“She moved back to her parents’ house earlier this year, and has paid off everything she owed. She expects to have enough saved to make a down payment on her own home in about 18 months.”

“J.Y. Fores-Pimentel, a single parent in Richmond with two children, says society encourages people to think they can spend more than they earn — and gives them credit cards that make it easy to tumble into unmanageable debt.
Fores-Pimentel, 31, became caught in the debt trap but freed herself by curtailing spending and cutting up her credit cards. She moved back with her kids to her parents’ house earlier this year and has paid off everything she owed.
By living frugally, Fores Pimentel expects to have enough saved to make a down payment on her own home in about 18 months.
“You have to change your lifestyle and it’s really difficult,” she says. “But there is such a sense of freedom in being debt-free.”

– from Average British Columbians unprepared for ‘tsunami of debt-related problems’, Paul Luke, The Province, 29 Oct 2011

Can’t. Make. This. Stuff. Up.
Somebody with a net-worth of zero, sees path to fiscal responsibility via leveraging up meagre savings 20:1 and ‘purchasing’ (promising to pay-back over lifetime) a property, almost definitely a condo, for hundreds of thousands of dollars.
We’re living within a cult; the majority are brainwashed.
– vreaa

19 responses to ““She moved back to her parents’ house earlier this year, and has paid off everything she owed. She expects to have enough saved to make a down payment on her own home in about 18 months.”

  1. Hopefully she doesn’t jump in too soon. She sounds impatient.

    • She will likely get in as soon as possible. She equates ownership with being a responsible and financially prudent citizen. She likely has absolutely no idea of market risk.
      The best thing that could happen to her, personally, is that the market drops so hard over the next twelve months that it makes headline news (she won’t hear about it from the realtor who will be ‘advising’ her) before she is able to scramble to buy. Then she may wake up to downside vulnerability. Short of that, she’s ‘in’.

  2. Renters Revenge

    Yes, and as a middle aged renter I can tell you the public scorn can be heaping. In my social circles people really look at me like I have three heads because I chose to rent. It is this really awkward thing that no one ever brings up, like it’s a dirty shameful secret.
    I like to see people squirm so I try to bring it up as subtly and as often as I can.

    • uhm, why would you want to bring it up if no one was asking? Especially when it makes for awkward conversation and public scorn?

    • You think renting is bad? Imagine living with your parents at 28. I look younger than I am and get a big wtf face when I mark down my birthday.

      It’s common in Canada in the low twenties but I think there is a significant blip as well on the higher end too. it’s on statscan – look it up. It’s an increasing trend in the States as well – though probably out of necessity (no jobs) other than anything else.

      I know professionals grossing 100k in their 30s living on reduced rent at home. My sibling lives at home as well. These guys have the powder to kick in and take advantage when the bottom hits. Or like a few I know, they have finally decided to blow it all at the top. I think it does mess up personal and professional development to be at home, but on the other hand it keeps money “in the family” and is common in South and East Asian cultures.

      I was in that savers boat too. My assets were hit hard speculating on stocks and I was exposed currency volatility in 2008/09. There was still more than eough for a 15% downpayment, but the prospect of paying for a 500 sq foot condo for 300k and working it off for the rest of my life was a bit too much for me.

      I’m glad I made that choice since I’ve had so much damn fun living overseas for the past year (and half a year in 2008). Fresh produce, sun, amazing clubs for $4 and hot women. But if I do come back… yes I will be attached with the stigma of that manchild who lives in his parents’ basement.

  3. I hope this lady buys soon….I’m past the point of trying to convince and save people because why? If people listen to you and you are wrong then they blame you for the missed out equity gain, the rent money they throw away, the missed opportunities to buy cheaper. If you are right, are they going to thank you for the advice? No, likely they will think it’s because they are smart to avoid the buy and you are just lucky or didn’t have $$ to buy yourself so you didn’t want others to buy. If they didn’t listen and you were rigth, well, you can be in a world of hurt as they blame you for their house dropping in value and losses. It’s no win and frankly it’s better to just let them do their own thing and suffer the consequences and stay the hell away. It’s not people who graduated high school here can’t do simple math! Or university for that matter. After all, our public school system is supposed to be one of the best in the world teach basic fundamental skills and critical thinking.

    • “‘You have to change your lifestyle and it’s really difficult,’ she says. ‘But there is such a sense of freedom in being debt-free.'”

      I had to re-read that a few times. All I kept getting was, “I want to get out of debt so I can go into debt.”

      Good debt, bad debt, there are two sides to every debt, as Mel Brooks would say.

  4. so you think you have saved some people?

    • Not really and I gave up. No point. As I said, no matter what happens, you aren’t going to get any thanks and likely lots of blame. Why bother? None of my friends have cognitive disabilities, all have university education, they should be able to make their own decisions and they can live with it. Not really my problem.

  5. “But there is such a sense of freedom in being debt-free.”

    So I’m going to take out a mortgage! (Did I fall down a rabbit hole?)

    • Royce McCutcheon

      I’d like to believe the author closed the piece on that note intentionally, providing a great example to illustrate the headline. Please god let this be the case.

      [Sorry, no, not the case. – God]

    • In the US, this could be a brilliant move: pay off your high-interest credit card debt, then get a mortgage at 4% interest locked in for 30 years, while inflation is 3-4%? Yes please.

      In Canada, not so much.

  6. Well at least she’s saving! Extended families can be a good thing.

    The big thing for me: her parents have spare bedrooms. Housing shortage: there isn’t one.

  7. I stopped by my old job to visit.

    Boss mentions Vancouver RE. Says that he doesn’t think it’s going to go down because it’s been recession-proof. Doesn’t think it’s going to go any higher mind you, thinks it should stay the same for awhile. Also buys into investor-immigrant theory.

    He agrees it’s a bubble (but I’m not quite sure he understands the full implications). It might be that by bubble he means it’s just unreasonably high. He’s an intelligent person, but he bought in 2009 so he’s highly leveraged. financially and opinion-wise. Changing his POV might be admitting to a gargantuan mistake.

    Kind of upsetting since he’s a relatively new/young researcher, and the size of the mortgage will probably detrimentally impact his family’s life.

    Sometimes I think along the same lines, but I can’t bring myself to seriously believe it. There’s just no way he can be right. This has to end sometime and it won’t end in a flat-line. It’s not that I want to say “I told you so” to him, I just wish others didn’t fall into the same trap. The longer this goes on, the more people become absorbed, and the harder the eventual fall.

    • The fall doesn’t begin until all the potential participants *have* been absorbed. I’m beginning to believe that absent a central stubborn authority like Wen Jiabao to put a lid on things, bubbles cannot be stopped short of this point because the political will simply will never be there to stop it.

      • “the political will simply will never be there to stop it.”

        We’d agree. Overt and covert vested interest makes any real bubble poppin’ intervention impossible.

      • bubbles can’t be stopped. it is human nature. but, access to easy credit is what makes them dangerous. root cause is the existence of a central bank and fractional reserve lending. centralized planning (or plundering in fact) is how we got here.

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