Most difficult bill you've ever paid..

[Cecil Terwilliger]

Originally Posted by Cowboy89

It's only a 'gift' if house prices decrease, even so the treatment of a 'forgivable' loan means you still pay interest on that factored into your mortgage price. As you probably already know appreciation on the value of your property will be split.

Is saving $22K really that unreasonable to expect of someone to become a homeowner?

What interest are you talking about? There is no additional interest costs for the forgivable loan.

AHCC gets their money back through money they get back on appreciation. The amount they get of the appreciated value decreases from 100% if sold in the first year to 25% at 3years+.

If the sale price is less than my purchase price I only have to give them $10k when I sell.

As for $22k being unreasonable I'm not the one who said it, numerous others have said it in this thread that it was hard. One of the biggest factors in preventing home ownership is that people can't save up that down payment.

[OilKiller]

Back taxes for my corporation. Had to sell a house to pay them. I did not realize how much they got out of hand until the government really came a knockin...

$120,000....

[chemgear]

Originally Posted by blankall

Online tax calculator:

http://lsminsurance.ca/calculators/canada/income-tax

That's pretty neat to play with.

But brutal to be reminded of how much I have to fork over every year.

EDIT: Though I guess it could be worse, BC and Sask would eat even more! I was a little surprised at the actual dollar difference (it's easier to just pass it off as a "minor" percentage difference in passing.)

[The Yen Man]

Originally Posted by squiggs96

How is a downpayment on a house/condo/property difficult? It should be the best thing you bought.

It was only difficult in the fact that I went from having a ton of disposable income to basically having none (or I should say none that I was willing to use). I know it's not really gone in that now it's tied up in equity, but I guess I lose the liquidity of it.

[Phanuthier]

Originally Posted by OilKiller

Back taxes for my corporation. Had to sell a house to pay them. I did not realize how much they got out of hand until the government really came a knockin...

$120,000....

Was this the recent fiasco you ran into?

Also, have we figured out exactly how much Table 5 makes yet?

[Shazam]

Originally Posted by blankall

Online tax calculator:

http://lsminsurance.ca/calculators/canada/income-tax

Assuming he doesn't live on Nunavat, his income would be in the 150-163k (less if the 50k included CPP and EI contributions) range depending on what province he lived in.

Also, taxes are not necessarily lower in the USA. It depends on what state you live in. In NYC he would pay considerably more taxes.

NYC (yes, the city) has its own income tax. Whee!!

$100K in NYC is scraping by, so he's doing okay.

Anybody that's self-employed in Canada that's paying that much taxes though for that level of income needs to get a better accountant.

I wonder if Table 5 made himself an S-corp.

[OilKiller]

Originally Posted by Phanuthier

Was this the recent fiasco you ran into?

Nope, was the house before. Seriously, I have really screwed with karma in a previous life or something.

[bizaro86]

Originally Posted by Cowboy89

It's only a 'gift' if house prices decrease, even so the treatment of a 'forgivable' loan means you still pay interest on that factored into your mortgage price. As you probably already know appreciation on the value of your property will be split.

Is saving $22K really that unreasonable to expect of someone to become a homeowner?

The appreciation split is still a good deal for the buyers, since they don't have to pay back the 20k. On a 200,000 property, if the buyer lives in it for 5 years, and appreciation is 3% per year, it'd be worth 231,854. If they sold at that point, the 25% that the organization keeps would be just under 8,000. To repay 8k to clear a 20k debt is a good deal, IMO.

Obviously I made some assumptions, but I think they're reasonable. Even 10 years at 3% appreciation would only have the buyer paying back 17,195 at the end, so still a good deal.

[Shazam]

Originally Posted by OilKiller

Nope, was the house before. Seriously, I have really screwed with karma in a previous life or something.

My God, I'm surprised you didn't land in jail.

[OilKiller]

Originally Posted by Shazam

My God, I'm surprised you didn't land in jail.

Nope. Kept leading them on and explained how I was going to pay and they were good with that. I did indeed pay all that was owing, so they were happy in the end. Me, not so much.

[Phanuthier]

Originally Posted by OilKiller

Nope, was the house before. Seriously, I have really screwed with karma in a previous life or something.

This happened twice?

[Sr. Mints]

A few years ago, while retired, my mom told me she had a $60,000 tax bill, and I said something like "what the hell have you been doing with your time?" I'm not privy to her finances, but my initial thoughts were that I should be using the guys who handles her investments.

But it was because she sold another house she owned, which she was renting out. Apparently you pay big tax on those when you sell them.

[Table 5]

Originally Posted by Phanuthier

Also, have we figured out exactly how much Table 5 makes yet?

Whoever comes closest, gets a free logo.

[Shazam]

Originally Posted by OilKiller

Nope. Kept leading them on and explained how I was going to pay and they were good with that. I did indeed pay all that was owing, so they were happy in the end. Me, not so much.

Good to hear. How much of that was penalties?

[Cecil Terwilliger]

Originally Posted by bizaro86

The appreciation split is still a good deal for the buyers, since they don't have to pay back the 20k. On a 200,000 property, if the buyer lives in it for 5 years, and appreciation is 3% per year, it'd be worth 231,854. If they sold at that point, the 25% that the organization keeps would be just under 8,000. To repay 8k to clear a 20k debt is a good deal, IMO.

Obviously I made some assumptions, but I think they're reasonable. Even 10 years at 3% appreciation would only have the buyer paying back 17,195 at the end, so still a good deal.

Make no mistake it's a crazy good deal though.


As for tough expenses, how about Flames season tickets?

I get a lot of joy out of them but $3k every August is a tough pill to swallow.

[OilKiller]

Originally Posted by Phanuthier

This happened twice?

No...the second time was some other personal issue.

Originally Posted by Shazam

Good to hear. How much of that was penalties?

Not much really...lol. Just did not handle the accounting very well unfortunately. Hired the wrong people.

[slcrocket]

My daughter was stillborn in November of last year - while it's perfectly reasonable, you certainly don't feel like you should have to pay that hospital bill.

[Phanuthier]

Originally Posted by OilKiller

No...the second time was some other personal issue.

Damn you sure get yourself into a lot of financial problems. I sure hope you learned your lesson(s) and don't lose your house again.

[Shazam]

Originally Posted by Phanuthier

Damn you sure get yourself into a lot of financial problems. I sure hope you learned your lesson(s) and don't lose your house again.

Don't worry, he took the legs off this one

[Bigtime]

Originally Posted by slcrocket

My daughter was stillborn in November of last year - while it's perfectly reasonable, you certainly don't feel like you should have to pay that hospital bill.

Thread over. That's horrible (even though I understand like you do why you got the bill).