Hello from Edmonton, Canada

[InsideEmphasis]

Yesterday I finished reading Early Retirement Extreme and found the epilogue the best chapter. Jacob Fisker said he had fully embraced capitalism with 20 income streams. This is the key takeaway from this book and what makes early retirement possible. The fewer income streams you have, the less secure your financial security. Most people only have 1 (employment) and that's what makes so many people's financial foundation so fragile.

I live in one of the most affordable cities in Canada but have to live with exorbitant maintenance fees which is common in this country. They are a scam like no other. Places like Italy have $0 maintenance fees in their flats that are hundreds of years old yet here its not uncommon to see $400/month for a 2 bedroom condo. This is what makes me unhappy with living in Canada and looking elsewhere. Despite being mortgage free (condos in this city start at $50,000) the monthly overhead for living is still expensive and stressful. Did I mention the Special Assessments? Sometimes you get a surprise bill because something always seems to need replacing or repairing in the condo.

Canada is not ideal for early retirement because of issues like this. You can pay off your home but still need to pay high property taxes, high maintenance fees, high utility bills, high insurance costs, etc. I've lived and worked here in Canada for almost 20 years and see most people don't get ahead. They're barely surviving, knee deep in debt and most are not happy. I hope to use my European background and utilize EU citizenship for a less expensive existence. Thank you Jacob Fisker for encouraging others to seek opportunities and think outside the box.

[chenda]

Welcome.

Interesting to hear about the maintenance charges. Is that profiteering on behalf of the freeholder ?

[InsideEmphasis]

Welcome.

Interesting to hear about the maintenance charges. Is that profiteering on behalf of the freeholder ?

The theories on this phenomenon are extensive. There are some people that believe some boards that manage the maintenance of the building pick contractors that are close friends or family at inflated prices. There are some condos that have maintenance fees at over $600 a month. Elevators can cost a big portion of a buildings maintenance budget but a lot of condos here do not have elevators yet still have high maintenance fees.

After a few years many people get sick of it all and move to their own detached house, realizing it's not worth it to live in what should be a less expensive maintenance environment with a community of pooled resource. Instead it gets taken advantage of and a few people profit very nicely. Of course this is not only the case here, I've seen similar stories in places like California, most recently on the Netflix series How to Get Rich where a first time home buyer was paying HOA fees that were $400+ when she first moved in and going up to $500+ by the end of her segment.

[chenda]

Interesting. I've heard of cases here (UK) where excessive charges have been had, but it's possible to contest them legally. Like a 'landscaping fee' when theres only a potted plant in the hallway. $500 a month does seem extortionate.

I live in a block of flats where, unusually, we own the freehold and do the maintenance ourselves. We used to outsource it to a properly management company but they had a tendency to overcharge. They just used their favourite contractors to do jobs rather than source a competitive quote. There's a lot of backhanders in property management I suspect.

[midnightembers]

You can pay off your home but still need to pay high property taxes, high maintenance fees, high utility bills, high insurance costs, etc.

I'm of the mind now, after having paid the extra financial and psychological costs of city living for so long, that downscaling to a more affordable community is a win. IF, a big IF, one can cover expenses from possibly lower paying work and additional transportation costs. The social life is a lot different too. Urban amenities are attractive - they enticed me initially after all - but for some time the expenses have been rapidly escalating at a far faster pace than the benefits.