I appreciate your plan. My wife and I traded down in the last two years. Sold our acreage and moved to the lower mainland from Penticton. Retirement was 14 years of gardens, fruit trees, grapes, chickens and a few years of BnB. Loved it and miss it. Too much to handle now. Good luck with your green thumb and investments.
Cheers, Doc Hope you enjoy the next phase of your retirement. What do you do?
Last edited by mordko; 2017-01-07 at 09:05 PM.
Originally Posted by mordko
Last edited by Dilbert; 2017-01-08 at 08:54 AM.
Congrats mordko on your excellent situation.
It's funny though how much comes down to luck in the market. In the case of mordko's family, a huge portion of his gains and net worth came from real estate gains. At the time this was highly leveraged exposure to a single asset, and it worked out great.
That's lucky, but it could have gone the other way too. US homeowners leveraged into houses in 2005-2007 and were devastated, as were British and Spanish homeowners who entered in recent years.
mordko correct me if I'm wrong, but would this be an appropriate analogy to your history? Say we have an investor with 300K net worth, and he uses leverage to buy 500K of XIU. He buys early in a bull market and dramatically increases his net worth High leverage, one asset.
Last edited by james4beach; 2017-01-07 at 09:44 PM.
I don't see the analogy. Mordko admitted they were lucky with their house purchase & sale timing. Buying a place because you need a home for your family and having a good outcome is not the same as speculating in the market with a leveraged etf purchase.
Exactly. We needed a family home in locations with great schools and the rest was down to a bit of luck. The place we had in the U.K. that went up by 2.4 times in 6 years was in an area which was looked down upon by the Brits when we bought but became very up market when we sold. We did feel the price went up a bit too fast and indeed 10 years later it sold for the same price even though it had conservatory added. Same thing happened with GTA as crazy Toronto prices spread outwards, the value skyrocketed. Incidentally, prices in the US have dropped very unevenly and the recovery has been uneven too. People who bought wisely got lucky.
Originally Posted by OnlyMyOpinion
Aside from the obvious that one needs a place to live and a home isn't really an investment like shares, there is another important difference with ETFs. When you sell them after a nice growth, you pay capital gains.
Also worth noting, that while we were leveraged, the mortgage payment was easily affordable at all times, and would have been even if the rates went up by a lot. And the rent on a family home in the burbs would have been a lot higher than interest and tax.
Where we got really lucky, was with our very first home. It was mortgaged with a building society, which was supposedly owned by its clients. When it privatized, they payed us. What are the chances of loan sharks paying you for borrowing from them?
@Doc, glad you are OK now. Yes, we can only plan up to a point... I got the finger last week. Didn't enjoy it. Look forward to your post.
Congrats on starting your money thread! I look forward to following along.