townhouse to a detached house as well.

If I continue working at my current job in Calgary, we will be very comfortable. In the event of a layoff, there's no need to worry; I can take a less-paying job and still be able to cover the mortgage and living expenses, etc.

Did you grow up in the lower mainland? Do you have family here? Those are the only reasons most people stay in this city.

If you don't have family and friends the decision should be easier. If you do have family and friends here, it complicates things, but for certain, it will be easier on your life and your childs life if you move to Calgary.

We just met up with some friends who work in tech and I asked them how they felt about their job security and both of them said everyone in their company feels like they're on the chopping block. They said when Elon cut 80% of twitter it really opened people's eyes on how lean you can run a business. And in this climate, high paying tech jobs are not great for the balance sheet.

[PeanutButter]

RE: Gerb's neighbour

Same like my buddy who also drives an A4... lol

These people can't be taught. They grew up with a lifestyle, culture, and mentality that prevents them from getting to the next level. The solutions to their problems are often very simple, but these people are not capable of seeing them.

There's a bell curve for a reason.

I have learned that people just like to bitch and complain, but they don't actually want a solution. An easy way to tell if someone actually wants to find a solution is if they actually ask questions. If they're only complaining, but not asking questions, you know they're not actually looking for answers.

[RevYouUp]

Originally Posted by PeanutButter

RE: Gerb's neighbour

Same like my buddy who also drives an A4... lol

These people can't be taught. They grew up with a lifestyle, culture, and mentality that prevents them from getting to the next level. The solutions to their problems are often very simple, but these people are not capable of seeing them.

There's a bell curve for a reason.

I have learned that people just like to bitch and complain, but they don't actually want a solution. An easy way to tell if someone actually wants to find a solution is if they actually ask questions. If they're only complaining, but not asking questions, you know they're not actually looking for answers.

I know someone like this too. Drives an Audi A4 as well, handed a down payment by parents. Complains about the cost of living but buys stupid things and works crappy retail jobs in his 30s. He’s always complaining but I never see him ask for advice and do anything about his situation.

Even if you give him advice he’ll shrug it off lol. He’s just interested in chasing girls and has no discipline for self-growth.

[donk.]

Originally Posted by RevYouUp

He’s just interested in chasing girls and only has discipline for "self-growth."

Fixed

[Gerbs]

Originally Posted by PeanutButter

I have learned that people just like to bitch and complain, but they don't actually want a solution. An easy way to tell if someone actually wants to find a solution is if they actually ask questions. If they're only complaining, but not asking questions, you know they're not actually looking for answers.

I realized this in the last 1-2 years. I personally stopped giving advice / help, even if people ask nowadays, I give something pretty basic compared to before. Unless i like them and can see they want a lifestyle change then I'll give them a tailored presentation on how to make it.

I found a core group of guys that have already made it or are very literate financially. They're always looking for things to optimize and improve and I rather send my thoughts and energy there. I might learn a thing or two there vs having to reteach the basics on why you should have a TFSA by 28.

Or explaining to people your end goal should be non-reg accounts.

[RabidRat]

Originally Posted by Gerbs

Or explaining to people your end goal should be non-reg accounts.

Never thought about this: what're the basics behind that?

[sonick]

Originally Posted by RabidRat

Never thought about this: what're the basics behind that?

Means you've maxed out your TFSA and RRSP and other non-registered accounts.

[RabidRat]

Oh gotcha.

[Gerbs]

40% of Canadians under 35 have a TFSA, of that the average balance is speculated to be around $19K?

Blows my mind how many people people ask for help on how to open a TFSA and what to do with it. More often than not, I have to clarify that the TFSA/RRSP/FHSA is not ONLY a HISA or savings or chequing account in which they collect deposit interest.

From there, we dive into the world of ETFs/stocks/bonds/GICs. This usually confuses them by now because of the amount of options. I finally understand why mutual funds exist and how they're generally the best option for majority of the population. That 2% MER needs to glorified as a a tuition fee rather than portfolio management.

Same peeps manage to have condos without worrying about saving a DP in a TFSA/RRSP lol

[JDMDreams]

Few people have saved for dp for condos in their savings account

[RabidRat]

Originally Posted by Gerbs

That 2% MER needs to glorified as a a tuition fee rather than portfolio management.

That is a great angle. I've been struggling to find a way not to vilify my BIL's retail banking investment advisor gf in conversation around management fee robbery / conflicts of interest lol.

[PeanutButter]

Originally Posted by sonick

Means you've maxed out your TFSA and RRSP and other non-registered accounts.

You should also move any of your dividend-yielding companies into your Non-registered account as they are taxed more favourably. Better to keep your high flyers/growth stocks in your TFSA and keep your dividend Kings in your Non-reg.

[Gerbs]

If it's US dividends - > RRSP is non taxed while TFSA is.

[JDMDreams]

Lol Canada isn't that good and I'm surprised Europe/ Sweden is more affordable

https://financialpost.com/news/econo...grants-leaving

[Hondaracer]

A better quality of life, everything’s cheaper, and you don’t have strung out homeless everywhere, what a concept.