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About 33% of my net worth comprises real estate, the rest is cash, brokerage and retirement accounts. TBH, if I didn't have the forced savings of paying my mortgage I'm not sure I would have intelligently invested that money.
Also my mortgage was steady when I was renting this unit out. Of course escrow went up and down, mostly up but that was pretty much passed off to the tenant. My PITI was under 1k, but the tenant was paying 1850 a month for the privilege of living there. I was able to take the difference minus costs to accelerate paying off the mortgage.
I do think the forced savings of having a mortgage can help a lot of people. Once they get used to pay for something that appreciates in value, the light bulb goes off for some that they can buy other things that go up in value, too.
I'm an abstract thinking so I didn't need to own a place for that light bulb to go off. I remember being a kid and just loving the idea of earning interest in a bank account or CD for doing nothing. It took me a long time to realize other people's brains just don't light up when it comes to compound interest the way mine did / does.
When my daughter got married she was going to rent in our area ....instead I talked her into living in a different area and buying a coop .
It wasn’t like if they lived in our area there was a difference to save..it was pay rent and get nothing or live in a different area and at least get something.
So they bought the coop in Howard beach , John gotti’s old neighborhood .
At different times of our Ives we have different resources and options ...
Early on the best choice may be to buy since not many have much to invest elsewhere after rent nor do they have the discipline..
Then once you develop equity you can have cash to work with if you decide to rent ...by the time I rented I had enough seed money to rent and buy a real estate business with the money no longer tied up in the house ,so today that money pays our rent as well as our years expenses by being invested.
I wonder how common it is to have a minimum of a million dollars in investments as well as owning/living in a million dollar house. Where I live the average house price is a tad over a million dollars. This not brand new nor are they mansions by any means. Second most unaffordable city for housing in relation to incomes. https://canadaimmigrants.com/average...-in-vancouver/
I wonder how common it is to have a minimum of a million dollars in investments as well as owning/living in a million dollar house. Where I live the average house price is a tad over a million dollars. This not brand new nor are they mansions by any means. Second most unaffordable city for housing in relation to incomes. https://canadaimmigrants.com/average...-in-vancouver/
A $2 million net worth puts you in the top 6.5% in the US, top 2.3% in Canada. But since a US dollar equals 1.26 Canadian dollars, you would need to be worth $2.52 million Canadian to be worth $2 million US. That puts you in the top 1.7% in Canada. I don't know if statistics are even available for people who own a million dollar home free and clear, but that would further lower the percentage.
I wonder how common it is to have a minimum of a million dollars in investments as well as owning/living in a million dollar house. Where I live the average house price is a tad over a million dollars. This not brand new nor are they mansions by any means. Second most unaffordable city for housing in relation to incomes. https://canadaimmigrants.com/average...-in-vancouver/
We have a few million in investments and own no house..our investments not only spin off enough to pay the rent but most of our yearly expenses as well and are still growing
I wonder how common it is to have a minimum of a million dollars in investments as well as owning/living in a million dollar house. Where I live the average house price is a tad over a million dollars. This not brand new nor are they mansions by any means. Second most unaffordable city for housing in relation to incomes. https://canadaimmigrants.com/average...-in-vancouver/
That’s what I’m working on the next few years - our house is about $1M ($250K mortgage), I have the million plus in cash, my goal is $1M (house) / $1M cash / $1M stocks. With the vast majority of my net worth being in commercial real estate investments that generate passive income. The 3 x 1 goal is just for diversification and making sure I have a nice base to grow.
I used to be active on this forum a while back . Went through a rough divorce, and now back on my feet.
My post on the first page of this thread some 7 years ago:
----
San Jose
32
230K/ yr
NW 440K
----
I am now 38 ( almost 39) - Bay Area - I expect to make 450K (560 household) this year - N/W 1.4M. (1.9M household)
Life in the last 3 years has been good. Got married again and this time to someone who works... I think its safe to say that having double income had an incredible impact on my/our finances. I expect to add 300-400K to our collective NW every year now. but not all goes according to plan.. just thankful for now.
Last edited by aramax666; 04-01-2021 at 09:34 AM..
Today is the day I see that elusive extra digit on my portfolio balance, my official entry into the 7 figure club. It's been a long time coming but I am finally here. I know I will probably get kicked out and inside of this mark over the next few months or possible even years, who knows, but it's a great feeling to have finally accomplished it with diligent investing and a little bit of luck in the markets.
It's been a wild ride - $375K Net Worth at age 42 to $1M+ at age 47, glad I HODL through all the market madness over the years.
So here is my final NW Update:
Location: Texas
Age: 47
Income: $175k/yr inclusive of bonuses + stock NW: $1.00038 Million (investments only, not inclusive of my property - car, personal prop. etc.)
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