Comments on: Out of the Woods?

By: Burl Beermudez

Burl Beermudez — Mon, 22 Mar 2010 13:06:56 +0000

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By: Madison

Madison — Tue, 02 Mar 2010 21:36:31 +0000

Exactly, what i was looking for!

By: 20 Cents from January 2010 | Balance Junkie

20 Cents from January 2010 | Balance Junkie — Mon, 01 Feb 2010 10:47:36 +0000

[...] Vaz-Oxlade posed the trillion dollar question in a post that asked if we are Out of the Woods? She blows the sugar coating off the cow pies like only Gail can, questioning the wisdom of keeping [...]

By: Twitted by CRAcorruption

Twitted by CRAcorruption — Tue, 26 Jan 2010 09:42:03 +0000

[...] This post was Twitted by CRAcorruption [...]

By: Geoff

Geoff — Fri, 15 Jan 2010 17:57:54 +0000

@ Alisha – you need to provide more details. When you break out your ‘pie’ how do you look? See Gails’ debt tool to see the approximate % your income should make up. Ie 30% for home, 15% debt repayment, 20% life, etc (or whatever it is). An $80K debt on a family income of $75,000 is very worrying, but on a combined income of $150,000 is less so. Personally I think you’re uncomfortable with that kind of debt – as would I – so would lean towards selling the house but there are lots of costs involved in doing so too.

By: Alisha

Alisha — Fri, 15 Jan 2010 16:40:36 +0000

Thank you for your reply Alison.

By: Alison

Alison — Fri, 15 Jan 2010 09:02:52 +0000

@Alisha – if you do sell, and don’t need the extra space (i.e. for children), I would advise staying with housing that has the same floorspace as you have now. Keeping it small really helps curb the urge to spend to fill the new space, and it sounds like a year or two of financial breathing space is in order.

By: Canadian Personal Finance Blog » Blog Archive » Random Thoughts: Let’s all skate!

Fri, 15 Jan 2010 06:31:38 +0000

[...] Vaz-Oxlade comments on the problems with a prominent golfer with her article Out of the Woods?, OK, it has nothing to do with that, but still an interesting article about the [...]

By: Alisha

Alisha — Fri, 15 Jan 2010 05:28:26 +0000

So here is a question for all of you. My husband and I are in debt of about $80k. If we sold our townhouse we could pay all of that Debt off with the equity that we have.
Would it be prudent to do so? We are only 28 and 29 years old. We could rent a house in this area for the same amount of $$ that our mortgage currently sits at, so we in essence would be “moving up”. Then, if the interest rates do go up, and the housing crisis really hits, we would be out of it, instead of having to foreclose?
Thanks for any suggestions. We are really trying hard to turn this around.

By: 20 Year Mortgage » Out of the Woods? « gailvazoxlade.com

20 Year Mortgage » Out of the Woods? « gailvazoxlade.com — Fri, 15 Jan 2010 04:27:00 +0000

[...] Originally posted here: Out of the Woods? « gailvazoxlade.com [...]

By: Catherine

Catherine — Fri, 15 Jan 2010 02:10:42 +0000

Rent vs Own ~ We bought our first small 2 bedroom home in Spring 1974. Sold less than 2 years later to move towns and there was a bidding war for it. That was nice. Our current home was purchased in Dec. 1975. Big old house no one lived in for 2 years. We’ve done a lot of work on it and it needs (read I want) more. Happy to say it is not a money pit though. I think it’s an age thing. Buying a home was just part of the plan in the olden days. Once we sell here, I’d like to rent till I see what the future holds. We did live in a lovely condo in Toronto for 16 months starting in 2001 with hubby’s job (they paid the expenses) ~ down the street from the old Maple Leaf Gardens. We had a great time there.
As promised I said I’d give an update re: life insurance. I liked the agent, but I’m cautious. There is a lot to digest. Permanent vs Universal. Have much to think about. Can’t give a definitive answer right now. We don’t want to be insurance poor.
~chubby bunny – so glad you are pleased with how things went. You have much to think about too…..

By: Gail

Gail — Fri, 15 Jan 2010 00:57:09 +0000

Fixed the numbers.

By: Emily

Emily — Thu, 14 Jan 2010 22:30:44 +0000

@Rebecca- I have 1mill liabilbity and 50k personal items and i pay juat over $19 for it a month. Definatly worth the $$ in case I live in a deuplex and you have to plan for the worst.

As for the rent VS buy thing I am in no hurry to move I live on a noisey street 2blks from the train but I only pay 650 in rent plus utilties for 3 bed and 2 bath and half a yard. VS a apt for 750 and one bedroom so im getting a steel but me and the boyfriend have no problem socking away 70k in the next 4 years to put a heafty dp on a house. hes an electrician and I have family in all trades except for plumbing…. so mabye a few DIY classes in plumbing before I buy a house

By: inge

inge — Thu, 14 Jan 2010 22:11:13 +0000

IMO it’s possible to invest in housing, but as with every investment, it requires capital, knowledge of the market, and luck to do it successfully. And living in an investment, you might not be dispassionate enough about the right time to sell or buy.

On the non-investing kind of buying housing, I’m occasionally tempted to buy a flat so that I can arrange everything exactly like I want it, but the numbers never add up: I live in a rent-controlled place, and even with tax benefits, inflation and low interest rates it’s a better deal for me to save until I can afford to buy a place cash on the table than to take out a mortgage. In either case it’d take about 20 years to own a place I’d like, if all goes well, but in the former scenario I won’t have a mortgage to worry about.

Even if renting costs more in the end (as in Lilly’s calculation), I think of it as a get-away-fast premium. If the neighborhood goes to the dogs, if rot is discovered in the walls, if my income nose-dives, I can move on three-months’ notice and am off clear, no haggling, paperwork, debt or tied-up capital. So I prefer renting for the very same reason Didi prefers buying: It’s safer.

(Though, by a strange twist of the law, should I become long-term unemployed I’d be better off with a mortgage than with money in the bank. I allow my pessimism to fail me at that point.)

By: Northern Lass

Northern Lass — Thu, 14 Jan 2010 21:19:20 +0000

Love your show Gail!
I have some Nunavut perspective to add.

1 1/2 years ago, we were renting, but the homeowners were coming back to town. We were paying $2300 a month, plus electricity and phone/cable/internet.
The private Housing in Nunavut isn’t exactly plentiful, and there was only one unit in town that was available at the time that fit our needs.

Per month, here’s the cost analysis:
Rent: $2700 (They wanted to “adjust this” (UP) in a years time)
Fuel: $650 (average)
Electricity: $300 (average – we have 24 darkness for 2 months – this means a lot of lights are on all day in the winter, and none in the summer.)
Water/Sewer: $45
No direct Maintenance costs, but liable for any damage inside. (It was new construction. And we have a dog. She chewed things before she got fixed. It would’ve been a disaster if we were renting.)
I suspect we also would’ve had to pay the heating for the garage, although we were not allowed to use it. (That would’ve been extra)

Total: $3695 +

To Buy:
Mortgage: $2000
Fuel: $650 (average)
Electricity: $300 (average)
Water/Sewer: $45
Maintenance: $250 (We only recently started saving this – Thanks Gail!)

Total: $3245

Home ownership is cheaper, even adding the extra insurance and land lease costs. (Approx. $200 a month) It also gives us piece of mind – as my husband says, if he wants to put his head through the wall he can! (Not that he would.) The only ones we’re accountable to are ourselves – not a landlord.