“My Vancouver house is valued around 750k. My other homes are much lower in value, but are outside the city. If you can’t manage your money well, you will always be poor, no matter what your income.”

“My Vancouver house is valued around 750k. My other homes are much lower in value, but are outside the city. If you can’t manage your money well, you will always be poor, no matter what your income.” and
“Those who live beyond their means can not afford to buy a home regardless of price. Those who manage their money well will prosper over time. For someone earning a low wage, it can take many years before they can buy a home. The size of the family also effects the ability to buy, but where the fantasy exists, is in your own mind.
I had to buy and sell houses many times over, reinvesting my money, and living very cheaply to get where I am. My children had to go without a lot of things during the early years, but they went to university, and got the things they needed. We saved our money as a family, and we can now enjoy our success. I know that I am not that smart, but I am smart enough to know that I have to save more than I spend to get rich. I still don’t make near 100k per year, but I enjoy my life, and have all that I need. I feel sorry for those who don’t.”

– stopyourwhining in the comments section of ‘Is it time to curb foreign real-estate buying in Vancouver?’, The Province, 14 Nov 2011.

 

27 responses to ““My Vancouver house is valued around 750k. My other homes are much lower in value, but are outside the city. If you can’t manage your money well, you will always be poor, no matter what your income.”

  1. It’s easy to feel smug when this person probably purchased early when prices to income was not so exaggerated as it is now. Can this poster afford to buy a home now with his income as he did before? Most likely not.

  2. $100K/year doesn’t go very far in today’s Vancouver housing market.

  3. pricedoutfornow

    “If you can’t manage your money well, you will always be poor, no matter what your income.”
    I would have to agree. As someone who works with people’s money, I see people who have decent incomes, and yet have nothing with debt. Then there are those who don’t have high incomes, and manage to save money. Granted, they did buy their houses years ago, but overall that doesn’t matter. Don’t be bitter, we can pretty much guarantee that those people buying houses today (we wouldn’t call them careful with their money, now would we?) are not going to prosper over the next decade. The numbers just don’t add up. They can’t go on making mortgage payments that are double what a lot of us are paying in rent and expect to be prosperous. It just doesn’t work that way. Sure there are some who might luck out and sell early, but I can see that that’s not going to be the way for most who have bought overpriced houses with ridiculous mortgages. House prices be damned, it doesn’t make sense for me to buy, I have no bitterness towards those who have, mostly I feel sorry for them, since I’m really starting to see in my clientele how this thing is going to shake down. So, save your money, if it doesn’t make sense for you to buy, don’t. Be careful with your money and don’t spend where you don’t have to.

  4. “I am smart enough to know that I have to save more than I spend to get rich”

    I hope he passes on his accumulated wisdom to his children. Life advice from Forrest Gump.

    Pray for low mortgage rates, your health, and a stable income. The Lord shall provide.

  5. “57 per cent said they expect to carry mortgage debt after the age of 55, with nearly one-third expecting to carry debt after age 65.”

    http://www.theglobeandmail.com/globe-investor/personal-finance/many-older-canadians-say-mortgage-freedom-still-years-away/article2239485/

    Debt beyond 60? No thanks, I’d rather keep renting…

    • An from the article:
      “Another one-third of Canadians who are 55 or older have at least 16 years left on their mortgage term, the bank found.”

      These people are so screwed…

      • I know people in their ’60s carrying full 30 year ams and HELOCs on their properties. The ones I’m thinking of have multiple properties and plan to “consolidate” at some point — think two identical properties each with 50% LTV, sell one pay off the other, pocket the difference. Only after more cap gains, of course 🙂

      • @Jesse, “only after more cap gains, of course” and that’s the big problem. Leverage, on the way down, is a real bitch. And add to that that a house is a very illiquid investment, and they’re good for a lot of sleepless nights during retirement…

  6. my assumption, this person did not wait for the crash to buy, he didnt read into Garth. he bought when he needed.

    • my assumption is jesse’s probably hot. wait. correction: any intelligent woman is hot. vreaa, is she your woman? let me ask, is this wrong? if this wrong, i’ll need to be moderated again. ewww … this just became sooo you’ve got mail … yuck. what if she’s a guy? well then jesse, you’re probably my1st gay crush. guys, y’know we all got those tendencies … fred! how did you get mixed up in this?

    • 4SlicesofCheese

      This guy has kids university age, he did not buy in the last 10 years.

      My parents came here on a fucking boat with nothing but the clothes on their backs, and now somehow live in a magical million dollar house, doing blue collar jobs and paid off their mortgage more then 10 years ago.

      I am a professional and have to pay 8x annual salary to buy a teardown similar to what this guy is living in.

      • stop whining!

        back in my day, we had to walk to our blue collar jobs on bloody stumps 50km through the snow – uphill BOTH ways! – to pay for our condos to flip!

        stop whining you scummy renters

      • born at the wrong time 4slices.
        Now just go find yourself a market that will grow with you rather than beat yourself up about a market that raced past you long ago.

      • 4SlicesofCheese

        @diablo
        You are absolutely right, born at the wrong time. I have bought a place, just not in this country. I am hedging my bets you could say.

        If nothing changes I am out of here. Currently very happy as is.

      • rusty’s finally starting to see the light!

        “born at the wrong time 4slices. The market raced past you long ago.”

        Translation: Vancouver RE was a good investment, 10-15 years ago.

        “go find yourself a market that will grow with you”

        Translation: There are places in the world where RE is a good investment, but Vancouver isn’t one of them.

        I agree wholeheartedly!

  7. Part of the Canadian /story/ is that we are prudent, careful borrowers and lenders. This guy is just telling that part of it.

    (and children affect your ability to buy, not effect it)

  8. The reality is that people who have made gains during this unreasonable build up probably like to think that all non-homeowners are low income and/or frivolous with their money.

    On the flip-side, as homeowners, they like to think they’re success is due to their responsible and SMART behaviour with their $…

    It makes them feel a lot better about the whole situation.

    Reality is, there’s tonnes of people across the spectrum as renters and homeowners. Not everyone is blowing they’re entire paycheque on hookers and blow….at the same time not every homeowner is a 0% down payment, 40 year amort. situation either.

    People just tell themselves what they want to make themselves feel better.

  9. Last night just for shits and giggles I calculated what it would take to match my monthly outlay if I bought the place I am renting. If I put down $96k and took on a 35 year mortgage, I could have the pleasure of owning the property (and the cost of maintaining it) that I am currently accustomed to. Then when I turn 75 I would be completely debt free, yahoo!

  10. “I had to buy and sell houses many times over, reinvesting my money, and living very cheaply to get where I am.”

    That’s the key quote for me. Either he was investing significant sweat equity fixing these places up, he was an above-average spotter of value in areas which then caught fire, or he spent far more in transaction costs than he should have, and would have been better off selling fewer properties (i.e. the market lifted all boats, and this guy thought he was King Canute).

  11. It’s the same BS sentiment that homeowners are prudent savers and renters are low income losers that eat out too much and don’t buy our shirts on sale. It’s old wisdom: buy a starter and keep selling and buying your way up as it appreciates but keeping the same mortgage payment because your debt stays the same because it’s the appreciation that allows you to move up. If the minority are right that houses are going to be a lousy investment in the future, then that is a huge newsflash to most. Property values have gone up on average and RE has been an excellent investment. The tide hasn’t turned yet, so owners still look smart, as does putting in a new kitchen, floors, renovating the basement, etc. We’re nowhere near the tipping point when saying “What was wrong with your old one?” will be the norm and investing every last dime in your property will be viewed as not so smrt. (That’s right, s-m-r-t).

  12. Vancouver is overpriced. Foreign investment with out out checks and balances is stupid.

    Who would not want to come to BC? German Chinese Mongolian Serbian? We have it all. And we are giving it away for zip. Without any special taxation or fees, you pay like a resident. I’d laugh too.

    In the early eighties foreign investment from other countries was high I remember a cabbie telling me “I drove around a guy from asia a few days ago and he bought 60 houses, do you believe that 60 houses”

    That was how many years ago

    The law states you can do this who is about to profit? Where does this leave us 30 years later or 30 years beyond?

    “Foreigners are treated much differently than Canadians when it comes to purchasing and owning property/real estate in Canada.

    Unlike some countries, such as Mexico, Switzerland, there are very few restrictions on foreign ownership of property/ real estate in Canada. Most restrictions are imposed by provincial governments and differ from province to province. For example in PEI, non residents of Canada need permission to purchase more than 5 acres of land. In British Columbia, there are no restrictions on foreign ownership of property/ real estate.

    And When purchasing real estate or property owners are NOT required to pay any fees or charges that a resident of British Columbia would not otherwise be required to pay.”

    CD Young and Velletta and Company Barristers and Solicitors Victoria BC

    is anything wrong with this picture…..its our land… not just any land but the best land in the world and we give away for dick.

    • “is anything wrong with this picture…..its our land…”

      not anymore it’s not – unless you go the way of Cuba or Uganda and kick out all the occupants who don’t have citizenship.

    • gosh! let’s see how much mileage we can get out of that “greatest place on earth because i live here” play. travel or live abroad much bud? it’s nice but not that nice. and prices likely have more to do with locals levering up the capital dumped in from outside.

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