1/3 of multimillionaires shop at Walmart
- Thread starter stinkynuts
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Well, technically that's not 1 million. That's 2 million or mult-million if you're including a debt free average home in "Toronto" (had to add that in in case anyone is thinking about the Praries). How bout someone who doesn't own a home, homeless if you will, but has a million in liquid assets. Would you consider that person rich? Would you consider someone who owns a million dollar home debt free but nothing else rich?
Sure, but most people know it's Toronto we're talking about so I don't know where you're going with this.
Again a million for an average home would be the dead giveaway regardless.
This is TERB. An escort review board. Why on earth would anyone who is interested in escorts want to live in the Praries.
The status of a person who doesn't own a home but has a million in liquid assets can be very wealthy if he uses his wealth to acquire more wealth. If he has been on the road earning the a million in cash then he has abilities. A person that is a bum that acquires his wealth through inheritance will probably squander it.
The person who owns a million dollar home debt free but nothing else may live frugally and get by but is not rich.
So you're saying a homeless man with a million is rich but someone who owns a million dollar home debt free is not rich. Does that even make any sense. So the homeowner can go from poor to rich just by selling his home. Are you serious? They both have 1 million net worth. What you're referring to is "house poor". Not poor in the literal sense. If all you have is 1 million regardless of where your money is you're just average. Neither rich nor poor.
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You are distorting the facts and making an extreme situation. Both the homeless man that has inherited a million dollars and the home owner that has sold his house for a million dollars are equally as wealthy. Certainly much better off than the average person.
The homeless guy that inherited the million would have pissed most if not all of it away, the guy that sold his house for a million would probable have bought a new house and be cash poor again.
For the person who doesn't own a home the person would need to pay a few thousand in rent to live in a comparable home as the home owner. For the home owner none of his paycheck goes to rent so he's able to save and invest. After several years the non home owner still has no home whereas the home owner still has that asset. The house also appreciates in value so one can one day sell the home and live in a smaller home and have liquid assets. The homeless is still paying rent. What's being distorted? Those are the facts.
I have stopped buying things at certain stores as I can get them for a fraction of the price at thrift stores. I used to like Value Village but find them overpriced. Plus you pay tax on the item and most things are garbage. I have purchased new items at thrift stores for less than the tax amount of the price on the tag. It is amazing what some people donate to thrift stores. While in the past, some may have looked down upon thrift stores, nowadays it appears to be a booming craze even for those making good incomes.
there a bit more to it then what you suggest. while owning a million dollar home technically means you are a paper millionaire through accumulated equity through time, its not actually a realized gain. as we see now how much those million dollar homes have lost value. the typical 1000000 home in the gta. about 1.7 goes towards taxes to the city $17000. repairs and maintenance say 2-5k on a low year. this does not include significant capital cost such as a new roof. utilities probably 3-4k. not to mention the actually cost(interest) of ownership over 25 years is approximately double the price of the original purchase price. as well when your house goes up in price so do your taxes.
a house is not a true asset, unless its purpose is to make money(rental property).
you are correct that a home owner has a physical home. there is an argument to be made for renting in some circumstances and it make financially more sense to do so in certain situations. I dont live in the gta so I dont know about the rental market; however, after all the expenses incurred, taxes, borrowing costs, repairs and maintenance, related fees and etc there is a mathematical argument of renting over buying(depending on your circumstances). as a renter you dont pay closing costs, repair and maintenance, taxes(directly most the time its part of the rent), sometimes utilities, any interest towards a mortgage.
using your investing strategy of selling a downsizing and buying assets does work; however, by investing over the long term any extra cash as a tenant once could also build liquid assets at a better return since time is in their favor. buying the s&p over that same 25 year mortgage time frame in a tfsa would possibly make them a millionaire. also in canada people can claim rent as a non refundable tax credit, where you cannot with a mortgage(in the us you can).
a house is a long term savings plan.
housing in canada is a pyramid scheme. a way to net more taxes for the government. this is why I am considering leaving the country and buying in another country.
This is a good calculator to see if it's better to rent or buy.
Basically, since house prices are skyrocketing, it's better to buy. However, only if this trend continues.
wowa.ca
Basically, since house prices are skyrocketing, it's better to buy. However, only if this trend continues.
Rent vs. Buy Calculator for Canadian 2024 | WOWA.ca
Compare the costs of renting vs buying. Find out how much you could save (or lose) by buying a new home versus renting.
wowa.ca
depending on what your 1 million is invested in that may not be realized gains either
My point really to Ceiling Feline was that 1 million is 1 million. Not necessarily saying one is better than the other. To me it's equal. It's one million. Where you put your money in is the financial and investment decision. He thinks if a person doesn't own a house there's no housing costs hence rich. He's never heard of rent costs.This is a good calculator to see if it's better to rent or buy.
Basically, since house prices are skyrocketing, it's better to buy. However, only if this trend continues.
Rent vs. Buy Calculator for Canadian 2024 | WOWA.ca
Compare the costs of renting vs buying. Find out how much you could save (or lose) by buying a new home versus renting.
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If someone has been in an apartment for many years at a good rent controlled rate that would be one thing. To go out now and rent a purpose built apartment or condo would most likely be much more expensive.
The principal residence of a home owner is tax free when sold. The investor with the million would be wise to put money in Canadian dividend paying companies and max the TFSA especially if in a low tax bracket. Someone in a higher tax bracket would be wise to put money in RRSPs.
Then there are people with pension plans and people who mostly work for the government that have the golden indexed defined benefit pensions.
Again, these are financial and investment and even lifestyle decisions on what to do with a million bucks but it's still a million bucks at the same point in time. Nothing more nothing less. It sounds like there should be a thread on it's own to discuss the merits of owning a home or not as the one that will make you more money moving forward. But to start each has a million bucks same net worth.
True story.
Man buys a house in High Park in 1950 for $5,000.
Man sells the same house in 1995 for $500,000.
Man buys a house in High Park in 1950 for $5,000.
Man sells the same house in 1995 for $500,000.
