Steve_P

I don't know of any cradles (as you put it) who inherited paid off houses.

All that I know bought and paid for their own.

el_richo

Debt springs to mind

iaink

They must all be up to their necks in debt then.... I cant afford a boat and an RV and an ATV Well, I could, but not kids too

el_richo

It's a few months old but.....

http://www.ctv.ca/CTVNews/Canada/201...y-debt-110217/

jimf

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.

iaink

Most peoples mortgage will be more than $100k wont it? Its not really clear how much of that is unsecured consumer debt.

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.

Steve_P

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.

Tangram

She mentioned the C word.... burn her !

iaink

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...

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.

Tangram

+1 almost identical. It would make things easier but there wouldn't be a sudden inflow of skidoos, atvs and such like.

Steve_P

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.

iaink

I suppose that makes some sense, but Im not sure the salary mushrooming was entirely property related was it? Calgary has always had that Boom/ Bust cycle going on as I understand it. In the booms people earn more, right? Doesnt apply to me our here anyway, cant see me getting sudden raise.

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...

BristolUK

$3? Wow.

Taxes on food?

iaink

Probably not on that, with hindsite.

Editha

As somebody who had a mortgage in 1971, I'd like to point out that £20,000 would have bought you a very swanky house. I bought my first flat, in London, in 1971 for £7,300. My mortgage was £6,700. I sold it 13 years later for £75,000, by which time my mortgage payments were £20 a month.