Average net worth in Kelowna - $887,998

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DetectivePikachu
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Re: Average net worth in Kelowna - $887,998

Post by DetectivePikachu »

JeanB wrote:Is that assuming that those people don't hold a mortgage? Most of the people in a million dollar home also start off with nearly a million dollars of debt in their mortgage.
Asset = $1M Liability = $1M ... Net Worth = $0



Most people in Kelowna are not "starting off"

Buy a house in 1990 for $200k its now worth 800k and is paid off.
Have a piddly $200k in RRSPs and BOOM $1mm for doing very little and still not enough to retire on.
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Re: Average net worth in Kelowna - $887,998

Post by Jonrox »

JeanB wrote:Is that assuming that those people don't hold a mortgage? Most of the people in a million dollar home also start off with nearly a million dollars of debt in their mortgage.
Asset = $1M Liability = $1M ... Net Worth = $0

The number assumes they have a mortgage. That's how net worth is calculated. It's also why reports of wealth and net worth are pretty much useless.

In your example, the person with a million dollar home, a high paying job paying all of their bills, a decent amount of savings, and lots of nice things living very comfortably can have a net worth of zero or even a negative net worth if the housing market weakened to the point of being underwater by enough.

Meanwhile the homeless guy on the street corner with no debt and a $5 bill has a higher net worth than the person in the above example. That guy actually has a higher net worth than tens of thousands of people combined due to how many people have a negative net worth. Add up all those negatives and it's a big number... but by definition he's wealthier than all of them combined with just his $5 bill.

Incidentally, if you're selective enough in how you define the sample you're taking, you can likely make the case he's wealthier than at least hundreds of thousands of people combined.
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tsayta
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Re: Average net worth in Kelowna - $887,998

Post by tsayta »

DetectivePikachu wrote:
JeanB wrote:Is that assuming that those people don't hold a mortgage? Most of the people in a million dollar home also start off with nearly a million dollars of debt in their mortgage.
Asset = $1M Liability = $1M ... Net Worth = $0



Most people in Kelowna are not "starting off"

Buy a house in 1990 for $200k its now worth 800k and is paid off.
Have a piddly $200k in RRSPs and BOOM $1mm for doing very little and still not enough to retire on.

Sell the overpriced Kelowna home, move to New Brunswick buy same home for $200,000. $800,000 in the bank @5% earns you $40,000/year. Enough to get by on. Can anyone get me 5%?
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Re: Average net worth in Kelowna - $887,998

Post by AlienSoldier »

tsayta wrote:
DetectivePikachu wrote:
Buy a house in 1990 for $200k its now worth 800k and is paid off.
Have a piddly $200k in RRSPs and BOOM $1mm for doing very little and still not enough to retire on.

Sell the overpriced Kelowna home, move to New Brunswick buy same home for $200,000. $800,000 in the bank @5% earns you $40,000/year. Enough to get by on. Can anyone get me 5%?


Most bank stocks can. TD currently pay's just over 4% in a dividend. Add in their average dividend increase of 7-11% and you are looking at your 5% in 1 to 2 years. This does not take into account the price of the stock moving up or down.

Or distribute it over a few ETF's so you have exposure to REITS, US, International stocks and investments plus some bonds and you will easily make 5%.
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Re: Average net worth in Kelowna - $887,998

Post by one wheel »

Just who is it that makes up this horse crap ? Markets go up & down & everything needs a buyer ? How much do all these people owe on their assets ? Why does our Finance Minister keep talking away about the personal credit card debt & all other debt Canadians are carrying if it's not a concern ?
I think it's nothing more than a feel good story to paint over a very serious problem ?

For those who think they are in tight with their banker will be in for a shock because it all changes in a hurry when you can't make that payment ?
DetectivePikachu
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Re: Average net worth in Kelowna - $887,998

Post by DetectivePikachu »

one wheel wrote:Just who is it that makes up this horse *bleep* ? Markets go up & down & everything needs a buyer ? How much do all these people owe on their assets ? Why does our Finance Minister keep talking away about the personal credit card debt & all other debt Canadians are carrying if it's not a concern ?
I think it's nothing more than a feel good story to paint over a very serious problem ?

For those who think they are in tight with their banker will be in for a shock because it all changes in a hurry when you can't make that payment ?



That’s a lot of words to say “ I did not read the article and do not know what net worth means”
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RVThereYet
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Re: Average net worth in Kelowna - $887,998

Post by RVThereYet »

DetectivePikachu wrote:
one wheel wrote:Just who is it that makes up this horse *bleep* ? Markets go up & down & everything needs a buyer ? How much do all these people owe on their assets ? Why does our Finance Minister keep talking away about the personal credit card debt & all other debt Canadians are carrying if it's not a concern ?
I think it's nothing more than a feel good story to paint over a very serious problem ?

For those who think they are in tight with their banker will be in for a shock because it all changes in a hurry when you can't make that payment ?



That’s a lot of words to say “ I did not read the article and do not know what net worth means


Total assets minus all liabilities = net worth
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Bsuds
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Re: Average net worth in Kelowna - $887,998

Post by Bsuds »

If you don't know what net worth is you probably don't have any.
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Re: Average net worth in Kelowna - $887,998

Post by voice of reason »

kelowna where average wage is <20 bucks an hour but everyone is millionaires
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Bsuds
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Re: Average net worth in Kelowna - $887,998

Post by Bsuds »

While it may sound a bit on the high side there are a lot of retired people in Kelowna and area who own their homes and have no mortgage etc. As well as having money invested, in the bank etc.

Even though I don't really think about it when I start to add up everything I own it adds up pretty quick. :200:
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vegas1500
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Re: Average net worth in Kelowna - $887,998

Post by vegas1500 »

JeanB wrote:Is that assuming that those people don't hold a mortgage? Most of the people in a million dollar home also start off with nearly a million dollars of debt in their mortgage.
Asset = $1M Liability = $1M ... Net Worth = $0


No.....Net worth.....assets minus liabilities....as stated above.
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casey60
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Re: Average net worth in Kelowna - $887,998

Post by casey60 »

Another "make you feel good" piece of dumb info. Who comes up with these things? Guess nothing else to do
DetectivePikachu
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Re: Average net worth in Kelowna - $887,998

Post by DetectivePikachu »

casey60 wrote:Another "make you feel good" piece of dumb info. Who comes up with these things? Guess nothing else to do



Mcleans Magazine clearly came up with it...Alireza Naraghi is the author and they clearly do this for a living.

Perhaps read the article we are discussing before posting.
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Queen K
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Re: Average net worth in Kelowna - $887,998

Post by Queen K »

oneh2obabe wrote:^^^It doesn't. What the articles states is ...

The median household income in this municipality sits at $107,000, but West Vancouver’s average housing price of $2.8 million—the highest in the country—indicates that property values are still the primary driving force behind household net worth.


That explains why I feel so rich that I'm shoveling out bundles of cash into a roaring furnace.
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Re: Average net worth in Kelowna - $887,998

Post by one wheel »

My home is clear title so what would Alireza Naraghi tell me my net worth is ?

I'll bet the answer would be something like - well the homes in your area sold for 'x' so you are worth blah-blah BS.

It's all headline grabbing ' look how well we're doing ' bunk that means nothing ?

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