im teaching someone how to save for tomorrow. and this is how you get into real estate one day

the guy said he wants to learn a thing or 2. why don't you tell him? LMAO

Start a t-shirt line.
Buy some audio mixing gear and a good digital audio suite.
Buy some art.
Help someone out.
Rent a studio, buy some paints and a bunch of canvas, do something wild with them.

Imagine how many people you'd influence if you blew $5,000 at a nightclub or strip club? Basically 0.

Imagine how many people you'd influence if you did one of the above well, you could potentially reach thousands, or tens of thousands, or more...

To stay on topic,


Am I the only person here who doesn't fear never owning property? I don't think it's the end-all to life. The truth is whatever you own, does end up owning you.

You should put that money towards a lawyer and sue the school board that allowed you to graduate.

i want to own property so i can make it my own through big time reno's/construction, or even build my own

at the same time i dont for the ultimate freedom you have in not being tied down by ownership

i was jk im not gonna be that stupid anymore giving free money away to the clubs.

im just gonna go out with my GF tonight and spend like 50 bucks:badpokerface:

Make sure you buy condoms...

I have no reason or ambition to "own" property.

... and it's not because I don't have the money ;)

if i never owned a property i think i'd be ok with it. i'd figure out what is a reasonable cost of living for myself and live comfortably renting a place i like. great view from your condo btw.

but i did end up buying a home in vancouver to live in though :lawl:

usually i just tell people i don't own the house...the bank owns it...i just rent from them :okay:
i also have no problem with buying property to live in either as long as it's within your means.

With $5000, you know how many single moms you can help at the strip club? :suspicious:

Props to you and personally I agree.

However I personally do own a home. But if I didn't own one I wouldn't care. Maintenance expenses, being tied to the home, not being able to just easily get up and go. Some of my friends moved to Australia, England and the states cause they were renters and just left to have a more fulfilling life. I always wanted to live in Europe for a part of my life but that will most likely never happen. But mostly due to other reasons like not finding a job in europe though.

You shouldn't be at all worried about never living in the property you own.

People have it in their mind that they must own real estate as real estate, effectively, has always gone up along with inflation (2-3% per annum), and with 4:1 leverage (20% down) u can see the growth in your downpayments, assuming monthly payments are manageable and that increase in equity outside what u pay down more than makes up for the ownership premium one pays

Also consider these gains aren't taxed on principle residents (although its irrelevant as you buy a bigger house, and your gain just goes into the new property, so have u really gained? Only gains are realized when u sell up and don't buy again, or undownsize, but that's another conversation)

Now, prices of late have gone apeshit because, mainly, due to cheap money - prices must equate the difference between rents and ownership costs - as money gets cheap, monthly payments go down, so clearly prices must go out for all too equate - equally, as money gets more restricted and less cheap, monthly payments go up, so to counter this, prices go down

So, why have I talked so much? Well, now, we won't see the inflation rise in real estate over the next 5-10 yrs, so the value of ownership has gone

What are the other disadvantages of not owning where u live? No security that u will live in the same house next year? Well, not a big deal, there are other houses for rent, I know moving is a pain, but really, if ur a good tenant, ur landlord won't want u gone - I know that's the situation for me, both as a tenant in this city and landlord in the states

You can't control ur rent? Well u can't control ur mortgage past every 5 years, and rents can only go up so much every year, and at that rents don't increase more than inflation, generally, I haven't had a raise in rent in 3 yrs - because I'm a good tenant and my landlord doesn't want to risk 1 empty month to get a new tenant who may suck

The biggest disadvantage of not owning the place unlike - the use of leverage, but if prices are not going up, leverage will f u over, so not a disadvantage today

Real estate, whether u live in it or not, is an investment - never forget this

I own mnay properties in the US, they pay me a good return and have appreciated a lot, i rent in Vancouver - all of these decisions are investment decisions. I could afford the place I live in with 20% down (I would never use CMHC, as you are exposing ur self up to too much leverage and risk), but why would I when I see price depreciation and it would cost, at today's rates, $900 more a month in costs and opportunity cost (returns on my 20% down) - ignoring the effect of price decreases and the ownership buy/sell costs - which are significant

Sorry that was so long, one last thing, if anyone ever wanted to buy and sell houses for capital appreciation, the selling costs are usually so high u have to make so much in appreciation just to cover these - never sell real estate if u have cash flows, just take the equity increase out via mortgage products (80% max), assuming u r still diversified and not too heavily in real estate - crashes ca and will happen, u don't want to be left with ur pants down, but if ur cash flows make sense (think of what reits do), property value is only important if u need to sell or u want to pull money out to reinvest

Well said - wish more ppl would realize this, the bank owns ur house, not u! U may be exposed to capital appreciation, but u also r exposed to the downside - something most ppl can't even comprehend!

i dont think you need to worry as long as you don't plan to ever have kids or marry, you'll have nothing to pass it onto anyway just like if your parents have nothing will have $0 passed onto you.

We either all live with some assets to pass onto or live paycheque to cheque

With # of sales transactions down over 40%, many realtors are now hurting. Less sales = less commissions. The good ones will still survive, but many of the bad ones will soon be out of a job or looking for new careers.

What would you even know about life? You're so sheltered your posts read like someone with the experience of a 12 year old

i know its hard for me to ever grow up even at 27:badpokerface:

It's a choice and a fact of life.

We can look back at medieval history when there was the lord and serfdom hierarchy

The lord would own the land and rent it to the serf (term for servant) and in return would tax them (i.e rent - collect money or food).

It's not an end-all to life but it's a choice one makes whether they want to be the lord or the serf.

Whatever it is, as long as you are happy and content with your life, you're good

Say the world economy collapses and you lose whatever business you do. The economy isn't going to fix itself anytime soon, and all you have is money. Hyper inflation kicks in and now you can't even pay rent. What are you goIng to do? For me, a house is not only just an asset, but a place I can truly call home. If shit goes down at least I still have a shelter to protect me. If you have extra money, why not buy an apartment or a house? You can rent the basement to cover any yearly expense or rent out a room to cover strata fees. Or if your baller, you can rent out that house and rent another place. Sure you may lose opportunity cost for investing into the house, but you forget that the population is growing and land doesn't get any bigger. With well known beautiful place like Vancouver, we saw a property boom. Most locals can't afford the west side. Say you were renting the west side 5 years ago, you had the money to buy the place but you thought it was too "expensive". Now the price doubles and what are you going to do? Rent for a very long time unless you relocate. And then there comes the family factor. I'm not sure of you're married, but when you do and have kids, you may want to buy a house for security and ease of mind. One less payment to something means less money spent. Plus, rarely will the asset depreciate so fast that it is worthless.

Just my thoughts. ( Chinese mentality)
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So many ppl have this opinion, and I can see where it came from (baby boomers), but the reason prices have gone up is not because Vancouver is anything special, look at price increases Canada wide - it is down to money getting cheaper and easier, now we are in a position where we've topped, credit is getting harder to get your hands on and as such people will be deleveraging - this leads to asset deflation - assets like property

What u are talking about is emotion, which can, in the short run, effect prices, but economic fundamentals will always rule

I'm too lazy to write a long winded post right now...

Hyperinflation wouldn't happen overnight, since my assets are completely liquid I would convert them to the appropriate currencies, metals etc. (likely assets that would appreciate during the downturn) and move to a “cheap” foreign country where I would be getting high and banging prostitutes on a beach.

Eventually things would get better and I would move back to Canada and attend Detox/AA.

(Caucasian mentality)

Meanwhile… you would be stressing out, watching your net worth evaporate, living in what would eventually become a dump due to local economic conditions, and would probably end up bankrupt due to your unemployment and not being able to sell your house for what you owe.

would you ever rent a house to a vietnamese guy?:fullofwin: lol

given if do they have 100k, i know for sure they would spend it right away and blow the money on a car rather than put a down payment on a home

I would become a pimp, simple