Broke Ass Morons
On Friday’s round-up, we featured the inspiring stories of people who have written in, been featured on this blog in a Reader Case, and have actually followed that advice in real life. As a result, they are now kicking ass, taking names, and regularly coming to the end of every month wondering where all this extra money they’ve saved came from. So as a contrast to that, I thought it would be interesting to look at the stories of people who managed to do the exact opposite. In a segment I’d like to call: Broke Ass Morons. These days, travelling […]
The Hard Landing: Toronto Home Prices Plummet
So saw this scary headline the other day. Toronto’s housing market is tanking, Business Insider. Now, as much as people think I’m jumping up and down at the demise of our housing market, let me make one thing clear: I do NOT want a US-style housing crash in Canada. The US housing crash was a cataclysmic black swan event that brought down financial institutions, cratered the stock market, and brought about a global economic recession that lasted for years. I keenly remember what it was like living through that, watching our investments plummet while at the same time fearing a job […]
Another week, another check mark in the game of Canada’s slow-motion housing crash bingo. Let’s recap the sequence of events that led up to the US housing crash and let’s see how many of them we’ve hit so far. Step 1: Households Take on Massive Mortgage Debt This is the first step of any housing crash where average families take on stupid amounts of debt, borrowing excessively under the assumption that any amount of debt is OK because housing always goes up. Right before the American housing market collapsed, Americans borrowed 147% of their household disposable income. And in Canada? […]
What Did the Neighbours Pay?!?
The other day a reader sent me this article on the CBC talking about the experience buying a home right now for some hapless Canadian buyers. Basically, this couple bought a pre-construction property in Whitby (a suburb of Toronto) last year and were shocked to learn that new people buying into the development right next to them were paying up to $90,000 less than they did. All in a matter of months. To come back a year later and see the same house that we bought is now $90,000 cheaper, that’s not cool,” Thompson, 52, said in an interview. ~What Did the […]
Why Pride of Ownership is B.S.
It’s been awhile since I yelled at the Home Boners, mostly because I’ve just been so happy travelling around the world lately that I just have better things to do than argue with Internet trolls. But today I thought I’d take a trip down memory lane and talk about something that has always irked me: So-called “Pride of Ownership.” Here’s how an argument about housing usually goes: I call them an idiot, they call me a cunt. I break down their “real estate math” showing how the real estate industry tricks them into thinking their house is a good investment […]