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Abii

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Abii last won the day on December 24 2017

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  1. Ubc vs u of a

    Oh man, this thread was funny to read. I'm from Van, but I lived in Edmonton for a couple of years (non-law related) and I can see why the city didn't leave a good impression on healthlaw. She did exaggerate though. Restaurants don't close after 7, but the city does die down in the evening (minus Whyte Ave which tends to be more lively all the time). Winters are brutal, but you get way more sun in the winters compared to Vancouver. This isn't even a debate. I'm on my phone so I won't bother looking up the stats, but even without checking it's obvious. As far as the attitude of the people are concerned I do think Albertans are generally more friendly. But i attribute it to the rural nature of the province. Vancouver is a discount Toronto with more traffic and higher costs. That means people have that big-city shit attitude that New Yorkers are famous for. There is also more class division and anxiety in Vancouver. Personally I find Edmonton a lot more pleasant to be in because people aren't always stressed about money and cost of living.
  2. It's something that needs to be seen first-hand for sure. The smallest condo I lived in was 560 square feet. Bit I think I can go 450 no problem. These units are even smaller than that!! haha Re. Furnishings: yeah, either Ikea or Structube.
  3. @Pawford Do you know if those Crawford micro units have washers and dryers in the units? They're tiny, but new. No parking either. I bike a lot and the bike parking is interesting, but I'm wondering if each unit only gets one spot. For around 1050-1100 it's not bad at all.
  4. LoC and mortgage

    310 a month is insane lol. Good find.
  5. Scotiabank PSLOC

    Thanks for the heads up. Gotta head to Scotia soon. This deal is definitely better. I wonder if RBC is willing to drop their rate down to prime minus 0.5 if we get Scotia approval. I will definitely try that. Worth a shot.
  6. LoC and mortgage

    The idea is to put my own money to work and borrow at a lower rate. The difference between the cost of borrowing and return on investment from my own money would then essentially act as a discount for law school (compared to paying it off in cash today). But I think the only way I can make the strategy work is if I buy some sort of a corporate bond with a low rating or a maple bond (Canadian dollar denominated bond by a foreign entity). Government of Israel issues Canadian dollar denominated bonds at 4 percent for 5 years (edit: nvm they're 10 year bonds). With bonds as long as you hold until maturity the principal is guaranteed (as long as the issuer doesn't go belly up). But 4 percent Isn't enough. Anything around 5 percent for 3-4 years will make this strategy work. Using your own cash is usually a dumb idea. If I thought the markets were going to remain relatively stable in the next 3 years I would buy stocks instead and the strategy would definitely work then. But there's too much uncertainty. Bonds or nothing in this strategy. Edit: another option is to do p2p lending. More risk, but near 9% returns. https://www.lendingloop.ca/lenders http://forums.redflagdeals.com/p2p-lending-canada-1336432/
  7. LoC and mortgage

    So basically in both cases interest is accrued from the time you take the money out, but RBC wants you to make interest only payments during law school, whereas Scotia doesn't, correct? In that case Scotia clearly wins. Thanks for the info. I was under the impression that RBC didn't require interest only payments until the article year. I didn't ask during the meeting and she didn't mention anything either. Fail on my part.
  8. LoC and mortgage

    Yeah I don't understand this at all. The banks are heavy into housing, but so what? Even if it all goes to shit the government will just bail them out. By the time that happens though he'll be squeezed. haha soooooo many different things have to go according to plan and at the right time for this to work.
  9. LoC and mortgage

    I have a buddy that's holding onto 120k cash and he's adding around 8k a month from his work. He wants to short Canadian banks, but he's too much of a pussy to go through with it. So he's been all cash for like 2 years haha. My plan is to either find a junk bond and go heavy into that or just do couch potato/VGRO and hope for the best. Most likely I will stay cash until Sept. when school starts. If the S&P gets to around 24000 I think I will go all in with VGRO or couch potato.
  10. LoC and mortgage

    You're providing numbers, but your numbers are meaningless. This is from the article (you're also quoting the same numbers): Stocks went up 8.5% while houses went up 5.5. The article concludes that stocks win, when housing wins!!! That 5.5% is on money that you didn't put down. It's all on leverage. If I invest 100k and make 8.5% I get 8.5k. If I invest 100k to get a million dollar house and it goes up by 5.5%, I get 55k. The ROI in this transaction is obviously many times higher, even after you factor for all the holding costs. Not sure what the point of that article is. You can also use leverage for stocks, but barely anybody does and for good reason. You can say house prices fall and my leverage theory goes out the window, but where is that argument made in the article? It just says one number is higher than the other without mentioning leverage. At the very end of the article it makes a massive assumption: that if you don't buy real estate you will use the money you save to buy securities every month. Vast majority of people will spend the money on goods and keep their savings rates the same. I know what the chairman has said, but that's irrelevant. Didn't the same federal reserve claim that the US GDP growth rate will be 5.5%? haha within months they revised the numbers. You don't think they will reverse course once the market is down 20% from its all time high? We're down 11%. Monday will probably be another red day. No "safe" investment can get you a better ROI than real estate, period. Edit: and you have to take capital gains taxes into account as well. The primary piece of real estate is tax free. That's another however many thousands of dollars to tack onto the housing ROI.
  11. LoC and mortgage

    haha somebody's subscribed to the Peter Schiff podcast. He's been long gold since I was born. Not sure about that. That inverse-leveraged ETF is wayyyyy too risky for my heart rate, but if I had the cash I would put a small amount in. Tech companies are the future of the world. But I'm not sure if Twitter, Facebook and all the other social media garbage are worth their valuations. It's all based on ad revenue and selling user information to third parties. In the short term it might be a good investment to short them. Are you in or are you just monitoring those?
  12. LoC and mortgage

    TFSA limits don't get eaten up once you take money out. So it doesn't matter if your investment is short term or long term. Plus, whatever the limit is at the time of deduction, that will be your new limit when time comes to re-contribute. Say you've never contributed and you have 50k in TFSA room. You double your money in the account and you take it all out in 2 years. Your new room is 100k! My current contribution room is 57,500. I've never contributed to my TFSA. I only have a locked-in RRSP.
  13. LoC and mortgage

    Well, nominal vs real is irrelevant b/c most people don't look at real growth rates in the securities markets anyway. You're right about the individual periods, but what about the compound annual growth rate once we punch in the numbers for the positive individual periods? I actually haven't looked at the figures, but I HIGHLY doubt that it's a low number. My guess is that it's even higher than the growth rate of the S&P500 (I think the S&P has a CAGR of 7.5% since inception no?). Real estate in the long term, if bought in a AAA city, is a good investment, period. No doubt about it. I agree with everything you said here. But it's a risk that you can easily account for. When interest rates are low (or even low-ish) it's not too much of a reach to assume prices will automatically go up. In places like Vancouver, where real estate is always in demand, this is a perfectly legit assumption to make. Then you account for uncertainties in the long and short term. If you're not a complete idiot the calculation isn't too difficult to make (you try to figure out what a new roof costs, your anticipated salary, the market etc...). Worst case scenario you go live in your car and rent out the condo. Maybe that's just me at this stage of my life. For a young person that doesn't have much cash and other assets, leverage is amazing. You're using someone else's money to get ahead. If we're going to go back in history we have to accept that the current environment is the same. I'm not sure if they are. Without sweeping zoning law changes in Vancouver, for example, where is the land going to come from? Yes, high interest rates will kill demand, but the bottom of the market won't fall when there's nothing available in the market. The population isn't going to stop growing either. And then you're also assuming that interest rates will go up to previous levels. Says who? Canadian interest rates follow in tandem with the rates in the US. The US will never enjoy the supremacy it enjoyed in the decades past. Its economy is inflated because of the current low rates. Look at the stock markets right now. They were falling even before the tariff nonsense, simply because of measly interest rate hikes. I don't see rates going up in any meaningful way any time soon. The Europeans haven't really touched theirs and the US itself is in no possession to do so, even now. Before we know it, the fed is talking about QE4 and we're back to 0.5%. The bankruptcy thing is a distant hypothetical. Yes, it could fuck you up, but it's worth the risk if you can make 200k in the short term (which I think you still can in the condo market).
  14. LoC and mortgage

    I currently have 30-40k in other debt that I will clear from the sale of the condo. After that I will be left with at least 200k, possibly more. I want to invest most of that money (all of it if possible) and use new debt for law school. When I graduate I will liquidate the TFSA and use the money to erase my LoC debt. It's a risk, but it could very well pay off. The interest on the LoC is lower than what I could get in the bond market. I'm aiming for at least 5.5%. If I can find a decent junk bond that gives at least 5.5% I will think about it. Anything more and I will 100% do this strategy. I will still graduate debt free, but in a round about way.
  15. 1L Registration & Loan Request

    My RBC agent wants this as well. She told me to pay the second deposit to U of A early and see if they're willing to give you the proof of registration early! Basically told me to figure it out. Some time this month I'll call U of A and see if there is a way to get the proof of enrollment earlier.
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