Search found 239 matches

by dusty2
14 Jan 2014 11:58
Forum: Financial Planning and Building Portfolios
Topic: New and Very Green
Replies: 29
Views: 2513

Re: New and Very Green

Since you're only 24 and have plenty of time, one strategy to try is to take 10% or 15% of your savings and invest in some start-up tech or penny stocks. Most will be losers, but you only have to hit on one new Apple or Google to make a big profit. Do some research, take some chances. Not many bond ...
by dusty2
05 Dec 2013 11:38
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2013
Replies: 123
Views: 12640

Re: Housing Bust 2013

It's not too hard to figure out the price to rent ratio at least in Toronto. Say a new condo costs $350,000, the usual rent for that is about $2000/mth, but say $1800. So $1800 X 12 = $21600 or 6.17%. Subtract $5000 for maintenance and $1800 for taxes, it equals $14800 or 4.2% return free and clear ...
by dusty2
23 Oct 2013 10:28
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: value analysis - rent vs purchase
Replies: 70
Views: 5890

Re: value analysis - rent vs purchase

I don't know how anyone can say that renting is similar to buying a home. Renting isn't even an investment, it's like saying leasing a car or buying cable TV is an investment. As a home owner, there hasn't been a single year when the maintenance fees and taxes haven't been doubled or tripled by the ...
by dusty2
06 Oct 2013 11:27
Forum: Financial Planning and Building Portfolios
Topic: Leveraged investing
Replies: 51
Views: 3717

Re: Leveraged investing

There is plenty of leveraged investing going on these days and people are making great money. Buy a condo, put down 20%, figure a conservative 5%/year appreciation, ( presently 6.5% in Toronto) wait 5 years for it to be built, a $400,000 condo becomes a $500,000 condo. Only lunatics and idiot housin...
by dusty2
23 Sep 2013 11:33
Forum: Financial Planning and Building Portfolios
Topic: Lumpsum going to Canadian Equities: DCA or all in, or?
Replies: 26
Views: 1670

Re: Lumpsum going to Canadian Equities: DCA or all in, or?

I'd say that the most important question for Jay to answer is if he owns a home and how much mortgage is left. If he owns a home and is single he could quit his job and live off the $300,000, with no worries. If he doesn't own one, the $300G's will buy him an oversized closet in Toronto with no park...
by dusty2
11 Aug 2013 11:44
Forum: Financial News, Policy and Economics
Topic: Peter Schiff "The Real Crash is Coming"
Replies: 27
Views: 2780

Re: Peter Schiff "The Real Crash is Coming"

Perhaps the next financial crisis will happen when the U.S. stops borrowing about $700B/yr, as it does now. Japan just reached the $10.5 trillion deficit mark and the U.S. is at $14T, so 4-5 years years from now, when it hits $20 trillion it should be about the limit. The important information is wh...
by dusty2
04 Aug 2013 11:37
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2013
Replies: 123
Views: 12640

Re: Housing Bust 2013

Someone says that condos were overbuilt in 1989. Then as now a condo needed to be over 70% sold to get building approval, so the condos that were being built were already sold, not overbuilt. Back then a great salary was $50k and a normal salary was about $32k, so the mortgage seekers, wanting a $10...
by dusty2
25 Jul 2013 11:51
Forum: Financial Planning and Building Portfolios
Topic: Should I just suck it up and buy bond funds?
Replies: 42
Views: 3258

Re: Should I just suck it up and buy bond funds?

Buying a bond fund with rates this low isn't smart, especially if the person doesn't need the money for a long time. A dividend fund is a lot wiser. A bond fund is an investment in nothing. A dividend fund is an investment in capitalism, which is the system we're part of. The reason why interest rat...
by dusty2
25 Jul 2013 11:33
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2013
Replies: 123
Views: 12640

Re: Housing Bust 2013

Someone says they're making an 'offer on a lease' , I guess that means that they're offering to pay less rent per month than the owner wants. Why would a condo crash affect a person who's renting? The last time a correction occurred mortgage rates went to about 18%, so there is no need to worry abou...
by dusty2
18 Jun 2013 17:17
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2013
Replies: 123
Views: 12640

Re: Housing Bust 2013

All the inventory in the pipe line, sold or unsold will keep the prices low. Someone who's thinking that it's going to be a good time to buy when interest rates go up, isn't using good judgement. It's better to buy while there's still something good to choose from, while the rates are low. If the ra...
by dusty2
16 Jun 2013 11:28
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2013
Replies: 123
Views: 12640

Re: Housing Bust 2013

Right now you can buy a 640 sq/ft condo, with parking in downtown Toronto for $350K.Which is plenty of room for one person, not too bad for two. I'd call it cheap. One reason it's cheap is because Toronto has the most condos beingbuilt in N. America, which helps to lower the price. About 130 condos ...
by dusty2
19 Apr 2013 11:37
Forum: Financial News, Policy and Economics
Topic: Gold
Replies: 1010
Views: 97660

Re: Gold

Maybe a good way to buy some gold is to buy the best Rolex gold watch you can afford. You're not only getting the highest quality, best name and one of the best made watches, but it's something that is nice to look at and own. Which might be a reason to hang on to it and make some money in the long ...
by dusty2
14 Apr 2013 11:30
Forum: Under the Mattress: Protecting Your Money
Topic: Change of strategy to preserve capital?
Replies: 18
Views: 1320

Re: Change of strategy to preserve capital?

I noticed that gold bullion was down $63.00 on Friday. Take a look at Barrick Gold now at about $23.00, there were a lot of gold bugs recommending this stock when it was double the present price. Maybe when\if it hit's the low teens or even single digits it will be worth buying. One bank in NY has t...
by dusty2
20 Mar 2013 11:17
Forum: Financial News, Policy and Economics
Topic: "Theft, pure and simple"
Replies: 182
Views: 7419

Re: "Theft, pure and simple"

The Cyprus incident makes a good case for keeping a lot of one's savings in gold. It reminds me of all these Canadian nit-wits, piling all their savings into RSP's and TFSA accounts and registering them with the tax man, thinking they're so clever. When it comes time to cash out, they'll wish they o...
by dusty2
17 Mar 2013 11:20
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Buying a property in Mexico?
Replies: 27
Views: 9276

Re: Buying a property in Mexico?

I hope that those people buying condos came up with a low-ball counter offer before signing on the bottom line. Like the $120,000 price - offer $90,000- see if he bites. A couple of things I didn't like about Mexico. For a lot of the time during the day, it's too hot to go outside. Basically getting...
by dusty2
10 Mar 2013 11:32
Forum: Financial News, Policy and Economics
Topic: Black news
Replies: 623
Views: 108152

Re: Black news

I'd like to know how the CRA knows what flights are personal or not. Plenty of business people have cars provided by their company, I wonder if the CRA has information on whether they're trips are personal or not. Probably a large percentage aren't. It would be pretty hard to prove whether a trip wa...
by dusty2
09 Mar 2013 11:30
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Buying a property in Mexico?
Replies: 27
Views: 9276

Re: Buying a property in Mexico?

I wouldn't be in the market for Mexican property, unless it was 'mad money' or money that can can be flushed down the toilet without worrying. Even then, I'd prefer a 911 Porsche safely tucked away in my garage. A person would have to be a bit mad or courageous to convert $120,000 looneys into Mexic...
by dusty2
02 Mar 2013 11:44
Forum: Financial Planning and Building Portfolios
Topic: Young Investor Seeking Advice
Replies: 65
Views: 2013

Re: Young Investor Seeking Advice

Probably the most important factor a young investor should consider is if his parents own a house and how many siblings he has. A $300,000 house appreciating at a modest 3% percent\year is $9000. Figure out 20-30 years compounded to see about what you'll inherit tax free. All the REITS, bonds and ET...
by dusty2
23 Feb 2013 11:41
Forum: Financial News, Policy and Economics
Topic: Black news
Replies: 623
Views: 108152

Re: Black news

It's kind of a strange defence for Black, he's not saying that his legal points were correct, but that he had the wrong lawyers. So he's admitting that his conviction was correct, but he needed better lawyers to get him off. Maybe he's also saying that his Canadian lawyer wasn't that great. Apparent...
by dusty2
07 Feb 2013 11:29
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Buying Property In Phoenix, AZ
Replies: 236
Views: 21302

Re: Buying Property In Phoenix, AZ

Buying a house and holding it 20-30 years, with tenants, is like buying a car and renting it out for the same time and expecting it to become valuable. Both will have to be completly rebuilt, before selling, cancelling out any profit. A smarter idea would be to forget the house and buy vacant land. ...
by dusty2
05 Feb 2013 11:22
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Buying Property In Phoenix, AZ
Replies: 236
Views: 21302

Re: Buying Property In Phoenix, AZ

The idea seems to be buying some used house that is deemed an investment, renting it for a few years and selling at at a profit. So the person is an absentee landlord, with his capital sitting 1000 miles away, while the tenants are trashing the place. Meanwhile, the owner is paying about 3 levels of...
by dusty2
28 Dec 2012 11:33
Forum: Financial Planning and Building Portfolios
Topic: Does a young investor need bonds?
Replies: 56
Views: 2708

Re: Does a young investor need bonds?

Bond investing is kind of like investing in your own money. The result like an inbred deformed child. Someone says that no one can predict what the future bond price will be but that's not true, since the bond rate will always be less than the inflation rate, so a bond investor is always guaranteed ...
by dusty2
23 Dec 2012 11:34
Forum: Property: Owning, Renting, Managing, Investing and Mortgaging
Topic: Housing Bust 2012
Replies: 233
Views: 17382

Re: Housing Bust 2012

The 80's seems to be a sort of 'golden time' for housing bubbleheads -when market crashed! Mortgage rates of 20% will tend put a damper house prices. Maybe it's worth noting that all the houses that people walked away from are now worth 3 or 4 times what they were worth then, so walking away was an ...
by dusty2
09 Dec 2012 11:45
Forum: Financial Planning and Building Portfolios
Topic: Financial Plan for a Young Investor (and a thank you)
Replies: 74
Views: 6230

Re: Financial Plan for a Young Investor (and a thank you)

As far as I know there are two ways to get rich by doing basically nothing in Canada. The first is to buy and pay off a home. The second is even easier, no MERS, no etf's, no tfsa, nothing complicated, simply buy the 5 big Canadian banks and don't sell them. This year RBC up 26%, TD/NS up 18%, plus ...
by dusty2
08 Dec 2012 11:17
Forum: Financial News, Policy and Economics
Topic: Oil
Replies: 1248
Views: 122172

Re: Oil

Obviously the trend is to sell a private Canadian company to a government controlled company. 'Exceptional circumstances' means that it probably won't happen in the future, but there would be a slight chance if the right conditions occur. It is a good decision, I think, like Harper says, Canadians d...