I spent a couple hours today looking at rent prices and apartment prices in the crappier areas of the city, because that is where I would be able to buy, if crypto ever went up again. Of course it will. My plan has always been to pay off the mortgage before doing anything else, but it might be better to instead buy a rental apartment, or two rental apartments with cash deposits, and rent them out instead. After renovations, I suspect the price-to-rent ratio would return about 1% gross per month, so the payback would be around a decade, and of course, the property would be owned by then as well, and could keep earning.
A decade seems like a long time, but it really isn't, especially at my age. It is not that I am super old, but I am no spring chicken either, yet I am also not in a stable financial position. If I had taken profits in the last bull market, bought a couple apartments then, they would be paid off by now also, and I would be well ahead of the game. And losing my work would have been mostly a non-event.
This time, I am determined to make better financial decisions for the future of my family, and I think I have a better chance of it because I am in a different stage of my life, with different experiences under my belt. I want them to be okay no matter what happens to me and that is going to take building up more of an asset base that delivers income. Paying off the mortgage gives them some security, but more in the sense of being able to sell it. Ideally, they wouldn't have to do that and can instead offset costs with rental incomes instead.
An apartment also means that our daughter can have a place to live while studying if needs be, or be able to offset her own rental costs if she studies in another city. I suspect at this point, that even with the changing world, she is probably going to continue her studies further than high school, but who knows with the collapse of economy we might see, as well as the increasingly rapid advancement of automation. But, planning for nothing means that when something happens, we wouldn't be prepared.
Something always happens.
We live in a culture of "buy now, pay later" mentality, where people are driven to fulfil their desires, even if they can't afford it. I sometimes wonder what the world might look like if instead, there was an invest now, buy later mentality instead, where from a young age people would conscientiously build saving habits, rather than spending habits. We are conditioned to consume, and have built an economy is only successful when spending grows, even if that spending is on useless product and services.
However, perhaps if people had investment mindsets, they would also have more tuned spending habits to only spend in areas that offer value, either as an investment that generates, or personal value. Right now though, the majority spend on personal value, without really tuning in value stream alternatives, so it seems natural to have a money in, money out schedule, without much consideration. There is a sense of "need" in spending, even if what is being purchased isn't necessary. And when spend is the personal paradigm, it is very easy to leave invest short of funds.
With growing wealth gaps, declining wellbeing, and out of control spending, it seems there will be a strong rental market in Finland in the future. The places I was looking at as example options, aren't the kind of places people buy to live in themselves, they are rent and student areas. No area is really "that bad" in Finland yet, but there are still better and worse locations, and with more people moving into the cities for employment possibility, there will be somewhat a shortage of affordable rental options, as the new areas and buildings are incredibly expensive, for very, very little benefit.
But my hopes and dreams of financial independence rests heavily on the crypto markets of the future, and nothing is really certain there either. What I do think is that before every boom there is a bust period triggered by a couple meta-changing events, and I reckon we are heading there now based on US government activity. It will break down and then, there will be some kind of miraculous turn around, and surprise surprise - the wealth gap will have widened exponentially again.
I can't do anything about that.
What I can do is keep investing my own time and energy where I can, to be ready for whatever is to come to pass. And hopefully at that point, I will be able to prepare better for my family so whatever comes to pass with me, doesn't leave a financial hole in their lives.
Taraz
[ Gen1: Hive ]
I think a lot of people are in the same shape. I Missed the last opportunity due to lack of knowledge and most likely, misplaced greed. You know.... I can't sell now because it's going higher.! How much higher would it have to have been to actually take some profit?? lol....still kicking myself in the butt for that, but hopefully, this time will be better. The apartment rental idea is solid, for many reasons.
Misplaced greed in some way for me I think - and not ready with an accountant :D
Precisely. It should have been an easy decision, but I have always looked at life-changing - but didn't have a definition of what that was in detail It would have been.
We're learning...getting better all the time........aren't we🤔
one satoshi at a time!
I was expecting to read about rent-seeking behavior here.
This is false advertising.
Prepare to be sued for $1.
It's the principal of the thing really.
But don't worry lawyers only charge $1000 an hour rent.
It was a honey-pot trap. There's always one sucker...
You might consider paying off your mortgage and then using a line of credit on the paid off house to borrow the money (at normally 1% over prime) as down payment on the new property. You can also get loans using BTC as collateral if you are not already aware.
House as collateral is possible also, but depends on the deal I could get and what the tax implications would be. I haven't actually looked deeply into using BTC as collateral - might be something there.
I once read something from some real estate guru, who said he would rent out properties he owned, and live in rentals for himself. I can't remember his reasoning, but it was sound as I recall. I think he liked the flexibility for himself. I prefer to stay put for years on end, and to make my home truly my own.
I do know, as a long-term landlord in NYC myself as well as one in the sticks of upstate NYS, the nicer the neighborhood, the easier it is to find good, respectful, and paying, tenants.
For some, it is about the location. They have the rentals they own in places that rent - but rent for themselves somewhere they want to live, but can't yet afford.
For sure. At the moment, this isn't too much of an issue in Finland, though I suspect it will get that way in the future, as society crumbles further.
It would be good to buy HIVE at $0.10 and sell it above $1. But it is probably better to buy Bitcoin at 20-30k and make 10x.
HIVE at .1 to $1 is likely faster than BTC at 30k to 300k - I hope!
If you don't find a good person/family, a tenant might be real trouble, not only with damaging the house, but also increasing the rental fee under this inflationary conditions.
People are generally pretty good here - however, the renovation of it wouldn't be to make it fancy, it would be to make it hard-wearing.
There are many cases at courts about rent increases between owners and tenants here.
Doesn't surprise me. I think I'd keep mine slightly lower than the rest in the area.
You’re so right about the buy now, pay later mentality messing with long term security. The rental plan makes a lot of sense especially with how unpredictable markets can be, it's more unpredictable now than ever before actually
Would be nice to have someone else finance life, right? ;D
yes 🤣🤣 yes
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Building for the future of your family makes you the best father so far; some parents are just selfish, and they don't really care about what and how their family gets to survive. Don't worry, no time is too late with good planning, you will get something good for your family.
Unfortunately, we here don't live a life of buy-now-pay later, but some people are still not good at making the best financial decisions.