Are people who buy things for cheap rich?

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I stopped work at 53 to escape the asylum that was work.

I saved plenty cash but have ended up giving a lot of it away rather than spending it. The truth is I actually prefer cheap to expensive. I really like the process of getting a good deal & treat everything as a commodity.

Right now wifey & I are in South Africa for the month renting a luxury house with a million dollar view of Walker Bay. We wake up, roll up the blinds & see whales, pods of dolphins, seals & huge flocks of cormorants. It's all the more enjoyable knowing you're renting it for less that a grotty room at the Grimsby Premier Inn!
 
As I always mention, the cost per mile of a vehicle really does not vary much (by class of vehicle)

Sometimes, a well purchased new car, kept for it's lifespan won't cost any more per mile, than a typical used car.

I tend to purchase used. My wife gets the new stuff. 31 years of marriage is enough time to know that In the end, I go through more vehicles than she does and I spend a lot more time under mine than hers.

I really should purchase something new or nearly new next purchasing cycle.
 
Originally Posted by CT8

Not having a mortgage payment is the greatest thing .


Not always. I'd rather have a mortgage payment but own a house that's worth a lot more than I owe, and is growing in value very fast, as opposed to having no mortgage and living in a small house in an area that doesn't see the house values increase.

The house my wife and I just moved into a few months ago is a brand new build, we bought it (pre construction) in March 2016 for $1.1 million. Based on the comps in our neighborhood, it's now worth $1.6 million. Our mortgage is $580,000 so we have 1 million in equity right now and it's growing fast now that the Toronto real estate market is recovering from it's recent downturn. I would rather stay here and watch this house grow by another $400k in value, and still have my mortgage, as opposed to living in a smaller house with no mortgage that might only grow in value by $20,000 per year.

As mentioned a few times, our plan is to live in this house until 2022, then we'll sell it and downsize further from Toronto and retire, living off the profits of this house combined with my wife's teacher's pension. Our other retirement investments will keep growing and we won't even touch those until we're 65 (which will be 13 years after we retire at age 52) When we do downsize, we'll have to decide then as to whether we buy a place outright and have no mortgage at all, or if we have a small mortgage (thus keeping a larger amount of money in other investments)
 
I'm comfortably off in retirement, well over seventy and I'm becoming aware that I'm getting locked into my routines in geezerdom.

Home-- Live in a condo (villa in St. Louis which is a fancy name for a duplex). I spend most of my time in my bedroom-- electronics are all there. Seldom go into the family room and my guest bedroom stores junk (some of it from other family members), If I won the lottery, I'd have no desire to upsize. I'm troubled that my county (which accounts for about eighty percent of building starts in Eastern Missouri-- not that there's a lot of building starts--i awash with more and more McMansions. With an aging population, who's going to live in these? Roads are originally named after farmers who lived on the roads and wander all over the place-- you're either in a subdivision or driving around in traffic. When my mother was the same age in Sioux Falls, she lived in the old part of town and it was a grid. She went down parallel side streets at low speed and avoided traffic. Can't do that here. Hopefully my next car will just be climb in the backseat and let it take me. I enjoy driving but it's either automation or Uber in my old age. This place doesn't really have any transit.

Car-- Got into my first at fault car accident this spring and found out that almost no one was going to insure me. Finally got my insurer to keep me on, but I dropped collision on a '17 because if I made a claim on a single car collision that would be it-- goodbye to driving, take the keys away from Grampa. So I'm perfectly happy with a Hertz rental sale Soul, cause going out and paying cash for a replacement is going to be affordable.

I was raised with a depression-era grandfather in the house and was lectured as a kid that the depression is coming back so hang onto your assets. I'm locked into this behavior in my dotage and I'm happy with it. It's served me well.
 
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I don't consider myself rich in the way that I don't have a lot of money in the bank. However, the house is is now clear and our vehicles (2004, 2005 and 2006) were paid for a long time ago.

That allows me to spend (waste ?) money in too many other things. That is rich in a way.
 
Amused by the story about property appreciation in Oakville. I paid about $190K for my home in 2004 and it's value has never come back after 2008. There's T.O. and D.C. on one side and St. Louis and Cleveland on the other. This is a cheap place to spend your old age, but if I was selling and buying into a more expensive job market because of a job change it would take a lot of extra salary to make the move.
 
We're not rich, but I'm working on it... To us, that means drive a safe care, live in a save neighborhood, have enough food to eat. We don't drive trendy cars, wear trendy clothes, eat out often. I fix things rather then replace them. This allows us to have the things we actually do value greatly. We intend to pay for whatever college/trade school our kids might want. I some very nice bicycles. We have a modest cottage on a lake. We will have a retirement fund that lasts longer that we do. I donate to various charities. Setting our kids up for the most successful future possible is the big one.
 
Originally Posted by csandste
Amused by the story about property appreciation in Oakville. I paid about $190K for my home in 2004 and it's value has never come back after 2008. There's T.O. and D.C. on one side and St. Louis and Cleveland on the other. This is a cheap place to spend your old age, but if I was selling and buying into a more expensive job market because of a job change it would take a lot of extra salary to make the move.


It's certainly a unique situation up here that may not apply at all to many areas in the US (other than NYC or Southern California) We saw a big rise in value from our previous home too, we bought it in August 2011 for $529k and sold it in June 2018 for $930k (and it would have sold for 1.1 million in early 2017 but our housing market went through a big correction that it's now slowly recovering from)
 
Originally Posted by Chris142
Naw I'm always broke. My 87 f250 that I paid $3100 for will do the same thing a new $60k truck will do.


Probably not for as long or as far and certainly not as reliably.

There is a reason people purchase new/newer vehicles. Time and reliability has value.
 
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Originally Posted by Patman
csandste said:
...We bought it in August 2011 for $529k and sold it in June 2018 for $930k


My home in FL was $157k (2001) . The 2 acre lot, $45k.

It's 2500 sq ft, 3 car garage, bonus room over garage, 13 foot ceilings, barrel tile roof, 155mph rated, ultra efficient and so on. Good living, on the cheap!

Prob worth in the 3's now.
Click to expand...
 
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Originally Posted by Patman
Originally Posted by CT8

Not having a mortgage payment is the greatest thing .


Not always. I'd rather have a mortgage payment but own a house that's worth a lot more than I owe, and is growing in value very fast, as opposed to having no mortgage and living in a small house in an area that doesn't see the house values increase.

The house my wife and I just moved into a few months ago is a brand new build, we bought it (pre construction) in March 2016 for $1.1 million. Based on the comps in our neighborhood, it's now worth $1.6 million. Our mortgage is $580,000 so we have 1 million in equity right now and it's growing fast now that the Toronto real estate market is recovering from it's recent downturn. I would rather stay here and watch this house grow by another $400k in value, and still have my mortgage, as opposed to living in a smaller house with no mortgage that might only grow in value by $20,000 per year.

As mentioned a few times, our plan is to live in this house until 2022, then we'll sell it and downsize further from Toronto and retire, living off the profits of this house combined with my wife's teacher's pension. Our other retirement investments will keep growing and we won't even touch those until we're 65 (which will be 13 years after we retire at age 52) When we do downsize, we'll have to decide then as to whether we buy a place outright and have no mortgage at all, or if we have a small mortgage (thus keeping a larger amount of money in other investments)
3year Ago I sold rental house in the SF penninsula it was paid for for quite a While for 1.5 million . It was food . I bought some 4 plexes. New vehicle,,.gave the kids school money.
 
Originally Posted by Mr Nice
Money isn't everything in life...

I wonder why people worry and think about what others have ?


x2
 
Originally Posted by Patman
Originally Posted by CT8

Not having a mortgage payment is the greatest thing .


Not always. I'd rather have a mortgage payment but own a house that's worth a lot more than I owe, and is growing in value very fast, as opposed to having no mortgage and living in a small house in an area that doesn't see the house values increase.

The house my wife and I just moved into a few months ago is a brand new build, we bought it (pre construction) in March 2016 for $1.1 million. Based on the comps in our neighborhood, it's now worth $1.6 million. Our mortgage is $580,000 so we have 1 million in equity right now and it's growing fast now that the Toronto real estate market is recovering from it's recent downturn. I would rather stay here and watch this house grow by another $400k in value, and still have my mortgage, as opposed to living in a smaller house with no mortgage that might only grow in value by $20,000 per year.

As mentioned a few times, our plan is to live in this house until 2022, then we'll sell it and downsize further from Toronto and retire, living off the profits of this house combined with my wife's teacher's pension. Our other retirement investments will keep growing and we won't even touch those until we're 65 (which will be 13 years after we retire at age 52) When we do downsize, we'll have to decide then as to whether we buy a place outright and have no mortgage at all, or if we have a small mortgage (thus keeping a larger amount of money in other investments)


Just buy a rental property.
lol.gif
 
Originally Posted by maxdustington
value has different meanings to different people.

A mechanic can buy a cheap car and fix it for cheap if it breaks..


This is me - I seldom buy a vehicle that is running, it's normally a non runner that I get going. I would never buy a new vehicle, and even late model is unthinkable for me. I don 't buy and sell to make money, if I get a cheap car as a do up, then it's for me to use. I certainly have different values than the typical BITOG member.
 
Originally Posted by Cujet
Originally Posted by Chris142
Naw I'm always broke. My 87 f250 that I paid $3100 for will do the same thing a new $60k truck will do.


Probably not for as long or as far and certainly not as reliably.

There is a reason people purchase new/newer vehicles. Time and reliability has value.


Probably doesn't need a stepladder to reach into the bed on the '87 though. Truck beds these days are getting absurdly high/deep!
 
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