Comparing wages to cost of living
#214
Re: Comparing wages to cost of living
#215
Re: Comparing wages to cost of living
I would go along with your debt theory on this. Of course some can afford to pay $30k cash for a trailer but they won't be earning $60k.
#216
Re: Comparing wages to cost of living
It does seem the middle class has made this huge shift from "save and then spend" 30 years ago to "stick it on a card and dont think about it" now. Its not for me.
#217
Joined: Jul 2005
Posts: 15,883
Re: Comparing wages to cost of living
We purchased our home in 1987 for $107,000, today it's worth something in the neighbouhood of $425,000.
If we had purchased a home back in 1971 just before I was laid off by Shell Canada we would have paid about $25,000 for it. Had that happened we too might have had lots of money for toys.
#219
Re: Comparing wages to cost of living
A lot purchased their homes when prices were a lot less than they are today.
We purchased our home in 1987 for $107,000, today it's worth something in the neighbouhood of $425,000.
If we had purchased a home back in 1971 just before I was laid off by Shell Canada we would have paid about $25,000 for it. Had that happened we too might have had lots of money for toys.
We purchased our home in 1987 for $107,000, today it's worth something in the neighbouhood of $425,000.
If we had purchased a home back in 1971 just before I was laid off by Shell Canada we would have paid about $25,000 for it. Had that happened we too might have had lots of money for toys.
To be honest thats $450 a month that would responsibly go towards RRSPs and kids education funds, I doubt I would see any of it when the day comes.
Just as well I have no need of all those silly boys toys anyway I guess.
Last edited by iaink; Sep 9th 2011 at 7:31 am.
#220
Re: Comparing wages to cost of living
Im not sure...my mortgage payment commitment is only $450 a month before the property taxes... being debt free on the house would be nice, but it wouldnt have me building a garage to house all the toys overnight... and as I said, it appears that I am distinctly median in my income...
#221
Joined: Jul 2005
Posts: 15,883
Re: Comparing wages to cost of living
Im not sure...my mortgage payment commitment is only $450 a month before the property taxes... being debt free on the house would be nice, but it wouldnt have me building a garage to house all the toys overnight... and as I said, it appears that I am distinctly median in my income...
In addition some of those if not most of those home owners were dual income, even more spare cash to spend on cabins, motor homes, boats, you name it.
It's not the same as your situation of just paying the mortgage off today and having an extra $450 per month.
Last edited by Steve_P; Sep 9th 2011 at 7:38 am.
#222
Re: Comparing wages to cost of living
But lets assume you might have a $20,000 mortgage on a home back in 1971 the interest rate about 4% or less fixed for the full 25 years. Those payments would be minimal. Salaries increased significantly leaving those people with many years of minimal payments and tons of spare cash.
In addition some of those if not most of those home owners were dual income, even more spare cash to spend on cabins, motor homes, boats, you name it.
It's not the same as your situation of just paying the mortgage off today and having an extra $450 per month.
In addition some of those if not most of those home owners were dual income, even more spare cash to spend on cabins, motor homes, boats, you name it.
It's not the same as your situation of just paying the mortgage off today and having an extra $450 per month.
As for a second income, obviously it makes a world of difference, although one of the attractions of canada for me is that with small kids we could afford for their mom to stay home and spend the time with them in their early years on my salary. Now they are a bit older shes off driving the bus and hopefully there will be a little extra for the bonus things in life.
I dont get how the average joe my age, with kids and a regular blue collar job can afford his toys without some serious debt...
#225
Re: Comparing wages to cost of living
But lets assume a person might have a $20,000 mortgage on a home back in 1971 the interest rate about 4% or less fixed for the full 25 years that's a monthly payment of approximately $100 per month without taxes. Salaries increased significantly leaving those people with many years of minimal payments and tons of spare cash.
In addition some of those if not most of those home owners were dual income, even more spare cash to spend on cabins, motor homes, boats, you name it.
It's not the same as your situation of just paying the mortgage off today and having an extra $450 per month.
In addition some of those if not most of those home owners were dual income, even more spare cash to spend on cabins, motor homes, boats, you name it.
It's not the same as your situation of just paying the mortgage off today and having an extra $450 per month.