At the age of 18 I got my first job working my way through college pushing 1200 packages an hour in a UPS warehouse. Back then $20 was a lot of money to me. That would fill my gas tank for a week. But I pulled that out of every paycheck and I continued doing that from every paycheck I got after college and beyond, increasing it to 30% of my professional income over time.
After 30 years of working to make someone else rich I looked at my now substantial investments, both personal and 401k and realized, Holy crap, these are just numbers in a computer. What would I actually do if I looked at those investments and one day the number was zero? I mean, in one form or another they were really all just stocks. If the market crashed I could lose a lot and have to build back up. What if the bank collapsed? Theoretically, government insurance might cover me, but I don’t know what the fine print says. What if I didn’t qualify for some reason? Even if I did, how long would it take? What if I was hacked and from the bank’s perspective, I had simply withdrawn the money?
My answer was to diversify. If I bought a house and everything turned to shit, at least I could LIVE in the house. So me and a buddy each put in $50k to buy a gutted house near the beach. Then we foolishly spent 3 years of our lives working nights and weekends, putting in a kitchen, floors, paint, doors, plumbing, tearing out walls to fix termite damage. We paid to have the wiring brought up to code. We made it nice and spent $68k.
We got a great renter in there for market price and then Covid hit. I talked to my partner and we decided that if she couldn’t pay, she was going to stay rent free. Fortunately, she never missed a payment but it didn’t feel right to raise the rent and price her out of the house. Rents in the area are $2500/ month. She’s paying $1900/ month. If you do the math you know we are essentially giving up $600/ month of potential income.
Now let’s see how I’m stealing this income. Last year was just great. A tornado hit the neighborhood and damaged the roof, the fence, some of the exterior and left debris, like someone’s front door, in the yard that had to be hauled away. Total cost including the roof $13k. We got lucky.
So, $1900 rent x 12 months is $22800/ year. Subtract $13k plus $3600 for property taxes, plus $300 for inside pest control, plus $300 for termite treatment plus $600 for incidental things that needed fixing. That’s $5k. Divide that by 2 because I only own half and I raked in a whopping $2500, on which i get to pay income taxes. Let’s not forget the time it takes to contact 3 roofers to get quotes, meet them to pick colors and sign the contract, clean up the yard, write up the lease and bring it to her to sign, arrange for any and all repairs or emergencies and the myriad of other things that crop up over the years.
And now that I’ve found out how I’ve been robbing my renter by just sitting around collecting money I don’t deserve, I have to call my buddy and tell him we have to sell the house for zero profit and of course, kick the renter out so she can… I don’t know… spend $600/ month more finding another place to live.
Like I said, I don’t make these rules. I paid rent too and now a mortgage. Would I like to live in a country that didn’t allow corporations to buy up everything and jack up the price of those living there? Hell yeah.
So I vote. What else can I do? I didn’t crush anyone under my heels to get what i have. I literally saved the money i made. And if I want to protect everything I’ve spent my whole life to create I can put it in… what… diamonds? Like those don’t have blood on them. Make my own business. Isn’t that like joining the enemy. I mean the goal would be to grow, right? Boats, cars? What is socially acceptable?
I’m sorry but I’m just not this horrible robber depicted in the meme and I’m not apologizing.
“I bought a limited resource people require for survival, what should I have done?”
Not do that. I have plenty of investments, none of them are houses. This feigned ignorance of “what else am I allowed to invest in?” Doesn’t work. Go talk to an advisor, they’ll provide you with plenty of options.
Why do you people have to be so hateful, “feigned ignorance”. It’s not feigned ignorance it’s the fact that any tangible investment will upset SOMEONE.
Again, all of those are in essence stocks that can be lost in a crash, if someone hacks my account, the bank fails, etc. When it comes down to it, those are just numbers in an account that one day could go to zero. One could argue that is not likely to happen, but if it did, what recourse would I actually have?
I retired at 52. I don’t need financial advice. My point was that I wanted a tangible asset. If I choose diamonds or gold someone here would get just as upset that those were essentially covered with blood and they are. I wouldn’t want to do cars because I don’t consider it wise, don’t have storage, don’t want to pay the insurance, etc. Real estate is an obvious choice. It makes a very good investment, but clearly in this thread it’s evil.
So you’re well aware that alternative investment options exist and all this “what am I to do? Rental housing is the only thing to invest in” is just nonsense.
clearly in this thread it’s evil
Yup. Just like if someone invested in diamonds or gold, people upset about it wouldn’t give them a pass if they said “I just wanted a tangible investment”.
You complained about spending 30 years making someone else rich, and now you’re retired off the back of your renter making you rich. Your example of a “bad year” was $2500 profit after paying for repairs from a tornado, for a property you don’t need or use.
So let me relate my story.
At the age of 18 I got my first job working my way through college pushing 1200 packages an hour in a UPS warehouse. Back then $20 was a lot of money to me. That would fill my gas tank for a week. But I pulled that out of every paycheck and I continued doing that from every paycheck I got after college and beyond, increasing it to 30% of my professional income over time.
After 30 years of working to make someone else rich I looked at my now substantial investments, both personal and 401k and realized, Holy crap, these are just numbers in a computer. What would I actually do if I looked at those investments and one day the number was zero? I mean, in one form or another they were really all just stocks. If the market crashed I could lose a lot and have to build back up. What if the bank collapsed? Theoretically, government insurance might cover me, but I don’t know what the fine print says. What if I didn’t qualify for some reason? Even if I did, how long would it take? What if I was hacked and from the bank’s perspective, I had simply withdrawn the money?
My answer was to diversify. If I bought a house and everything turned to shit, at least I could LIVE in the house. So me and a buddy each put in $50k to buy a gutted house near the beach. Then we foolishly spent 3 years of our lives working nights and weekends, putting in a kitchen, floors, paint, doors, plumbing, tearing out walls to fix termite damage. We paid to have the wiring brought up to code. We made it nice and spent $68k.
We got a great renter in there for market price and then Covid hit. I talked to my partner and we decided that if she couldn’t pay, she was going to stay rent free. Fortunately, she never missed a payment but it didn’t feel right to raise the rent and price her out of the house. Rents in the area are $2500/ month. She’s paying $1900/ month. If you do the math you know we are essentially giving up $600/ month of potential income.
Now let’s see how I’m stealing this income. Last year was just great. A tornado hit the neighborhood and damaged the roof, the fence, some of the exterior and left debris, like someone’s front door, in the yard that had to be hauled away. Total cost including the roof $13k. We got lucky.
So, $1900 rent x 12 months is $22800/ year. Subtract $13k plus $3600 for property taxes, plus $300 for inside pest control, plus $300 for termite treatment plus $600 for incidental things that needed fixing. That’s $5k. Divide that by 2 because I only own half and I raked in a whopping $2500, on which i get to pay income taxes. Let’s not forget the time it takes to contact 3 roofers to get quotes, meet them to pick colors and sign the contract, clean up the yard, write up the lease and bring it to her to sign, arrange for any and all repairs or emergencies and the myriad of other things that crop up over the years.
And now that I’ve found out how I’ve been robbing my renter by just sitting around collecting money I don’t deserve, I have to call my buddy and tell him we have to sell the house for zero profit and of course, kick the renter out so she can… I don’t know… spend $600/ month more finding another place to live.
Like I said, I don’t make these rules. I paid rent too and now a mortgage. Would I like to live in a country that didn’t allow corporations to buy up everything and jack up the price of those living there? Hell yeah.
So I vote. What else can I do? I didn’t crush anyone under my heels to get what i have. I literally saved the money i made. And if I want to protect everything I’ve spent my whole life to create I can put it in… what… diamonds? Like those don’t have blood on them. Make my own business. Isn’t that like joining the enemy. I mean the goal would be to grow, right? Boats, cars? What is socially acceptable?
I’m sorry but I’m just not this horrible robber depicted in the meme and I’m not apologizing.
Housing shouldn’t be an investment.
“I bought a limited resource people require for survival, what should I have done?”
Not do that. I have plenty of investments, none of them are houses. This feigned ignorance of “what else am I allowed to invest in?” Doesn’t work. Go talk to an advisor, they’ll provide you with plenty of options.
Why do you people have to be so hateful, “feigned ignorance”. It’s not feigned ignorance it’s the fact that any tangible investment will upset SOMEONE.
Stocks, Bonds, Index Funds, 401k. Go talk to an advisor.
Again, all of those are in essence stocks that can be lost in a crash, if someone hacks my account, the bank fails, etc. When it comes down to it, those are just numbers in an account that one day could go to zero. One could argue that is not likely to happen, but if it did, what recourse would I actually have?
I retired at 52. I don’t need financial advice. My point was that I wanted a tangible asset. If I choose diamonds or gold someone here would get just as upset that those were essentially covered with blood and they are. I wouldn’t want to do cars because I don’t consider it wise, don’t have storage, don’t want to pay the insurance, etc. Real estate is an obvious choice. It makes a very good investment, but clearly in this thread it’s evil.
So you’re well aware that alternative investment options exist and all this “what am I to do? Rental housing is the only thing to invest in” is just nonsense.
Yup. Just like if someone invested in diamonds or gold, people upset about it wouldn’t give them a pass if they said “I just wanted a tangible investment”.
You complained about spending 30 years making someone else rich, and now you’re retired off the back of your renter making you rich. Your example of a “bad year” was $2500 profit after paying for repairs from a tornado, for a property you don’t need or use.