# My journey at 26...



## MoneyChase

Hello,

A little about me. I am single, hard working, and frugal. 

*September 1, 2013*
Cash: $500
Chequing Account #1: $1,700
Chequing Account #2: $1,100

HISA #1: $56,315.12
HISA #2: $11,037.53
TFSA: $20,644.20
RRSP: $10,415

*Total*
$101,711.85

*Income*
$45,000/year.

*Monthly Expenses*
Phone: $40
Rent: $500
Food: $200
Public Transit: $60

I have no credit card debt. I take public transit everywhere I go. I'm not sure about investing money, so it's all liquid funds, in HISA accounts. I've thought about buying a home and buying a car. I figure I have no need for a car at this point in life, as everything I need is accessible via Public Transit. I also believe that even with building up home equity, the rent outweighs the expenses and operation costs of owning a home. Any suggestions would be greatly appreciated!

Thank you=]


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## tygrus

You've done very well to squirrel away $100k by your age, but you have a lot of dead money sitting around in HISA and your TFSA and RRSP are uninvested. You know that the rate of inflation exceed the interest rate you get in any HISA or GIC or bank account, so you actually losing money over the long term. I would buy a juicy ETF with dividends rather than keep it parked in cash.


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## SpendLessEarnMore

I assume that's $45k gross which is about how much I made in last 2.5 years. To save $100k is mighty impressive. I don't think you'd need a house but maybe look into investing your savings to grow it.

To put it into perspective I make about the same as you and I own 2 houses. It's a real headache. You have tonnes of bills to pay, insurances, and maintenance. We are somewhat similar in that we like cheap transit though I use a 250cc scooter for my mode of transport which equates to about $20/mth.

Well best wishes hope you keep us updated each month on your progress. I'm very interested in how well you're doing.


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## the-royal-mail

Interesting. You've done well to save all of that cash and keep your expenses really low. Where are you living to have such low expenses?

While I do agree in this case you should try investing, I would suggest:

1. don't invest all of the money you have, but keep at least 6 months' living expenses in your HISA as a cash emergency fund
2. start investing with a small amount like $1000 until you learn the ropes (ie. don't put all of your investing money into it while you learn)
3. get a credit card for convenience and to build up credit score etc. you also need CC to book hotel rooms, rental cars and many other things in life
4. may I ask why you have two POSA and HISA accounts?


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## SkyFall

Very impressive what you did with $45k/year being able to accumulate $100k is very respectable so keep going. I will agree with others that you shouldn't keep that much in HISA (except maybe 6-12months Emergency Funds) and the rest invest it also you can get a credit card you don't have to go all out get a Cash Back with about $1500 limit and get something back out of your depends.

Best of luck! You are doing very great!


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## My Own Advisor

Impressive.... over $100K in HISAs, TFSA and RRSP.

Took me to my 30s to get there. Then I bought a house 

Royal Mail had some great advice, especially # 1 but six months is a lot of money to have as an emergency fund as a 20-something. Makes more sense when you have a house, kids, etc. More dependents and more liabilities.

I would consolidate accounts a bit....one chequing account for daily expenses, one savings account for well, savings.

Then invest everything else - max out that TFSA and RRSP if you can with low-cost ETFs. Maybe after a few years, you might consider investing with individual stocks. That's after reading many books and taking time to understand your investing goals.

Overall, killer work for a 20-something.


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## heyjude

Good for you! At your age, I probably had a couple of thousand to my name. Keep on Living Below Your Means. That is a prerequisite to financial security. But you also need to invest in financial instruments that will keep pace with or outpace inflation. For a good summary of investment returns over the years, check out Credit Suisse's annual yearbook:

http://www.investmenteurope.net/digital_assets/6305/2013_yearbook_final_web.pdf


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## MoneyChase

*October 1, 2013*

Cash: $500
Chequing Account #1: $1,700
Chequing Account #2: $1,100

HISA #1: $58,268
HISA #2: $12,766
TFSA: $20,661
RRSP: $10,415

*Total*
$105,410

*Income*
$45,000/year.

*Monthly Expenses*
Phone: $40
Rent: $500
Food: $200
Public Transit: $60
Credit Card: $20.25

Pretty good month for me - Worked a lot of overtime =] Decided to get a credit card and use it on occasion. Still haven't dipped into any investments, yet. Looking into it on my free time.


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## MoneyChase

*November 1, 2013*

Cash: $200
Chequing Account #1: $1,800
Chequing Account #2: $1,100

HISA #1: $60,020.63
HISA #2: $14,203.99
TFSA: $20,678.77
RRSP: $10,415

*Total*
$108,418.39

*Income*
$45,000/year.

*Monthly Expenses*
Phone: $40
Rent: $500
Food: $200
Public Transit: $60
Credit Card: $20.25

Average month for me I would say. =]


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## rofl

MoneyChase, is that all your expenses? If so you are the first person to have cut out nonessential spending completely.


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## SkyFall

rofl said:


> MoneyChase, is that all your expenses? If so you are the first person to have cut out nonessential spending completely.


by looking at his number I told myself the same thing...which is very impressive. You must have self control at level " Unreachable " :biggrin: I wish I can bring my expenses down that much... but hey don't forget to have fun along the way


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## peterk

what is "credit card: $20.25" ? It's been the exact same for 2 months - This isn't some minimum monthly payment you're making on a larger balance, is it??? :hopelessness:


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## NorthKC

Agreed! It's okay to be frugal but as a former 20-year old something, you need to have some fun or you will regret it. Reasonable fun, that is. Take up a sport, hobby, or something. 

Good job on such a great start to your savings and for holding out until you figure out what to do with those investments. I agree on having one chequing and one savings account rather than 2 chequing accounts.


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## MoneyChase

Hello, I haven't been around in a while and thought I would give an update on my status. I just turned 28 a month ago! :]

*July 1, 2015*

*Monthly Income(Gross)*
Employment: $3005.60
Rental Property: $2,500.00
Mortgage Principle: $150.25(Not sure if I should include this here...but it's monthly gains so I thought I would)

Total: 5,655.85

*Monthly Expenses*
Mortgage + Property taxes: $1,341.07
Mortgage Insurance: $38.40
Rental Insurance: $127.08
Rental Utilities(For June): $375.00
Cell Phone: $35
Rent: $500
Food: $300
Internet: $125

Total: $2716.55

*Monthly Income(5,655.85) - Monthly Expenses(2,841.55) = 2814.30*

*Assets*
House Appraisal: $285,000.00
Cash: $6,940.00
Chequing #1: $6,850.03
Chequing #2: $1,501.00
HISA = $4.64 
TFSA = $4.02 
RRSP = $10,598.05 

Total Assests: 310,897.74

*Liabilities*
Mortgage Owing: 164,257.41
Visa: 2.13

Total Liabilities: 164,259.54

*Total Assets(310,897.74) - Total Liabilities(164,259.54) = $146,638.20*

My big change in the last couple years would be the rental property. It's a great source of cash flow, conveniently located in front of a college and No major problems since the renovation as I stay on top of things regarding the house. Vacancy is also ultra low, which is nice. Currently after taxes I'm saving a little less than $2,000/month net, which will go towards maintenance of the property or saved for another property in the future. I am single too, which is nice because everything I have belongs to me and nobody else! lol I'll update my status monthly if people are interested!

No Real Estate haters, please. This is my financial journey, not yours! :]


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## TK.61

Great job with your finances! Definitely keep us updated!

If I understand correctly you bought a house solely as a rental property, and you continue you rent your own space? Also it appears you are generating 620-ish in cash-flow monthly from your rental property, that is awesome! I would guess you the rental you bought has 2 separate suites?


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## MoneyChase

Correct. I bought a house solely as a rental property while I continue to rent. The reasoning behind this is the fact I'm single and without a considerably higher income I would never be able to do the process in reverse.

Basically, if I chose to, I could buy another home as my primary residence as the rental property is paying for itself. If I were to go the usual way and bought a primary residence for myself before an investment property, my debt level would be considerably higher with a mortgage, which would make it near impossible to obtain an investment property in my situation.

Yes, my cash flow ranges from 400-700/month, depending on utility use. I choose to include utilities in rent to help offset my taxes during tax season.

It's actually a student house with five bedrooms and two full bathrooms. To help protect myself from future uncertainties, I bought the house right in front of the college in a prime location. Of course, nothing is guaranteed, but it's a risk I'm willing to take as with no risk comes no rewards.


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## tkirk62

Having just graduated university so knowing a bit about it, I think getting a rental right by a post secondary school is about as safe as the real estate market gets. I don't think our school ever had a vacancy during September to April within a three block radius and probably much farther than that. Get students to sign a 12 month lease as most will and you shouldn't have any vacancies for more than a week or two at a time. 

I also don't know if it is the case at the college you're renting near, but Laurier is buying more and more of the property around the school to expand the campus and also sometimes to just rent out themselves. If they want your property enough and you negotiate you could look to realize an impressive selling price on it.

All in all your finances look impressive and I'd be lucky to be half as well as you when I'm your age.


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## MoneyChase

August 31st, 2015

*These numbers are not including any expenses or income for September*

*Monthly Income(Gross)*
Employment: $3055.86
Rental Property: $2,475.00
Mortgage Principle: $152.00(Not sure if I should include this here...but it's monthly gains so I thought I would)

Total: $5682.86
*
Monthly Expenses*
Mortgage + Property taxes: $1,341.07
Mortgage Insurance: $38.40
Rental Insurance: $127.08
Rental Utilities(For June): $375.00
Cell Phone: $35
Rent: $500
Food: $300
Internet: $125

Total: $2716.55

*Monthly Income(5,682.86) - Monthly Expenses(2716.55) = 2,966.31*

*Assets*
House Appraisal: $285,000.00
Cash: $6,200
Chequing #1: $12,962.27
Chequing #2: $1,501.00
HISA = $4.64
TFSA = $4.02
RRSP = $10,598.05

Total Assests: $316,269.98

*Liabilities*
Mortgage Owing: 163,954.29
Visa: 21.23

Total Liabilities: $163,975.52

*Total Assets($316,269.98) - Total Liabilities($163,975.52) = $152,294.46*

Last two months I've pinched my money and managed to save roughly $2,800/month. One room mate left and I wanted to avoid a month of vacancy so I elected to drop rent by $25 to quickly fill the room for the school year. Currently looking for more options to expand my profitability. Will most likely start working two jobs again as overtime at my job will not be available through the slower winter months.


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## scorpion_ca

Just wondering.....why do you have $13k in chequing instead of HISA?


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## peterk

Woa. In what city are you getting 10% cap rates? $2475 rent on a 285k house is very good! Is it student housing?


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## TK.61

Yes, refer to post 16.


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## MoneyChase

Money is not in a HISA because of the hassle and the low interest rates. Not to forget that the banks like to ding you $5 or so just to access the funds. I would still gain in the long run, but I'm deciding whether I should put a lump sum on my mortgage or look into other ways to expand financially. My mortgage will be renewing in a few months. 

I'll most likely leave my mortgage the way it is as I'll most likely be offered a better rate with the prime going down x2 so far this year. Paying off the mortgage only makes sense if it was my primary residence as I'm cash flow positive and and the interest is being written off on a yearly bases.

The city is Kingston, Ontario. Queens University, St Lawrence college, and Royal Military College make for lots of student housing. The combination of these three schools in close proximity makes the houses near them gold mines if invested right.


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## scorpion_ca

I think you need to find a better bank such as PCF, CDF (still 1.5% on HISA) or Tangerine as they would not charge you $5 to access your own fund.


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## secretly.lazy

MoneyChase said:


> August 31st, 2015
> 
> *These numbers are not including any expenses or income for September*
> 
> *Monthly Income(Gross)*
> Employment: $3055.86
> Rental Property: $2,475.00
> Mortgage Principle: $152.00(Not sure if I should include this here...but it's monthly gains so I thought I would)
> 
> Total: $5682.86
> *
> Monthly Expenses*
> Mortgage + Property taxes: $1,341.07
> Mortgage Insurance: $38.40
> Rental Insurance: $127.08
> Rental Utilities(For June): $375.00
> Cell Phone: $35
> Rent: $500
> Food: $300
> Internet: $125
> 
> Total: $2716.55
> 
> *Monthly Income(5,682.86) - Monthly Expenses(2716.55) = 2,966.31*
> 
> *Assets*
> House Appraisal: $285,000.00
> Cash: $6,200
> Chequing #1: $12,962.27
> Chequing #2: $1,501.00
> HISA = $4.64
> TFSA = $4.02
> RRSP = $10,598.05
> 
> Total Assests: $316,269.98
> 
> *Liabilities*
> Mortgage Owing: 163,954.29
> Visa: 21.23
> 
> Total Liabilities: $163,975.52
> 
> *Total Assets($316,269.98) - Total Liabilities($163,975.52) = $152,294.46*
> 
> Last two months I've pinched my money and managed to save roughly $2,800/month. One room mate left and I wanted to avoid a month of vacancy so I elected to drop rent by $25 to quickly fill the room for the school year. Currently looking for more options to expand my profitability. Will most likely start working two jobs again as overtime at my job will not be available through the slower winter months.


I noticed you included 285k as appraisal. When did you buy the rental property?


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## Davis

Oaken.com has good HISA rates, and no fees. I agree that it is time to get a new chequing account - President's Choice Financial or Tangerine. The initial transfer is a hassle, but I've probably been with PCF for close to 20 years, so you can imagine how much I've saved in bank charges.


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## mauricecowell

Yeah, I think you are very good on your budgeting. I hope I have the same discipline as yours. I can't save anything, I actually during paydays.


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## MoneyChase

I bought the rental property in 2014 and it's where the appraisal comes from. I'll most likely keep it for the next 20+ years so hopefully it will be worth more then - time will tell.

October 1, 2015

Monthly Income(Gross)
Employment $: $3055.86
Employment #2:$814
Rental Property: $2,475.00
Mortgage Principle: $152.89(Not sure if I should include this here...but it's monthly gains so I thought I would)

Total: $6497.75

Monthly Expenses
Mortgage + Property taxes: $1,341.07
Mortgage Insurance: $38.40
Rental Insurance: $127.08
Rental Utilities(For September): $375.00
Cell Phone: $35
Rent: $500
Food: $300
Internet: $125

Total: $2716.55

Monthly Income(6497.75) - Monthly Expenses(2716.55) = 3781.20

Assets
House Appraisal: $285,000.00
Cash: $4,300
Chequing #1: $18,478.16
Chequing #2: $1,501.00
HISA = $4.64
TFSA = $4.02
RRSP = $10,598.05

Total Assests: $319,885.87

Liabilities
Mortgage Owing: 163,954.29
Visa: 21.23

Total Liabilities: $163,801.40

Total Assets($319,885.87) - Total Liabilities($163,801.40) = $156,084.47

Not much has changed in the last month, except starting to work two jobs again. I'm sure the government will love me when income tax season rolls around!


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## MoneyChase

I decided to make a post mid-month as I haven't done one in a while. A few big changes have occurred in the past few months since my last post. I didn't include my total monthly income or expenses, just my net worth. I'm also 28 years old if anyone is curious of my journey from 26!

February 13, 2016

Assets
House Appraisal: $285,000.00
Cash: $10
Chequing #1: $4,728.73
Chequing #2: $1,501.00
Chequing #3: $2,615.00
HISA = $35,451.92
TFSA = $4.02
RRSP = $5,641.79

Total Assests: $334,952.46

Liabilities
Mortgage Owing: $165,538.74
Visa: $0.38
Mastercard: $20.29
LOC: $0
HELOC: $0

Total Liabilities: $165,559.41

Total Assets($334,952.46) - Total Liabilities($165,538.74) = $169,084.47

Here are some of my notable changes:
1- I'm no longer working two jobs. I am back to working one job + overtime when it's available.
2- My mortgage has renewed from a rate of 6.49% to 2.89% for the next five years. Although my mortgage amount is now higher from the refinance, I'm gaining approximately $800/month positive cash flow from the rental property and another $320/month in home equity. versus approx. $475/month positive cash flow and $153/month home equity.
3- I've withdrawn money from my RRSP for a future investment property.

My cash is all liquid as the future plan is to obtain another investment property. Hopefully it'll turn out just as great as my first experience has!


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## scorpion_ca

Why don't you put HISA in TFSA? You can withdraw it anytime but it will grow tax free until you need it.


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## MoneyChase

scorpion_ca said:


> Why don't you put HISA in TFSA? You can withdraw it anytime but it will grow tax free until you need it.


I have no reason, really. Dead money.

April 1, 2016

Assets
House Appraisal: $285,000.00
Cash: $10
Chequing #1: $4,892.83
Chequing #2: $1,501.00
Chequing #3: $2,615.00
HISA = $38,903.61
TFSA = $4.02
RRSP = $5,642.25

Total Assets: $338,568.71

Liabilities
Mortgage Owing: $165,053.87
Visa: $0
Mastercard: $0
LOC: $0
HELOC: $0

Total Liabilities: $165,053.87

Total Assets($338,568.71) - Total Liabilities($165,053.87) = $173,514.84


Well, the good news is that it seems like I'm on track to have a net worth of $200,000 by 30 years old, which is in one year and two months! I do have some dead money, which I realize, but I'm also actively looking for Real Estate Investment opportunities!


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## MoneyChase

May 7, 2016

Assets
House Appraisal: $285,000.00
Cash: $0
Chequing #1: $5,688.22
Chequing #2: $1,501.00
Chequing #3: $2,615.00
HISA = $39,925.64
TFSA = $4.02
RRSP = $5,642.48

Total Assets: $340,376.36

Liabilities
Mortgage Owing: $164,567.39
Visa: $88.42
Mastercard: $0
LOC: $0
HELOC: $0

Total Liabilities: $164,655.81

Total Assets($340,376.36) - Total Liabilities($164,655.81) = $175,720.55


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## MoneyChase

July 30, 2016

Assets
House Appraisal: $285,000.00
Cash: $50
Chequing #1: $3,772.15
Chequing #2: $1,501.00
Chequing #3: $2,605.05
HISA = $48,068.11
TFSA = $4.02
RRSP = $5,643.19

Total Assets: $346,643.52

Liabilities
Mortgage Owing: $163,589.60
Visa: 0
Mastercard: $0
LOC: $0
HELOC: $0

Total Liabilities: $163,589.60

Total Assets($346,643.52) - Total Liabilities($163,589.60) = $183,053.95

I'd like to think that I'll hit the $200,000 net worth mark by age 30, but I only have 10 months remaining!


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## MoneyChase

September 3, 2016

*Assets*
House Appraisal: $285,000.00
Cash: $100
Chequing #1: $3,431.91
Chequing #2: $1,501.00
Chequing #3: $2,605.05
HISA = $51,150.58
TFSA = $4.02
RRSP = $5,643.43
Group RRSP = $1,401

Total Assets: $350,836.99

*Liabilities*
Mortgage Owing: $163,180.27
Visa: 0
Mastercard: $0
LOC: $0
HELOC: $0

Total Liabilities: $163,180.27

Total Assets($350,836.99) - Total Liabilities($163,180.27) = *$187,656.72*


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## Spudd

Sorry to be nosy, but why do you have $4 in TFSA and $51k in HISA? Why don't you shelter most of that 51k in your TFSA?


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## MoneyChase

Spudd said:


> Sorry to be nosy, but why do you have $4 in TFSA and $51k in HISA? Why don't you shelter most of that 51k in your TFSA?


Higher taxable income motivates me. I paid $3,000 in taxes last year. If I owe $4,500 this coming year, it simply means I'm winning.

October 8, 2016

*Assets*
House Appraisal: $285,000.00
Cash: $20
Chequing #1: $3,625.05
Chequing #2: $1,501.00
Chequing #3: $2,605.05
HISA = $58,237.17
TFSA = $4.02
RRSP = $5,643.66
Group RRSP = $1,560.00

Total Assets: $358,195.95

*Liabilities*
Mortgage Owing: $162,769.82
Visa: 18.06
Mastercard: $0
LOC: $0
HELOC: $0

Total Liabilities: $162,787.88

Total Assets($358,195.95) - Total Liabilities($162,787.88) = *$195,408.07*


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## Spudd

MoneyChase said:


> Higher taxable income motivates me. I paid $3,000 in taxes last year. If I owe $4,500 this coming year, it simply means I'm winning.


But you realize your net worth (which you're tracking in this diary) would go up faster if you paid less taxes, right? If it were me I would be more motivated to keep the money for myself than to give it to the taxman.


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## My Own Advisor

MoneyChase said:


> September 3, 2016
> 
> *Assets*
> House Appraisal: $285,000.00
> Cash: $100
> Chequing #1: $3,431.91
> Chequing #2: $1,501.00
> Chequing #3: $2,605.05
> HISA = $51,150.58
> TFSA = $4.02
> RRSP = $5,643.43
> Group RRSP = $1,401
> 
> Total Assets: $350,836.99
> 
> *Liabilities*
> Mortgage Owing: $163,180.27
> Visa: 0
> Mastercard: $0
> LOC: $0
> HELOC: $0
> 
> Total Liabilities: $163,180.27
> 
> Total Assets($350,836.99) - Total Liabilities($163,180.27) = *$187,656.72*


Still in 20s? If so, very well done.

Max out your TFSA if you can in 2017, then put extra money your mortgage. Rinse and repeat for the next decade and you'll be debt-free by 40 AND have a healthy TFSA nest egg.

Not to mention likely close to a millionaire.


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## mind_business

OP, very impressive! You're in an enviable position being so young. Way farther ahead than I was at that age. Keep going!


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## cashinstinct

Congrats Op. Very well done indeed.

I would say I find your net worth heavy in Real Estate, high in cash and low in investments.

One could say the stock market is "high" right now, but who knows?


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## MoneyChase

December 4, 2016

*Assets*
House Appraisal: $285,000.00
Cash: $50
Chequing #1: $4,578.13
Chequing #2: $2,001.00
Chequing #3: $2,605.05
HISA #1 = $60,860.13
HISA #2 = $400.31
TFSA = $4.02
RRSP = $5,644.13
Group RRSP = $1,648.00

Total Assets: $362,790.77

*Liabilities*
Mortgage Owing: $162,110.75
Visa: 0
Mastercard: $0
LOC: $0
HELOC: $0

Total Liabilities: $162,110.75

Total Assets($362,790.77) - Total Liabilities($162,110.75) = *$200,680.02* @ 29.


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## mordko

This has to be the first time I have met a person motivated to pay higher taxes. You do realize CRA would be happy to take any amount you can volunteer to pay? There is a special entry for that on your tax return form.


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## peterk

Awesome job man, we're the same age. Saving $100k in 3 years is fantastic, and you beat your goal of 200k by 30!

Do you have something in mind to do with all that cash? I see you seem to be saving a lot in HISA but making fairly small (minimum?) payments on the mortgage. Have you thought about paying more of the mortgage off faster?



Spudd said:


> Sorry to be nosy, but why do you have $4 in TFSA and $51k in HISA? Why don't you shelter most of that 51k in your TFSA?





MoneyChase said:


> Higher taxable income motivates me. I paid $3,000 in taxes last year. If I owe $4,500 this coming year, it simply means I'm winning.





Spudd said:


> But you realize your net worth (which you're tracking in this diary) would go up faster if you paid less taxes, right? If it were me I would be more motivated to keep the money for myself than to give it to the taxman.


This is an interesting perspective... Hopefully you're beginning to come to the realization that paying more taxes doesn't "mean I'm winning" - Although I can see how that mindset might be motivational to a young person fresh out of school and eager to earn a good living by working hard, prove their worth, and claim their place in society as a successful adult. But just wait until your tax bill is $30,000 instead of $3,000... Then I'm quite sure you won't be so motivated and excited at the prospect of paying $45,000 the next year as a result of excessive winning. 

For now, dumping $52k (at the start of 2017) into a HISA TFSA could be a very quick and easy way to rearrange your funds. At 2% interest and a tax rate of 30% you would immediately save $300/yr straight into your account. Plus you would be growing your TFSA contribution limit in a risk-free way for if/when you want to be begin investing in the stock market sometime in the future.


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## Steve Divi

MoneyChase said:


> December 4, 2016
> 
> *Assets*
> House Appraisal: $285,000.00
> Cash: $50
> Chequing #1: $4,578.13
> Chequing #2: $2,001.00
> Chequing #3: $2,605.05
> HISA #1 = $60,860.13
> HISA #2 = $400.31
> TFSA = $4.02
> RRSP = $5,644.13
> Group RRSP = $1,648.00
> 
> Total Assets: $362,790.77
> 
> *Liabilities*
> Mortgage Owing: $162,110.75
> Visa: 0
> Mastercard: $0
> LOC: $0
> HELOC: $0
> 
> Total Liabilities: $162,110.75
> 
> Total Assets($362,790.77) - Total Liabilities($162,110.75) = *$200,680.02* @ 29.


Great work on that 200k milestone! That is really impressive @29


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## MoneyChase

*February 12, 2017*

*Assets*
House Appraisal: $285,000.00
Cash: $0
Chequing #1: $4,351.72
Chequing #2: $2,001.00
Chequing #3: $3,105.05
HISA #1 = $63,458.51
HISA #2 = $400.59
TFSA = $4.02
RRSP = $5,644.61
Group RRSP = $1,825.21

Total Assets: $365,790.71

*Liabilities*
Mortgage Owing: $161,282.82
Visa: $60.11
Mastercard: $0
LOC: $0
HELOC: $0

Total Liabilities: $161,342.93

Total Assets($365,790.71) - Total Liabilities($161,342.93) = *$204,447.78*


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## MoneyChase

June 16, 2017

Assets
House Appraisal #1: $285,000.00
House Appraisal #2: $270,000.00
Cash: $100
Chequing #1: $6,515.73
Chequing #2: $2,001.00
Chequing #3: $3,105.05
HISA #1 = $2,408.47
HISA #2 = $401.12
TFSA = $4.02
RRSP = $5,645.54
Group RRSP = $2,101.00

Total Assets: *$577,181.93*

Liabilities
Mortgage #1: $159,864.84
Mortgage #2: $170.000.00
Visa: $0
Mastercard: $0
LOC: $0
HELOC #1: $22,940.06
HELOC #2: $0

Total Liabilities: *$352,804.90*

Total Assets($577,181.93) - Total Liabilities($352,804.90) = *$224,377.03*

Bought my second rental property & excited for my new adventure! Plus, 30 years old as of 2 weeks ago-ish!!!!


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## janus10

From your first post you already impressed me as to how you were able to amass so much so quickly on an average income. You could be a real help to others, of many age groups, if you felt like posting about how you were able to get to where you are.

Certainly having a frugal mindset is not particularly common these days, but I'm sure most everyone above the 30% lowest of earners could learn to cut back here or there.

We've never seen a post about any material purchases or even a vacation. You don't speak of entertainment expenses at all. How do you reward yourself for all that you have accomplished, or do you enjoy the journey enough that it is its own reward?

What struck me about your last post is how quickly you amassed a $100k down payment on your latest property. I can't make the math work in my head based on your Feb post and accounting for closing fees.

It seems as though you were able to create about $40k in just four months to add to your existing cash holdings. Details on how you achieved that could be quite helpful to us all.


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## MoneyChase

janus10 said:


> From your first post you already impressed me as to how you were able to amass so much so quickly on an average income. You could be a real help to others, of many age groups, if you felt like posting about how you were able to get to where you are.
> 
> Certainly having a frugal mindset is not particularly common these days, but I'm sure most everyone above the 30% lowest of earners could learn to cut back here or there.
> 
> We've never seen a post about any material purchases or even a vacation. You don't speak of entertainment expenses at all. How do you reward yourself for all that you have accomplished, or do you enjoy the journey enough that it is its own reward?
> 
> What struck me about your last post is how quickly you amassed a $100k down payment on your latest property. I can't make the math work in my head based on your Feb post and accounting for closing fees.
> 
> It seems as though you were able to create about $40k in just four months to add to your existing cash holdings. Details on how you achieved that could be quite helpful to us all.


Hi Janus, 

Thanks for the kind words. I've always believed that it was not about how much you make, but more about what you do with the money that you do earn. I don't have a college or university degree like a lot of people on here. I think at some point I could provide rays of hope to the people whom think because they work low paying jobs for whatever reason that they automatically assume they can not have a successful life financially speaking.

I've actually never taken a vacation anywhere. I have a couple close friends that I do things with that cost little to no money, like fishing, just hanging out, watching movies, going to the beach etc. And the way I reward myself is with materialistic items that cost more then $100 when I reach goals. Example: I grew up in poverty a lot of my life so my very first paycheck I received working as a dishwasher at a restaurant I had two thoughts. Take the $300 buy some things I could not afford and continue being broke or save it to $5,000 and buy myself something nice. I saved $5,000 and bought a laptop for $450 at Best Buy. First laptop I ever owned and it ended up dying a few months ago so I went out and bought another one @ $450 because it's needed for the rental business.

My closing costs were $5,000-ish. I did utilize my HELOC on my other property because I can pay off $23,000 way faster then the 5 year fixed that the new rental property is locked into. This allowed me to have liquid cash for any emergencies, interest I can write off, and a cheaper monthly mortgage in the long term. Before any taxes, deductions or expenses I am grossing approximately $100,000/year these days. The rental property is also netting $700+ month net not including equity and I'm making more income now then I was when I first created this thread, which is probably why you're having a hard time grasping it!

I've also read some blogs periodically online like Mr Money Mustache, but the blog doesn't intrigue me because my gross income was never $100,000+/year and I never went to college or university. I give all the credit in the world for retiring by 30, but there is a lot more people in the world earning less then $100,000/year and/or living a poverty life. 

I will start posting more detailed updates for now on to give people a better understanding of my growth. Feel free to ask any questions and I'll do my best to answer!


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## OnlyMyOpinion

Kudos as well to your saving & work ethic.
I'm sure you realize that you are heavily (solely) invested in rental real estate. Depending on location you should continue to do well, but I would suggest building up some diversity in your investments over time as well.


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## MoneyChase

*July 14, 2017*

*Assets*
House Appraisal #1: $285,000.00
House Appraisal #2: $270,000.00
Cash: $40
Chequing #1: $7,010.66
Chequing #2: $2,001.00
Chequing #3: $3,100.00
HISA #1 = $0
HISA #2 = $401.12
TFSA = $4.02
RRSP = $5,645.77
Group RRSP = $2,219.00

Total Assets: *$575,421.57*

*Liabilities*
Mortgage #1: $159,529.27
Mortgage #2: $169,649.17
Visa: $35.36
Mastercard: $0
LOC: $0
HELOC #1: $19,627.24
HELOC #2: $0

Total Liabilities: *$348,841.04*

Total Assets($575,421.57) - Total Liabilities($348,841.04) = *$226,580.53*

The gain doesn't look like much from last month, but I pay my property taxes in lump sums instead of through the lender and last month costed me $2,800-ish. I also had some set up fees for companies providing services to the new rental property. Below is an example of the cash flow being produced from the rental properties for the month of July as all bills are in and rents paid:

*Rental property #1:*

_Income_
Rent = $2,300

_Expenses_
Mortgage = $687.28
Property taxes = $223.75
Insurance = $127.91
Utilities = $222.67
Cogeco = $124.24

Income($2,300) - Expenses($1,385.85) = *$914.15 Cash flow*

*Rental property #2:*

_Income_
Rent = $2,500

_Expenses_
Mortgage = $709.61
Property taxes = $233.42
Insurance = $102.33
Utilities = $370.26
Cogeco = $85.92

Income($2,500) - Expenses($1501.54) = *$998.46 Cash flow*


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## mikep

mordko said:


> This has to be the first time I have met a person motivated to pay higher taxes. You do realize CRA would be happy to take any amount you can volunteer to pay? There is a special entry for that on your tax return form.


I also agree this sounds ridiculous. 

keeping money in a bank account while your TFSA is empty? 
the name of the game is to lower your taxable income. who the hell wants to pay more taxes?
I have rental properties mutual funds and a primary residence with a mortgage. 
OP, you should beef up your TFSA and buy some mawer funds., if you choose to buy a primary residence, refinance a rental property and use that equity to try and pay all cash for a primary residence. 
this way you aren't paying non-deductible interest and boost your deductible interest on your rental property lowering your taxable income.

but then again you like paying tax. so I don't know what you're smoking. sure ain't the same **** I am.


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## nobleea

mikep said:


> if you choose to buy a primary residence, refinance a rental property and use that equity to try and pay all cash for a primary residence.
> this way you aren't paying non-deductible interest and boost your deductible interest on your rental property lowering your taxable income.


Doing what you propose would eliminate the tax deductibility of the loan.
It's what the borrowed funds are used for, not what they were loaned against, which determines the deductibility.
Your suggested course of action would be borrowing money to buy a personal residence, which is not deductible.


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## mikep

correct the borrowed money is to be used for investing.
but what if you were to buy a GIC for a year, then when that matures use the money to pay off the primary rez?


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## MoneyChase

mikep said:


> correct the borrowed money is to be used for investing.
> but what if you were to buy a GIC for a year, then when that matures use the money to pay off the primary rez?


I don't own a primary residence if you read through this thread. I have investment properties And where am I getting a GIC that's higher then prime + .5?. You also shouldn't be concerned on how I'm motivated to achieve such great success without a college or university degree IE: paying more income tax if you're just going to assume it's stupidity; Instead you should take the learning approach.

Example: Rental property #2 was bought partially with a HELOC so it's deductible. If you could do math, I'm sure you'd realize that the cash flow on that property is producing more gains then any GIC or savings account ever would. 

While you take the obvious path in life that has been walked down millions of times, let me create another path and shock you in 10 years when I'm retired


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## mikep

[][


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## nobleea

mikep said:


> correct the borrowed money is to be used for investing.
> but what if you were to buy a GIC for a year, then when that matures use the money to pay off the primary rez?


There has to be an expectation of profit. Buying a GIC at 1.75% with money borrowed at 2.75% is not going to cut it. It's not like the GIC is going to increase it's rate.


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## Loonies

Just starting to seriously try and be more proactive about my finances at 25, this is very encouraging! Great job..


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## MoneyChase

Loonies said:


> Just starting to seriously try and be more proactive about my finances at 25, this is very encouraging! Great job..


Thanks!

*August 12, 2018*

*Assets*
House Appraisal #1: $285,000.00
House Appraisal #2: $270,000.00
Cash: $0
Chequing #1: $7,150.53
Chequing #2: $2,001.00
Chequing #3: $3,023.00
HISA #1 = $0
HISA #2 = $401.40
TFSA = $4.02
RRSP = $5,646.01
Group RRSP = $2,309.00

Total Assets: *$575,534.96*

*Liabilities*
Mortgage #1: $159,108.76
Mortgage #2: $169,352.68
Visa: $57.36
Mastercard: $0
LOC: $0
HELOC #1: $15,707.59
HELOC #2: $0

Total Liabilities: *$344,226.39*

Total Assets($575,534.96) - Total Liabilities($344,226.39) = *$231,308.57*


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## MoneyChase

*September 09, 2017*

*Assets*
House Appraisal #1: $285,000.00
House Appraisal #2: $270,000.00
Cash: $20
Chequing #1: $6,421.58
Chequing #2: $2,001.00
Chequing #3: $3,020.00
HISA #1 = $0
HISA #2 = $401.40
TFSA = $4.02
RRSP = $5,646.25
Group RRSP = 2321.02

Total Assets: *$574,835.27*

*Liabilities*
Mortgage #1: $158,771.52
Mortgage #2: $169,055.46
Visa: $39.01
Mastercard: $0
LOC: $0
HELOC #1: $10,161.49
HELOC #2: $0

Total Liabilities: *$338,027.48*

Total Assets($574,835.27) - Total Liabilities($338,027.48) = *$236,807.79*

Hammered at the HELOC over the past few months and it's going down nicely as I seek more investment opportunities


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## MoneyChase

*October 7, 2017*

*Assets*
House Appraisal #1: $285,000.00
House Appraisal #2: $270,000.00
Cash: $0
Chequing #1: $7,333.16
Chequing #2: $2,001.00
Chequing #3: $3,005.00
HISA #1 = $0
HISA #2 = $401.79
TFSA = $4.02
RRSP = $5,646.48
Group RRSP = $2,321.02

Total Assets: *$575,712.47*

*Liabilities*
Mortgage #1: $158,433.53
Mortgage #2: $168,757.53
Visa: $0
Mastercard: $36.00
LOC: $0
HELOC #1: $6,747.00
HELOC #2: $0

Total Liabilities: *$333,974.06*

Total Assets($575,712.47) - Total Liabilities($333,974.06) = *241,738.41*

With 2017 approaching to an end I'm looking to hopefully hit a quarter million in net worth and pay off the remainder on my HELOC balance by December 31st. It's a nice goal, but if it doesn't happen I will be okay with it as life can throw unexpected expenses both small and big at any time.


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## MoneyChase

*November 4, 2017*

*Assets*
House Appraisal #1: $285,000.00
House Appraisal #2: $270,000.00
Cash: $475
Chequing #1: $7,173.20
Chequing #2: $2,001.00
Chequing #3: $3,004.93
HISA #1 = $0
HISA #2 = $401.79
TFSA = $4.02
RRSP = $5,646.72
Group RRSP = $2,702.12

Total Assets: *$576,408.78*

*Liabilities*
Mortgage #1: $158,094.80
Mortgage #2: $168,458.87
Visa: $26.43
Mastercard: $0
LOC: $0
HELOC #1: $3,495.00
HELOC #2: $0

Total Liabilities: *$330,075.10*

Total Assets($576,408.78) - Total Liabilities($330,075.10) = *246,333.68*


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## MoneyChase

*December 4, 2017*

*Assets*
House Appraisal #1: $285,000.00
House Appraisal #2: $270,000.00
Cash: $25
Chequing #1: $7,402.08
Chequing #2: $2,001.00
Chequing #3: $3,309.34
HISA #1 = $0
HISA #2 = $402.22
TFSA = $4.02
RRSP = $5,646.95
Group RRSP = $2,790.54

Total Assets:* $576,581.15*

*Liabilities*
Mortgage #1: $157,755.33
Mortgage #2: $168,159.48
Visa: $0
Mastercard: $0
LOC: $0
HELOC #1: $0
HELOC #2: $0

Total Liabilities: *$325,914.81*

Total Assets($576,581.15) - Total Liabilities($325,914.81) = *250,666.34
*

Reached 250k net worth and paid off HELOC in full. Great end to 2017 shaping up for me!


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## ctee

*what city do you live in?*



MoneyChase said:


> *December 4, 2017*
> 
> *Assets*
> House Appraisal #1: $285,000.00
> House Appraisal #2: $270,000.00
> Cash: $25
> Chequing #1: $7,402.08
> Chequing #2: $2,001.00
> Chequing #3: $3,309.34
> HISA #1 = $0
> HISA #2 = $402.22
> TFSA = $4.02
> RRSP = $5,646.95
> Group RRSP = $2,790.54
> 
> Total Assets:* $576,581.15*
> 
> *Liabilities*
> Mortgage #1: $157,755.33
> Mortgage #2: $168,159.48
> Visa: $0
> Mastercard: $0
> LOC: $0
> HELOC #1: $0
> HELOC #2: $0
> 
> Total Liabilities: *$325,914.81*
> 
> Total Assets($576,581.15) - Total Liabilities($325,914.81) = *250,666.34
> *
> 
> Reached 250k net worth and paid off HELOC in full. Great end to 2017 shaping up for me!



Where do you live with housing that costs around 300k to buy and rents out at 2000+ a month?? housing where i live is very expensive and rent is about the same as yours. but is 4x more expensive to buy.


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## MoneyChase

*March 4, 2018*

*Assets*
House Appraisal #1: $285,000.00
House Appraisal #2: $270,000.00
Cash: $30
Chequing #1: $15,451.89
Chequing #2: $2,001.00
Chequing #3: $3,008.68
HISA #1 = $0
HISA #2 = $402.90
TFSA = $4.02
RRSP = $5,647.65
Group RRSP = $3,008.97

Total Assets: *$584,555.11*

*Liabilities*
Mortgage #1: $156,646.86
Mortgage #2: $167,256.93
Visa: $0
Mastercard: $0
LOC: $0
HELOC #1: $0
HELOC #2: $0

Total Liabilities: *$323,903.79*

Total Assets($584,555.11) - Total Liabilities($323,903.79) = *260,651.32*

Big expenses in the past two months were property taxes for both properties and yearly insurance payment for one property. This accumulated to approx. $4,500


----------



## MoneyChase

*April 4, 2018*

*Assets*
House Appraisal #1: $285,000.00
House Appraisal #2: $270,000.00
Cash: $475
Chequing #1:$18,798.89
Chequing #2: $2,001.00
Chequing #3: $3,008.68
HISA #1 = $0
HISA #2 = $403.16
TFSA = $4.02
RRSP = $5,647.89
Group RRSP = $3,109.27

Total Assets: *$588,447.91*

*Liabilities*
Mortgage #1: $156,304.19
Mortgage #2: $166,954.61
Visa: $0
Mastercard: $0
LOC: $0
HELOC #1: $0
HELOC #2: $0

Total Liabilities: *$323,258.80*

Total Assets($588,447.91) - Total Liabilities($323,258.80) = *265,189.11*

Pretty good month for me. Next month I'll officially be 31 and still single, but I'm not complaining!


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## peterk

Looking good Chase.

What is your employment income these days? Are you paying all those big taxes you were motivated to pay a few years ago?

I see you are still avoiding your TFSA, which could be a great place to hold that cash as an "emergency fund", but no big deal since we're just talking 20k anyways 

So most of your spare income is going into knocking down those mortgages? What's the estimated schedule for when you'll have them paid off?


----------



## MoneyChase

peterk said:


> Looking good Chase.
> 
> What is your employment income these days? Are you paying all those big taxes you were motivated to pay a few years ago?
> 
> I see you are still avoiding your TFSA, which could be a great place to hold that cash as an "emergency fund", but no big deal since we're just talking 20k anyways
> 
> So most of your spare income is going into knocking down those mortgages? What's the estimated schedule for when you'll have them paid off?


My employment income these days have not changed much since my early days. The bigger changes come with the rental properties and the money coming in every month. I'm motivated to create change and I'm fine with paying my fair share of taxes.

Yes I'm still avoiding the TFSA. I was thinking about starting some ETF's, but have not done so as I've also been thinking about and trying to obtain another rental property.

I don't have an estimated time to knock off the mortgages. If left alone one is fully paid off by 54 and the other by 59.

*May 3, 2018*

*Assets*
House Appraisal #1: $285,000.00
House Appraisal #2: $270,000.00
Cash: $940
Chequing #1: $22,372.63
Chequing #2: $2,001.00
Chequing #3: $3,008.68
HISA #1 = $0
HISA #2 = $403.41
TFSA = $4.02
RRSP = $5,648.12
Group RRSP = $3,219.27

Total Assets: *$592,597.13*

*Liabilities*
Mortgage #1: $155,960.77
Mortgage #2: $166,651.56
Visa: $0
Mastercard: $0
LOC: $0
HELOC #1: $0
HELOC #2: $0

Total Liabilities: *$322,612.33*

Total Assets($592,597.13) - Total Liabilities($322,612.33) = *$269,984.80*

Income tax complete for 2017. Next big expenses coming in june are the yearly insurance renewal and property tax payments X2.


----------



## MoneyChase

*June 3, 2018*

*Assets*
House Appraisal #1: $285,000.00
House Appraisal #2: $270,000.00
Cash: $1205.00
Chequing #1: $26,569.59
Chequing #2: $2,001.00
Chequing #3: $3,008.68
HISA #1 = $0
HISA #2 = $403.67
TFSA = $4.02
RRSP = $5,648.36
Group RRSP = $3,219.27

Total Assets: *$597,059.59*

*Liabilities*
Mortgage #1: $155,530.43
Mortgage #2: $166,347.77
Visa: $0
Mastercard: $0
LOC: $0
HELOC #1: $0
HELOC #2: $0

Total Liabilities: *$321,878.20*

Total Assets($597,059.59) - Total Liabilities($321,878.20) = *$275,181.39*


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## OnlyMyOpinion

MC, as a student landlord in Kingston, this article on student housing might interest you:

*Huge demand for student housing makes it a lucrative opportunity for investors*

_"They estimate that the unmet (residual) demand for student housing in Canada is more than 416,000 beds. This should hardly come as a surprise since even with millions enrolled in Canadian universities, the total number of on-campus beds is just 121,164.
SVN estimates that the current number of purpose-built off-campus beds across Canada is 39,178, almost half of which are in the Kitchener-Waterloo area.
The unmet demand for such housing is estimated to be huge, with 51,000 beds needed in Montreal, 32,000 in Toronto and 21,500 in Ottawa.

From an investment point of view, the numbers favour student housing over other residential rental projects. For instance, a purpose-built rental with 140,000 square feet of rental space can house approximately 220 people in 140 units. The same space will accommodate 450 students and can generate 30 per cent more rent"_

Of course nothing lasts forever so I wouldn't put all of my eggs into one basket. I've heard for example, that TFSA's are a very good idea


----------

