Terrible policy.

Are they really this retarded to equate bad credit with someone being poor? They are going to penalize people that do the right thing and are responsible and subsidize poor credit habits. Country is going full retard.

On the contrary.

Work, save up, buy vs take a loan, buy, pay back plus interest.

If you are buying a depreciating asset you are correct.

However, when you buy things like houses, which are appreciating assets, your solution results in far lower returns.

This post was edited by NetflixAdaptationWidow on Apr 21 2023 10:24am

What are you talking about, historically a house has been a leveraged nest egg that has allowed people to even retire since it's been their best performing investment. When else can you use 4x leverage that's backed by a relatively safe asset.

If you're suggesting It's unwise to intelligently use debt for appreciating real estate, you need to revisit whatever financial model you're using.

Also if you look at where the average populace lives its metro areas, no rural. Metro area housing even for very "cozy" aged housing is hundreds of thousands of dollars in the cheaper cities here in Canada. How are you suggesting in these metro zones, that the average individual piles away hundreds of thousands of dollars so they can avoid a mortgage? You do that the net wealth of a person of 45 years of age in Canada is still below 250K these days , yes?

Are we all magic unicorns in your scenario?

This post was edited by SBD on Apr 21 2023 10:41am

Point out where I was saying that certain investments (betting on rising prices) didn't work out (most of the time).

By the way I'm not even going to point out 2008, I already mentioned betting)

Go

You blanket said "Loans are bad"

No context just loans are bad.

And they are

Betting is bad too even when a bunch of people get lucky

WTF

Right. You're a smrt one!

While I agree with you here, I would have to counter that also need to factor in other costs of owning the home in cases of where the home is principle residence (with pricing from the last 5 years).

I.e if the home appreciated by 300k in 5 yrs but your interest cost, property tax, utilities, repairs was 300k over that same period, you really are just getting your money back. infact, youd be in the hole overall due to land transfer cost.

in order to actually make money, youd either need to;

1. rent the property and generate positive cash flow to offsett interest, maintenance, property tax
2. buy, hold, sell the property to lock in any gains quickly and roll the equity into the next home.
3. go back in time to where the home price was 300k-400k for a detached house that is now selling for 1.5+ million.

for reference, my scope is limited to areas like the GTA/Greater vancouver area


I do agree that loans allow leverage for growth. you can also create money from nothing with loans lol

This post was edited by Budgeting on Apr 21 2023 11:02am