I'm still in awe that he owned a GMC Typhoon,then later sold it.

I got depressed and I needed something more pimping to make me feel cooler again


Fucking wild truck, it was too crazy, and required someone with a garage to work on it constantly. My best launch ever actually broke the passenger seat and sent my friend nearly through the back hatch glass

I am too. Over the years, Jason has had some pretty pimp cars.

So I guess the Supra replaced the Typhoon?....loved your Supra btw.

Those trucks are fucking crazy for what they are,too bad GM made so little of them and discontinued them too soon.

My friend still has his,many years ago in the summer,we were driving along a certain stretch of main road in Maple Ridge at night,we came to a stop light,load and behold,guess who pulls up next to us in his Blue Viper GTS....Greg Moore!!!

Greg looks over at us,nods and revs up,my friend nods back and revs up too! The light turns green and both cars take off hard....this was a old fashion drag race,I can hear the violent sounding V10 from the viper howling away and the turbo spooling loud from the Typhoon.Both cars were neck & neck at speeds in the 200's for about a half mile.The race was very close,too close and neither car was determined the winner.As we slowed down,Greg looked at us,gave us the thumbs up and turns off.I still remember this like it was yesterday.

It's great you and your sister are chipping in. It's good you feel obligated to help out, but at the exact same time maybe they are feeling obligated to help you and your sister out because of the current conditions. But consider this do your parents really NEED you to take care of them? If you and your sister moved out, it would allow your parents to downsize and cash out on the current house to tide them over until they can access their RRSP's and then some.

I think the whole kids are staying at home longer may be true but only to a minor extent, the media is blowing this out of proportion IMO just like how many believe that the Chinese mainlanders are the ones controlling the local real estate pricing.

Yes! Are kids staying at home for financial reasons? Probably a bit longer, but if you live in the city and can have access to what you need(job, school whatever) then there is no pressure to move out. If living at home doesn't cramp your style, or cause undue hardship on the rents, then who cares.

I think it has a lot more to do with the fact that kids don't go and get married at 19. If you aren't out getting married, and knocked up right away, then there is no pressure to move out right away.

It's different depending on where you are. Back east, where I grew up, the graduating class was out of home at 19. There was no access to education where we grew up except for a shitty community college, and minimal work. You moved. End of story. Hell, I had to come back for graduation-I was moving after my final exam.

I woulnd't call downsizing exactly a good idea. Right now we rented out the basement for around $850 a month. if they were to downsize to say a duplex or a townhouse they won't be abel to rent out any parts of the house so no income in that sense. Not to mention with interest so low downsizing and getting cash seems a bad idea. As the old chinese always say is a must to be a roof under your head.

Real estate might go down but it will always come up (at least looking at the trend).

^roof above your head.

Roof under your head is NOT what you want

Why wouldn't downsizing be a good idea? Your parents are into their 60's, semi retired, and from the sounds of it still trying to find ways to pay off their mortgage. I'm going to guess that without your's and your sister's contributions, and the basement rental, they would not be able to make the mortgage commitments. So are they living within their means?

With the threat of a housing market correction, your parents in their situation right now, can they afford to NOT cash out by downsizing? What happens if their property loses 15-20%, and they still have the same mortgage to take care of? If they downsize now they can free up cash (let's assume $300-500k) and get rid of their mortgage, the balance of which doesn't have to stay in a low interest bank saving's account which they, a low risk portfolio can return 5-7% with minimal risk. They can then live off this freed up cash until they can access their RRSP's. They will still have a roof over their head, regardless of whether its a duplex/townhome/condo/whatever. The downside is the loss of the rental income (which is declared and you are paying income tax on right?) that I'll assume is going towards the mortgage payment right now anyways, and you and your sister no longer have a roof over your head.

I'm not picking on your situation in particular, but it's a very tough situation when people are at or nearing retirement, haven't paid off their mortgage, and relying on their son/daughter/rental income to meet their financial obligations. Of course I'm generalizing based on the given information, your parents may have tons of money in their RRSP's which they are just waiting to be able to get at and what's going on right now isn't really all that relevant.

Or, the parents plan on giving the house to the kids when they pass on so what's the big deal about asking them to help pay the mortgage?

We don't know the full details to how much they still owe on the house and how much $$$ they have in RRSP. Technically, they can take money from their RRSP's. No rule says they can't. It is Old age pension that they cannot collect till they are 65 IIRC.

The mortage was paid off ages ago. I guess they feel is always nice be able to rent out the basement to help pay off the bills.

So which one is it? Is the mortgage paid off or not?

Well that's vastly different. You said that you and your sister were paying into the mortgage for the house earlier.

We did help pay off the mortatge but that was about 5years ago. We are mortage free ever since(YAY!).

I guess they want to keep the house for the renting revenue and maybe when they pass away the house can be sold for me and my sister.... at least that was the plan.

I am not going to buy it, so lets dissect the numbers. The unit is #3908 at Woodwards W43, asking price is $449k. It is likely that it can probably be bought at $420k. With 20% down, the mortgage is $336k and the monthly payment on a 30 year amort is $1415.00. On top of that, strata is $350 and property tax is $175. Total monthly cost is $1940.

I have seen several 1BR + Den high floor units renting in the $1800 range and the $2300 range furnished with nice stuff.

I was not suggesting that I would buy this property as a rental property as I think it's not close enough to make sense when you consider unrented time and wear & tear, but it is MUCH closer to break even than almost any property I have ever seen in a 1BR + Den unit downtown.

Mark

And now you are telling people not to pay for their kids educations? :suspicious:

I am very interested in your mortgage provider, if possible please PM me his/her info.

The best I can find for a 5 yr fixed is 2.99 pre-approved. might be able to get 2.89 during the actual processing per my mortgage guy

Just a piece of advice:

The tax consequence is going to be HUGE

i wouldn't say $850 a month is INCOME if a bigger home is costing you more to maintain than downsizing to something smaller.

if the home costs you 3000 per month just to maintain and your rentals are paying you 4000 a month now thats income

and if their mortgages are paid off their biggest asset is probably the home they live in. am i right?

had they kept their mortgage longer lets say at 6%, they could invest the difference in a whole lot of more things at a higher return and retire with multiple income streams instead of just relying on 1 house that just may have increased in value

That's the same rate as me. My pre-approval is 3.09% for 5 years but my mortgage broker is confident that he can get to 2.89% on signing.

Mark

Just to clarify, from my understanding, if Mr.HappySlip's parents sell their house, then give Mr.HappySlip & his sister the money, then there is no tax consequence.

However, if the parents give the kids the house, then the kids sell the house, they will have to pay capital gains tax, correct?

Not if that is their primary residence.

But there will be heavy taxes if the parents pass away and the house is given to the kids in the will.

this thread was fun to read

Diesel test aka m5 driver aka joe45 needs his attention fix

Jason's story teared me up a lil

and I feel even more tarded for buying a condo recently

That's interesting.... Never knew that part before........ I guess they aren't selling the house because we are ok with finance right now...... maybe down the road they way. After all is my parent's house not mine or my sister so I don't really mind whatever happens.