Real Estate

Is my coworker making a good decision by not buying a house?

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  • Jul 25th, 2020 7:44 pm
[OP]
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Feb 12, 2019
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Is my coworker making a good decision by not buying a house?

My coworker had 100k saved 3 years ago (by mooching off his parents) and got his mortgage pre-approval. However he couldn't afford Toronto houses, and refused to settle for somewhere like Mississauga, so he never bought any house.

Now he had 200k saved (by mooching off his parents), still he couldn't afford Toronto, and now he couldn't even get a place in Mississauga, so instead he's putting a lot of money in stock such as Riocan among other stuff, and he's getting $150 dividend in total from those stocks each month. He claimed to be netting about 8% interest on his investments, I can't verify that.

Do you think he's making a wise decision?
22 replies
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May 9, 2019
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Depends... does he plan on mooching forever? Then it was a great decision. If he plans on actually being an adult and and standing on his own two feet, he probably should’ve bought.
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Jun 7, 2017
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Does he want to be a man someday? Maybe not, could be overrated.
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Sep 14, 2003
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TheMeat wrote: My coworker had 100k saved 3 years ago (by mooching off his parents) and got his mortgage pre-approval. However he couldn't afford Toronto houses, and refused to settle for somewhere like Mississauga, so he never bought any house.

Now he had 200k saved (by mooching off his parents), still he couldn't afford Toronto, and now he couldn't even get a place in Mississauga, so instead he's putting a lot of money in stock such as Riocan among other stuff, and he's getting $150 dividend in total from those stocks each month. He claimed to be netting about 8% interest on his investments, I can't verify that.

Do you think he's making a wise decision?
So, he’s living at home, saving money, and investing it? Sounds prudent.

The only downside is that you can only live at home so long.
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Jun 7, 2017
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danfromwaterloo wrote: So, he’s living at home, saving money, and investing it? Sounds prudent.
Date: Hey, let's go back to your place.
OP: Sure, lemme call my mom.
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Oct 28, 2018
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When you say mooching off his parents do you mean they live at home and were able to save an additional 100k in three years?

Age of the person notwithstanding that's not too bad... Buying a property isn't the end-all-be-all of building equity. If the guy is young enough 200k plus modest continual savings after paying rent monthly compounded over decades could make for a nice comfortable retirement if they play their cards right.
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Mar 3, 2018
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Investing in Riocan a shopping mall reit is very risky right now. They were only collecting about 20% of their rents so the dividend may be at risk. Buying real estate is also a gamble right now but historically has always increased in price in the long term.
Deal Guru
Feb 9, 2009
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how old is he? if hes in his 20s still quite young...30s...hmmm yeah he's a man child then. i dont have an issue with people living with their parents but like what is his end goal here?
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Like what others have mentioned, it depends on his end goal. If having a lot of cash and being able to invest in other things is what he enjoys, he's doing pretty well but society usually judges based on whether you have a family, nice cars and a house by whatever age so he may look like he's not that balling living at home but hey, whatever floats his boat.
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Oct 26, 2003
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That is between him and his family, if they think that works out then it is fine, who are we to judge how others live their life?
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Everyone lives their life differently.

In my opinion, there is nothing wrong with living with your parents given current housing prices. That being said, age does play a factor. If he's in his 20s, perfectly fine. If he's in his early 30s, acceptable, if he's nearing 40, time to gtfo.

I moved out of my parent's house at 28 and it was the best decision I've ever made. The freedom, flexibility, and just the fact that I feel "successful". Living on my own for the past two years....can't oversell how amazing it's been.

200k is enough to buy a property worth $1million. Maybe your friend can consider starting off small with a $600/700k Condo as an investment property and continue to live with the parents. At least this way he's making a "strategic" decision....as opposed to just mooching completely...
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May 29, 2020
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I always find these thread a bit sad. You're clearly being snarky about your coworker's choices and needed to come to a forum asking strangers to validate your judgement. Why not mind your own business and let your coworker do what he wants, it doesn't sound like he's asking you for advice?
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Nov 13, 2010
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A mortgage ties you down, no freedom

Why is getting a mortgage the “end goal” here, i see many people happily renting and actually not worry about fixing stuff, or property taxes etc or comply with rules and bylaws. They go vacations, travel more, can take more time off from work and in better situations than those on mortgages that are busy slaving away 24/7 putting in OT then having heart attacks in their 50/60 yrs and dieing from that stress. Not to mention divorced and etc
After this covid and uncertain futures on jobs etc its very stupid to think about buying and getting into debt. If u bought it full in cash then sure buy it when u own 100% without some debt slavery mortgage
Who can be certain if these rrsp, pensions and or jobs will even exist if something worse than covid starts, or even wars or ww3
Right now focus on survival at least until this covid ends
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Living with parents is a cultural thing too. In some cultures it’s a normal. Once the parents retire then the role playing reverses - now the parents are living with their son.
”If you buy things you don’t need, soon you will have to sell things you need.”
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OP
Right or wrong. It is his decision/choice
...
Deal Guru
Feb 9, 2009
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I bet you this is about op.. why would his co worker tell him in details about his financial situation... any of your co workers talk about their 200k savings?

Seems like op wants validation about his own life
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Dec 12, 2011
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Let the man live his life. He is responsible for his own choices and decisions.
[OP]
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Feb 12, 2019
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clydelee2020 wrote: Let the man live his life. He is responsible for his own choices and decisions.
I don't care for that.

He just provides a good comparison to somebody who invests in real estate with the money. I'm curious how it's gonna play out.
[OP]
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Feb 12, 2019
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BrokeMillennial wrote: 200k is enough to buy a property worth $1million. Maybe your friend can consider starting off small with a $600/700k Condo as an investment property and continue to live with the parents. At least this way he's making a "strategic" decision....as opposed to just mooching completely...
To buy a $1 million property, he probably needs $160000 yearly income...and right now it's nowhere near that.
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Nov 24, 2013
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Why is the co-worker's life OP's business?

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