gamman

45 year mortgage!!! I had no idea such a horrible thing existed.

Not any more.

vipola

Yeah but you know, when you'r fresh from school, with no long background history, with the price of houses theses day, they want to play safe and be sure you have enought found to repay them..

But obviously, anyone buying a house on a 45year mortgage should plan to do extra paiement to pay it off in 25 or even 15 years.. paying a house in 45 year is such a waste, at that point your better go back at your parent place and wait for your heritage :P

atr911

Actually, we're going off on a tangent here but in some cases where money is cheap you're actually better off never paying for your house and a 45 year mortgage (with 20% down to avoid CMHC or genworth fee) is a good idea. You take the difference of what your payment on a conventional mortgage would be and invest it at a rate of interest greater than that which you are paying on the mortgage.

The house will appreciate (over the long haul) and it will be appreciating on the banks money. Your house will appreciate at the same rate wether it's paid early or financed. The trick is to use the money you would have used to pay down the mortgage to work for you. If you used that extra money to purchase an income property for example, you how have a tax deductable asset that is making you money AND your home is appreciating.

Turbodan

and the cost of borrowing can be written off using the "smith maneuvre".

atr911

It's your first home. They only get picket about it if it's a second home as far as 20% goes. I have tenants at my house that cover all but $50 of the mortgage. It isn't a stand alone income property but I deduct 66% of the utilities and declare 66% of CCA on the furnishings.

Reread your post and think about your position. You claim to not be able to support a house but want to dump your life savings into an expensive to maintain luxury liability. You will lose half of your $25K in 5 years and will spend between $3000-8000 in maintenance and repairs. You will have nothin to put down on a house even when you can afford it and may have contracted multiple std's from all the tail you'd pull with a fancy car.

Let your assets pay for your liabilities. (mommy and daddy are not assets btw )

atr911

The smith maneuver only works if you have a reassumable mortgage such as the manulife mortgage one where as you pay the mortgage off you purchase investments with the available credit you create and only the interest paid on the money that is invested is deductable.

The problem in this case is that a reassumable mortgage will only let you borrow up to 80-85% of the value in the home and the OP will not have that large a downpayment.

petee_c

I still think 20% down is a good idea for a home (especially if it's your 1st).... if u can't get close to 20% down, then find a cheaper/smaller home.....

Peter C
- finished UofT 1995
- landlord since 1996
- Porsche owner since 2009

boman993

+1. My point all along.

Turbodan

the smith maneuvre does not apply to the op currently. not sure what manulife has concocted but smith maneuvre you must pay off your mortgage completely then borrow from it to buy investments and the interest (cost of borrowing as I said above) is deductible from your income for tax purposes. the reason I mention this is because someone said mortgage is not all bad.

another thing is that the op could enjoy life driving a pcar for the next 5 years, get some good tail, not have to worry about problem tenants (can be a nightmare), not worry if real estate bubble pops or individual areas change for the worse, he could concentrate on his career, make money there and then buy a nice house and not have the stress outside of his career.
and for many families there is nothing wrong with living with your folks
some cultures it is bad thing to move out before married.
btw I moved out at about 23 after university, and still close with my family.

nickia

When I'm looking at the car that I'm interested, should I negotiate the price before doing PPI or vice versa?

Let's say if I see a Boxster S priced at $20k but my maximum is $18k, should I negotiate the selling price to $18k before spending $300 to do PPI?

Christien

No, negotiate after PPI. First, the results will give you ammo to bargain with, second, paying for the PPI shows the seller you're serious, not just wasting his time trying to get a deal.

vipola

I agree.. your better negotiating before the inspection and say thing like, "conditional to everything in good shape" and then negotiate again if everything is not perfect, than trying to negotiate when he already know your gonna buy it :P

swbatte

This is exactly what I did. We did find a small RMS leak (which the previous owner had taken care of under warranty right away) and the tires were shot. It was straight forward to negotiate a better deal from there.

petee_c

I bought my Boxster S from a Porsche dealer in Chicago. I forget what it was listed as, but I explained that I was a long distance customer (and could only deal over the phone).... Got it down to what I was willing to pay ($18.5k) I was also working within a budget. I could show I was serious by putting a hold on the car on my mastercard. I tried to find a Chicago area Rennlister to take a quick peek at the car for me, being cheap on the PPI.

Paid for a PPI at a different Chicago shop, had the salesperson drop it off - it was less than a mile from the dealership. After the PPI, I found out a couple things about the car

- (small ding in the rear bumper) - can't really see it unless u're less than 3 ft from the bumper
- # of overrevs
- cupping of front tires, the Chicago mech thought there was enough tread to get a safety, but Cdn Tire back home disagreed (of course 500 extra miles to get home probably didn't help)
- torn CV joint
- dry undercarrage - no signs of leaks
- minor curb rash on a couple passenger side tires
- wiper blades smear
- one of the trunk lights didn't work
- damaged LCD on the HVAC control


- took this info with me back to salesperson and negotiated a new price. I thought that the new price should be about $18K even. the salesperson wasn't keen on the new price, and so I asked for my deposit back.

- later, (next day?) the salesperson called back, and he would get the curb rash buffed down on the wheels, and reduced the price to $18K. I called the shop that did the PPI, and asked for his best asssessment of the car. The owner of the shop thought that the car was in good shape for an 2001 Box S with 42Kmiles. the dry engine bay did not suggest any leaks etc.

The biggy was the CV joint / boot. ended up splitting the labour on that 50/50 with the dealership. So probably I got the car for $18,250 including new CV joints on one side.

re: tires, if your car has tires that are iffy, I would recommend getting tires before you come back.... having to get tires locally set me back about $1200cdn, getting them on in the states probably would have saved me $4-500...... live and learn.

P

Sputter

I'd keep my eye on the other side. If it hasn't yet it will. It's common on the S models and they don't tend to split just one side.