Thursday, December 15, 2011

Concerned about YOUR Household Budgets?

If you bought a house in the last 10 years, you qualified for a mortgage at a lending institution [bank or mortgage company] presented your verified gross income to that same bank and budgeted for the mortgage payments you would be making, You understand that you have a predetermined income and only a certain portion is permitted for Mortgage qualification purposes. {GDS TDS} The BANK will not permit you to spend endlessly.

In addition to your mortgage you also have property maintenance either as a condo fee or you do the work / hire someone to do it, paint and upkeep, water, hydro, heating and property insurance. Let's not forget the addition property Tax the Municipal Property Tax Assessment levies against your house or condo. (MPAC)

Some at the City of Toronto feel that spending can go on forever without a limit on how much you can spend every month or every year. I want that VISA card. The never repay the debt card.

As you purchased property, you paid Land Transfer Tax Both Provincial and the newly imposed Miller Tax [have a look at what it costs to close on a Toronto Property Purchase] (rebates may apply for First Time Buyers)

In Canada, your purchase requires a minimum down payment of 15% to SAVE the Canada Mortgage and Housing premiums to INSURE a residential Mortgage (CMHC) plus applicable PST and Title Insurance. Lawyers have their own Law Society Levies and Taxes.

IN good times, Canadians Save for those times that may not be good.

I posed the following question to Shelley Carroll ( Toronto City Councillor ) If the property values decrease or collapse in the fashion that Garth Turner Predicts (The Greater Fool) with PEOPLEnomics and keeping them scared are we not prudent to trim our budgets during goods times rather that SLASHING them during a recession? See for yourself

Ms. Shelley Carroll replied;

Garth Turner? Basing his theory on overly-selective history in Intensified Mega Cities' Fiscal Formuli? Seriously?

Seriously? Buyers are nervous. Spending seems to be out of control. I sell houses. I help families solve their housing needs. I sell houses to families who are comfortable and confidant in their ability to make future payments on a mortgage and pay the taxes related to that purchase. Your confidence requires a local employment and the belief that ownership by choice and commitment will benefit your family. If the values decline, in Canada the way they have in the United States, it would be like the European Debt crisis right here.

Is it possible that we could have a VOTER revolt like they had in California with PROP 13? When they slashed their state budgets the entire government work force was reduced to 3 days a week. School and myriad other programs rippled.

Maybe its time we looked at appointed City Managers. What do you think?

1 comment: said...

Great post ... thanks for the info