>Not wanting to face a lifetime of debt, Cooper sacrificed three years of his life to pay down a $255,000 mortgage on a $425,000 Toronto home he bought in 2012.
> He worked up to 100 hours a week at three jobs: pension analyst; financial writer; and supermarket clerk. Naturally, the bachelor's social life suffered. Cooper also lived like a pauper, maintaining a strict budget and residing in the basement so he could collect rent on the rest of his house.
>"It could be interpreted that the finger is being pointed at me. Why am I not working 100 hours a week?"
Thoughts on this /biz/ ?
Feel sorry for the guy working like an animal for an expensive house. Had he worked as hard these last years living at his parent's house(with 100 hours per week you have no life anyway) then very soon he could probably buy 2-3 houses for that money.
>Cooper sacrificed three years of his life to pay down a $255,000 mortgage on a $425,000 Toronto home he bought in 2012.
>$425 000 Toronto home
I would love to these this. Literally every single home in Toronto is 1 million+.
>Pay off $255k in 3 years
>"Just earn $85k/yr after expenses and taxes bro! It's easy in today's economy except that skilled professionals work for less because even Engineers are having trouble finding jobs but nevermind that why aren't you earning $200k/yr?"
Well it did say he lived in the basement and rented out the home. But still, he'd having to be making >120k/year I'd say. Not sure why you'd bother with the supermarket clerk job at that point.
Personally, I don't get why you'd stop at just paying off your house. I say work as much as you can tolerate until you're ready to retire, not just work yourself past the point of happiness to reach some arbitrary goal. Its a mortgage, not credit card debt.
>Personally, I don't get why you'd stop at just paying off your house.
Because working until you retire is an arbitrary goal unlike paying off a mortgage which is a well defined goal and it only took him 3 years.
From the way you've worded your post I'm guessing you've never worked a 90+ hour per week job
>paying off a mortgage which is a well defined goal
Its more of just a nice milestone. A mortgage is a low interest, secured loan. There's not much difference, financially, between paying off that mortgage in 3 years vs 6. Its just not a very good ROI to put so much work and money into a mortgage.
>I'm guessing you've never worked a 90+ hour per week job
I work ~45hr week, I'd say 50hr/week is my limit. For some people it may be higher or lower. But no matter what, anyone can definitely have a well defined, specific retirement goal. Usually to have a X amount of spending money from the expected return of their investments.
Dumb as shit. Working as a grocery clerk isn't even worth the time at that point.
I'm guessing this dude recently had a big tragedy in his life that drove him to do this. Someone in a normal mindset would need to rest to stay sane.
Also who is the chick? Got any porn of her?
You can have all those things, and retire well before 65, making the same amount as this guy working his primary job, without working the extra 50hr/week working low paying jobs like being a supermarket clerk.
>Not having a 30 year fixed rate low interest mortgage and making the minimum payments, waiting for inflation to skyrocket and then paying it off easily when his grocery store job pays $300 an hour.
this is the definition of being a wagecuck. for three years his life revolved around nothing but work, and for what? so he can pay off his house a few years sooner.
it rarely takes you 30 years to pay off a mortgage unless you only make the minimum payments, and nowadays those are typically around a quarter of your monthly income.
not to mention that he could have used the money as down payments for other properties that he could rent out. guy went full retard.
Meh I get around $120k p/y working from home but I also choose to work at a bank as a lowly teller for $11.50 p/h because it gets me out of the house, I can talk to people and not feel so isolated, and why not?
In my country you get fined by the bank if you pay of your mortgage earlier or when paying off more per month than the agreed amount.
It affects your situation because having a near-zero central bank rate, which gets added to the base, is actually unusual and unsustainable in the long run.
A 2-3% mortgage interest rate is only feasible when the central bank rate is 0%. Meanwhile, if the central bank wants to reduce the money supply, they can and will bump their rate up to 4-6%.
If that happens, suddenly your mortgage interest rate is near 8% and this isn't even a worst case scenario yet.
3% vs 8% in some circumstances can mean that your monthly payment doubles, especially if equity is low. Meanwhile, your property price is probably crashing, because people aren't getting free loans anymore.
In conclusion, it's never a bad idea to pay off your debt, if it's not fixed to a very low interest rate.
>8% p/a returns forever
>s&p being down over long periods of time means that the world is completely fucked in which case your money is useless anyway
Cmon man. I can't tell if you guys are le rusing me but it's one of the safest ways of investing possible.
>Work like a slave to pay for a crack den somewhere in the boring suburbs of Toronto
This guy is a total idiot.
He has 170k in cash and instead of putting it to work in the market making him a double digit return (and a lot of it can be tax sheltered) he loads it all into a decaying shack with escalating maintenance costs, property taxes and closing costs and agent fees if he decides to sell...
This guy is a fucking idiot.
You should live with your parents until you are married.
Moving out only makes you more impoverished and erodes your savings, for what benefit? Life experience?
Shooting up on drugs and boozing into the early AM is productive life experience?
Having debt is stupid. He's a smart guy for paying it off. Now he can really invest toward his savings, and with the market the way it is now he's got a jump start with prices bottoming out. This is a good thing.
China, and Chinese investors who are closely associated with the communist party. They have to move their cash overseas in bags of cash and the only thing you can really buy with a huge stacks of cash that won't draw suspicion is property. There you go. Thanks Nixon.
China has changed the nature of global property markets. That much is true. They deal almost exclusively in cash and they can price pretty much anyone out of a market. Much of their incomes are shadily gained and probably highly illegal, but since it wasn't earned in the US US authorities don't care. Obongo has promised to go after some of these shady Chinese expats, but he's only paying lip service to the idea because it's all 'stolen' Chinese money.
They bring in alot of money and they buy houses with it. You can just google it for yourself, but this is the reason why property rates are really increasing, India as well, but to a much lesser extent.
You're full of shit. There's a lot of rich Chinese but not enough to go around. The market shifted because any Joe could take a 30 year old mortgage for his Jane and two newly arrived piglets. Demand pushed prices up, banks were busy issuing lifetime mortgages.
>> post this after sp is 10% down in just two weeks
>Doesn't know what longterm is
You do realize you don't buy Index Funds and then track their progress on a weekly or even monthly basis, right? What matters is the yearly and more specifically 5-year returns.
Confirmed in my area. I've been beat out by the same Chinese bidder twice at a foreclosure auction. Dude clearly didn't speak a word of English.
I followed both properties afterwards out of curiosity. Rented out, both of them. Chang will be everyone's future landlord if you don't own a home yet.
I remember on r/canada reading that like 60%(or something like that, cannot remember exact figure, might be a bit more) of homes in Vancouver over like an 8 month period were purchased by foreign investors.
(We all know who the foreign investors are)
It's a pretty big mess. Literally no young adults can purchase homes in any livable parts of Canada anymore desu. Not sure exactly what the consequences of this will be but it seems pretty bad.
doing something like that in Australia is not worth it. The way our taxation works so much of that hard earned money goes straight to our incompetent government. if one job gives you 30 hours a week, the second jobs pay is going to get taxed out the asshole, go straya
>Do count how many times that has happened, and how many times it was followed by a big recession
It has happened a handful of times. And usually only lasted 1-2 years at most.
Please do look at historical data regarding the s&p.
>You might not be back to 0% even after 5 years.
ONLY if you purchase at the very peak right before the recession, which is unlikely and also does not matter because longterm it will for a fact go back up to even higher than it was, recouping any "losses".
So basically -
Worst case scenario - You cannot cash out your money for 1-2 years(generally) at worst, and also take a few years to get back to even if you bought it all the very peak right before recession, eventually it gets even higher and nothing bad has happened.
Most likely and common scenario - You earn a healthy 8%+ p/a return on your money and meet your retirement and financial independence needs.
Wow it really is a no-brainer.
To add to this, literally everything else either has far lower returns or is exponentially riskier and very unlikely to earn you more than you would dollar-cost-averaging into an ETF.
It makes absolutely no sense not to do this. You're not going to make any money on forex or shorting random meme stocks ya dingus.
That's a typical upper management work ethic in America. It's not all that impressive here, but amazing in the rest of the world.
Me, I enjoy freetime to literally sit on my ass for 2 days straight, so 40 hours is perfect for me.
>No, this is midwest US. Homes in the 90-120K range (used to be 70-100K a few years ago). Glad to know we're not the only ones getting screwed though.
Oh. You're not getting screwed buddy.
In Canada the most relevant cities are simply unaffordable unless you are a millionaire. $1million+ for ALL houses in Toronto/Vancouver.
Not gonna bother right now but I posted a bunch of pics of Vancouver real estate and its prices in another thread a while back which had houses $800k+ for a literal shitshack that people even replying to and saying "Is this photoshopped" "lmao desu" "This house would literally be $100k here", etc.
> Please do look at historical data regarding the s&p.
Pic related. Look very hard on the 10 and 15 year total returns.
You originally told to look at 5y.
> also does not matter because longterm it will for a fact go back up to even higher than it was, recouping any "losses".
Now you backpedal into "look at longer term", even if one's original goal was 5 years. However, the long-term average is nowhere near 8% per year. It's 2-3%.
We're at a peak with several signs of a big crash. Right now, I'd invest in Euro gov bonds, which make around 4% at no risk, or into high-quality preferred stocks making 6-7%.
Anything that relies on growth is utter stupidity right now.
>Anything that relies on growth is utter stupidity right now.
That's what people said before s&p hit 1500 and then doubly so for 2000 points. Those exact words.
>You originally told to look at 5y.
>Now you backpedal into "look at longer term", even if one's original goal was 5 years. However, the long-term average is nowhere near 8% per year. It's 2-3%.
I didn't mean that's when you "cash out". I just meant that that's when you look back on your gains over the years instead of weekly as if it's some pennystock that you need to sell before it gets dumped.
>However, the long-term average is nowhere near 8% per year. It's 2-3%.
The average over like 80 years is 8% per year
> The average over like 80 years is 8% per year
You are correct. However, there was no QE flat out printing of money before this last decade. This changes things significantly.
Also, if one happened to buy in 1929, he'd be back at 0 in 1955. Nice 26 years there.
Everyone needs shelter.
Supply and demand.
That crack shack in Vancouver is on more land than any other homes build after it. That's why they are valuable. They are walking distance to the downtown core. 1 mill + is not that outrageous, it's just we all know only 40 years ago they were less than 100k.
Vancouver is still a tiny city, it will continue to grow.
Then you just move out of fucking Canada and go live somewhere nice, leaving Chang holding his dick.
But again, that might be their plan, and after you do that there will be a pacific zerg invasion...
>This guy is a fucking idiot.
Which part of having your own goddamn home without mortgage worry till you die is not appealing?
Goddamn, you all niggas hating on the man sound like it's your desire to be financially burdened, unlike Cooper.
>Thoughts on this /biz/ ?
Good for him. He owns a home. Isn't afraid of creeping debt if he gets laid off and can invest his debt-free money into himself or some other goal. It's an extreme way of achieving goals. I mean, he worked 14 hours a day. There's not much left of a day for anything else after so many hours except sleep, so he must have been tip top on the logistic side of life. That's commendable. The guy showed dedication rarely seen and achieved more in 3 years than most people. I applaud him and wish him everything good.
>work in the market
Take a look at TSX. At the end of the day the guy got a home. With a work ethic like this he can move mountains. I wouldn't be able to work three jobs like that so thats commendable.
You didn't get the point. Chang is way smarter than Smith because when Chang pays in cash he doesn't overpay 2.5x-3x times over 30 years. If everyone bought like Chang, with money they had in hand things wouldn't have become so "bad".
im sure this has been posted 50000 times in this thread, but
depends on the rate he had. doubling or tripling up on your payments on a low interest mortgage is fucking stupid unless you have a bad rate. you should be able to beat the rate on your mortgage in the market pretty easily. make the minimum payments.
The power law of Capitalism baby. If you wanna make a lot of money, you better be ready to do anything and everything in your power instead of finding excuses "muh chinese government".
I don't want to sound like an edgy teenager, but some parents are unbearable. I don't know about you, but having nice cozzy parents does sound amazing.
I on the other hand, have to deal with my dad having untreated dementia/mild alzhimers (he doesnt trust doctors). Everyone, ever and all the time, is conspiring against him. He could be buying milk, and forgot that he brough 2 cartons instead of 1, and proceeds to accuse the clerc to try and push product on him. Is also a major hoarder that wastes money on, say, his 7th meat processor that he might one day use in a business (never will quite frankly).
then there my mom. Self employed but would be making way more if she'd be employed under an office. Gets bossed around even from clients and lets unbilled hours go by. Depressed. Drinks a lot and spends money on stupid shit aswell. Probably has ADHD cause she is always bothering me with stupid shit when I try to study or relax.
Both are heavily in debt, and sometines "borrow" money from me that I get as a bursary for college. My sister has moved out long ago.
criticize all you want on wanting to move out at a young age. You guys probably have it better than those that do move out anyways.