Canadians taking longer to "grow up"

[Regorium]

If my parents didn't pay my rent and tuition, I would never have moved out. I'm lucky (and spoiled) in that way that choosing to go to a better school elsewhere was a decision based completely on education and not finances. If that were not the case though, I would still be living at home.

My GF's sister is 25 (and indian) and she has zero plans to move out at all. It just seems like Indian girls are supposed to stay at home until they are married, otherwise you are dishonoring your father. I hear Aishwarya Rai still lives at home, even with her hundreds of millions of dollars.

[ken0042]

Originally Posted by corporatejay

It's smarter to save up for a downpayment and buy an asset then piss it away on rent.

Well, the past 3 years of Calgary's housing market aside; I have to disagree with you.

First, let me qualify what I'm about to say with the fact that I lived at home until I was 21 (not going to school), then moved back for a year when I was 24 and going to university. So I have indeed been a person in his 20's living at home.

Now, back to the "renting is pissing your money away" philosophy. In many times renting is cheaper than buying. There are no maintenance costs, and no huge down payment. Also, renting gives you much more flexibility in your lifestyle. As a renter you can move to another city or another part of town without the hassle of selling. You can also change your situation; if you want a bigger place, smaller place, more or less ammenities- you can do all of that for far less of a cost compared to buying and having to re-sell each time.

I also found that because I rented in so many different situations; when I did end up buying a place I found something that had everything I knew I wanted. I took the past experience from renting and made sure everything was right with my house before buying it. I also learned new people skills- ie how to deal with neighbours; what works and what doesn't. This way on my learning curve; any mistakes I made were made with people I never have to see again.

As well for me; by renting I was able to move from Winnipeg to Calgary. I was able to live my life the way I wanted it to. I did a lot of stuff in my 20's that I would not have been able to had I stayed at home until I had enough money to buy a place.

I guess what I'm trying to say is make sure you do what is right for you- not what is "popular." Be it moving out and renting, staying at home and saving money, or whatever.

[HelloHockeyFans]

Originally Posted by Option84

Wow, story of my life. I graduated back in may from the University of Waterloo with a BSc degree that is pretty much worthless (Honours Science and Business) and I'm still at home because I can't find an affordable place to live or decent job. And I live in Canmore so I can't really have the luxury of living at home and commuting to work way out in Calgary (no jobs here). I think I'll have to bite the bullet and basically slum for a while and work a crap job since my parents want me out to start living my own life. I know it's just TV and advertising, but when you are bombarded with images of people my age living the high life in luxury condos and such, you can't help but feel a little anxious in the pit of your stomach. Anyways, reading this article and comments made me pretty depressed. ;_;

Whatever man, cheer up. Remember, what you see is TV and advertising. Sure, there are people relatively fresh out of university living the "great life" with a nice condo to their name and having after work martinis with co-workers in the posh strip of the city, but there are even more people like yourself, fresh out of school, working in a job that has nothing to do with their education, waiting for the right opportunity to come along.

You're educated and by being educated, have proved you have the patience and maturity to succeed. Show some patience. Nothing ever comes all at once.

[Sylvanfan]

Yeah, renting isn't the end of the world. Especially before the rental market went through the roof like it did. I rented in some form or capacity for 5 years and it was good becuase it's flexible and all you need is one months notice and you can pick up and chase down a better oppurtunity. It also gives you a bit of a self education on how to live a bit, what expenses are associated with everyday living. Even today, I'd have left Edmonton long ago if I was a renter, as a home owner I'm sort of stuck here until I sell this place or decide to try renting it out and I'd be taking a loss to rent it, even though rent prices are through the roof.

[mykalberta]

The only thing that pushes me to get married is the cost of a home and my parents ever increasing and non subtle hints that they want a grandchild.

I think that when I get to 30yo and if I am not close, then I will start feeling the pressure.

MYK

[blankall]

Originally Posted by Option84

Wow, story of my life. I graduated back in may from the University of Waterloo with a BSc degree that is pretty much worthless (Honours Science and Business) and I'm still at home because I can't find an affordable place to live or decent job. And I live in Canmore so I can't really have the luxury of living at home and commuting to work way out in Calgary (no jobs here). I think I'll have to bite the bullet and basically slum for a while and work a crap job since my parents want me out to start living my own life. I know it's just TV and advertising, but when you are bombarded with images of people my age living the high life in luxury condos and such, you can't help but feel a little anxious in the pit of your stomach. Anyways, reading this article and comments made me pretty depressed. ;_;

That is the story of most people's lives....

I have no idea what the exact reason for it is, but I think it has a lot to do with the Baby Boomers themselves. There are so many of them and their refusal to retire leaves very few entry positions available. Basically its a spiral where Baby Boomers can't retire because they have to support their adult children, and the adult chilren can't support themselves, because the baby boomers won't retire.

[worth]

I'll be 24 at the end of the year and still at home.

I'd like to move out, but I just don't see it as plausible at this point in time. I finished school last fall semester and have been working full time since and there's still no way I can afford a house in Calgary. My friend has been working for the past 4 or 5 years so he has a lot more saved up than me and is looking at buying a place and then I could rent from him. I just don't really see how I could buy with the prices the way they are at this point.

[Muta]

Originally Posted by Option84

I know it's just TV and advertising, but when you are bombarded with images of people my age living the high life in luxury condos and such, you can't help but feel a little anxious in the pit of your stomach. Anyways, reading this article and comments made me pretty depressed. ;_;

Dude, it's not all that it's cut out to be. I own a new condo; just graduated last year. And... I can't afford anything else. Hell, I haven't done a full grocery shopping trip since July.

It's PAINFULLY expensive to live out on your own as a new grad in this city, especially if you're not in oil and gas. Most of the images you see likely refer to a small, small percantage of people our age making it big in this industry, or finance, or accounting, or whatever. There's more people out there - ALOT more - that can't afford this type of lifestyle than those that can.

[Neeper]

I have a friend who makes $400k/year and still lives with his parents in their. I always bug him, but I think he paid off their house so, I guess he feels entitled to stay.

[Muta]

Originally Posted by Neeper

I have a friend who makes $400k/year and still lives with his parents in their. I always bug him, but I think he paid off their house so, I guess he feels entitled to stay.

What does your friend do? I'm not gonna lie, a salary like that would be nice...

[Neeper]

Originally Posted by Sylvanfan

Yeah, renting isn't the end of the world. Especially before the rental market went through the roof like it did. I rented in some form or capacity for 5 years and it was good becuase it's flexible and all you need is one months notice and you can pick up and chase down a better oppurtunity. It also gives you a bit of a self education on how to live a bit, what expenses are associated with everyday living. Even today, I'd have left Edmonton long ago if I was a renter, as a home owner I'm sort of stuck here until I sell this place or decide to try renting it out and I'd be taking a loss to rent it, even though rent prices are through the roof.

But you can not build any wealth or assets if you rent. I can't imagine where I would be if I was renting 5 years ago. There's no way I could afford to live where I live now. When houses were cheaper 5% down was not much at all. I put less than $10,000 down on my house in Taradale. I paid $950/mo on my mortagage, which is how much rent would have been anyways. We all know what happened afterwards and I walked away several hundred k richer when I sold it. The extra money will make me enough money in the future for me to retire comfortably. All because I didn't want to rent anymore.

[Neeper]

Originally Posted by Muta

What does your friend do? I'm not gonna lie, a salary like that would be nice...

He's a day trader for a trading company.

[Sylvanfan]

Originally Posted by Neeper

But you can not build any wealth or assets if you rent.

I always did shared accomodation and never paid more than $500 a month for rent. Even with todays market if you can wrangle up two room mates you should be able to get into a decent place with all costs for less than $800 a month. When I was renting I had no problem stuffing aside 13 grand a year into an RRSP on a 60k a year wage. Today at over 80 owning a house and having a wife making 50.....I can't even save half as much as I could in my renting days. Yes I was single and it was an advantage. But I see too many peopel saying renting is no good you can't save money. I say BS, if you try hard enough you can. Also when your folks don't live in a place where working oppurtunities are that great....you need to make a go of it on your own. Had I stuck around where my parents lived and not been willing to rent....I never would have had half the oppurtunity or made a quarter of the money I have.

[rubecube]

Originally Posted by Sylvanfan

When I was renting I had no problem stuffing aside 13 grand a year into an RRSP on a 60k a year wage.

Not as easy when rent is $700/month, you're making 45k/year, and being taxed 20k.

[Sylvanfan]

First of all....you're getting jipped if you're paying that type of tax on those earnings. But still if you're smart with your money theres still enough to get some set aside. But you're conditioning yourself to live on a budget and as your income grows it will pay dividends down the road. IMO I made like 27,000 my first working year out of school and living on my own and it made me learn how to budget and work with a small amount of money. When my income did go up I didn't need to change my living style that much and was able to increase my ability to save substantially. I doubt I would have been able to do that if I didn't have to slug it through a tough first couple of years.

[Regorium]

Originally Posted by rubecube

Not as easy when rent is $700/month, you're making 45k/year, and being taxed 20k.

Are you exaggerating? Because if not, you aren't being taxed right. Especially in Alberta with the 14k exemption - You're effectively making 30k of taxable income before deductions and you're saying you are getting taxed 66% of that?

Hire an accountant. The grand or so you'll pay will save you probably at least 10 grand cuz you're doing your taxes wrong.

[JiriHrdina]

There's something to be said for striking out on one's own, making piss poor cash, living in a dive apartment pay cheque to pay cheque. Some of the best times I had was when I first moved out. When my sister move dout it was immediately into a brand new home she and her new hubby bought - to me I think they missed an important experience. But that's me.

[rubecube]

Originally Posted by Regorium

Are you exaggerating? Because if not, you aren't being taxed right. Especially in Alberta with the 14k exemption - You're effectively making 30k of taxable income before deductions and you're saying you are getting taxed 66% of that?

Yes it was a bit of hyperbole on my part.