Rob’s Blog and Flog

I made the decision when I returned to Canada to optimize my finances. One of those optimizations was to buy a used car. I looked at all the new ones, and then I found my baby… a 2001 BMW 330i. Very nice, two sets of wheels (winter / summer) including rims, very low mileage, great condition. For about the price of a new Honda Civic, I was able to buy this car. It sounded like a great deal, and apart from the pricey repairs, I’m still a happy camper. I’ve got 90% of the cachet of owning a new one, and apart from $5k a year maintenance (hopefully over time that average will go down - religious ones amongst yourselves please pray for me!), it’s been a great drive.

Today’s trip is for a faulty sensor. The good news? It will cost less than $500 to fix! This is quite an amazing price - everything else (the clutch that went on the QEW at 120k, the rear brake line that went on the 401 at 120k, etc etc…) cost significantly more. Could this be the end of a bad luck streak? Here’s hoping!

Here’s hoping I make it down the road all right too — what’s the deal? When will winter end? I’m moving back to Bermuda if this keeps up!

A year ago, I came back to Canada after a three year stint in a tax haven. I wasn’t planning to return, but circumstances change. While I was away, I got used to not paying income tax. It felt GOOD. Paying $3500 rent didn’t feel too good, but after all was said and done, my savings rate was about triple what it is here in the land of Snow and Taxes.

I just did my 2007 income tax return last week, and I was shocked. Thanks for the healthcare, thanks for the great roads, but does it really cost THAT much to run a country?

I’m happy to be in a position where I earn an above average income, and although it’s not six figures, it should be enough to do just fine, given that I am dependent-free. I should be able to save a lot for Freedom 40, but in the year since I’ve been back, my net worth has barely increased. Rob is not happy.

I’m making it my mission to give CRA as little as legally possible. I know how a country can run without income tax, and I don’t feel like paying any more than I absolutly have to. I worked as an employee all last year, with no real deductions possible other than an RRSP contribution. Never again! Now I’m on the quest for the biggest legal tax deductions. I’m starting an online business on the side, and of course, I’m planning on getting into real estate whenever my silly court battle resolves itself. Bring on ‘dem deductions!

Not much this month -

- updated Wordpress to 2.3.3
- changed the template
- updated the “about me page”
- added an advertise section that is currently blank and will remain that way until i get more than 3 visitors a day
- added the google sitemap plugin.

and of course, said “I should update this damn blog more often”

The saga continues. February 29th was to be the Discoveries date for my quest to buy my Toronto house. Lawyer called yesterday - Kissana’s lawyer can’t find him.

I don’t think I’ve explained the situation fully on the blog, and while most readers already know me well, some day I might get other people viewing. After I returned (reluctantly) to Canada last year, I bought a dumpy duplex in the east end of Toronto. After being on the market for a month or more, nobody had bought this ugly duckling, probably because of the tenants in the upstairs unit. An extended immigrant family, 3 beds per bedroom, roaches climbing over the piles of garbage in the kitchen - pretty much every budding landlord’s worst nightmare. The place was to be delivered vacant though, so I wasn’t worried. A new IKEA kitchen, pull up the 80s dusty rose carpet, a bit of work on the bathroom, and the place would be liveable. Downstairs was in slightly better condition, with a reliable tenant, so nothing would need doing down there. The downstairs rent would almost cover the mortgage, and there was a basement apartment too, which would push the house into “live for free” territory.

Back and forth the offers flew, and eventually we came to an agreement on price and terms. Or so I thought. Weeks after signing the agreement, the vendor, a Mr. Kissana, had a change of heart. He wasn’t going to close. Why? I have an idea, but until this thing gets resolved, I’m not going to speculate publicly.

Kissana has gone through a few lawyers, and a few reasons as to why he shouldn’t have to honour his agreement. The latest one, which has all my friends and real estate contacts laughing, is that “it wasn’t him”. It’s identity theft - he has no idea who I am, and never had the place up for sale. Yah, right. Did the big real estate sign on the front of the house for over a month not give it away?

Enter the lawyers. I was referred to a good one, and he is currently taking the long torturous (read - expensive) path through courts. The latest chapter in the saga was to be this coming Friday. Discovery. Kissana’s lawyer was to examine me, and my lawyer was to examine Kissana. But, as is par for the course, Kissana is trying more delay tactics.

Will I ever own a house in Toronto? Yes. Will it happen in the next two months? Not likely at this point. But that’s OK, property values continue to rise in Toronto.

Sell me the #@%!#%! house already!

I have a 100% success ratio when it comes to picking stocks. More importantly, it even extends to indexes. Sure, timing has something to do with it, especially with the indexes. But, after looking back at every one of my stock purchases over the last three years, I’m shocked to admit, EVERY SINGLE PICK I’VE MADE HAS GONE DOWN. Yes, even the indexes.

Thanks to my dear frind Mr. Kissana, the guy who changed his mind about selling me his house, my downpayment has stayed in the market longer than expected. It was originally in a high interest savings account, then a cashable GIC, but I finally gave in last summer and moved it into index ETFs - XIN, XIU, XBB, XSP. I would like take this opportunity to apologize to every investor - I’m sure it’s my fault that the entire market has fallen.

I’ve come to the conclusion that I really really (really!) shouldn’t be handling my own investments in the stock market. I’ve got no problem building businesses, and am happily getting involved with income properties. But the stock market - I’m going to leave it to professionals. I’ve hired a financial planner, and that end of my future is securely in his hands. Market, you are now cleared for takeoff.