US Debt

Problem is, at least around here, is that a $500,000 house will only get you about 2K per month in rent (gross). Once you minus out land taxes, insurance and maintenance you will net about $1400 month. Now if you add on a management fee of say 10% your down to $1260 per month ($15,120/yr or 3% ROI). That's not near enough of an ROI for me. Yeah the property might go up in price but that doesn't do you any good unless you sell it.

What sort of ROI are you getting on your rentals out in Saskabush Hocks?

[quote="CanuckBob"]Problem is, at least around here, is that a $500,000 house will only get you about 2K per month in rent (gross). Once you minus out land taxes, insurance and maintenance you will net about $1400 month. Now if you add on a management fee of say 10% your down to $1260 per month ($15,120/yr or 3% ROI). That's not near enough of an ROI for me. Yeah the property might go up in price but that doesn't do you any good unless you sell it.

Here: 150K house ( or a 80K unique fixer-upper ), grosses 12k a year... taxes, insurances = 1k
management 1k = 10k net or 6.67%
Indeed values do rise and fall... mostly rise!!
If I was selling off in Vancouver market... I'd be flipp'n em into Kelona or Penticton at a rate of 3-1 ( prime BC Retirement communities )

just say'n is all...

Wow....better rental market out there for sure. Taxes here in Vancouver on a 500K house (which is average price) are $3500/yr and insurance on that rental (with earthquake and loss of rental income) is about $1200/yr. Oh yeah I forgot the utilities bill (garbage and water) which is another $800/yr. Then of course around here you have to worry about marijuana grow-ops. Get caught with a rental with one of those in there and they can take your house away. They are now saying the landlord is responsible to check for it regularly.

Just recently the community "powers that be" started a news blitz about how the police would enforce a new property regulation requiring 120v hard wired smoke detectors... the jist was they were going to force those bad ole landlords to comform... suggesting that was the problem... a friend of mine replied in media asking if the police would be so dilligent in enforcing "destruction of property" complaints after the tenants ripped them off the walls, just as they had with all the battery operated smoke detectors...

true ... it is tough being a landlord!! :( .... snork

Then there is the opinion that even if we default, the finances of the world run on...debt.
Shoot... the credit card companies don't want you unless you are already in debt. That's when they start hitting you up seriously to borrow more $$$, whether you can afford it doesn't seem to enter their minds.
Makes me wonder just how much of the fear-mongering that the networks are fomenting is just more smoke and mirrors. The guys reporting all this doom and gloom don't seem at all worried about it. Lizzy

Why pay income tax AND interest on debt?

Gold Canadian Maple Leaf's would be a great hedge. Gold will hit well over $3-4,000 over the next 2-3 years. Sliver is a better bet and it's a lot cheaper and historically out performs gold like it's doing now.
Most of the offshore investment folks i follow say at least 10% or more and some of that needs to be in smaller amounts to liquidate quickly if needed.
Up is down these days, we are in for a long rocky ride sadly.

Hey Bob, Your'e FA is Quite a bit light in his loafers. Think at least 10% gold and silver. Scotia Bank is the way to go. U can order and pick up at your local branch. Lowest fees. Dirt cheap really. Check them out. Most of the readers here are now behind the game, but it's not too late. I'm going silver next, realizing I'm late for that train, but, gotta have some, Especially some physical.
Do not sell any heirlooms into this market !!! You will get RIPPED OFF. Wear, enjoy, insure and be assured. I wouldn't consider wearing any precious metal jewellry (sic) in public. In Mx I wear a throwaway wedding band in public. Value = $100. That's my exposure to the nasties.
That being said, There are good stock and ETF choices out there of the likes of Franco Nevada and Silver Wheatan, Etc.
We're all anxious. No Shit. We're all looking down the road and wondering where the $ are going to come from. I'm applying (ahead of 65) for my CPP. It's something, at least. As a retired citizen of the USA I would be concerned and proactive politically. GRAY POWER!!! I try to stay positive but think the worst is yet to come.
Enjoy Lakeside and be proactive.

For maximum day to day angst I would suggest bookmarking < bloomberg >. You can watch the markets rise in the east and set in the west.

hockables guy. Strong input. Thx.

U seem to be getting it.

Silver Wheaton is a fine choice and a good long term hold on this market.

Don't watch the daily price buy more on the dips to average your cost in but get in. The ride is just beginning for the currency markets.

When you have a fiat money system like the US with nothing to back it up but more printing of worthless paper it can only end badly.

For you precious metal bugs who just have to have the real thing <scotiamocatta.com>. There's a ScotiaBank branch in Guad. Need your passport and proof of residence. Go nuts. NNOB they want ID and your social insurance number. Don't like that. You'll notice the premium over the spot price is very reasonable compared to dealers.

Mexico is considered to be a bad country to take physical gold or silver in.
But you can have it legally stored offshore in other nations out of the reach of the US & Canadian thought police