314 Responses to “Friday Free-for-all!”
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November 9th, 2008 at 3:53 pm
Anon: I wouldn’t want to turn the Pope’s fabulous blog into an advertising venue. Oh who are we kidding, I’d love to do just that what with his circulation but I doubt he’d approve
.
Feel free to cruise on over to http://www.thelaughingchef.ca. It’s still very early days and the actual land line listed there isn’t set up yet, so feel free to use the email link to get in touch instead. Let me know what your thoughts about the dinner are and I’ll give you a quote.
I also do gift certificates and I’m available for anyone who wants a chef for an Xmas party, or an Xmas dinner
Oh and krrish I swear if you start stalking me, I have many creative ways to make you *very* sorry…. so don’t.
November 9th, 2008 at 3:53 pm
Pandora: “I have spent all of my career (except two years) studying and preventing transmission of diseases. The other two years were spent volunteering trying to each other people to do it for themselves. Which, I suspect, is exactly two more years than you will ever spend lifting a finger for your fellow man you sad, angry, boy.”
You are giving us all a disease. With you in charge of the disease department I now understand why we have so many diseases. I hope you retired now.
November 9th, 2008 at 3:32 pm
The only thing that counts is the relationships we build in-between and the love we share with each other.
That’s just crazy talk.
November 9th, 2008 at 3:27 pm
Ah Pandora, there it is… the Boomer narcissism.
You give her too much credit to attribute her specific nastiness to a generation.
I feel sorry for the people around her in her life off-line.
November 9th, 2008 at 3:26 pm
Bearette:
“Is it me? Am I not making sense? I have tried to save at least a dozen people from this bubble. I failed on all counts.”
No, it’s them. You are the sane one. Look in the mirror and repeat after me “I am sane. I am sane. I am sane.” Good. Now look at Realtor.ca and see that the houses that were $1,000,000 last year are $800,000 today and will be $500,000 next spring. Start thinking: “Which one should I buy? I can actually afford to buy now! I can’t believe it. I was getting used to being priced out, and now I see that my patience was worth it!!!! Yippeeeeee!!! I AM sane after all. I will pay $250,000 for something my friends paid $500,000 for. I can’t believe it!!!! Waiting and watching and watching and waiting actually worked! Freako and friends were right!!! Whoooooooooohoooooooooooooo! One more year and I’m in!
November 9th, 2008 at 3:23 pm
Bearette, I think you’ll find many people in the same boat as you. As a cusp-boomer (Skullboy, you don’t hate me do you??) I’ve watched the cycles in Vancouver. From the early ’80′s boom/bust cycle to the 90′s mini boom/bust to the current mega-boom/bust.
It’s all been played out before. You can try to save a few, but inevitably you can only take care of yourself. My advice? Invite your friends over for a hot meal and some wine when they are scared to death about losing their home(s) or jobs. Remind them that you are their friend and will be there for moral support.
After its all said and done, we came into this world with nothing, and will leave with nothing. The only thing that counts is the relationships we build in-between and the love we share with each other.
November 9th, 2008 at 3:20 pm
Lest we forget:
http://toronto.metblogs.com/ar...../Poppy.jpg
November 9th, 2008 at 3:17 pm
Scullboy,
How much would you charge to make dinner for two in someone’s home? I am thinking during the Christmas holidays. I would like to hire you if you are not too pricey
November 9th, 2008 at 3:07 pm
I am a proud Gen-Xer too. I’m used to getting f-ked over by boomers — subject to hiring freezes as boomers refuse to retire, the housing bubble fuelled in part by greedy boomers looking to invest in a second home, etc. So I’ve watched and waited and listened to the blogosphere and then I will swoop in and feast on their broken dreams! Wha ha ha ha. REvenge is sweet. If only my lovely parents weren’t boomers now struggling over their stock market losses. Be careful what you wish for… I may give back all my gains as I HELOC my cheap circa-2011-bought home to take care of them after their retirement funds run out. Sigh. Like I said …
On another note. There are plenty of dumb as nails Xers out there too. I have tried and tried and tried to get friends to listen to my bubble market coming crash speech since 2005. None of them listened. All of them bought and I had to STFU to remain friends with them. Of course, they looked down on my renting and conservative investing. Now, I can’t even gloat “I told you so” or risk having no friends at all. Better real estate is a no-go zone.
But what is really incredible is how many still are oblivious even with media attention to the crash. One set want to lay out $150 grant plus on an eastside bunglow renovation (bought at the peak,no less.) Another, with an partner who is looking for work and their own firm in a headline-grabbing slump want to sell their 1 bd condo and buy a house before its too late. WTF?
Is it me? Am I not making sense? I have tried to save at least a dozen people from this bubble. I failed on all counts. Even Gen-Xers don’t want to hear the truth if it means sacrifcing (even temporarily) their desires. They just dont understand delayed gratifcation. Or saving. Sometimes I feel like a “Greatest Generation” Depression-era member. Dont know how I got this way. Oh, wait. My formative years were during the early 80s crash. I remember the tension in my family over bills and the trips to K-mart. Too bad other Xers couldnt do the same.
November 9th, 2008 at 3:06 pm
Pandora: Get off this blog, you big fat P*G.
November 9th, 2008 at 3:03 pm
A few things about the RRSP vs TFSA debate:
I think you all have good points.
I heard that with the TFSA you can deduct any losses from your taxes but you can’t with the RRSP. Not sure if that’s true.
With an RRSP account you can invest in pretty much anything — even hard gold from the Canadian Mint, so if you have a self-directed RRSP the financial advisor taking your earnings is not an issue.
A friend of mine got sucked into going to a seminar where the financial advisor tried to get then to invest into TFSAs through him, so there is no guarantee that the financial advisors won’t hound you like sharks even if you save through TFSAs!!
Pandora, I’ll bet you are crying that your neighbour got $700K UNDER asking price but you won’t admit it, right? Too bad, so sad….
November 9th, 2008 at 2:51 pm
C’mon Ricky Schroeder …..don’t be bitter, suck on a lemon LOL !!!
Hey, Speaking of investing and retiring….whatever happened to the Freedom 55 ads ? Have they inflated to Freedom 85, unfortunately past most peoples’ “due dates?”
I heard the only people who retired with “Freedom 55″ where the ones selling that brand of Kool Aid.
Regardless, there is NO free lunch, and if any program gets popular, and it costs the Gov’t $$$, the rug gets pulled out pretty damn quick.
November 9th, 2008 at 2:30 pm
Ah Pandora, there it is… the Boomer narcissism. I can smell it coming from you, just like stale perfume.
What is it about your wretched generation? You somehow manage to suck every last cent from both your parents (when you were growing up) and your children (through these ridiculous bubbles). Simultaneously, you manage to be be incredibly self righteous.
Somehow you and your cursed cohorts manage to hoarde every last cent, yet still do your damnest to leave the world with the impression that the unwashed masses are trying to cadge from your “hard earned money” and take advantage of your enlightened largesse.
It’s Boomeresque to try and rob others of their independance by implying they want something from you, while somehow managing to cling to every penny with your withering fingers.
That’s ok though, you and your greedy little compatriots have finally manage to gorge so voraciously, you’ve upset the trough. With the collapse of the global financial industry, your properties and pensions are going to take a massive hit, just when you can least afford it.
How lovely for you that your enlightened kindness shone upon others. Personally I think you are a perfect example of the cure being worse then the disease.
November 9th, 2008 at 1:20 pm
re: TFSA
what the gov’t giveth the gov’t can taketh away:
if too many people gravitate to tax free accounts and the gov’t perceives a loss of revenue they can easily change the rules
(see income trusts)
…and yes i am a cranky ol’ fart.
Well, that’s why they have a $5000 limit per year. I agree that if the limit is not imposed, everybody would have jumped into it literally. I mean, you can even have the company you work for pay you a dividend as a form of income for your work and you’ll be working tax free.
Oh no.. of-course the government had already thought of that!
November 9th, 2008 at 1:15 pm
In a usual year RRSP/RIFs are best because you have accumulated all of the tax shelter savings in your investments during your lifetime and by the time you retire your income is lower anyway, so the taxes paid are lower AND your money is bankruptcy protected during your lifetime, so all in all RRSPs should come first and THEN go into TFSA.
Arguing RRSP is better than TFSA is like debating the merits of Defined Benefit retirement plan (DBRP) against a Defined Contribution retirement plan (DCRP). There are always pluses and minuses. There are no cookie cutter solutions to these things really.
But for a high income earner and asset accumulator, I would agree with Anonymous about RRSP being the first plan to maximize upon. But also remember about OAS and other retirement benefits you do get when you retire. You want to make sure that you do not get clawbacked due to the fact your retirement income exceeds a certain capped threshold. And you can be sure that this cap may be lowered in the future. In effect, the richer you are, the less benefit you will get from the government — you’re on your own. I mean, you heard it from our finance minister that he is not ruling out deficit spending to save the economy and so are other countries. Car companies want government to bail them out. Where does the buck stops then? With so many bailouts happening, where do you think the money is going to be coming from? From thin air perhaps?
TFSA is really meant, I think, for younger people where age do make a difference. If a younger 20 year old opens an account and gets to live until 65, he would have a 45 year contribution room ($5000×45) isn’t a shabby sum either earning tax free. Do not forget that since this income is tax free, you are in effect earning a 30% YOY return on your income if you’re in a 30% tax bracket. So tell me, which investment can you get a guaranteed 30% return with?
We are so used to paying taxes that we forgot that the money from our paycheque is already tax deducted. The income generated from inside TFSA is not!
For older boomers however, RRSP would probably be a better choice because you get an immediate tax refund of your after tax dollars when placed inside the RRSP plan. So it is really about who is putting in the money.
November 9th, 2008 at 1:12 pm
There are a lot of bitter realtors on here and Dave’s only way of lashing out is calling the people who made the right choice life long renters?
I’d rather be a rich life long renter than an out of work realtor.
I love your site Dave, this part is hysterical
“This is a great vision for what you want to achieve, but quantify things. For example, in the next five years I want to be making $1000/month from my real estate investments. This year, I want to buy one property that will generate $100/month in cashflow.
So do you just make up an amount to charge for rent?
For example can I quantify that I want to make $1,000 a month on a Yaletown condo by charging $4,000 per month?
Is shrewd real estate investing that easy?
Obviously the fundamentals and metrics are in place.
Are any bitter renters on this site interested in renting a one bedroom in Yaletown from me for $4,000 per month?
November 9th, 2008 at 1:09 pm
“6 Anonymous Says:
By the way, regarding denial- people get scared very quickly about economy, job security, etc, but somehow denial blocks any fear when it comes to real estate. Any ideas why?”
Anonymous,
Homes are basic necessity even if some one buy at low or high the long term trends are more constant upward in favour of vancouver real estate virtually poised to never go down and short term trends(18 months gain-Dave’s Recomendation)are very less constant like once per 15 year or nope that’s preety much equal to realtors commission and other buying or closing cost,if some one like to sell in fear are unable to retain the first time buyers status that’s mean more cost is involved to re- enter this type of measurements takes control on overload supply of resale homes then What happen in short term?homes remain homes and condo remain condo the essential part of humans life.
Long Term or short term following facts are firm in housing sector where owner keeps control unless or otherwise 1.Land,2.Building, 3.Rental Income 4.Necessity 5.Job loss mortgage insurance that cost only 60 cents per $10,000.
Very Simple:Enjoy your life as long as you can because Vancouver Real Estate Never Go Down.
November 9th, 2008 at 1:06 pm
By the way, Via @ 164. That is an excellent post. It sounds too me like you keep some pretty horrid company if you know people like that and I would be the first to cry foul if anyone said anything like that in my earshot. You sound like a more switched on person than any of them anyway so I hope you gave as good as you got.
Last night we heard from a neighbour that she has accepted an offer $700k+ less than her asking price after three months on the market. Did we feel sorry for her – of course not. Conversely we took no joy in it either and I cannot see why anyone would.
If people criticized you and people like you because you did not/could not/did not want to buy that says more about their own insecurities than anything else. They sound like desperately unpleasant people who I would not want to be within a mile of.
That said, what does one make of people who might be blindly criticizing people for buying – not knowing why they bought or their financial position?
One might tar them with the same brush….
(Cue barrage of invective.)
Cheers
P
November 9th, 2008 at 12:59 pm
“The Millennials are just getting into house buying age and there are a lot of them. They will power the next boom”
Having worked in a pre sale presentation centre for four years it would be safe to say that every baby, pre teen, teen and student, gen x, gen y, boomer now owns a pre sale and there are no buyers left to buy at any price so no demand, lots of supply and the few that want to buy won’t qualify. have a nice day dave go for a bike ride and sit in a coffee shop your career as a mortgage broker and realtor is over
November 9th, 2008 at 12:55 pm
Dave. We know who you are.
http://revnyou.wordpress.com/about/
Stop with the BS, Ok?
-J
November 9th, 2008 at 12:54 pm
Scullboy: “Tax free savings account? That’s f**king BRILLIANT! instead of investing, you can save all your money in a tax free shelter….. amazing! And what a way to prevent or at least mitigate bubbles. It’s risk – free and you get to invest in yourself…. you can store up enough money to start a business, or go back to school, or at least save for a rainy day. God, I love it!”
Here is my free advice:
First max out your RRSP to get the tax shelter, protection from bankruptcy and you can still take money out for homeownership and education then put it back where it is tax sheltered. Only save money in the TFSA if you have maxed out your RRSP. This is my understanding.
My advise is:
While this is the usual mantra being espoused by a number of financial advisers and planners just to get you to buy RRSP and lock in your money with them, there are a number of instances where TFSA is actually a better choice, or a supplementary choice to RRSP.
While TFSA is not as well protected as RRSP, it is not as closed as RRSP either. The key is, flexibility usually does not come with a risk free policy either. No plan does, which I find Anonymous advise rather odd because you ALWAYS PAY A PREMIUM for risk free, in which case with RRSP, you pay taxes as you start withdrawing income after you retire and other minuses as you withdraw money from it.
There is absolute no free lunch with RRSP.
Another question would be, would you maximize your RRSP before you start investing in TFSA? My answer to this is mostly a no.
The reason for this is that, most of us have debt obligations in a form of student loans, car loans, mortgages, and other discretionary loans you make in your lifetime. Time and time again, they get sucked by investment advisers to maximize their RRSPs in expense of their ballooning debt obligations!! I mean if your Visa card charges you 18.5% per annum and your RRSP returns to you at say 4% per annum or maybe 8% if you’re lucky, which ones would you maximize the most? I would pay off my credit card bill and earn 18.5%, which is interest I don’t have to pay. And so is true with other loans you have. In the meantime, you also have float money lying around which usually sits in your savings account earning a paltry pathetic sum of money, TAXED at your full tax bracket. Wouldn’t you put this float money into TFSA and try to maximize it as much as you would? In fact, you could probably consolidate some of your GICs, Tbills and whatnot you had in your taxable account into this. The income you draw from the TFSA is tax free, which can then be used to assist in paying off your debt with your after tax dollars.
So unless you’re making a lot of money in Vancouver (which is like very very few of us that do), the advantages of TFSA
is more prevalent than RRSP.
November 9th, 2008 at 12:50 pm
Tony, I am older than 30 yet younger than 45. I am not the Dave that you think I am.
The Millennials are just getting into house buying age and there are a lot of them. They will power the next boom.
November 9th, 2008 at 12:41 pm
Scullboy:
Oh dear, you really have issues too laddie. “Mum and Dad’s stinginess” getting you down! Why on earth should they give you any money are or you really just incapable of doing anything on your own but ranting on the internet?
And what on earth has owning a home got to do with not caring about “disease, divorce …” and whatever else you were rambling on about in one of your earlier posts? I have spent all of my career (except two years) studying and preventing transmission of diseases. The other two years were spent volunteering trying to each other people to do it for themselves. Which, I suspect, is exactly two more years than you will ever spend lifting a finger for your fellow man you sad, angry, boy.
(With apologies to other posters for an off-topic post.)
November 9th, 2008 at 12:32 pm
Good example that both of them were tenents.
November 9th, 2008 at 11:54 am
I can’t believe how fast this nightmare is unfolding.
2 months ago my son in law and nephew were seriously considering the purchase of a house and condo (agains my admament advice to the contrary).
Well guess what, they both got their layoff notice last week….one in computer marketing, the other in construction. Despite the trauma of unemployment, their relief at not having bought is bloody awesome.
November 9th, 2008 at 11:52 am
Dave you’re over 45 years old (and wife looks like she’s at least 50)! You are not a Gen-X’er, nice try though. And keep it up with the life long renter jokes they’re so original and scathing, it really hurts my feelings and makes me wish I had bought in all along:(
November 9th, 2008 at 11:51 am
Now those people will ride the next real estate wave up with Millennials.
no they won’t because the RE wave is crashing as we speak it’ll be a ride down for all concerned……
November 9th, 2008 at 11:48 am
Keeping an Eye on The Pimps Says:
November 9th, 2008 at 10:33 am
That $1.6 million house was worth that… For real value it must be sold and not told cause BS is all around us. Let the truth be told once it is sold… That will determine value. Paper gains is BS until realized. Sell it then we talk…
November 9th, 2008 at 11:40 am
Dave, and others like him, were quite happy to write off an entire generation (and presumably the subsequent “Gen-Y” generation) for their own personal gain
FYI… I am a Gen-Xer. I don’t think I fit the stereotype because I am more optimistic than many in this generation. It’s just an observation that many of the people who didn’t buy into the market were Gen-Xers, although they could have afforded to do so. I find it ironic that the generation who didn’t have a lot of opportunity missed out on a big opportunity that stared them straight in the face in the early 2000s. Now those people will ride the next real estate wave up with Millennials. Or perhaps, history will repeat itself again and you all will get stuck renting from those snotty nosed youngsters.
November 9th, 2008 at 11:21 am
I just thought of a new reason Vancouver RE will never go down! Not only is our landbase constrained by the mountains, ocean and border, but also….
As a rule, a similar suite on a higher floor commands a higher price because of the view. Look at the cloud level out there right now. We can’t even build UP to the same extent as other cities without our strong fundamentals!
Quick, who’s got some pre-sales I can snap up at a never-to-be-seen-again price?
(I’m actually serious about the never-to-be-seen-again price. Just not in the direction Dave and Pollyanna oops, Pandora think.)
November 9th, 2008 at 11:03 am
Toronto Real Estate Prices Down 15% in October
http://www.movesmartly.com/200.....211;1.html
“Prices in the city of Toronto continue to decline at a much faster rate than the surrounding 905 Region.”
But let’s not lose our heads, this won’t happen here because high prices are secured by the mountains to the north, the ocean to the west, the US to the south, and the Alberta border to the east, and the Olympics of course.
But more importantly Vancouer is a world class city, with world class business headquarters.
November 9th, 2008 at 11:03 am
More from the Georgia Straight:
Re: the City of Vancouver’s claim of $2.5 Billion in the Property Endowment fund
Accusations of ” financial Hocus – Pocus “?
http://www.straight.com/articl.....obertson?#
November 9th, 2008 at 10:55 am
More info re: the Olympic Village from the Georgia Straight
http://www.straight.com/articl.....c-village?
Seems like this secret deal was cut way back in 2002.
Also: Now SNC Lavalin is involved.
November 9th, 2008 at 10:47 am
re: TFSA
what the gov’t giveth the gov’t can taketh away:
if too many people gravitate to tax free accounts and the gov’t perceives a loss of revenue they can easily change the rules
(see income trusts)
…and yes i am a cranky ol’ fart.
November 9th, 2008 at 10:34 am
Who leaked the Olympic Village story ?
Georgia Straight article:
http://www.straight.com/articl.....-loan-info
My guess is Ol Mayor Sam and his allies.
He is probably happier than a pig in sh*t that he ain’t running for office now. This is sticking to Peter Ladner big time, as Finance Committee Chair and Mayoral candidate. Sullivan can have his cake and eat it too aka ” revenge “.
November 9th, 2008 at 10:33 am
Montery: That is bad advice you are giving me. WHy? Because this year is a highly unusual year for the pensioners, and only the dummy ones who did not put their money in a safe place got hit with a 30% drop in their mutual funds. DUH! Old farts wake up!!!
In a usual year RRSP/RIFs are best because you have accumulated all of the tax shelter savings in your investments during your lifetime and by the time you retire your income is lower anyway, so the taxes paid are lower AND your money is bankruptcy protected during your lifetime, so all in all RRSPs should come first and THEN go into TFSA.
November 9th, 2008 at 10:33 am
The market has deteriorated so badly even CKNW reported RE in Vancouver is no longer the way to riches; prices have dropped and are expected to drop further in the next couple of years.
Yes it’s true even the pumpers have stopped the pumping and now they are starting to build the dykes which are supposed to contain the tsunami.
Somehow we have gone from no possibility of a bubble in Vancouver, (because we are different), to a market with some froth, to possibly a flat lining of prices, to a moderate price correction, to a puny 30% drop.
That’s the media.
Now to the conversation amongst my friends, (I just listen).
The media likes to report bad news and exaggerates, Vancouver is the best place on earth, we have a shortage of land, we have a low vacancy rate, nothing like the States will happen here because we don’t have subprime, Vancouverites are not as heavily indebted as the Americans, Vancouver prices are low compared to other world class cities, there is no glut of condos because they are all presold, Vancouver looks just like Hong Kong, and the rich Asians all want to live here because there is no crime, this is the California of the North, and all the retirees will move here from across Canada, we are insulated from the downturn because we have natural resources and China and India have an insatiable appetite for energy and natural resources, my parents bought a house in Vancouver in 1970 fro $16,000.00 and it’s now worth 1.6 million.
November 9th, 2008 at 10:31 am
For some people, putting money in a TFSA makes sense even if you haven’t maxed your RRSP.
If you’re in the bottom tax bracket and expect to be paying more later, you won’t get much money back from an RRSP contribution. Better to put it in the TSFA, it will grow fax free, and put it in the RRSP when you’re in a higher bracket. You also have the flexibility in the interim to take the money out without penalty.
That’s about the only exception I can think of though.
November 9th, 2008 at 10:27 am
Here’s a 1 bd. for $1867(Can)/mo in London:
http://london.craigslist.co.uk/apa/909230012.html
(Only 48 listings on Craigslist for London — thousands on kijiji)
November 9th, 2008 at 10:22 am
Actually, #209, I wouldn’t do what you’re suggesting. Here’s why: You have to (at a certain age) take money OUT of your RRSP. When you do this, you will be taxed at the going income tax rate for your annual income. If you convert it to an annuity, you’ll pay the taxes for what your account balance is for that year at the start of the year. (Witness complaints by seniors when the market crashed in October — they were paying taxes based on their accounts being worth 30% more!)
The TFSA will allow you to pull out money at any time without paying taxes.
So, I would to the opposite. I would maximize my TFSA, and then if I have funds left over drop it into the RRSP to lower this years tax grab.
Of course, I would also look at setting up an off-shore brokerage account in Panama so that I can invest in the market capital gains tax-free, but I’m just nefarious that way. I wouldn’t recommend it for the faint-hearted ‘cuz there’s nothing but scammers in the off-shore world.
November 9th, 2008 at 10:13 am
As the saying goes, everything happens for a reason.
None of us are immune from this RE collapse, the only difference is exposure to various degrees of impact, whether it be direct or indirect. When people get burned do they learn anything ?, or do they re-incarnated like moths attracted to the light till they get too close again and subsequently burned again.
It almost appears like we had a WW III, this time it was economic, given this was deemed a global economic event. It was actually more insidious because it wasn’t some rogue computer hacker disrupting the global financial system with a virus etc.. but instead this happened under our noses and with the blessing of many cheering it on “Me too Me too”. Many of us suspected the Emperor had No Clothes…and like Warren Buffet said recently when the economic tide went out , it was ultimately exposed as a nude beach ie without any substance.
I observed this bubble starting way back in the late 1970′s , and it has re-invented itself about 4 times since then. In my view, and especially what has happened ecently and globally , it smacks of desperation of Gov’ts who are simply bankrupt in both ethics and fiscal means. They, those in power , are often the first to drink the Kool Aid… then the rest of us are encouraged to join the line.
Like any war, we’ll have to let the dust settle … and I think the real fallout hasn’t even started yet.
November 9th, 2008 at 9:55 am
Scullboy: “Tax free savings account? That’s f**king BRILLIANT! instead of investing, you can save all your money in a tax free shelter….. amazing! And what a way to prevent or at least mitigate bubbles. It’s risk – free and you get to invest in yourself…. you can store up enough money to start a business, or go back to school, or at least save for a rainy day. God, I love it!”
Here is my free advice:
First max out your RRSP to get the tax shelter, protection from bankruptcy and you can still take money out for homeownership and education then put it back where it is tax sheltered. Only save money in the TFSA if you have maxed out your RRSP. This is my understanding.
November 9th, 2008 at 9:46 am
in the midst of a real estate downturn, where falling prices means falling taxes
Mine sure didn’t in the early 80′s or late 90′s, Taxes are not correlated to assessments. Gordo knows this but he thinks you don’t.
Are TFSA funds bankruptcy protected like RRSP savings?
Almost certain the answer is NO. Like the name says, it’s a tax free savings account – not a retirement plan.
November 9th, 2008 at 9:43 am
Strata:
I hate being a dick (well, kinda….) but I’m right there with you. I looooove waking up every morning and knowing my cash reserves, while dwindling, are CASH. Meanwhile many of my former colleagues who oh-so-cheerfully dranky the green – and – purple Kool-aid are watching their stock take a nosedive, their pensions dry up *and* the value of their homes are plummeting, just as they were planning on taking their leisurely retirement in Scottsdale.
No golfing into your dotage for YOU, my sweeties!
Good for you to recognize the value of experiences. MY parents are literally drowning in overpriced junk they accumulated for God knows what reason, and their really socking stinginess has managed to really alienate my sibling and I.
Northeast Canuck: Don’t worry. The cure for arrogance is humility and there’s no faster way to humility then to lose a pile of money that you *thought* you gained.
Pandora’s faux patrician “My GOD the peasants are revolting” tone will vanish, as will Dave’s “Gen – X is where it deserves to be” arrogance. If they hadn’t alluded to it, you’d easily be able to determine they are Vancouver home owners.
Pandora, you are a silly git. For years now we’ve been trying to warn our friends off the Kool-aid. We were treated with scorn and contempt. Only now are people beginning to notice there’s a strange aftertaste, and it ain’t Aspertame.
So yeah, I’m looking forward to you and your point grey buddies taking one in the teeth for your own stupidity. It’s the genius of capitalism. You didn’t complain on the way up, so don’t bother complaining on the way down.
Tax free savings account? That’s f**king BRILLIANT! instead of investing, you can save all your money in a tax free shelter….. amazing! And what a way to prevent or at least mitigate bubbles. It’s risk – free and you get to invest in yourself…. you can store up enough money to start a business, or go back to school, or at least save for a rainy day. God, I love it!
November 9th, 2008 at 9:39 am
“$1550. and must make 3x’s the rent.”
I wonder if the owner makes 3x the mortgage payments?
November 9th, 2008 at 9:18 am
Here’s a 1 bd. in San Diego for $1550/mo.
http://sandiego.craigslist.org.....89261.html
San Diego listings on Craigslist Nov 8/08?
A whopping 1300. Second only to L.A. at 2000.
November 9th, 2008 at 9:16 am
Maggie Chandler Hates Me:
She is a realtor. I post the odd comment on her blog. It is always deleted fairly quickly. She recently had a post on the declining values in the Vancouver real estate market with a “on the positive side” final paragraph. I reminded her of this post she made in March on Vancouver Real Estate Anecdote Archive http://vreaa.wordpress.com/200.....er-of-ten/
where she recommended getting a HELOC to purchase presales!!!!
Gambling On Vancouver Real Estate, To The Power Of Ten
27 March 2008 · 1 Comment
This from gse36 on Real Estate Talks Thu Mar 27, 2008 1:31 pm
“Case in point. friend’s house (fully paid) went from 400->800k. he took out LOC 600k (75% of value), and purchased some $3M of presales (8 of them) (only put 10-20% down) and it only cost him 500k or so of that LOC. He pays interest on the 500k @ prime so around $2k/mo for hanging onto them. Thats cheaper than buying 8 right now and renting them out (will bleed more than $2k/mo). And much cleaner (no tenants to have to deal with etc), and he can write off the interest. He made some money already on the earlier purchases, but the later ones. i don’t know. In either case, its quite risky. if prices slide, he risks losing the farm.”
[Will be archived under 'Where Do They Get The Money?'.]
Categories: Uncategorized
1 RESPONSE SO FAR ↓

maggie chandler // 29 March 2008 at 7:16 am smart idea and a great way to make $. i believe if investors did the same today, 10 years from now they’ll be smiling. having said that i notice many new buildings with 15-20 suites being flipped and they are sitting on the market now 5-6 months, with no price reductions. so maybe they’re not flippers but holding long for their price.
I wonder how early she gets up Sunday morning?
November 9th, 2008 at 9:00 am
Van Man: Are TFSA funds bankruptcy protected like RRSP savings?
November 9th, 2008 at 8:50 am
A quick look through craigslist rentals shows the following listings for California for Nov. 8/08.
Las Vegas: 462
Los Angeles: 2,079
San Diego: 847
By comparison, Vancouver listings have been between 800-900.
The rental rates in California seem to be a bit less than Vancouver. They are 1600/2 bd. but in Vancouver a 2 bd is advertised at 2000-2400.
The biggest issue in California is with affordable housing. It is the state with the second highest rental rates in the U.S.
So like here, there is lots of overpriced stock.
http://www.reuters.com/article.....BW20080408
November 9th, 2008 at 8:47 am
Here’s a 1bd. in Vancouver for $1400/mo. ($1500 w/parking).
http://vancouver.en.craigslist.....96430.html
Here’s what type of 1 bd. you get in the big apple (Manhattan) for $1800/mo.
http://newyork.craigslist.org/.....28584.html
(there are 700 listings for Manhattan, 1100 for NY — Nov 8/08).