That's actually the going rate for a lot of two bedroom one bath in America.... maybe it's different in Canada.
Discussion
For $550 - $850 a month you can get an efficiency... it's a bedroom a bathroom and a small room that has to double as a living room and kitchen.
Im hinting at owning and not renting. Own before having children.
For some people that's out of the question
Only when big corporations start paying fair wages will the American dream be alive again
I don't know how it is in Canada though
But here - companies are greedy and have no real concept of what real life is like for the common folk
You just need to change your lifestyle and live more within your means then. Are you in the US? You can get many acres of land in Kentuckey for like $50K and live off of it. Its true.
Yeah if you're lucky you can get land cheap
But not everyone has 50k just laying around to buy land then 100k more to start building on the land and have the money for the land tax which will go up once you start building on it
So for the land tax on this land with house would be like $300 per year.
I know not everyone has it lying around. While young that money only takes a few years. If not spent partying it goes a long way. I know many who receive a little money from parents and blow it on a fancy car. This is not the way.
It really is possible to do all of this if you start out smart and spend less than you make. Take out zero debt.
Mines $600 a year but that's because the city doesn't know that a couple rooms were slowly added to it and it's only a triple lot.
If I were to sell it... the next person would be paying triple at least
Wait. Your city raises property tax each time the property gets sold?
I have to say here that living off of the land is a hell of a lot more difficult than most people think it is, and frankly you still need income or the taxes will force you into foreclosure. I live off grid, 800 AH LiFePO4 and 5800W but the investment for that privilege was 30k alone, and it’s still not enough power for a normal lifestyle. Animal husbandry is a full time job, growing food crops is complicated by pests, it’s easy to lose an entire year to voles, gophers, mice, aphids, fungus, predators, and the list goes on. Cheap land is usually cheap for some really good reasons. #homesteading
This is great knowledge. Wasnt so serious about living off the land. Just using as an example of buying land cheap and EVEN livinig off the land. But i never considered all the things you mentioned. That would make it really hard. Wow. Would love to try it one day. I guess im thinking of buying that 50 acres and not living off it. Maybe if i needed to, but just having land makes me excited.
It is exciting. I have 60 acres and love spending my days here, I dropped 50k on an excavator just to be able to do something with the land. The price of admission is not cheap. I spent 25 years working full time and running multiple business just to get here. It’s not a survival strategy, it’s an earned privilege. #homesteading
With a thirty year mortgage? Just have your first kid at 55? Thirty percent of generation Z live with their parents, not because they want to. Low wages, corporate avarice, and inflation are killing the American dream.
No. No mortgage. Work 5 years while young. Buy a property with a house already on it for like 150k. Have kids a few years later. Not possible?
The problem is you have to live somewhere while you work. Rent in any city? 24k a year probably with a commute. Maybe you gross 80k combined, after taxes 50k, fuel, food, repairs, etc, maybe you save 20k a year, and 150k for any home with land is pretty optimistic, probably 250k is entry level for a home needing expensive repairs. Now you’re looking at 15 years to kids, 35 if you have your wits about you at 20, few do……
Getting a 30 year mortgage is the most attractive part. With a low interest rate, you can essentially short the dollar in real terms but with tax benefits instead of paying capital gains.
Yeah, sorry but I don’t agree with this at all. Mortgages are probably the largest wealth transfer mechanism for fleecing the poor and enriching the wealthy ever conceived. They are solely responsible for pricing anyone in socioeconomic class lower than the upper middle class out of housing. If you have enough wealth liquidity to leverage currency arbitrage there are much better financial vehicles than paying banks, and capital gains are usually offset by contrived business losses. Bottom line, the wealthy don’t realistically pay substantial taxes. This premise hinges on constant real estate appreciation which is unsustainable, and assumes that the investor is going to relocate their primary residence to a new growing real estate market every couple of years, perhaps a fine proposition for a single professional investor, but not a strategy for mainstream professional families in my opinion.
I completely agree with you if we believe whatever currency your loan is in will remain relatively strong over the next 30 years.
At this point, I believe it hinges much less on real estate appreciation and much more on ever growing currency debasement. Imagine taking a 30 year 5% fixed rate mortgage on a 1 million USD house in Turkey 7 years ago. That was only 2.7 million lira at the time. With a monthly payment of 15k lira ($5,300 USD 7 years ago), that's currently only $1500 USD. In a few more years time, that will be even less monetary value.
I don't know if you live in a place like turkey but on a long enough timeline, every fiat currency will follow the same trajectory. So the longer the payback period, the more likely you can pay it back with cheaper and cheaper fiat currency units
This is an excellent point, thank you for sharing. The ability to capitalize on the fiat debasement requires a store of higher valuation fiat, best case, in the amount of the loan at the time of acquisition or prior. This is contrary to the typical use case of mortgages. For most people, if they had the necessary funds available, they would simply purchase the house. Earning debased currency concurrent to paying debasing debt gives no distinct fiscal advantage, no?
If you keep your wealth in a debasing currency, your advantage would be how well you can negotiate a raise, raise your prices, or somehow earn on par or better than inflation.
If you store your wealth in a currency like the dollar or better, Bitcoin, then the tide turns even further in your favor.
I did the conversion from Lira to dollars but it would be even more attractive looking at the try/BTC chart
1000 cuck bucks a month doesn’t get you a studio apt in my area