A bitter coworker told me this story the other day. He's recently been through a divorce and has likely faced the rental market for the first time in many years. He originally owned his own home at an early age because he was frugal.
So he tells me this story of a first responder that was in the news. We don't know what kind of first responder. We're assuming paramedic. He had a career that he had to train for.
He was married with kids and owned his own townhouse in Toronto. Then he went through a messy divorce. Legal fees sucked up all the equity in their home. Now he needs to find a place to rent with rooms for his kids and pay child support. He went from owning his own home to renting and living pay cheque to pay cheque. He has a career and is living in poverty.
I get it. When I went through my divorce it was financially tough but now it's much worse. The cost of housing makes it extremely difficult to pay child support and maintain a residence where the kids can spend the night. I mentioned a coworker who went through that and committed suicide. He simply couldn't do the math. How can I pay child support and pay rent at the same time? There's nothing left over for anything.
My coworker said yeah and nobody is allowed to talk about that. Things could be worse but times are tough. There's no disputing that fact. Are we going to kick the cat and blame someone else or are we going to get to work and do something about it?
Deporting all the immigrants and everyone who disagrees with us is not going to solve the problem. We need to take responsibility for what we do and not blame others for the choices we make. Paying immigrants not to work is a big part of the problem. No economy can sustain that. Brutalizing hard working immigrants who work long hours for little pay isn't going to solve the problem either. That's just going to increase inflation by making the things we buy more expensive.
We need to realize that although financial stress is real, money doesn't buy happiness. $200,00.00 for a new Rolex is gluttony. Why would you spend that much money on something so worthless even if you had it? To brag? To show off? That's really shallow and pointless.
Meanwhile back in the real world, 50% of Canadians are living pay cheque to pay cheque. It's obviously easier to pay rent if you have a room mate or a mortgage if you have a partner but if that relationship breaks down, boom, everything is gone.
It reiterates how ridiculous these yuppie rappers look who are trying to create drama over a new watch or pair of sneakers. That is a pathetic life. They have no substance. They have no morals. They have no soul. They are empty and meaningless.
When I was young owning a home on a single income was within reach. Then it took two incomes and you had to rent out the basement. Now it's just insane. Things are getting tougher financially. That's real.
One of the main problems in Metro Vancouver is the lack of rental buildings. Everybody was obsessed with making a quick buck with all that free money. They'd buy a place and rent it out to pay the mortgage as an investment.
They stopped building complexes for rental. The government doesn't have to building housing for everyone. Local city Halls have to approve more complexes that are for rent. Rental income is slower to profit from than the quick flip but will be a big help in the housing market for those who struggle.
A lot of the Rolex's those guys wear are fake. The more blingy, the more likely that is.
ReplyDeleteIt's all fake. Wasting all that money on a real Rollex is shallow and vain.
DeleteCould you do a deep dive into why and how we went from everyone with a decent job being able to afford a family home to where we are now?
ReplyDeleteI think the key point is that we are in a very different situation now. We need to recognize that and I don't think there's an easy fix. I think the solution is more apartment buildings. They stopped building apartments 30 years ago.
DeleteWhen the BC NDP tried to stop money laundering in Casinos that just forced organized crime to launder more money through real estate. Everyone wanted to jump on the free money and invest in property to make a quick buck. I don't think anyone with equity in their home wants to lose that.
The population of the area jumped quickly in the late 80's and 90's, this caused more demand which according to the basic economic law of supply and demand is responsible for the beginning of the rise in prices of single family homes. This continued up to the point when Hong Kong went back to China and anyone with money was looking to get out, then later the casino/money laundering thing you explained. It's never just one thing. If the population had been kept at a level that the housing market could support reasonably that would have been different, but it wasn't. Our terrain isn't like the prairies where they can just keep building towards the horizon.
DeleteHousing has gone up everywhere not just here. It's very expensive in London, England. Yet everyone would move to London looking for work. Growth means employment.
DeleteEverywhere in Europe is more expensive than Canada. Why is Canada so much more expensive than the States would be a good question. I know people who think about moving there not for political reasons, but economic. They'd rather stay here but $400K buys you a really nice house in Washington State, you can't buy a dump for that here, $1.5M entry level. Even with the currency difference it's at least double and usually more. According to some sources Vancouver is the most expensive RE market in Canada or the States. Even with a million CDN in hand I couldn't start making payments on the house I grew up in.
DeleteGreat post Dennis, I will drop a link to a YouTube video that deals with the raw deal men receive from divorce.
ReplyDeleteI think men getting shafted in a divorce was worse before. Now it's usually joint custody and joint guardianship. The cost of living is what makes it unbearable now for both parties. That's why a lot of people stay in bad relationships. They can't afford to leave.
DeleteSend back all the Syrians and stop giving naloxone to junkies that will start saving this government instantly
ReplyDeletePromoting addition is one problem. Paying immigrants not to work is another.
DeleteHealthy immigration is who we are, this current free for all isn't.
ReplyDeleteImmigration for profit has completely corrupted our once very fair and generous system.
I own my own home and just the increases in property tax and home owners insurance is a scandal in its own right.
One has tripled in 9 years the other has doubled in 18 months. My wages have not matched these increases, not by a long shot.
Canada needs to get it's priority straight....serve its citizens. That's our money they're blowing trying to play UNICEF.
It's the same with any rural areas in Canada. New York and LA are more expensive than here. Big cities are always expensive. Yet the rise in property tax is a very valid concern. I'm hearing that across the board. Someone owns their home but the property tax increases become unmanageable.
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