englishman
Master Don Juan
I bought a house a few years back in a boring part of town. Houses cost a fortune here so I couldn't afford one in the more desirable part.
(Technically I'm supposed to make $150,000 a year to buy this house in the 'cheaper' part of town)
I lived in it for 3 years, thought about selling it, and in the end rented it out and then I moved down by the beach and rented an apartment, which with utilities costs me 1500 a month.
When I bought the house I had to do a LOT of renovating, I'd borrowed the downpayment off my sister also had a family disaster and long story short ended up owing about 100 thousand on top of the first mortgage.
Ive been living down by the beach for 3 years now, paid a lot of the 100K off (what a grind! never again!) and in 20 months I'll only have the first mortgage to pay.
After the bills are paid on the house I make around 1700 a month from renting the house out. Also I have around 200 thousand equity built up in the house.
This 1700 after bills paid is what I use to pay the 100K debt down. So in 20 months when the debt is gone, I'll have the 1700 for myself for as long as I own the house. (depending on a few variables like interest rates)
________
I have this situation where I could fix up a small outbuilding at my house in the boring part of town, that I currently use to store stuff in and I could make a small 220 foot space to live in.
Only thing is, it wouldn't be legal, and also my house technically can't be rented out as 3 suites like it is.
Although the city turn a blind eye to things like that as they know it goes on and is the only way a lot of people can afford to pay the mortgage or people to rent a place to live.
However me fixing up and living in the storage space could be the straw that breaks the camels back so to speak. Probably not, but it's always a possibility.
BUT! If I accelerated paying off the remainder of the money I owe by not paying the 1500 a month I currently do on rent, then it would be quite a game changer.
I'd have 1700 a month left over from the house, I'd have my own rent free but small pad.
No rent, no debt and 1700 a month... Not a bad scenario!
I'd be free to travel as I've done in the past, I wouldn't be paying the 1500 a month rent while away as I have in past.
On the down side, I would no longer live down by the beach, would be going from a one bedroom apartment to a 220 foot place. And I might mess with what I've currently got going on at my house with the somewhat illegal suites.
Then again, I wouldn't have to work my construction job as much which leaves me without the energy to do the stuff I love to do half the time.
Also life by the beach in the big city??? Theres lots of people, but most the time the don't speak to you, or they seem a bit fearful if I try crack up a conversation with them. It's beautiful, but kinda lonely.
So
220 feet (quite small), have money in pocket, boring part of town, more time and energy to do stuff. May blow lid off of semi illegal living situation with city. Can get on a plane and go places with ease!
V
Nice 1 bedroom lonely apartment, pay $1500 a month and have to go work to earn it, live down by beach, boring, neighbours ignore you, tired most the time from working, but in 20 months debt will be paid and will make enough from house to pay beach rent and 200 left over?
It's a tough decision to make.
The first one (live in small space) seems to be more adventurous, have more potential for living life large.
If I had no debt (which I won't anyway in 20 months) and made an easy 120K a year, I'd probably just think... ahhh who wants to live in a small space in a dull part of town...
However I don't make 120K and I have to bust a ball in construction to make what I do, and I've had this debt hanging round my neck like an albatross for years now! Getting kinda heavy.
(Technically I'm supposed to make $150,000 a year to buy this house in the 'cheaper' part of town)
I lived in it for 3 years, thought about selling it, and in the end rented it out and then I moved down by the beach and rented an apartment, which with utilities costs me 1500 a month.
When I bought the house I had to do a LOT of renovating, I'd borrowed the downpayment off my sister also had a family disaster and long story short ended up owing about 100 thousand on top of the first mortgage.
Ive been living down by the beach for 3 years now, paid a lot of the 100K off (what a grind! never again!) and in 20 months I'll only have the first mortgage to pay.
After the bills are paid on the house I make around 1700 a month from renting the house out. Also I have around 200 thousand equity built up in the house.
This 1700 after bills paid is what I use to pay the 100K debt down. So in 20 months when the debt is gone, I'll have the 1700 for myself for as long as I own the house. (depending on a few variables like interest rates)
________
I have this situation where I could fix up a small outbuilding at my house in the boring part of town, that I currently use to store stuff in and I could make a small 220 foot space to live in.
Only thing is, it wouldn't be legal, and also my house technically can't be rented out as 3 suites like it is.
Although the city turn a blind eye to things like that as they know it goes on and is the only way a lot of people can afford to pay the mortgage or people to rent a place to live.
However me fixing up and living in the storage space could be the straw that breaks the camels back so to speak. Probably not, but it's always a possibility.
BUT! If I accelerated paying off the remainder of the money I owe by not paying the 1500 a month I currently do on rent, then it would be quite a game changer.
I'd have 1700 a month left over from the house, I'd have my own rent free but small pad.
No rent, no debt and 1700 a month... Not a bad scenario!
I'd be free to travel as I've done in the past, I wouldn't be paying the 1500 a month rent while away as I have in past.
On the down side, I would no longer live down by the beach, would be going from a one bedroom apartment to a 220 foot place. And I might mess with what I've currently got going on at my house with the somewhat illegal suites.
Then again, I wouldn't have to work my construction job as much which leaves me without the energy to do the stuff I love to do half the time.
Also life by the beach in the big city??? Theres lots of people, but most the time the don't speak to you, or they seem a bit fearful if I try crack up a conversation with them. It's beautiful, but kinda lonely.
So
220 feet (quite small), have money in pocket, boring part of town, more time and energy to do stuff. May blow lid off of semi illegal living situation with city. Can get on a plane and go places with ease!
V
Nice 1 bedroom lonely apartment, pay $1500 a month and have to go work to earn it, live down by beach, boring, neighbours ignore you, tired most the time from working, but in 20 months debt will be paid and will make enough from house to pay beach rent and 200 left over?
It's a tough decision to make.
The first one (live in small space) seems to be more adventurous, have more potential for living life large.
If I had no debt (which I won't anyway in 20 months) and made an easy 120K a year, I'd probably just think... ahhh who wants to live in a small space in a dull part of town...
However I don't make 120K and I have to bust a ball in construction to make what I do, and I've had this debt hanging round my neck like an albatross for years now! Getting kinda heavy.
