# Rob Carick's Article in The Globe



## I'm Howard (Oct 13, 2010)

Rob advocates Selling your Home and Investing the proceeds while Renting alternative accommodation as a potential alternative for retirees.

Rob has yet to understand that although guys buy Houses ,,Women buy Homes, it is their Nest, their identity, where they put their ideas on decorating to work and where the kids come and stay when they visit.

You are 60, everyday is Saturday, you are still very active, you want recreational opportunities, but you also face the reality of a fixed income.

Winters are long, you want to escape for some fun in the sun,but $2,000 a week is too rich.

My idea, Buy in Vacation country, NOT Cottage, but in the Georgian Triangle, in Collingwood.

15,000,000 people live in a days drive of Collingwood, it ain't Whistler but for 95 % of skiiers it is adequate.

Buy a home there for about $400,000 either all ca$h or part Mortgage.

Summers, Golf, Hike, Fish, Boat, Bike, Bird Watch, play tennis, hang out at the Beaches, Antique in local small towns , whatever, but it is a very active life style 

Winter, tell your local Realtor to Rent it out to skiiers while you are down South, works out to twelve weeks, actual fact they only visit on Weekends.

Home is available for six months so all charges like taxes, utilities etc are deducted from the monies you make from Rent.

The extra may be declared as income or not, maybe the kitchen suffered some paint damage and needs to be redone or the fridge crapped out and had to be replaced(wink, wink)

Some people actually rent it out to Family Members, but this way, you are still in the R.E Market, you still have your home, the Family can visit and stay in the summer, and you increase your life by an outdoor healthy lifestyle and winters down South.

Trust Me, it works, and Collingwood has four Local Hospitals and some local clubs only charge $1,000 for Summer Golf.


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## andrewf (Mar 1, 2010)

I think he means sell your million dollar house in TO.

Not sure what the rental rates are for houses in Georgian Bay area. Maybe it makes sense to buy, but it might also make sense to rent.


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## I'm Howard (Oct 13, 2010)

andrewf in the summer you can rent a million dollar Ski Chalet for less than $2,000 a month,furnished, that is the slow season and many sit empty so the owners would like occupants to ensure no Insurance problems.

Winter, three months rental, anywhere from $10 to $12,000 for January, February/March.

I think this idea beats Reverse Mortgages and allows a Retiree to stay in their home plus finance their winter escape,plus stay in what is bound to be a very fast growing part of R.E, Recreational Real Estate.


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## andrewf (Mar 1, 2010)

^Isn't that an argument for selling and renting? Rent a cheap ski place in the summer and rent a place down south in the winter?


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## I'm Howard (Oct 13, 2010)

YES,YES,YES,now, would you please talk to My Wife.

Men buy Houses, Women buy Homes,and , in all fairness, playing at being Gypsies gets thin awful fast.

Our Home was built by us from our own plans by our builder on a lot that backs onto three acress of old orchard with a total unobstructed view of the Blues, tough to give up, recreational prime property will be a fast growimg asset, tax free.

My Brother in Salmon Arm was just approached to sell his 10 acres, asked a million, buyer says it wasn't worth it, Brother replied, it is to me.

I am now off to the deck with my Sleeman Red, and wait for the Jay's game.


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## Jungle (Feb 17, 2010)

Hey Howard.. funny that I saw your post.. 

I read that article (while vacationing in COLLINGWOOD!!) and was very intrigued. I managed to show my wife because for the sake of the discussion, I always find it easier to support this type of debate when there is an article.

I am no were near being retired, but with us, we are looking to up-size very soon the the topic of buying a house or renting in this expensive market is relative. Even with the equity we have now, I think of selling and investing he proceeds in the stock market and renting a house. However with the wife wants a "home" and I can relate to what you are talking about. But honestly to up-size in price and buy into some prices right now might be a little bit crazy. This can not keep up. Toronto is up an average 10% over last year, (Van 25%!!!) I think we are at the pivotal point. The mortgage rates were capped at 30 years and going forward Carney will increase interest rates which will help slow it down. 

I saw many newly developed subdivisions in Collingwood and on the Blue Mountain SKi Hill that were very nice, but I'm sure they were more than $400,000. 

We got home and I suggested this to the father in law, basiclly stating what I read in the Globe and saying the article is suggesting to "take the money and run." For some people this makes sense, like the property that just sold for 1.2 million at the end of the court.


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## steve41 (Apr 18, 2009)

It strikes me as strange, that all these types of 'the good old homestead vs cashing out the family home and renting' discussions on various forums never bring up reverse mortgaging. I have no idea of the pros and cons, but it seems to me there is a real aversion to discussing the topic.


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## andrewf (Mar 1, 2010)

You mean the Canadian Cardboard Box Plan?


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## sags (May 15, 2010)

I hope not everybody sells their homes and begins renting.

I kind of like the 5% vacancy rate my landlord has (they own over 1200 units), because it keeps them sending me a friendly yearly notice that my rent will just stay the same.......if only I will stay. 

Been here for 5 years, and the rent has gone up 0.5% total over that time period. I am sure the taxes, water, heat, and maintenance costs have risen more than that over those 5 years, but having 60 empty units keeps the rents in check nicely.


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## I'm Howard (Oct 13, 2010)

We know at some point We will sell, but if We elect to rent to the Ski Crowd(who only use it two nights a week), the monies paid will equal what we would make by downsizing and reinvesting differance, so we can stay and still make money.

We have friends who Rent in TO but have bought up here, they come up weekends, spend their vacation time here, Grand Kids come up frequently, Winter house is full as various Family Members come up for Ski Schools.

I would NOT Invest in the stock market with House Proceeds, unless the decision is Dividend Stocks and Corporate Bonds for cash flow, also you don't want your new best friend to be a Divorce Lawyer, Women get funny when you lose money on the market.

$400,000 will get you a very nice home, $1,000,000++++ for some of the lakefront or upscale Chalets.


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## Berubeland (Sep 6, 2009)

There's no point to selling your house to get out of real estate as an asset class and buy another overpriced house in a vacation location. 

The people recommending getting out of real estate are doing so because almost all indicators show that real estate is about to drop off a cliff. 

When it does the economy is going to be total crap and no one will be renting out your ski cottage anymore as austerity and saving replace those vacations. 

Not sure how many of you have considered how much housing affects the economy...construction companies, workers, building materials suppliers, newpapers, mortgage brokers, real estate agents and anyone who works for any of these industries. 

Oh and your wife will be just as unhappy with you when the real estate market crashes...


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## kcowan (Jul 1, 2010)

Renting in both place makes economic sense, except that there is no place to conveniently leave your stuff. Nests are filled with stuff. Rich people have 3 or 4 places to leave their stuff like George Clooney in Lake Como.

But renting makes even more sense when RE prices are flat or down because the costs of ownership become prohibitive. But then so is divorce...


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## Charlie (May 20, 2011)

I disagree with the statement that you remove risk from your financial future by selling and renting. You do need a place to live. If you're a recent retiree you'll be needing that place for the next 20+ years (one would hope). Renting increases your monthly costs -- to be offset with investment income, granted, but now you've added investment risk to your future. It may work out, but it certainly doesn't decrease risk.

If you need to tap the equity in your home, then moving to a cheaper area, or downsizing an oversized place (without overpaying for the smaller place) may make sense. 

Anecdotally, a friend of mine sold out of the 'overpriced' Vancouver market several yrs ago to ride out the crash. But the crash never happened. Prices in his area have almost doubled since he sold. His investments haven't done as well, his rent has gone up -- and he's now priced out. Doesn't mean the strategy won't work -- just that the article has underplayed the risk.


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## I'm Howard (Oct 13, 2010)

The more I read, the more I become convinced to stay with our oversized home, if we get $12,000 from Skiiers, that will pay the costs of wintering down south.

We can easily store personal things, and by Renting we stay in the Recreationa R.E Market, an area I believe will grow faster than City properties.

Best investment ever made, 1968 doubled our money in a year when we sold the 350 feet of prisitine lakefront property in Huntsville area, with sandy flat beach and phenomenal views for $2,400, we had only paid $1,200 year before.

Worst investment decision made, same.


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## kcowan (Jul 1, 2010)

Charlie said:


> ...Anecdotally, a friend of mine sold out of the 'overpriced' Vancouver market several yrs ago to ride out the crash. But the crash never happened. Prices in his area have almost doubled since he sold. His investments haven't done as well, his rent has gone up -- and he's now priced out. Doesn't mean the strategy won't work -- just that the article has underplayed the risk.


I rent in Vancouver. Everyone says that I am priced out. I have been renting for 15 years. But I rent a 3300 sq.ft. penthouse for $3250/mo with some of the best views in Vancouver. I still think it is good value even though the price was $2500/mo when I started.

In fact, many of my owner friends have asked us to consider them if we ever leave. During that 15 years, the market has been good enough to us that we were both able to retire in 2002. Had I tied up my equity in real estate, we would not have been able to retire without downsizing substantially.

Right now, there are many rentals deals as speculators try to get some income while they wait for ther capital gains.

Our place

Howard, I think you should stay put. If you need the money, then consider rental. But otherwise just avoid the hassle.


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## financialuproar (Jan 26, 2010)

Berubeland said:


> There's no point to selling your house to get out of real estate as an asset class and buy another overpriced house in a vacation location.
> 
> The people recommending getting out of real estate are doing so because almost all indicators show that real estate is about to drop off a cliff.
> 
> ...


What she said. 

Howard, are you a real estate agent in the Collingwood area? 

I plan to own real estate until I get so senile that I don't care what happens. I know that over the 60 years I own it, it'll make money. Screw trying to time it.

How long has our buddy Garth Turner been pounding the table about a correction?


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## I'm Howard (Oct 13, 2010)

financialuproar, No I am not in R.E but in my employment Career my job took me frequently across Canada.

I was in very single Province in Canada within a thirty day period, and there were times I woke up in Halifax thinking I was in Vancouver.

We looked hard and long for a place to retire too, I was 54, and there were certain conditions, mainly accessible health Care, accessible large city, place where kids would want to visit, lots of activities, and that my R.E Investment would grow.

Recreational R.,E within close proximity to large cities and good Health Care are where the Boomers are heading.

Shushwap, Georgian Triangle,Niagara Paeninsula, Eastern Townships will see good appreciation in Property Values.

The down side is too many damn people.


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