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Escoguy
Participantxbox
We pay $80/month for 4 lines with t-mobile and don’t have a land line.
In the 1980s, I often paid more per month for international calls which are now free with Skype. While I may upgrade my iPhone 6S in two years, from a technical perspective, it should last at least 4 years. So the upgrade is discretionary.We pay $12/month for netflix and don’t have cable, plus $46/month for internet.
This is about $20/more than a basic cable package 15 years ago. Again, this is a choice to add more channels.Solar panels can be leased for less than $100/month. I’ve put them on five properties and while I paid cash, financing still allows a zero down user to realize over 50% reduction in utility bills.
I drive for Uber part time and usually earn about $300/week for about 10 hours of part time work and can definitely say that passengers are thrilled with the lower cost of transport. My car gets 50+ Mpg so the benefits get spread around.
As far as losing my Uber job, if they can make transportation cheaper than it currently is, then I’d benefit from that as well as I might not need two cars any more or 3 or 4 when my kids start driving. Most drivers do this part time as a side job. So don’t really see that being a huge drag, plus it would be phased in over a few years at least.
So the points I’ve outlined if done correctly would allow a family to save several thousand dollars/year if the right choices are made. With interest rates as low as they are, I currently pay 12K/year on a 417K loan (30yr fixed at 3.1%).
So while I appreciate the counter points, perhaps I should qualify it by saying a family that makes deliberate choices to realize the savings potential can more easily fund a home purchase with savings from these items.
Good luck
Participanttreehugger,
Glad you got the good rates.
ParticipantIt wasn’t my thread but my three loans recorded today:
1. (home I live in) was 431K 30yr fixed at 3.5% now 417K 30yr fixed at 3.1%, combined cash flow impact of $303/month
cost was about $33002. was 3.875% 328K 30 yr fixed (investment property), now 1.65% variable 30 year, cash flow impact $391/month
cost about $34003. was 3.75% 30 yr fixed, now 3.5% 30 yr fixed, $64/month cost about $3300, (also investment property)
in all, locked around July 6th, so 6 weeks, assuming I keep the properties next 15 years, cash flow impact is about 100K
Payback time about 15 months even factoring rates going up on one variable loan.
ParticipantI’ve read some of Mr. MM from time to time.
What I like:
Agree that you should be able to get by with as little as possible. Maximize savings, minimize expense.What puzzles me greatly:
What does a man who lives on 30K /year do with the revenue from advertising?
In this sense, the Zen lifestyle makes no sense. Either you are confident you don’t need the money and could say donate it to charity or there’s this little voice in the back of his head that says, perhaps I can’t keep this up forever and I will need more later.
Don’t think we’ll ever get the answer but for me, I do want to increase my standard of living gradually over time. Even if I can live on a small amount, it doesn’t mean I’ll always WANT to do it.
Live well
ParticipantNew rates were approved in July.
Participantdo you have a limit for losses?
the up moves so far have been too solid to short,
most bad news rolls over in a few days,
fed is on hold, this is not a normal market
Please limit your losses to 5%
have you done an upside/downside analysis?
ParticipantRegarding SF rents:
Many rentals have 3-4 people in 1-2 bedrooms.
That’s how they pay $4K for 1BR and $5K for 2BR.I met a girl who worked at Nordstroms, just moved here from SF, all of her Millennial friends had multiple roommates to keep up with the rent in SF.
In that sense, I think the situation is more sustainable here. There is some inter-generational renting going on (parents plus adult child) but mostly it is larger families with 3-5 kids who need the bigger houses.
In a nutshell, the rents in SD can be supported by 1-2 professional incomes but perhaps not in SF.
Participantsdsurfer,
Yes it is notable, because some renters ARE buying, two homes open up, but are filled immediately.
Many of the other applicants also want to buy but even with a 180K-200K+ salary coming from Las Vegas/Riverside or Palm Springs, the sticker shock to buy is still there.
It probably takes a few years to become acclimated to the prices. Unfortunately for them, by that time, they will likely be higher but with their salaries, they can probably afford them if they make that choice.
Participantsdsurfer,
These last few weeks have been eye opening.
I had some tenants give notice (they are buying now). I knew I was a little below market but was able to get an average 13% increase on the units that came open.
The new tenants were overjoyed too as they are getting larger, more modern homes.
I was able to lease very quickly (within days) and had in some cases over 100 views in a few hours on zillow.
A couple of people wanted to negotiate but I was polite and told them there was no need. As an FYI, these are SFHs with values in the 650 range going for approx $3200-3300/month. (Inland North county)
I had the impression many of the alternatives were going for $3500-$4000 as one applicant (who rented for $3900 in Del Sur) told me she thought I was $200 below market. Mine are not in Del Sur.
I don’t think the market will soften any time soon.
I noted that many of the applicants have very long commutes: from Palm Springs/Vegas/Riverside County/LA area. Their salaries were also stronger on balance than I initially expected. Some were relos, but some could work remotely and just wanted to be in SD county.
Not to speak of the ones who needed to move because their landlords are selling now.
Perhaps the AirBNB is pushing rents at the coast higher so some feel the need to look inland.
All in all, a very encouraging and interesting few weeks.
ParticipantMost likely no
from report:
Rental demand is expected to remain robust over the next decade as the youngest members of the millennial genera- tion reach their 20s and begin to form their own households. Moreover, if homeownership rates for households in their 30s and 40s continue to slide, rental demand will be stronger still. For their part, the aging baby-boom generation will boost the number of older renters, ultimately pushing up demand for accessible units.
It is unknown whether high-income households will continue to fill the growing inventory of higher-end rentals or make the transition to homeownership.
Regardless, expanding the rental supply through new market-rate construction should provide some slack to tight markets as older units slowly filter down from higher to lower rents. Once high-end demand is sated, developers in some areas may turn their attention to middle- market rentals, although high development costs mean that building new units affordable to even moderate-income house- holds is difficult without government subsidies.
ParticipantMade deposit on Model 3. Hopefully sometime before mid 2018 will be delivered.
Made deposit in store on first day.We have a Leaf and a Plug in Hybrid already which cut most of our fuel use. Tesla should be a little more fun to drive.
I like most of what Tesla is trying to do but honestly wish they would focus more on making the Model 3 as much of a mass market car as possible as the high end (model S/X) is too small to have an impact on climate etc. They will likely need to sell batteries to other car makers in the future to achieve greatest economies of scale.
I think they will make it but even if they get 10% market share, that’s not enough to have an impact on climate change.
EVs will need to replace gas/diesel 90% to really do this and making the Model X or buying Solar City doesn’t contribute much to that goal. There are many solar panel companies etc. I’ve bought six solar panel systems for 5 properties.
I know there are many motor heads out there who won’t want to change their ways. Hopefully climate change doesn’t have the impact that some project, but until we know more, we have to take the risk seriously which most of society is not at this point.
Participantmoneymaker,
what rate did you get? with whom?
I got 3.1% on 417K fixed 30 with First republic,
must say still a little in shock
ParticipantLocked today:
3.1% for 30 year at 417K (primary residence) paying down balance by 15K to get to 417K, cost about 3K
3.5% for 30 year on investment property, cost $3500
Taking a variable rate of 1.65% on an investment property, cost $4800
Leaving one investment at 3.75% in case rates go lowerAll in all will pay 3.06% with 80% at fixed rates for four properties.
Total savings will be 11K/year. so one year payback.
Using First Republic bank. They do have some other requirements like 10% of variable amount in checking acct but by an large manageable and seems well worth it. I had refinanced last year and thought that was the last go.
ParticipantYes, the school district in Plano is much more reasonable relying on Asian wisdom to make smart economic choices. 🙂
They only spent $20 million on their stadium.
The homeowners and tax payers can now sleep at night! 🙂
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