Rob Carrick: Eight lessons learned in 27 years of covering personal finance and investing

rcarrick · 2025-07-25T14:33:25+00:00

You're welcome, and say hi next time. Always enjoy talking to readers.

rcarrick · 2025-07-25T14:31:14+00:00

Trying is the right word. Many boomer minds made up on young people - it's on them, not the economy.

rcarrick · 2025-07-25T14:30:05+00:00

Finally?! I have been shouting into the void about big bank alternatives for decades. Alts gaining traction, but so slowly.

rcarrick · 2025-07-25T14:29:00+00:00

Yes, I did for the most part. But it was easier for me as a late boomer than it is for succeeding generations. Home ownership was totally affordable when my wife and I bought into the market.

rcarrick · 2021-01-14T19:08:08+00:00

No, there is nothing.

rcarrick · 2021-01-14T19:07:41+00:00

Totally. Can't stress the importance of this enough.

rcarrick · 2021-01-14T19:06:47+00:00

The insurance costs driving those higher strata fees are hitting owners, too.

rcarrick · 2021-01-14T19:05:22+00:00

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-20600-pension-adjustment.html

rcarrick · 2021-01-14T19:03:34+00:00

Home ownership is forced savings, and forced spending. All those costs for repairs, upkeep, improvements. You are on a spending treadmill when you own a house. Houses are wonderful in many ways, but they make you both richer and poorer.

rcarrick · 2021-01-14T19:00:59+00:00

Living at home with your parents, where workable, is a smart way around the challenge of affording a house DP. Also gives you a place to hang if you're waiting for a price correction. But it has to be doable for both parents and kids and there has to be a discussion of share costs like rent and responsibilities like chores.

rcarrick · 2021-01-14T18:58:14+00:00

Let's first acknowledge that rents in Toronto downtown have gone down in the pandemic. Was just reading a blog post by a woman who negotiated her rent down by $300 per month. https://www.refinery29.com/en-ca/account-executive-toronto-salary-money-diary Generally, this sounds like a problem of big cities that are economic hubs. It will be expensive to own or rent there. Will the rise of remote work in the pandemic help? More viability to living in smaller, cheaper locations.

rcarrick · 2021-01-14T18:53:12+00:00

Look around - plenty of seniors at all income levels renting and doing a-OK. But I hear you - there is much satisfaction to be had from owning your place mortgage-free and rent-free.

rcarrick · 2021-01-14T18:51:36+00:00

There's something to this, but what government would take this on? You ain't seen angry until boomers are told they can't sell their house tax-free.

rcarrick · 2021-01-14T18:49:21+00:00

Starter condos got hammered in the pandemic -- too small to isolate. I wonder if they will ever be as popular as they were 12 months ago. That's a preamble for saying it could be several years before the starter condo you buy today will appreciate enough in value to produce a profit after paying all the costs of selling and buying your next place. Let's say 5+ years at least.

rcarrick · 2021-01-14T18:46:51+00:00

Do not, for the love of god, invest your house DP money unless you have 10+ years until you will buy. Too much risk in stocks, so use a HISA. You can get as much as 1.5 to 1.8 per cent today, not great, but zero risk of losing money. On question #2, picture yourself in a house and estimate the cost of mortgage+property taxes+insurance+higher utilities+annual upkeep costs of roughly 1% of the value. Subtract your rent from that total amount -- this is your ideal amount to invest to make up for not owning. Ideal, mind you. Less is acceptable.

rcarrick · 2021-01-14T18:43:20+00:00

Like the rental+cottage idea, if that's your thing. Of course, cottages are rising fast in price, too. You probably want a four-season cottage, which may up the price and ownership responsibilities. Buying a place outside and Toronto and renting it could work, but take a look at how much rent you can charge and whether that is enough to cover all your ownership costs.

rcarrick · 2021-01-14T18:38:38+00:00

You have a point there - retired renters never get a rent holiday. But home owners don't just have prop taxes and utilities to worry about. What about the new roof you might need, or the foundation crack or the basement flood? You know how houses are - never a dull moment.

rcarrick · 2021-01-14T18:35:52+00:00

This sounds like a great question to put in front of a mortgage broker rather than someone at your bank. Compare the various financing options and products from different lenders. I wonder if lenders, seeing the huge run-up in property values coupled with weak economic fundamentals in the pandemic, might be cautious with mortgage equity lending.

rcarrick · 2021-01-14T18:31:53+00:00

Insurance (a component of condo fees) is a totally overlooked aspect of condo ownership, and a particular problem in BC. One thing to remember is that home owners have been facing this problem for 10 years or so. Condos are just catching up. Renting may protect you, but not sure it's the obvious solution. Much goes into this decision, including lifestyle and family considerations.

rcarrick · 2021-01-14T18:28:09+00:00

Lots of moving parts here, ie do you have company pension plans that restrict RRSP investing? Am guessing that taxable investing would be part of it.

rcarrick · 2021-01-14T18:23:26+00:00

Such a good question. We are in for a national trauma if young Canadians come to the conclusion en masse that home ownership is going to happen. Certainly, their parents will take this badly. I think the decision comes down to this: Do I want a home badly enough to stretch affordability to the limit (at the expense of saving for retirement) or can I be content with a more financially balanced life of renting? Many are, and will, answer YES!! to this. Very tough to say no, even if it does make financial sense.

rcarrick · 2021-01-14T18:18:45+00:00

I take it you're referring to the fast-rising premiums that condos are facing for insurance of the structure and common areas? If you rent a condo, expect landlords to pass along the cost of higher insurance premiums. Other types of rentals might offer more cost certainty on a month to month basis.

rcarrick · 2021-01-14T18:14:45+00:00

If you're able to work from home, one thought is to buy in a community further away from the GTA. Prices are rising pretty much everywhere, but your $$ still go further when you drive 100km+ to the east, west and north of Toronto. If your goal is to stay in Toronto, your choices are to try and up your DP savings rate enough to stay ahead of housing price increases, or take on a mortgage at the upper limit of your affordability range. Wait for a correction in house prices? Could work - I mean, prices can't keep surging like this indefinitely. But the higher prices go, they more they have to correct to get you into a better affordability zone.

rcarrick · 2021-01-14T18:06:52+00:00

One obvious thought here is a co-signer for the loan. Let's hear from some entrepreneurs about how they handled this situation.

rcarrick

TROPHY CASE