Paid off a house in 3 years [Archive] - Beyond.ca - Car Forums

accord885

07-28-2006, 03:04 PM

Good for them... Lots of very hard work. I'm not sure most people are willing to give-up 3 years of their life to do that. Not to mention the phyisical side effects of working that much with such poor sleeping habbits.

But they are set now. No rent no Mortgage payments... its all play money... better start investing some major amounts into RRSP and the like to catch up!

joyridder

07-28-2006, 03:07 PM

thats an incredible way to get ahead! Takes alot of will power that is for sure!!

Heep

07-28-2006, 03:17 PM

"A few years later, we had two almost-new cars and a beautiful new four-bedroom house on a 46-ft lot in Milton, Ont."

46ft? Man they cram them in there. Glad I live in NB.

HRD2PLZ

07-28-2006, 03:53 PM

Good for them. Its a great feeling to be mortgage free :D

It doesn't have to be that hard. Make accelerated mortgage payments plus lump sum payments whenever you can (or mortgage term allows) :thumbsup:

Despair*

07-28-2006, 03:54 PM

Wow, thats pretty darn sweet. I hope I can pull something off like that minus the 18 hours days of working. I don't exactly like the prospect of paying something off in 15 or more years.

Xtrema

07-28-2006, 04:17 PM

Originally posted by Heep
"A few years later, we had two almost-new cars and a beautiful new four-bedroom house on a 46-ft lot in Milton, Ont."

46ft? Man they cram them in there. Glad I live in NB.

46ft is generous for a house in major cities. Inner city usually build on 25-30ft.

Originally posted by khtm
"22 hours straight, 2-3 hours sleep, then another 12 hour shift."

Yeah, I want to spend my whole life working. What a frickin' retard. :nut:

The idea is you DON'T have to spend your whole life working. Just work 3 years and the rest of your life is set, instead of worrying about making payment @ age 50. I guess you are the "live in the now, enjoy the life, what if I get hit by a bus tomorrow and I don't get to do anything fun" crowd.

Originally posted by sputnik
They would have been better off putting the money into investments instead of paying off their mortgage. Now they have all of their money locked into the real estate market and have to start their personal savings from scratch.

Interest on mortgage payments are killer for the 1st 10 years. Hardly any money goes into equity, you're just renting your house from the bank. You're still losing money unless the property rise in value.

Once your mortgage is paid off, you can take out loans against your property in smaller chunks so your interest payment would be lower and you're not as hard pressed for investment returns.

One thing for sure is that paying down debt is 100% guaranteed gain. You can't say that with investments.

Here's an exmaple:

For a $200K loan, 5.75% and amortized for 20 years, the interest you have to pay is around $140K after you pay it off in 20 years. If you pay down your mortage in 3 years, you just saved ~$100K in interest. How many investments can make that kind of return (after tax) without putting serious money up front?

the_saint

07-28-2006, 05:09 PM

Originally posted by accord885
Good for them... Lots of very hard work. I'm not sure most people are willing to give-up 3 years of their life to do that. Not to mention the phyisical side effects of working that much with such poor sleeping habbits.

But they are set now. No rent no Mortgage payments... its all play money... better start investing some major amounts into RRSP and the like to catch up!

Catch up???

shouldn't be too hard. With their work ethic and ability to save.

They are only "behind" 3 years, it isn't like they didn't invest for 10 or 15 yrs.

the_new_santa1

07-28-2006, 06:07 PM

I think if you have a work ethic like that you can do anything, You would never catch me driving a rusty old tercel though....:dunno:

rtsen

07-28-2006, 10:48 PM

Originally posted by accord885
Good for them... Lots of very hard work. I'm not sure most people are willing to give-up 3 years of their life to do that. Not to mention the phyisical side effects of working that much with such poor sleeping habbits.

But they are set now. No rent no Mortgage payments... its all play money... better start investing some major amounts into RRSP and the like to catch up!

They are still fairly young also the article says that they saved ~$150k in interest by paying off the house in 3 years instead of 25. With the extra savings, they won't have a problem 'catching up'

WWJAI

07-28-2006, 11:05 PM

Originally posted by sputnik
They would have been better off putting the money into investments instead of paying off their mortgage. Now they have all of their money locked into the real estate market and have to start their personal savings from scratch.

They saved 150k by paying off the mortgage early. They were way better off paying it early...by investing that money, they would have got no where close to 150k by investing. Thats incredible..in your 30's and debt free.

finboy

07-28-2006, 11:15 PM

good for them and all, but i worked about 60-70 hours a week this winter and that fucking sucked. its depressing as hell to see everyone around you enjoying themselves and having them constantly asking you "hey man, where have you been lately?" only to respond "working, and nothing else"

jcrules99

07-28-2006, 11:25 PM

thats quite impressive, it would be really hard to do for me personally, i cant save worth shit

FiveFreshFish

07-28-2006, 11:34 PM

Probably took a few years of healthy living off their lives by working that hard.

BALANCE is missing in their approach.

pinoyhero

07-28-2006, 11:50 PM

I agre with the comments of balance but that is pretty impeasice and there's a lot to be said about removed stress once your mortgage is gone. For those that have suggested byget would have been better off in the equity market keep in mind that they we're saving 6 prrcent after tax so to break even they would have had to have seen about 8 prevent risk free in the equity market over 3 years which if pretty much unheard of.

Gondi Stylez

07-29-2006, 01:44 AM

that is absoulte insanity and they deserve two big :thumbsup: :thumbsup:

i agree that for these guys this was a great move. for all the shit they had been though already what was another 3 years in the big picture? who cares if ur friends are out partying and doing a whole bunch of cool shit but have nothing to show for it? when ur out on a yacht your buddies are still on their paddle boats which sounded like so much fun 5 years ago!

i don't think i would have been able to do it and i highly doubt the a significant amount of north america would have either!:(

Dayclone

07-29-2006, 03:35 AM

Hard work pays off I see....

Well this guy just motivated me to save my money instead of spending it on my beautiful car... perhaps spend some on my gf... haha.

Steve

natejj

07-29-2006, 11:57 AM

Originally posted by WWJAI

They saved 150k by paying off the mortgage early. They were way better off paying it early...by investing that money, they would have got no where close to 150k by investing. Thats incredible..in your 30's and debt free.

Uhh lets say they took 320k, and put it into the stock market.... you coudl easily make 150k.

Could also lost it, but the point is, you COULD make 160k, you could make a million.

gp36912

07-29-2006, 12:03 PM

now if he continues to do that for 3 more years and invests into a company he'd be making millions soon

Tyler883

07-29-2006, 03:57 PM

there's one thing pathetic about a guy like this - he wouldn't know how to spend his time off.

I bet he's extremely boring, no hobbies, no sports, no friends, no family life.

Is being the richest man in the grave yard an admirable goal? IMO, absolutely not. Once again, moderation is key.

Darkane

07-29-2006, 04:41 PM

Problem is 95% of people dont have the Discipline to do that. Women now adays especially. How many women and metrosexuals would you see driving a rusted Tercel? Not alot. I think this guy is awesome with great work ethic. Also tyler883, he said he started working crazy hours after he got his masters. So he was like 30 or something and im sure he developed all the hobbies he would want to keep by then. :thumbsup: for this couple!

Supa Dexta

07-29-2006, 05:02 PM

I sort of live this way... Had a 4 yr loan on my car, paid off in a year, and while I was paying it off, managed to buy a new r6 as well.. I don't make a ton of money, I do ok for now, but when I get something in my head I am able to do it.. I cut out all extras, for the most part.. No macdonalds or any crap like that.. I still don't cheap out on my groceries, but I shop smart. Stock up on meat when it's on sale.. etc.. If something comes up and friends are going out or whatever I will go and have fun.. But since I've moved out from NS, I've all but stopped going to the bars, and not knowing a lot of people helps to cut down on a lot outings.. Sacrifice for now, so you can enjoy it a few yrs down the road.. Even just the other day, I was shopping for a few things for summer, shorts, tee shirts and what not.. Looking in sportchek and athletes world and whatnot.. I found the exact same stuff in HBC for less then half of what those stores wanted.. So it's not as though you have to be a poor scruffy dirtbag, you just have to shop smart and don't try to live above what you realistically need...

Khalil.e

07-30-2006, 10:50 PM

Originally posted by Supa Dexta
I sort of live this way... Had a 4 yr loan on my car, paid off in a year, and while I was paying it off, managed to buy a new r6 as well.. I don't make a ton of money, I do ok for now, but when I get something in my head I am able to do it.. I cut out all extras, for the most part.. No macdonalds or any crap like that.. I still don't cheap out on my groceries, but I shop smart. Stock up on meat when it's on sale.. etc.. If something comes up and friends are going out or whatever I will go and have fun.. But since I've moved out from NS, I've all but stopped going to the bars, and not knowing a lot of people helps to cut down on a lot outings.. Sacrifice for now, so you can enjoy it a few yrs down the road.. Even just the other day, I was shopping for a few things for summer, shorts, tee shirts and what not.. Looking in sportchek and athletes world and whatnot.. I found the exact same stuff in HBC for less then half of what those stores wanted.. So it's not as though you have to be a poor scruffy dirtbag, you just have to shop smart and don't try to live above what you realistically need...

Everyone should read this and get a lesson out of it. Very well put - congrats on achieving what you set out to do.

rockym20

07-31-2006, 08:48 AM

Originally posted by sputnik
They would have been better off putting the money into investments instead of paying off their mortgage. Now they have all of their money locked into the real estate market and have to start their personal savings from scratch.

Paying off debt is a guaranteed return. When you pay debt it is after tax. When you make money off an investment, you pay taxes on it. Therefore, the return you make off an investment must be significantly higher than the interest on your debt to have the same net effect.

TrevorK

07-31-2006, 11:25 AM

Originally posted by sputnik
They would have been better off putting the money into investments instead of paying off their mortgage. Now they have all of their money locked into the real estate market and have to start their personal savings from scratch.

The Smith Maneouvre would allow you to use your equity in your home to invest, with a hefty tax deduction.

By paying off their home first they can convert bad debt into good debt.

Redlyne_mr2

07-31-2006, 12:28 PM

Originally posted by sputnik
They would have been better off putting the money into investments instead of paying off their mortgage. Now they have all of their money locked into the real estate market and have to start their personal savings from scratch.
Who cares?? Making more money isnt everything to everybody. Imagine having no mortgage, you could pretty much live like youre retired, travel all the time, buy what your job allows,invest what youd like and not have to worry so much about losing it, since your personal liabilities would be minimal ljust enjoy life...be awesome

Safety Crew

08-01-2006, 11:17 AM

Originally posted by Supa Dexta
I sort of live this way... Had a 4 yr loan on my car, paid off in a year, and while I was paying it off, managed to buy a new r6 as well.. I don't make a ton of money, I do ok for now, but when I get something in my head I am able to do it.. I cut out all extras, for the most part.. No macdonalds or any crap like that.. I still don't cheap out on my groceries, but I shop smart. Stock up on meat when it's on sale.. etc.. If something comes up and friends are going out or whatever I will go and have fun.. But since I've moved out from NS, I've all but stopped going to the bars, and not knowing a lot of people helps to cut down on a lot outings.. Sacrifice for now, so you can enjoy it a few yrs down the road.. Even just the other day, I was shopping for a few things for summer, shorts, tee shirts and what not.. Looking in sportchek and athletes world and whatnot.. I found the exact same stuff in HBC for less then half of what those stores wanted.. So it's not as though you have to be a poor scruffy dirtbag, you just have to shop smart and don't try to live above what you realistically need... Good for you man. Ehs da ways tah be, bye!.

Some people don't realize that their 6 dollar latte accumulated cost over an entire year equates to approximately $1560 if they don't buy them on weekends. And THAT'S just their morning coffee! Get going on the other useless shit in your life that is constant, and it will add up quick.

sputnik

08-01-2006, 11:26 AM

Originally posted by Redlyne_mr2

Who cares?? Making more money isnt everything to everybody. Imagine having no mortgage, you could pretty much live like youre retired, travel all the time, buy what your job allows,invest what youd like and not have to worry so much about losing it, since your personal liabilities would be minimal ljust enjoy life...be awesome

Same amount of savings required either way.

I would rather just have investments make my monthly payments for me, and in the end still be sitting on a pile of capital. Mortgages are traditionally the lowest interest money you will ever borrow.

lint

08-01-2006, 11:36 AM

Originally posted by sputnik

Same amount of savings required either way.

I would rather just have investments make my monthly payments for me, and in the end still be sitting on a pile of capital. Mortgages are traditionally the lowest interest money you will ever borrow.

Mortgages in Canada are also not tax deductible, hence they are still considered bad debt. And getting rid of bad debt is never a bad thing. As mentioned above, they could have implemented the Smith Manouvre and been even further ahead. But for many being debt free brings a peace of mind that money can't buy, or rather borrowing can't buy.

whodiman

08-03-2006, 11:30 AM

Originally posted by khtm
"22 hours straight, 2-3 hours sleep, then another 12 hour shift."

Yeah, I want to spend my whole life working. What a frickin' retard. :nut:

Actually this is very common amongst foreigners who are poorly educated but have a chance to move to Canada. My parents did this for 3 years back in the 80s because mortgage rates were around 20%. They did this just to stay afloat, let alone get ahead.

I know of many others who did this and then retired when they hit 40.

whodiman

08-03-2006, 11:34 AM

Originally posted by Dayclone
Hard work pays off I see....

Well this guy just motivated me to save my money instead of spending it on my beautiful car... perhaps spend some on my gf... haha.

Steve

lol!

topmade

08-03-2006, 11:47 AM

That's some crazy work hours that would take more then just hard work to do those kind of hours. Paying off debts, investing, whatever........ it's personal preferrence and is all good because either one will save and/or make money. Im close to 30 (I know, im a oldie) and have more then enough money to pay off my house but don't want to because I'm going the investing route.

And yeah foreigners like to take the "work your ass off route" because that's what they are accustomed to. My wifes families all have like grade 6 education and work in trades or restaurants, but all have their houses paid off and we're not talking small houses here, some are in the hamptons and have some big big houses.

AzN'SKillZ

08-03-2006, 12:06 PM

:thumbsup: :thumbsup: :thumbsup:

congrats to them, now there siting on 400 thousand dollas. and hav the rest of there lives ahead of them. wen they retire assuming the house prices stay relativly the same they will hav 400 thousand for retirement if they sell the house and move to a apartment or somthing.

TrevorK

08-04-2006, 07:29 PM

Originally posted by topmade
Im close to 30 (I know, im a oldie) and have more then enough money to pay off my house but don't want to because I'm going the investing route.

Have you looked to see if the Smith Maneouvre will work for you?

It will enable you to convert bad debt, into good debt. Of course, there are some rules to follow so without knowing your investing strategy it's tough to say whether it'll work. But for the average mutual fund investing person it'll work fine, and put them many, many years ahead on their investments.

ashee

08-05-2006, 11:58 AM

Whoa :nut:

C4S

08-05-2006, 12:50 PM

Lots of my friends .. did the same thing .. work very hard, and not even willing to spend money on a tim hourton coffee ...

Making $10K a month (husband&wife) a bit over $6K a month left ... and spend like near $5K on mortgage!:eek: so .. it is possible to pay off a $350K house in 5 years ... (bingo! chinese style!)

But then ... hey . where is life? For me, I rather spend my money on some fun stuffs ... and not extra on mortgage, and not on saving .. :eek:

But yeah .. still 20 yr to go on my mortgage! :banghead:

Um .. anyway .. it is good to pay off mortgage sooner .. :D

max_boost

08-05-2006, 02:22 PM

hahaha C4S, I think you need stop buying new cars or start selling some of them from your fleet :D

Might be a bit of a generalization but my parents were this way and so are their friends (Chinese). Paying off their house was the #1 priority. My personal goal is to be mortgage free by age 30 or at least have enough investments where if I were to cash them, I can pay it off.

HRD2PLZ, you are ahead of the game I see.:thumbsup:

Toma

08-05-2006, 03:36 PM

Well, with the stock market over the last 5 years, they have done WAY WAY better with the real estate.

Woz

08-13-2006, 09:27 AM

The guy is craz and good for him. HE is lucky hi swife is on the same page or they wouldn't be together for very long.

ashee

08-13-2006, 09:39 AM

I just want to be able to pay mine off before I'm 30 that would make me happy.

Dayclone

08-13-2006, 02:01 PM

Yeh the one thing I have a hard time not doing is spending money on my freaking car... and.... the wife haha.

hammock

08-16-2006, 11:51 AM

is 3 years of your life doing nothing but work worth the 150k saved in interest?

to some maybe.

i have spoken with many older successful people in their late 40s and early 50s, and they long for nothing more than to turn back the clock a couple years, but money cannot buy youth. their advice to me was not to throw away my life chasing money and dreams, but to enjoy being in my 20s, then my 30s, etc, and that every day is precious.