Living off one income question

[FraserB]

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Next up, why living in a larger home than you need is a smart financial decision!

1500 square feet per person right?

[Swank]

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1500 square feet per person right?

I thought it was per limb

[killramos]

You people think too small lol

[Tik-Tok]

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I thought it was per limb

Per tooth actually. I think killramos has a 4500sq.ft house.

[The_Rural_Juror]

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Per tooth actually. I think killramos has a 4500sq.ft house.

Killramos only has 3 teeth.

[killramos]

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Killramos only has 3 teeth.

My avatar is accurate.

[Buster]

Who is Ramos anyway? And why do you want to kill him?

[bjstare]

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Killramos only has 3 teeth.

When you forego dental work, frees up some extra cash.

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My avatar is accurate.

I've met the guy, can confirm.

[The_Rural_Juror]

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Who is Ramos anyway? And why do you want to kill him?

Karri Rämö

[killramos]

^ Never Forget. Never Forgive.

[Brent.ff]

Not Sergio?

[The_Rural_Juror]

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Mortgage: $121K
Car: $16K
LOC: $11K

I have about $100K in cash right now.

Savings: $600K

I should buy some property in Calgary.

a/s/l?

[The Cosworth]

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The only math I know is, how much I have and how much she charges.

I missed having you around.

[Masked Bandit]

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Next up, why living in a larger home than you need is a smart financial decision!

I know you're joking but it's surprising how many people will actually argue in favour of this position. Usually Americans because they can deduct the interest on their mortgage at tax time but still.

[ExtraSlow]

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I know you're joking but it's surprising how many people will actually argue in favour of this position. Usually Americans because they can deduct the interest on their mortgage at tax time but still.

Jokes aren't funny unless they shine a light on some truth. I work with lots of Americans, and it's amazing down there.

[davidI]

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I know you're joking but it's surprising how many people will actually argue in favour of this position. Usually Americans because they can deduct the interest on their mortgage at tax time but still.

Real Estate has provided irrationally high returns for the last few decades, even with the great recession. Given that people are most comfortable taking on debt for a house and governments/central banks have used cheap debt as a tool to spur growth, it's only reasonable that the housing bubble has grown. Population growth has also helped. It's hard to see demographics continuing to support that unless the floodgates are really opened up to wealthy immigrants at the cost of born-and-raised Canadians.

[Xtrema]

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I know you're joking but it's surprising how many people will actually argue in favour of this position. Usually Americans because they can deduct the interest on their mortgage at tax time but still.

Knew someone that moved twice in the 2004-2008 boom and upgraded from a $300K joint to a $1.2M join while the mortgage stayed pretty much the same.

That's almost $400K more in equity compared to staying in the same home in the same period of time.

But I guess it only worked that 1 period of time in the last 30 years.

[Manhattan]

^

The same thing that leads to wealth that quickly can also wipe it away. Real estate investing is a hugely leveraged investment class (everybody borrows) and once you sign to purchase you're locked to that price fully (you can't cost average up or down or nibble away with savings).

[bjstare]

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^

The same thing that leads to wealth that quickly can also wipe it away. Real estate investing is a hugely leveraged investment class (everybody borrows) and once you sign to purchase you're locked to that price fully (you can't cost average up or down or nibble away with savings).

Buster, is that you?

[A790]

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Buster, is that you?

Both Manhattan and Buster are totally correct.

For the average person, they view RE as their biggest investment. I view it as my biggest expense... and I've got two properties valued somewhere around $1.2 MM. I'm a huge hypocrite but here we are.

Interestly, my RE returns over the past 6 years have been -30% whereas my stock portfolio has been +100%. Funny how that works.