I was going to write something totally different today; I even had it all planned out, the outline written–with a rough draft. But no, I’m changing my mind as I’m going to write about this topic instead. I was over at a friend’s home yesterday who had other guess there, and one person in particular who struck me as interesting because he had just bought a house in the Cloverdale area, near Langley City, in Surrey, BC, and he started talking about how scary it was buying. For those who don’t see the significance of it, housing prices are through the roof–and beyond–in my neck of the woods! To buy a house in this area, is, well, insane, because of the costs and availability factors. His home was valued at $320,000.00 at the time of the sale. His tax assessment, done just recently, said the value of the home is now at $345,000.00–you guessed it, huge taxes.
Now, I mentioned his two biggest costs for his home, mortgage and taxes, however, he only makes, what I would consider an average amount of income per year. This is what I think is the perplexing part of the story because it is what he does with the rest of his money that blows-me-away. He told me, as I probed him for information, that between him and his wife, they have a credit card debt to the tune of $10,000.00. They needed the “Credit History” so they could go to their Bank and qualify for a mortgage. They were told by a friend, who was some kind of expert in the field, that they should really work that credit to really make it look good for their Bank. I think their Bank loves them–look at all the extra money they are paying. But my point her is, how are they making ends meet?
They are truly living on the edge, because if any problems pop up such as with their jobs, i.e., causing loss of income, or disability, they would be screwed royally by their lenders. They have insurance, at a cost, but their real dilemma would be in the immediate future, and far distant future because such large quantities of money are needed to keep such a mortgage afloat, and the insurance would only do so much. So, the phrase, “living on canned meat” was said by my friend, meaning that once you buy a house, you are left with so little, that you are literally living on canned food.