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Old 03-05-2019, 02:49 PM   #341651
DK Barrel
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Re: ***Official "It Lives, It Lives" Chat Thread***

Back when I was considering settling down in the GTA and finding a place I looked into buying.

Obv home ownership was out of the question, but buying a condo didn't seem to make any sense because maintenance fees were $400-$600 everywhere.

So you're looking at $1400 rent for a 1 bedroom, or $1700 on a 350k mortgage for your 1br condo plus $400 in maintenance. It's completely unaffordable.

Plus, Toronto is a toilet and the way it's being run it is only getting worse in 30 years. Wouldn't say housing there is a sure bet to appreciate, and even if it did I wouldn't want to be stuck there.
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Old 03-05-2019, 02:57 PM   #341652
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Re: ***Official "It Lives, It Lives" Chat Thread***

so this might be a lol-simple answer of 'no' and i'm probably well out of my depth, but here goes...

is there any advantage/benefit for me to start an handyman company that serves 1 client (myself) and operates yearly at a loss? i'm planning on doing a lot of work on my house so i'm wondering if there are incentives for me to set something up like that.

ultimately, i think it would be a pretty cool side gig to make awesome cabinets and furniture for people, so some company set up would be needed for that, but i'm not at that level yet because of what i need to do on my house.
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Old 03-05-2019, 03:14 PM   #341653
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Re: ***Official "It Lives, It Lives" Chat Thread***

@GG...

Renting at $700/mo.

You're assuming the rent stays the same over 13 years. Only true in rent-control areas.
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Old 03-05-2019, 03:16 PM   #341654
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Re: ***Official "It Lives, It Lives" Chat Thread***

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so this might be a lol-simple answer of 'no' and i'm probably well out of my depth, but here goes...



is there any advantage/benefit for me to start an handyman company that serves 1 client (myself) and operates yearly at a loss? i'm planning on doing a lot of work on my house so i'm wondering if there are incentives for me to set something up like that.



ultimately, i think it would be a pretty cool side gig to make awesome cabinets and furniture for people, so some company set up would be needed for that, but i'm not at that level yet because of what i need to do on my house.


Donít have an answer. However I heard somewhere that you can deduct home improvements against capital gains when you sell a home. Iím sure slim or some other tax guy could confirm/deny
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Old 03-05-2019, 03:19 PM   #341655
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Re: ***Official "It Lives, It Lives" Chat Thread***

"Renting is better" is a manifestation of the reduction of an "ownership mentality" in the USA#1, IMO.
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Old 03-05-2019, 03:26 PM   #341656
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Re: ***Official "It Lives, It Lives" Chat Thread***

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"Renting is better" is a manifestation of the reduction of an "ownership mentality" in the USA#1, IMO.


What do you think is the cause of this?
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Old 03-05-2019, 03:26 PM   #341657
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Re: ***Official "It Lives, It Lives" Chat Thread***

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Don’t have an answer. However I heard somewhere that you can deduct home improvements against capital gains when you sell a home. I’m sure slim or some other tax guy could confirm/deny
pretty sure you don't pay capital gains on a house anyway, so long as you purchase a new home with the gains from the sold house within X time frame of selling that house (i think 1 year, but unsure)
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Old 03-05-2019, 03:28 PM   #341658
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What do you think is the cause of this?
millennials and gen z'ers being a bunch of bitches
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Old 03-05-2019, 03:29 PM   #341659
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***Official "It Lives, It Lives" Chat Thread***

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Originally Posted by johnny_on_the_spot View Post
pretty sure you don't pay capital gains on a house anyway, so long as you purchase a new home with the gains from the sold house within X time frame of selling that house (i think 1 year, but unsure)


Reinvestment is not necessary


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Old 03-05-2019, 03:51 PM   #341660
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Re: ***Official "It Lives, It Lives" Chat Thread***

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Donít have an answer. However I heard somewhere that you can deduct home improvements against capital gains when you sell a home. Iím sure slim or some other tax guy could confirm/deny
Home improvements increase your basis in a home. Capital gains are not levied on primary residences (some requirements) if the gain is less than 250k (500k for joint filers).

You don't need to repurchase or reinvest your proceeds.
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Old 03-05-2019, 03:54 PM   #341661
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Re: ***Official "It Lives, It Lives" Chat Thread***

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All of that assumes that people actually have the down payment in cash and invest it appropriately, though. In many, many cases, the down payment actually comes from family members who wouldn't just give it to you to invest. In other cases, a house is an easy vehicle for investment for people who can't be bothered to try to figure out a more optimum mix, and who would otherwise just be leaving their money in the bank until they "get around to investing it soon."

Sure, I'm not going to say that a house is the best investment. It sure beats no investment though, ime.


Do you have to pay capital gains tax on house appreciation when you sell it in USA?
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Old 03-05-2019, 04:03 PM   #341662
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Re: ***Official "It Lives, It Lives" Chat Thread***

Quote:
Originally Posted by DK Barrel View Post
Back when I was considering settling down in the GTA and finding a place I looked into buying.

Obv home ownership was out of the question, but buying a condo didn't seem to make any sense because maintenance fees were $400-$600 everywhere.

So you're looking at $1400 rent for a 1 bedroom, or $1700 on a 350k mortgage for your 1br condo plus $400 in maintenance. It's completely unaffordable.

Plus, Toronto is a toilet and the way it's being run it is only getting worse in 30 years. Wouldn't say housing there is a sure bet to appreciate, and even if it did I wouldn't want to be stuck there.
Yeah, I probably got pretty lucky regarding maintenance fees for my condo just due to timing. Actually started out at a lol $75/month although by the end 13 years later it was up over $200/month. If it became double/triple that then that starts becoming more of a factor.

Quote:
Originally Posted by Lapidator View Post
@GG...

Renting at $700/mo.

You're assuming the rent stays the same over 13 years. Only true in rent-control areas.
Yeah, plus I just totally made a reasonable guess at that.


For me, I don't think I'm too far off of Ava's / Slim's "it depends", except when it comes to the end game. When Owen the Owner and Robert the Renter both reach 55 and Owen becomes mortgage free, isn't Owen the huge winner over the last 20 years of their lives?

Gbut,inmydefense,Idon'treallycareG
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Old 03-05-2019, 04:08 PM   #341663
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Re: ***Official "It Lives, It Lives" Chat Thread***

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What do you think is the cause of this?
When kids are 2+ generations away from being your own boss (I.e. neither parents nor grandparents were a farmer, small business owner, sole proprietor), they don't get to watch/lean from folks who have absolute responsibility for their own well being.

Watching all the adults in your life merely disappear to "work" doesn't teach the same lessons.

Generally, we're now 2+ and in many cases 3+ generations into just being employees.
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Old 03-05-2019, 04:18 PM   #341664
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Re: ***Official "It Lives, It Lives" Chat Thread***

GG, your disconnect still comes from the "freedom" part of thinking after 30 years you have free money. Say the mortgage was $1000 for sake of simplicity.

That $1,000 will be worth much less than it is today. i.e. your purchasing power will not go up signigicantly in year 30 when mortgage is paid.

Meanwhile robert the renter's portfolio has more than beaten inflation over the same time period and his interest income > then the freed up mortgage expense of owen.

Not saying renting wins...it will still be very close, all things considered.

Lapi, you just beat out gg for the #1 spot wrt *old man shakes fist at cloud.jpg*
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Old 03-05-2019, 04:34 PM   #341665
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Re: ***Official "It Lives, It Lives" Chat Thread***

Quote:
Originally Posted by johnny_on_the_spot View Post
so this might be a lol-simple answer of 'no' and i'm probably well out of my depth, but here goes...

is there any advantage/benefit for me to start an handyman company that serves 1 client (myself) and operates yearly at a loss? i'm planning on doing a lot of work on my house so i'm wondering if there are incentives for me to set something up like that.

ultimately, i think it would be a pretty cool side gig to make awesome cabinets and furniture for people, so some company set up would be needed for that, but i'm not at that level yet because of what i need to do on my house.
There's a good chance you will get classified as a hobby if you never make any profit.
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Old 03-05-2019, 04:48 PM   #341666
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Re: ***Official "It Lives, It Lives" Chat Thread***

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Originally Posted by Avaritia View Post
GG, your disconnect still comes from the "freedom" part of thinking after 30 years you have free money. Say the mortgage was $1000 for sake of simplicity.

That $1,000 will be worth much less than it is today. i.e. your purchasing power will not go up signigicantly in year 30 when mortgage is paid.

Meanwhile robert the renter's portfolio has more than beaten inflation over the same time period and his interest income > then the freed up mortgage expense of owen.

Not saying renting wins...it will still be very close, all things considered.

Lapi, you just beat out gg for the #1 spot wrt *old man shakes fist at cloud.jpg*
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Old 03-05-2019, 04:49 PM   #341667
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Re: ***Official "It Lives, It Lives" Chat Thread***

Quote:
Originally Posted by johnny_on_the_spot View Post
so this might be a lol-simple answer of 'no' and i'm probably well out of my depth, but here goes...

is there any advantage/benefit for me to start an handyman company that serves 1 client (myself) and operates yearly at a loss? i'm planning on doing a lot of work on my house so i'm wondering if there are incentives for me to set something up like that.

ultimately, i think it would be a pretty cool side gig to make awesome cabinets and furniture for people, so some company set up would be needed for that, but i'm not at that level yet because of what i need to do on my house.
lol no

the only advantage would be to your CPA/attorney defending the losses you took
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Old 03-05-2019, 05:01 PM   #341668
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Re: ***Official "It Lives, It Lives" Chat Thread***

JOTS every idea you can think of like this has been pitched to me by clients or potential clients untold times. The level of thought some people put in to tax evasion is astounding (I'm not saying you did).

Some of the schemes and stories I've been pitched could certainly fill a book.
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Old 03-05-2019, 05:23 PM   #341669
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Re: ***Official "It Lives, It Lives" Chat Thread***

Quote:
Originally Posted by Avaritia View Post
GG, your disconnect still comes from the "freedom" part of thinking after 30 years you have free money. Say the mortgage was $1000 for sake of simplicity.

That $1,000 will be worth much less than it is today. i.e. your purchasing power will not go up signigicantly in year 30 when mortgage is paid.

Meanwhile robert the renter's portfolio has more than beaten inflation over the same time period and his interest income > then the freed up mortgage expense of owen.

Not saying renting wins...it will still be very close, all things considered.

Lapi, you just beat out gg for the #1 spot wrt *old man shakes fist at cloud.jpg*
But what about the part where Owen lives "rent free" his last 20 years while Robert is still paying rent?

And while I still think having a house go up in price 3.4x in 17 years (as mine has done) still outdoes most investments, I also realize it's not as if I can just cash that in and still live in a similar house in the same region. However, if I was free to move to a cheaper community I would be able to make a killing (a huge part of most people's retirement plan around here is to simply sell their lol overinflated house in this local lol overinflated market and then move way far far far away where they could buy a similar house for 1/5th the price and retire on the difference).

GIshakefistsatoldmenshakingfistsatcloudsG
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Old 03-05-2019, 05:29 PM   #341670
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Re: ***Official "It Lives, It Lives" Chat Thread***

Houses are expensive near me, I'd be paying double my rent now to live in a house that I would buy, but I'd have 3x the space at least. A mortgage is going to add at least $1k to my monthly cost from everything I have found, and only owning my home when I'm 65(unless I pay early) isn't super compelling to me. But that's bc I watched my grandparents deteriorate early and have to leave their beloved home because it became too much to handle.

In either case, I'm looking into owning. Looking to either get lucky with some first time home owner stuff to get away with 5% down or do 80% mortgage, 10% down, and interest only mortgage on the other 10%. That way I can remain pretty liquid, snap pay down the interest only, and then funnel that payment into the primary once it's paid off.
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Old 03-05-2019, 05:36 PM   #341671
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Re: ***Official "It Lives, It Lives" Chat Thread***

vesel kurentovanje


Quote:
Originally Posted by Avaritia View Post
I posted the "explain like Im five" video a few pages back gg. Its 5 mins and explains quite well.

Cliffs are that there is a time value to money and it is far more powerful than people realize...and any upfront deposits/improvements that take actual cash money out of your account are detrimental to your long term earnings.

If you can buy a home with no money down, include closing costs in the mortgage, have zero improvements, and property does not appreciate or depreciate in value (taking this out of the equation to help you understand just the time value piece), then you will likely outperform renting over time.

However most put something down, most have closing costs etc. Most also move 3x more often than they think. Timing can make you a huge winner here. Sometimes, it can make you a loser. Again though, taking timing of market appreciation out, the multiple down payments / closings / improvements are insanely detrimental to your lifetime earnings.

When you want to add back in appreciation into the equation, you have to compare to renting and having more money upfront to instead invest. This is what the eli5 video walks through.

I dont think what people understand is that they are just very close. Its not about win lose. Saying "well I made money on my home sales" is results oriented. I have made "a sh*t ton of money" renting.
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What do you think is the cause of this?
Spoiler:
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Old 03-05-2019, 05:42 PM   #341672
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Re: ***Official "It Lives, It Lives" Chat Thread***

One of the sickest brags I can deliver:

I just presented my first report to my new cfo.

I'm in my boxers.
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Old 03-05-2019, 06:05 PM   #341673
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Re: ***Official "It Lives, It Lives" Chat Thread***

Another proud graduate of the Skippy Skool of Bizness.

GwearingpantsG
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Old 03-05-2019, 06:20 PM   #341674
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Re: ***Official "It Lives, It Lives" Chat Thread***

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Originally Posted by bwslim69 View Post
JOTS every idea you can think of like this has been pitched to me by clients or potential clients untold times. The level of thought some people put in to tax evasion is astounding (I'm not saying you did).

Some of the schemes and stories I've been pitched could certainly fill a jail.
Bunch a Trump wannabees ITT?
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Old 03-05-2019, 06:41 PM   #341675
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Re: ***Official "It Lives, It Lives" Chat Thread***

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One of the sickest brags I can deliver:



I just presented my first report to my new cfo.



I'm in my boxers.
Welcome to remote life, my friend.
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