2019 economic outlook?
#16
Team Owner
I'm no guru but strange coincidence, a news article hit my feed this weekend suggesting this is not the time to buy in Canada's big cities with increasing interest rates and decreasing house prices. I'm not offering an opinion , just suggesting you look for the article.
#17
Three Wheelin'
I agree... every millennial I know has the latest and greatest Android or Apple phone and a sweet home gaming PC. Why go outside to drive when you can just do it on your gaming system?
#18
Burning Brakes
Walk in any Starbucks & you see every teenager with the latest Iphone, latest macbook pro & a Canada Goose. That's atleast $7k of their hard earned minimum wage salary in the retail industry. The Need to have latest and the greatest amongst millennials unfortunately will never allow them to save that 20% down for their first home.
#19
Nordschleife Master
Walk in any Starbucks & you see every teenager with the latest Iphone, latest macbook pro & a Canada Goose. That's atleast $7k of their hard earned minimum wage salary in the retail industry. The Need to have latest and the greatest amongst millennials unfortunately will never allow them to save that 20% down for their first home.
#20
Rennlist Member
#21
Racer
Walk in any Starbucks & you see every teenager with the latest Iphone, latest macbook pro & a Canada Goose. That's atleast $7k of their hard earned minimum wage salary in the retail industry. The Need to have latest and the greatest amongst millennials unfortunately will never allow them to save that 20% down for their first home.
#22
Rennlist Member
Exactly, it isn't right now, but if what they are buying is not manufactured in North America then there will be less jobs here and that will be the trickle down factor.....again i hope Im wrong but I see it coming.......the millennial or whatever you call them will just think the rents will bail them out...
#23
Pro
Thread Starter
Exactly, it isn't right now, but if what they are buying is not manufactured in North America then there will be less jobs here and that will be the trickle down factor.....again i hope Im wrong but I see it coming.......the millennial or whatever you call them will just think the rents will bail them out...
#24
Rennlist Member
Good luck with the hunt. I think the market will continue to appreciate but more slowly than in the past few years.
I’ll keep you posted. im going to have a half of one of the fourplexes South of Queen coming. Renovated upper 2 bed, original 2 bed main (rope for reno) and unfinished basement where you could add a 3rd suite.
I’ll keep you posted. im going to have a half of one of the fourplexes South of Queen coming. Renovated upper 2 bed, original 2 bed main (rope for reno) and unfinished basement where you could add a 3rd suite.
#25
there's plenty of millennials who skew the opinion of this thread the latest/greatest/overspend is an issue for most generations...
I think there's going to be plenty of opportunity soon for those who have been conservative
I think there's going to be plenty of opportunity soon for those who have been conservative
#26
Not sure about Canada, but typically real estate investments work long term (10-20+ years). If you're thinking "let me buy something that will appreciate in the next few years and so I can resale" I'd be cautiousness. Instead you need to be able to afford a downturn and hold till recovery during this period.
#27
Rennlist Member
Not sure about Canada, but typically real estate investments work long term (10-20+ years). If you're thinking "let me buy something that will appreciate in the next few years and so I can resale" I'd be cautiousness. Instead you need to be able to afford a downturn and hold till recovery during this period.
#28
Drifting
duplicate
#29
Drifting
Not sure about Canada, but typically real estate investments work long term (10-20+ years). If you're thinking "let me buy something that will appreciate in the next few years and so I can resale" I'd be cautiousness. Instead you need to be able to afford a downturn and hold till recovery during this period.
BY my basic math,
You lose the first 4-5% on realestate and lawyer fees.
and then another 3-4% per year on the mortgage interest...
You need to hope that the property goes up by at least 6% in the 1st year to make a profit.... I'd rather put it in a high interest savings account @2% or GIC @ 3%...
Your house cost $100 today, in 2020, you want to sell it for $110
You put $20 down as your downpayment, and mortgage $80
When you sell, you have to pay your RE agent $4.40
During the year, you pay the bank (*0.035x80) interest $2.8
Property taxes for the year $0.60
So you would make $10-$4.4-$2.8 - $0.60 = $2.2 on your $20 investment over the year.
#30
Walk in any Starbucks & you see every teenager with the latest Iphone, latest macbook pro & a Canada Goose. That's atleast $7k of their hard earned minimum wage salary in the retail industry. The Need to have latest and the greatest amongst millennials unfortunately will never allow them to save that 20% down for their first home.
I figure, regardless of generation, can't help stupid.
Fast rewards require risk. If you want a sure thing there is only one simple rule that everyone should follow:
DO NOT FINANCE DEPRECIATING ASSETS.
This one rule will ensure financial success and most importantly financial independence.
Think about all the money many people spend just to get money. Unfortunately, how whole economic structure has moved away from production of a tangible item to financing necessary items. It used to be that Ford made a car for $5 and sold it for $7.50 and so made $2.50 on every car. Now Ford makes a car for $50, sells it for $55 and then finances it for 8 years and puts people in revolving debt.
How many people come to me car ads that say 0% financing but then the fine print lists the price of the car for cash and at least a 10% higher price if you finance.