Are you a homeowner?
Property taxes and service costs are primarily based on the perceived market value of your home. As time passes, your taxes and service costs continuously increase.
When you retire, will you be able to afford the property taxes and service costs, or will you be forced to sell your home? Why do your property taxes and service costs continuously increase?
A developer buys up properties near, or next to you and builds a Condo Tower?
What do you think will happen to the market value of your property?
It is very unlikely you will be able to sell it for that previous perceived market value it once had, and worse, as history has shown, it will eventually be a developer that buys it – at a fire sale price.
This was the same market value your increasing taxes and service charges were based on for years.
Now, realistically, your home is worth far less. Your equity has been stolen.
Heaven help you if you still have a mortgage, or borrowed to help the kids or renovate. You can expect a demand note from your mortgage company.
Why is this allowed to happen? What about your rights as a Homeowner? What are your options?
Let’s Do The Math
OK! So you are of the Boomer Generation (56 – 74 years old) – you own a home or have a small mortgage. Hey, you’re sitting pretty, Right?
Well, actually maybe not.
As of January 2020, the average sale price of a home in KW was $530,000 – $630,000.
Let’s assume you manage to sell your home for $550,000. After expenses, that’s more like $515,000.
You decide to buy a Condo.
The average Condo cost in KW is $385,000 with an average monthly Condo Fee of $400.
According to lending officers we spoke with, it’s not easy to get a long term mortgage after age 55.
So you may have to buy the Condo outright, and that leaves you with $130,000 (we have not subtracted closing fees and expenses from this mount).
The average life expectancy is 79 (male) and 83 (female).
Let’s assume you are a 65 year old couple.
As a Male you will live another 14 years and as a Female you will live another 18 years.
In the very unlikely event that the Condo Fees do not increase each year, you will pay $4,800 annually in Fees. In 14 years you will have paid out $67,200 in Fees, or in 18 years, $86,400 in Fees.
Ignoring all other living expenses and your possible pension and investments, that means you will have to make either $62,800 last 14 years, or $43,600 last 18 years.
That amounts to living on $4,486 annually for 14 years or $2,422 annually for 18 years.
Not much of a Nest Egg now, is it!
This is why, here at The Brass Bugle, we believe that the marketing myth, that rising house prices are creating real value – is a False Economy.
One we are being hoodwinked into believing. Whereas, the facts are, it really only benefits a select group of Global Financial Corporations.
The reality is, our homes, the buildings that house shops and other facilities, those properties that make up our City and the very land we walk on, has been commodified into a financial investment asset to be bought and sold by a select group of massive Global Financial Corporations.
What does this all mean? How is this affecting you personally?
For answers to these and other questions: Please watch the documentary PUSH (aka The Housing Gap – PUSH). It’s currently being shown on TVO. So please see it before it’s gone. We promise you, it’s an eye opener.
The link is below.
Mario Chilanski – Cofounder