Topaz Posted December 18, 2015 Report Share Posted December 18, 2015 The Bank of Canada (BOC) has come and said that younger Canadians are the most indebted borrowers are under the age of 45, who probably earn less money but I'm wonder how many of them think when it comes to their management of debt ask themselves ...do I NEED it or do I WANT it? In an article I read lately, said the parents of these younger Canadians are not taking retirement to help out their kids debt. I know we have different age groups on here and I wonder why the view from those in this age bracket, about this article and why they think this age group has financial problems? https://ca.finance.yahoo.com/news/canadas-key-vulnerability-household-debt-highest-among-younger-165014684.html Quote Link to comment Share on other sites More sharing options...
Michael Hardner Posted December 18, 2015 Report Share Posted December 18, 2015 So 'younger Canadians' means everyone under 45 now ? It's a pretty wide demographic there. Quote Link to comment Share on other sites More sharing options...
Wilber Posted December 18, 2015 Report Share Posted December 18, 2015 So 'younger Canadians' means everyone under 45 now ? It's a pretty wide demographic there. 45 would be approaching the middle of the average working life so it's probably as good a number as any. Quote Link to comment Share on other sites More sharing options...
kimmy Posted December 18, 2015 Report Share Posted December 18, 2015 The Bank of Canada (BOC) has come and said that younger Canadians are the most indebted borrowers are under the age of 45, who probably earn less money but I'm wonder how many of them think when it comes to their management of debt ask themselves ...do I NEED it or do I WANT it? Quite tired of hearing old-people saying stuff like this. "What I don't get is why they're always complaining about student debt? When I was that age, I put myself through college by getting a summer job! Why don't they just get a summer job instead of student loans?" Attention old-people: the cost of getting started in life-- an education, rent, a home-- has gone through the roof since you were "that age", and wages haven't grown nearly as fast. The result is that people are either staying home longer and moving out on their own later in life, or that they are moving out on their own by carrying more debt with the hope that they'll eventually pay it off. That's why your grandchildren still haven't moved out at age 24, and it's why younger Canadians are carrying higher debt loads. I hope that clears things up. You can go back to complaining about "that loud racket" now. -k Quote Link to comment Share on other sites More sharing options...
Smoke Posted December 18, 2015 Report Share Posted December 18, 2015 Yep, nothin' like hearing young-people complaining about how hard done by they are, all the while texting about it on their $800 iphone, while wearing their $120 lululemon pants, their $180 Air Jordan running shoes and sipping on a latte they pay $4 for every time they pass a Timmies. Times are tough. Quote Link to comment Share on other sites More sharing options...
waldo Posted December 18, 2015 Report Share Posted December 18, 2015 Yep, nothin' like hearing young-people complaining about how hard done by they are, all the while texting about it on their $800 iphone, while wearing their $120 lululemon pants, their $180 Air Jordan running shoes and sipping on a latte they pay $4 for every time they pass a Timmies. Times are tough. damnit! I'm not on your lawn!!! Quote Link to comment Share on other sites More sharing options...
Shady Posted December 18, 2015 Report Share Posted December 18, 2015 damnit! I'm not on your lawn!!! You and political cohorts are in his wallet though. Quote Link to comment Share on other sites More sharing options...
Topaz Posted December 18, 2015 Author Report Share Posted December 18, 2015 I wonder today, what is the average age of first time buyers of buying a home? Some younger people couldn't afford it if they have heavy debt from education. My experience from watching some young people is they are not willing to wait and save up for what they want and it was so easy for them to get a credit card and some of this personal debt could also be blame on the banks and yes, now the banks are making it harder but how many people are in trouble now? I know its hard for some younger people especially if they lose their job and can't find one that pays as much as they were paying. I guess the answer is CHOICE they make in their financial affairs Quote Link to comment Share on other sites More sharing options...
Bonam Posted December 18, 2015 Report Share Posted December 18, 2015 (edited) I wonder today, what is the average age of first time buyers of buying a home? Some younger people couldn't afford it if they have heavy debt from education. The debt from education doesn't really have much impact in this regard. In Canada, tuition has risen but is still fairly reasonable. A student might graduate with a few tens of thousands of dollars in debt. I don't know anyone that ended up with more than $50k in student loans. And yet to buy a house in Vancouver, you're looking at a $1-2 million mortgage. That's a loan that's 20-100 times larger than what your student loan is likely to be, so basically the student loan pales to complete insignificance in comparison. People aren't buying houses not because of "choices they make in their financial affairs" or because of "student loans", but because the price of housing has risen to absurd, astronomical heights as successive governments have done everything possible to prop up housing prices. How long does it take to save up a "responsible" 20% down payment on a $2 million house? Even if you make, say, $100k and diligently save a full 1/3 of your after tax income. About 20 years. If you graduate from your professional degree in your mid 20s, and immediately enter a lucrative career and are frugal and never encounter any life events that force you to use a substantial chunk of your savings, you might be looking at that house purchase in your mid 40s. And you'll be completely depleting your entire life savings to do it and taking on $1.6 million in debt, which you likely won't be able to pay off during the remainder of your working years. Unless something changes, owning a home will be strictly limited to the aging members of older generations who bought houses back when prices were reasonable, people who inherit a home from their parents upon their death, and the top ~1% of earners. Everyone else will be renting. Edited December 18, 2015 by Bonam Quote Link to comment Share on other sites More sharing options...
eyeball Posted December 18, 2015 Report Share Posted December 18, 2015 Unless something changes, owning a home will be strictly limited to the aging members of older generations who bought houses back when prices were reasonable, people who inherit a home from their parents upon their death, and the top ~1% of earners. Everyone else will be renting. If it gets that bad, owning anything will probably be determined by one's ability to simply take it away from it's previous owner. Quote Link to comment Share on other sites More sharing options...
Wilber Posted December 19, 2015 Report Share Posted December 19, 2015 If it gets that bad, owning anything will probably be determined by one's ability to simply take it away from it's previous owner. It won't get that bad but a majority of Germans rent. Quote Link to comment Share on other sites More sharing options...
kimmy Posted December 19, 2015 Report Share Posted December 19, 2015 The cost of owning vs renting depends a lot on where you lived. I visited Windsor in 2008 and could have bought a beautiful home with cash I had in my bank account (but then I'd have been unemployed like everybody else in Windsor at the time.) Conversely I recall stories from 2005 about people in Calgary with 6 figure incomes who had to rely on sleeping on friends' couches because there simply weren't any places to live regardless of price. For me, the decision of renting vs owning became straightforward a few years back when rent prices became higher than mortgage payments. Even disregarding the equity I am building, I am saving money by paying a mortgage instead of paying rent. And the idea that "oh, people should put off owning and just rent until they save up some money" is somewhat based on the idea that rent prices are somewhat affordable, but that's not necessarily true. -k Quote Link to comment Share on other sites More sharing options...
kimmy Posted December 19, 2015 Report Share Posted December 19, 2015 You and political cohorts are in his wallet though. If he's an old-person, then he and his cohorts were in OUR wallets, Shady. -k Quote Link to comment Share on other sites More sharing options...
Wilber Posted December 19, 2015 Report Share Posted December 19, 2015 Don't worry about it kimmy. pretty soon all those old people will be dead and you will be an old people. Quote Link to comment Share on other sites More sharing options...
Smoke Posted December 19, 2015 Report Share Posted December 19, 2015 If he's an old-person, then he and his cohorts were in OUR wallets, Shady. -k Does anyone else see the irony of a young left wing person that has been singing the praises of the new left wing govt. (a govt. that is well on it's way to creating a $40b deficit) and then griping about how past gov'ts./generations have saddled her generation with debt? Quote Link to comment Share on other sites More sharing options...
eyeball Posted December 19, 2015 Report Share Posted December 19, 2015 (edited) I see the irony of an apparent right-winger chastising an apparent right-winger for being concerned about a lack of government accountability including between generations. It'll be even funnier if Smoke is younger than kimmy. Edited December 19, 2015 by eyeball Quote Link to comment Share on other sites More sharing options...
kimmy Posted December 19, 2015 Report Share Posted December 19, 2015 Does anyone else see the irony of a young left wing person that has been singing the praises of the new left wing govt. (a govt. that is well on it's way to creating a $40b deficit) and then griping about how past gov'ts./generations have saddled her generation with debt? I don't recall singing the praises of the new government or the new deficit. It just grates that the generation who had the best of everything thanks to massive borrowing from the public purse is now griping that their taxes are too high while they demand more money be spent to reduce wait-times for hip and knee replacements so that they can get back to Freedom-55ing on the golf courses. -k Quote Link to comment Share on other sites More sharing options...
Smoke Posted December 21, 2015 Report Share Posted December 21, 2015 I don't recall singing the praises of the new government or the new deficit. It just grates that the generation who had the best of everything thanks to massive borrowing from the public purse is now griping that their taxes are too high while they demand more money be spent to reduce wait-times for hip and knee replacements so that they can get back to Freedom-55ing on the golf courses. -k First, can you post a link or give evidence that the past generation had "the best of everything". I'm sure you can point out "some" govt. services that were available then, that aren't available now. But for every one you point out, I'll show you a service that wasn't available then, that is available now. Just one for example.....the govt's. paid maternity leave for all of our kids was 6 months. Chretien era introduced the 12 months mat leave for the ungrateful bunch of today. Second, I have been griping about high taxes ever since I started paying them...40 years ago....1975 was my first job. Unfortunately I work in the real world (not the public service) so I won't retiring any time soon And third, YES, after paying taxes for 40 years and rarely using the healthcare system during that time, I believe I deserve to get my healthcare now without having to wait. But then, parents of this generation like to tie up our healthcare system by bringing their iphone-toting, spoiled little offspring to the emergency every time they get a sniffle or a sore tummy because it's too inconvenient to make an appointment with their doctor. BTW those golfing freedom 55er's you refer to are most likely retired public servants. Quote Link to comment Share on other sites More sharing options...
Smoke Posted December 21, 2015 Report Share Posted December 21, 2015 I see the irony of an apparent right-winger chastising an apparent right-winger for being concerned about a lack of government accountability including between generations. It'll be even funnier if Smoke is younger than kimmy. No idea what the hell you're talking about, but if it makes your day then.... Quote Link to comment Share on other sites More sharing options...
eyeball Posted December 21, 2015 Report Share Posted December 21, 2015 No idea what the hell you're talking about, Obviously. Quote Link to comment Share on other sites More sharing options...
Wilber Posted December 21, 2015 Report Share Posted December 21, 2015 I don't think different generations bashing each other is very constructive. They see things differently and always have. There isn't much that can be done about the cost of housing and student debt is an investment if used for courses that will result in higher earnings down the road. The level of consumer debt should be a concern for everyone though. Our economy seems to depend on it now. Too many people have their backsides hanging out a mile. Quote Link to comment Share on other sites More sharing options...
Ike Softner Posted December 21, 2015 Report Share Posted December 21, 2015 To me debt is no big deal. If one wants to have a good time one must be willing to take on debt. I have a few maxed out credit cards. Big deal. I help the economy. Quote Link to comment Share on other sites More sharing options...
Bonam Posted December 21, 2015 Report Share Posted December 21, 2015 There isn't much that can be done about the cost of housing Huh? There's plenty that can be done about the cost of housing. Like not using every possible means to prop up the stratospheric house prices for the benefit of wealthy homeowners. How about going back to reasonable interest rates instead of zero? How about introducing reasonable regulations regarding foreign ownership? How about raising property taxes on investment properties and second homes while lowering them on primary residences? How about changing zoning regulations so that the densification that so desperately needs to happen can at last go ahead? How about building proper transportation infrastructure so that living outside of town doesn't mean being stuck in traffic for hours every day, and allow people to actually spread out rather than forking over an extra $1 million to avoid spending their life stuck in traffic? Quote Link to comment Share on other sites More sharing options...
Wilber Posted December 22, 2015 Report Share Posted December 22, 2015 There are some things government could do, mostly concerning foreign ownership and absentee owners. Those buyers don't really care about Canadian interest rates because they are dealing in cash. Parking their money offshore and in some cases, downright money laundering. Higher interest rates would put many over extended people over the edge and they wouldn't be the foreign owners. But that will probably happen anyway at some point. Zoning has changed. Even out in Abbotsford, a large developer will have a tough time getting an approval if at least some some of his project doesn't contain a condo or town home component, but that has no effect on neighbourhoods where single family dwellings are selling in the millions, they will stay detached homes. Transportation infrastructure is expensive to build and operate. The money will have to come from somewhere. We have created a monster by doing nothing and our politicians don't want to know. It will probably have to blow up before it can fix itself and Vancouver may have to become a half empty city before that happens.. There is little the individual can do about any of that and they are the subject of this topic. Quote Link to comment Share on other sites More sharing options...
Wilber Posted December 22, 2015 Report Share Posted December 22, 2015 (edited) To me debt is no big deal. If one wants to have a good time one must be willing to take on debt. I have a few maxed out credit cards. Big deal. I help the economy. Thank you, I pay my balance off monthly and have shares in VISA. Edited December 22, 2015 by Wilber Quote Link to comment Share on other sites More sharing options...
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