Just found your channel and now I’m binge watching all your videos! It’s great to see advice from people who are retired and enjoying their life like you two, keep it up! ❤️
No way you are throwing away your money on rent. I just contracted with an Arborist to remove Spanish Moss and fertilize my 4 trees… $750! Last month $900 in AC repairs… it never ends. Owning my home and keeping it in good repair in order to resell it at a competitive market rate costs a fortune. Looking to sell this house and downsize to a rental apartment or possibly a cottage in a resort that handles all the maintenance. Every year, without fail, there is at least one big repair. This summer: new driveway to replace the terribly cracked 35 year old driveway.. cost: $8500 😟. I miss the good old days of carefree apartment living in my younger years.
Yikes 😱 exactly all those unexpected ownership costs just to keep up so you can sell, we are so glad we did and love our apartment where they take care of the problems Cheers 🍷🌺🍺
I say this with Respect, You are like UA-cam Parent's to us Millennials with all these future decisions about our own retirement. God Bless you both with long life. Peace!
My wife and I have always rented. We hear the arguments about how we're throwing away our money. Well there's a few things to consider. We live in Houston, Texas. Texas has no state income tax and a very reasonable sales tax. But owning homes in any city is very costly because of outrageous property taxes. You never truly own your home. Don't forget home owners insurance and the must have flood insurance. Then there's the upkeep, repairs etc. If you rent from a quality ran apartment complex that has good management and a strong corporation behind it, life is pretty easy. No paying for air conditioning break downs, no pay for a new dishwasher etc. Great facilities, quality pool, workout rooms and even meeting rooms and offices for your use on site. We treat our apartment like we own it. We don't abuse the appliances etc. The first sign of trouble we communicate with the property manager. Our rent has rarely gone up over the years. We enjoy living on the top floor. No one above us. We have no children, but if we did, the fruit trees would be much easier on them. Freedom from the above mentions brings value to our lives. Who wants to be retired and not have true freedom to do the fun stuff. Like always, great videos!
Oh my you are kindred spirits, when you use critical thinking and analysis and don’t delude yourself on the cost of carrying a mortgage free home then the logical step is renting and living for yourself and not being owned by the house. Such a great comment thank you for sharing your insights and congratulations on getting it.
I have always owned -- 2 houses, 2 rental houses, and an apartment complex. It takes an entire day just to mow all the grass. I am nearing retirement, and have vowed to sell everything. Making someone else cut the grass is my dream.
I found this video very interesting because I've never owned any property. I'm 70 y/o and have been retired almost 10 years. I was fortunate to find an inexpensive apartment in which I lived for 18 years before retiring (owned by an older couple who weren't trying to make a 'killing' so they didn't bother to raise the already-reasonable under-market rent) and before that I shared an apartment for 12 years in another city. This enabled me to save a large chunk of my salary for retirement. On the other hand, I've known a few people who LOST money by buying a house: one lost a job and had to move to another area for a new job, but ended up paying two mortgages until the first house sold, and the other had a similar issue but real estate prices fell where he lived, so he lost considerable money. I asked the second man why he had bought a house, and he said "I thought that is what a person is supposed to do!" I'm in the US, and I suspect adhering to the "American Dream" mentality has caused financial problems for many people.
@@bert1450 Where do you live? How long have you lived there? Unfortunately, because of most people having to live near where one's job is located, living in such a place isn't necessarily an option.
Regarding leaving your “family home” as a legacy to your kids, in 2021 this isn’t the culture of an agrarian society. Many folks don’t understand that your children don’t want your stuff. They don’t want your house, they don’t want 98% of your belongings.
They don’t want to have to clear a lifetime of possessions from the family home either. We agree with you, that is the path we have chosen. Have a good weekend
@@ThisIsOurRetirement oh yes....when my parents died, they had a retirement house on North Vancouver island in a fishing village..It was a nightmare flying out there and clearing out 40 years of stuff.. Before we could sell the house..I think you are being very considerate of your children... Cheers from Toronto
Sometimes it's just nice to not have to mow the lawn, fix the faucet, re roof the house, replace the water heater or the fridge. Renting can also free up quite a bit of leisure time. Just lock the door behind you and go hike up a mountain side, see a movie, have lunch with some friends.
A super late comment. From my own experience, living across Canada....i got more out of it than most. I did not own property, i did not have a family, and i did not incur debt. I paid cash for uni. and got to see more than the average man's lifespan by the age of 30. Then i trained young adults how to play in the alpine and rivers safely, in Canada. Glad to see that you are so positive with your situation. You arw both so sweet!
My wife and I have been married 23 years. We rented a very small apartment the first year and a half. We look back and as we were operating only 1 car, buying very little for the house, no maintainance costs and we were able to save a full salary and live off the other salary. Our Vancouver area house has done very well but we never have had as much cash for investments or to spend on fun like travel and entertainment. In the suburbs we needed a second expensive car.
This is exactly what I've been thinking of doing for a long time now; I will retire in a few years and would love to stop dealing with a house; and just rent, I am constantly putting money into the house to keep it in top shape, but after awhile I don't think I am gaining much at all. So its nice to hear others that are doing it already and also understand that its not always just throwing money away. And I always said that I don't want to leave that burden on my kids to have to clear out and sell my house; and most of the time that's all it is, they have their own homes.
Hi Barb all we can say we did it sold the house then rented 5 years ago and never looked back , when we had a house mortgage free what it cost us per month in running costs to us renting was $100 different but so much less stress life is great . What we would say is the sooner you get in on renting the better deal you get if you came in to our place as a new tenant you would be paying $400 a month more than us . TFW and have a great week Cheers 🌺🍷🍺
Hello, really enjoy watching your videos....just one word of caution, I dont think you can sublet for a price more than the rent you pay to the landlord and you actually need the landlord's permission to sublet!....pls check that out, before your landlord finds out!
True, in Ontario you can sublet but one of the stipulations is that you can not profit. Here are the regulations to subletting. A tenant who sublets a rental unit cannot: Charge a higher rent than the landlord does for the rental unit Collect any additional fees for subletting the rental unit, or Charge the sub-tenant for additional goods or services.
If you do want to leave your kids something in your will, your way of doing things is good--if you do the following. Rent an apartment that is less expensive than paying a mortgage, taxes, etc., and then take those savings and invest them along with what you got for your home. Then live on less than what you are receiving in interest payments from your investments. It would all depend on what those numbers amount to, and whether you can live comfortably on it. And also taking into account whatever taxes you have to pay at the end of the year. But yes, you could work out a nice tidy little package that benefits you and your children in every way. The only problem I foresee is our insane governments spending way more than they can afford and then plundering everyone to pay for their irresponsible spending.
This is my second video of your channel and I am just loving it. You two are adorable and so polite, and I come away for lots of food for thought. I feel like we bumped into each other on a cruise and had a nice chat. Thank you for your uploads!
This is the deal owning a house is rarely a good investment, this is fact but many will debate this fact. I own two homes and pay a combined property tax of 36,000 per year lets not even get into repairs, upgrades and the mortgage. Why then do I not rent and never plan on renting, I have and I hate living in apartments. For me its like living in a cage. But I totally agree with your financial advice. Many years ago someone coined the phrase you can't loss in real estate, which is not true. I have done OK in real estate but all my real wealth has come from the stock market. I may be wrong but from what I have seen you live in or near a big city where housing prices are insane. I could be wrong. As soon as I retire I am selling my way over priced house near NYC and moving to my country home. For many selling a low cost rural home makes no sense as the cost is low, renting options are limited, no apartment building for example.
There will always be a debate on this topic we had a gorgeous home for 20 years, we did the maths on staying even mortgage free and renting and for us renting won hands down. We have a very spacious 2 bed 2 bath 1340 sq ft Apartment with huge balcony with ensuite laundry so definitely not cramped at all . Hope you have a great week Cheers 🍷🍺🌺
As every choice one makes, depending in the country of residence, there are pros and cons to every situation. I am so happy for you that your planning, researching and knowledgable backgrounds have helped you get to where you are in life. Your positiveness can be felt through the screen with those happy smiles. Thanks for that interesting peek into rental options. Keep safe, keep smiling and enjoy the good life. 🍷👍🎥❤️🌷🙋♀️
Good morning ☕️ Thanks for dropping by we do feel very happy with our decision and you are right we all have choices to either change or stay the same. We hope you are managing some local travel stay safe , keep well and enjoy your weekend Cheers 🍷👍🍁😎🌺
this may not be a popular opinion...but why worry about leaving something for your adult children ? I mean, if we all had loads of money, ok..but we want to retire early and try and enjoy our remaining years..there is no guarantee as to how long or short of a time we have...ever...we will be cashing out our assets to live on and enjoy...doubt there will be much left...my father died, fairly broke and i didn't get a dime, his new wife got it..i survived and didn't have any expectations of him leaving me anything...my mother is an expensive retirement home living a good life...she deserves to spend all her hard earned money..doubt there will be anything left for me..thats totally ok, she earned it !! if u have extra money, fine, but don't live a frugal life to leave something for your kids !! enjoy life !
Thank you for debunking this myth! My husband and I are in our early 40s, no kids, and living in Vancouver. Buying even the most modest of homes/condos is astronomical (!) but so many people still have the mindset that we’re throwing money away on rent. So from time to time the notion of buying still creeps into my head. Your videos do an excellent job of reminding me that indeed, renting is best for us! Thank you!! 😊❤️
I still believe buying a house is the best investment for any family. Everyone always needs a place to live. If the price goes up, you sell, the capital you get will buy an equivalent property. If the price goes down, same thing. It’s security buying a house and a good investment. Difficult for first time buyers to begin in the market, but in the long run a very sound investment.
This is such an important video. I love how you guys are going on your channel. You have definitely helped me rethink what I should be doing in retirement. You bring such a fresh perspective to the benefits of renting. I love your advice. Thank you 🥰🙏🏴🍷🍷
Thanks Karen we thought it a very important topic as a lot of people have preconceived ideas that aren’t true about renting and we thought the same too😱. Hope you and your family are keeping well enjoy your day ATB 🍷🍁🍺🎃
Recently discovered you two. Love your videos and you give us lots to think about but most of us in the US do not have access to rent controlled properties.
Twenty years ago I would be emphatic about owning and not "Throwing money away!" Now I prefer renting when it's less than 1%, per month, of the fair market value. In any case, do what makes you happy 😎
Absolutely couldn’t agree more we are very happy with our decision to rent and since taking early retirement 5 years ago we haven’t looked back have a wonderful weekend Cheers 🌺🍷🍺
This is very interesting because, I am planning to retire in 7 years. (67) Your choices maybe not everyone's, but it does give a person something to think about.
My husband and I have recently been playing with the idea of selling our home, investing the money, and renting an apartment. We live in the US and do not have rent control in our state, but we still believe this will be a great way to downsize and save our initial investment from our home. Thank you for your well thought out advice.
@@bert1450 Yes, losing our beautiful yard and screened porch is terrible. Rental units are outrageously expensive where we live, but we are weighing those costs. Having the money earned from the sell of our home in an investment account would help with those costs and/or travel. We are 70 and 73, do not want to leave this 4,000 square ft home full of stuff for our kids, and are tired of the maintenance and yard work you mentioned. We travel a good bit and would be able to travel more without the worry of a home. Good luck to you!
There is a time in your live to own (when you are young and growing a family). And time to rent(when you are retired and your family has grow ). We owned our home for 42 years and over that time the equity grew 11 times what we paid for the house. It was like winning the lottery .We will be able to live on the interest from the money with no debt. And the big thing is that the upkeep is the landlords problem.
What a great comment we are living just that and it is wonderful guess like winning the jackpot 🎰 wishing you a wonderful retirement and great Easter 🐣 weekend Cheers 🍷🐣🍺
@@ThisIsOurRetirement UYeh but the jackpot is only for people who had bought their houses/property some 15/20 years back , the same can't be said about buying now as the appreciation will never hit that level even in next 10/15 years
Owning a mortgage free house in the GVA was the #1 reason we were able to retire in our 40's. Now that we are "Seniors' we considered renting or downsizing but with the very high cost of rent of at least 24k (30k before tax) for 1/4 the space, it doesn't seem like a good option. Most of the proceeds from selling would have to go into non-registered taxable portfolios. Plus we enjoy all the space and the maintenance and gardening keeps us in shape. Might be a more attractive option when we get older. Great videos BTW :)
Thank you for watching, everyone’s situation is different and we appreciate a one size fits all solution is unrealistic. It is a series of decisions that we took, selling our home moving to a cheaper area and living for ourselves, not our house. We value experiences at this time of life more than possessions. We really appreciate you adding to this discussion.
I agree with your thinking. I owned a home for 20 years and now that I'm a few years from early retirement I sold during the pandemic and moved to an active senior apartment. It is costing me less and I have lots of fertilizer for the orchard. I now have the freedom to decide which country I want to live in once I retire. I have no regrets and anything left will go to my estate. Yes, my former home is still appreciating, but I do expect the market to crash at least once in the next 20 years and didn't want to be stuck with it in a down market. I am also realizing gains on the capital, maybe not as much as the equity is going up in the house but I eliminated the downside crash.
That’s great, we have had 2 houses in our life where we sold it for less than we bought it for due to market corrections and inflation. You have given yourself mobility so you can move within 30 to 60 days if you wish and reduced social isolation. Also you have reduced the liability to your capital but not having unforeseen housing maintenance. We wish you a great retirement wherever that takes you, it sounds exciting. Thanks for your great comment.
My husband has been trying to get me to consider renting as well - we would make more in interest per month by investing the money from our house sale than we would pay in rent per month. Plus - no property tax, utility payments, etc.
My thinking is renting an apartment you can have awful loud neighbours. We still live in our house which is mortgage free . We can’t move into the country villages because of health problems. I did check the rents and there very high in Calgary. So for us it makes no sense to rent. We are close to our doctors and hospital. We used to be avid travellers but do to medical conditions out of the blue we can’t travel at this time and probably never will again. Everything stops once your diagnosis is established. Of course we thinking of downsizing but it is still cheaper to live in our house at the moment.
Yes we hear you and we thought that way for many years , very glad we changed we have enjoyed every minute of our 5 years here. Have a wonderful weekend Cheers 👍🍷🍺🍁
And most.people tend to severely underestimate the amount that upkeep and the true costs of ownership come to. When we owned a beautiful home in Ottawa it cost us over $80k in the space of a few years. Siding, tree removal (dead trees from ash beetle), fencing, pool deck, pool liner, new furnace, well pump, etc). Or even worse, they completwly ignore the upkeep and let their house basically fall into disrepair. And property tax was about $500/month alone, never mind the mortgage.
@@wlonsdale1 Rents are dictated by the market, not by the size of the landlord's expenses. In overpriced markets many people take a monthly loss on their rentals.
LOL. Great comment. We own our home (3 more years to go), but given current housing market in many cities around North America, many young people don't have the option of buying unless they have a high salary or other windfall (inheritance, etc.). If I was starting over today, I'd rent and invest the delta (i.e. from what I'd be paying in Mortgage + property tax + maintenance). After 25-30 years, I'd have a nice retirement portfolio.
@@jaxwylde2139 Exactly. There's more than 1 way to skin a cat. Here in Victoria, BC I find renting makes more sense as housing is so overpriced. I save a lot this way.
@@jaxwylde2139 Not true. I came from nothing and have a moderate typical fresh-out-of-college salary. After 9 months of renting with my first job, I am buying a condo. It's about being responsible with the money you do earn and having realistic expectations when house shopping. The only benefit of the doubt I will give is that my student loans aren't bad and I haven't had to pay a penny of even my small payments because of the Covid forbearance. But other than this young people can buy a house if they want to.
@@jaxwylde2139 Just noticed you said "invest the delta." As a math enthusiast I approve lol! And I'll be continuing to invest for retirement too (401K match and Roth IRA limit), so I have taken that into account. :P
After decades in our home we are now in an apartment renting. It suits us much better as my spouse has health issues. There is always something falling apart, needing to be fixed or replaced in a house, including the roof etc. so we don't miss that whatsoever. We have even given up our vehicle to save money, We have great public transit very close, and we rent a car when needed for getaways. We love to garden and have beautiful flowers and even tomatoes on our balcony. Looking forward to a bit of travel after the pandemic for sure.
That’s awesome we are so glad you are enjoying your apartment Sandra we love ours and yes hopefully 2022 will be goodbye 👋 to Covid and we can all start travelling again Cheers 🍷🌺🍺
I really enjoy your advice,BUT our main problem is finding a GP. No one is willing to take on seniors. We emigrated to Ontario many years ago,and we’re lucky enough to find a GP but when we moved it now means a long drive ( we live in Dundas near Hamilton) and both our GPs are due to retire.😊
We were in the same situation Gillian not able to get a local doctor, we listen to local news and saw a new practice was going to be built, so kept an eye open for enrolment and got in on the third intake two years later (as new doctors set up in the building), Just keep trying and listen to local news and newspapers. Good luck.
I pay 6;000 a year for prop. Tax in Carlsbad ca. By the beach. That is it. Neibors renting down the street paying 30,000 yr. also I was 24, bought for 78000 sold for 270000 in 13 years.
We are looking for a cheap car rental company out of Faro Airport for December 1/21 for 90 days. Can you give us a suggestion. We are having great difficulty finding the cheap deals you talk about. Thank you.
My home has increased in value by over $200,000 (I live in Scottsdale, AZ, USA) in the last five years. It will increase at least $30,000 in 2021. It has been a sound investment & 8 will be renting it out to live in a small apartment some day in the future. But the increase in value has been a true benefit for me.
I do love your channel, btw & want to see some more of the world before I am too old to enjoy it, LOL. Hopefully, I will have a nice family living in my home, financing my trips with the rent they pay me!😎
Property might appreciate ( as generally happens over 20-30 years. But the capital remains fixed, since you are taking away the interest to buy apples :). Alternatively, you should spend only part of the interest you get and leave the remaining to the capital.
We actually don’t spend any apples, we just reinvest in more trees. The rule of thumb used to be in high inflation, only take half the dividend or interest and leave the other half to offset inflation. Thanks for sharing your ideas.
When you are young and have higher income owning a home builds equity and creates financial security over time. Most of our net worth is from our home & my townhome I rent. Stocks in our IRA's have to deal with stock market downturn. Nice you were able to sell your home to finance your retirement. We will continue to own our home as property taxes can go down once over 65. No rent control in most of USA. Your apartment is great value with rent control and being able to sublease.
it strikes me you are both fortunate to have each other, and survival costs et al., but Me I am single 70 and have been fortunate in cheap rent in a rustic cabinon beach vancouver island. But if I think if things change , it could be nigh on disastrous with the cost of living and rent at market rates, personally I think a lot of folks sitting on million dollar homes with 3000 sq feet, the national disparity in security for most canadians is apalling, a plan B My Gawd,,,,
Thanks for watching we do realize we are fortunate to have each other and enjoying life we have visited briefly Vancouver Island and it was wonderful Cheers 🍺🍷🌺🙂
Apartment buildings usually have storage lockers in the basement that you can rent, also we have lots of closets and we have a storage shed at our trailer. Our apartment building also has a bike storage room which is free and a locked door.
Sorry guys but no, no, no. Yes, there are advantages in renting as you say, but there are many disadvantages too. Yes if you sell your house you can keep the cash and spend only the interest (the apples) but every year your capital reduces anyway due to inflation (even if you don't chop down the trees Norm). Also you are the mercy of the market. I am in Oz and I know people who have tried your plan and it has been a disaster. True we do not have rent control so many who do not have a house now cannot afford to rent because rents have shot up. House prices have exploded too so if you are out you will be out for good because your capital will not be enough to buy you back in. So I suggest great caution over this and at least consider carefully taking into account the market and rules where you are located.
Thanks Bill for you perspective, house ownership is a constant dripping bucket of dollars, relatively small but constant if you want to maintain the home’s value. Add to this utilities to heat and cool a house that is bigger than you need, add property tax and major repairs. We can’t convince everyone but we have zero regrets and have not spent a penny of our homes value. Thanks for watching and sharing your thoughts.
I was told that since I was little, and one day I put the dollars to the test on paper, and it was a lie. A huge lie. Anyone can write down everything they spent on their home vs rent and utilities and see if that difference is worth have renting instead. We made more money putting the difference away and retiring early by getting rid of our home. We saved so much doing this, that I was able to retire 2 years earlier and we only rented for 2.5 years. If I had to do it all over again, we would have never bought a home until we were ready to settle down permanently and could have easily retired around 40. The money you make from selling your home, will not likely ever come close to what you can make if you put away the difference (total home costs vs renting) into your vanguard index funds and let them ride. I lost so much money over the years not figuring this out sooner. Why are we not teaching our kids in school the truth? Great work sharing this with others and we don't all have to get the breaks like you guys have had with where you live specifically. Even without the breaks and deals you guys have, this all still works. The bank interest, the home repairs, the taxes, the time you spend working on your home, the higher utilities, and all the other expenses you give to others instead of just paying yourself and making money on "your money" without them. Why do people let everyone else get a stake in your claim? It is because people aren't sharing things like this. Loved your video. ❤️👍👏 Donovan & Jodi
Hi Donavon and Jodi what a great comment thank you for sharing , we often wonder why they don’t teach finances in school , about saving or what options there are in buying a house or renting and saving the difference and other ways of getting passive income . What we are finding is that that there is a huge fear of retiring and we are hoping that sharing our stories will help others realize that to not be afraid and just do it ! Life can be short and we don’t know what is around the corner ie Covid 😱or health issues so do it and enjoy it . We hope you are both staying safe and keeping well have an awesome week Cheers 👍🍷🍺🍁 Thanks for watching we really appreciate your support 😎
When a landlord cannot increase the rent, his taxes increase, he still has maintenance, etc. Something has to give, and it is usually the maintenance, which is why we have slums. Duh. If you own a gas station, and cannot raise your price when your cost of fuel increases, how long can you survive that?
We don’t agree our Landlord has put in new energy toilets, painted all the balconies, new thermostats for Heating /AC , all new LED lights just in the last few months they are great at upkeep of maintenance in our building. Cheers 🍷🙂🌺
Also that might be a particularly good strategy if the climate where you live is a bit severe in winter; however, we like to garden - one key hobby in retirement, and the climate where we live you can garden all year round if you want. But certainly I understand the advantages in renting, owning a home is not always the most cost effective plan
My buddy's Tennant sublet his condo to people and voila flooded and caused water damage so Great for you but not the owner landlord that's the part I don't like not fair really ..
In Ontario you can sublet , but not good if someone floods it , In our building Tenants Insurance is mandatory so would cover that we hope . Have a wonderful weekend Cheers 🍷🐣🍺🌺
I don’t think this would work in the U.K. though as there is very little security in private renting and landlords can sell up and just give you a few months notice
I was in BC and paied $1200 a month for three years thats $43,200 over 3 years. I bought a house in Nova Scotia for $120,000 cash. I get appreciation of capital, prices are up 20%, no rent, no aweful neighbours, no bad landlords. So there are swings and roundabouts to buy and rent.
We agree, but there is a cost of moving 10% of the house value, all the Home Depot / Canadian Tire visits, property tax, replacement items p, garage doors, windows roof, etc but hey if you wish to leave your capital at risk for unexpected expenses that’s OK.
Yeah, these "renting is smart" videos always ignore appreciation. I've been in my current house 15 years, paid $0 rent, $125/mo property tax and $250k appreciation. So my net is about a $610k profit (assuming compound interest at 4%) vs losing $360k paying rent ($1500/mo for 15 years and losing 4% on that money). The difference is almost a million dollars.
@@ThisIsOurRetirement My garage doors are still good thankfully, but here are a few of my expenses over the last 5 years: Hot water tank: $1200; appliance replacements: $4,000; roof: $17,000; fence repairs: $3,000; concrete repair: $4,000; flooring replace: $9,600; tree trimming: $1000+ every few years... the list goes on... :-)
Thanks for the wisdom. Suggest you say people should read the fine print before subletting though. Differnt places have different rules. Love your forum and keep up the ingenuity!
You are right and we keep trying to say that we are not financial advisors and you should seek professional advisors to suit your circumstances, thanks for your comment and suggestion.
Appreciate your comment. Many others are thinking of the hassle to “clean” what their parents thought was their fortune... you are very respectful. Hope our kids will think the same.
Great rental terms there. Not the same here in the UK. Tenants here are subject to rent increases at the whim of the landlord and can also be evicted at just two months notice, also at the whim of the landlord. I think renting is a great option for retirees as it allows them to spend any capital they have built up by owning a home, and also removes the pressure of managing and maintaining a home. Unfortunately, not with the lack of security of tenure here in the UK.
@@mollyt4639 yes, but that will no doubt soon result in there being hardly any places offered to rent so there'll still be a problem. For example, how can landlords sustain frozen rents when their costs increase through inflation and rising interest rates?
Can't the landlord sell the whole property and some new owner demolish and rebuild, voiding your rent control? We don't have that type of rent control where we live.
We rent from a corporation that has 86 buildings, they thrive on renting thats what they do , we are fortunate our increases are very small 1.2% have a great weekend Cheers 🍷🌺🍺
I don't understand the logic of renting verses owning your home. I live in the UK (Snowdonia). I own my home outright so no mortgage. If I rent in this area I would have to pay around £750pm. That is £9000 per year out of my own pocket. My house has increased in value during 2021 by 15%. That is £45,000 based on the pre 2021 valuation of £300,000. If I had rented I would have lost out of this £45,000 plus spent £9000 of my money in rent enriching the owner instead of myself. Years ago, prior to owning a home I rented in London for 6 years. Needless to say, after those 6 years I had no equity of my own.
Renting takes away the unexpected maintenance and expenses of home ownership , we looked at what we were paying 💰monthly for our morgage free home and there was a $100 difference. In selling and investing the money in dividend stock we are way ahead and so stress free. Have a great weekend Cheers 🍷🇬🇧🇨🇦🍺
It's all about preserving your capital, we have a set cost for housing that stays the same, no surprises, no travel to the hardware store, no paint, unexpected maintenance. You have said previously that you buy homes to renovate, so you have to invest in renovations, then repairs etc Council rates, electricity, gas. We don't it's the rent and that includes all utilities and maintenance. We even get a tax refund on a portion of property tax that is in our rent. Think of renting a car for a trip, you pay your fee and then only petrol and parking. You don't have to change the oil, replace the tires or do engine maintenance filters, belts etc. Well this is how rent works for us and we have the capital out of our house and getting pretty good income from dividends plus stock appreciation. We have been in a bull market for 15 years, stock market has made us great returns. Thanks for your question.
The factor is: if you aim for rent where wages are lower then you come out ahead. Also nowadays there are many investors with excess space in some parts of the world. They are hungry for income on vacancies.
Hey Guys, I somehow missed this video and that is exact topic I am very interested in. Considering rent or buying apartment to downsize, I have found out that staying living in you home is much, much less expensive. We live in Calgary, out wonderful home is located in Estate area just 50 metres from great park we use fro jogging and walking. I love this area so much that I would never relocate. So, we started thinking about either buying or renting apartments in this area. So.... Renting of 2 bedroom is bw 4000-7000 CAD per month. It is honestly throwing all money we saved for rent. Which is crazy... Staying in our house: we are spending for land tax, utilities about 1000 per month maximum, adding to that, leaving in much better conditions with walk in basement and our sport utilities and plenty of space for both of us... So we started considering buying instead and selling home eventually in 10 years maybe to use these money for investment and live of dividents
Angela that’s why when we downsized we went to a smaller town from a larger metropolitan area, quality of life is better and cheaper. Just imagine having to replace your roof, garage doors and furnace. Thanks for watching we appreciate it.
@@ThisIsOurRetirement That is a good point, I agree, but lets talk numbers: replacing roof, garage doors a furnace will be much cheaper than spend 60.000 for rent per year. And We are not going to do it every year. Besides, houses are increasing in price at least 5% a year in our area.
Brilliant! My wife and I live in Manitoba and our province has rent controls as well. We've said for a number of years we'd rather rent than sell our home and buy a condo. You've made a brilliant case supporting what we're considering. To be honest one of the things holding us back is the "stuff" we've accumulated in our home over the past 30 years. We're certainly not hoarders but we have "stuff" to get rid of before considering a move. I can certainly see where the whole process could take a year. Thanks again for sharing your experiences and insights.
We are so glad we did it , make a plan with an end date a year worked for us that’s the push to make you get rid of stuff, sell it , throw it away , give to charity shops start one room at a time . It’s very freeing getting rid of stuff , we should of got rid of more !! Have a great weekend Cheers 🍷🙂🌺🍺
I would think most offspring would rather have the cash than the house for the reasons you present. I ask myself if what I clear in the sale of my house would cover rental of an apartment in earnings if I invested that money. I figure I would not ($350,000 times 4% equals $1,200 monthly). Rents today for a reasonably safe and decent apartment in my low cost of living area are more like $1,500 to $2,000 if you could find an apartment at all.
@@ThisIsOurRetirement My housing cost would be 50% of my income like when I was young and struggling. I had hoped and planned for a retirement without struggle. If I knew how long I would live, I'd know how much I could draw down my savings and when. Still, I do have savings which is more than many people have in the US.
Just watched this and very much appreciate the point of view expressed. I have no kids, but as the kid of a parent who left a house as a legacy for the kids, I wholly agree with the notion of how difficult it is to dispose of that hard asset after the owner has passed. I also struggle with the notion of depriving yourself so that you can leave a legacy for the kids. But since I have no kids... I do have one last question though: you sold your house for all the reasons stated, but now I think you own a vacation trailer that requires maintenance and upkeep. That seems a bit contrary to your philosophy. Why not just rent a cottage or vacation home instead?
The rent is more than ownership of the trailer, we bought an old trailer for minimum $ traded it for a newer model and being on a permanent site adds $$$
@@ThisIsOurRetirement Interesting. I would not have expected that to be the case, but I shouldn't be surprised either that you looked into it thoroughly and made an informed decision. Learning a lot from you, thank you.
There is a massive problem right now with renting. Everything out there is now over priced and tiny. The rents that people are asking for these days makes it very difficult to find an apartment bigger than a bread box. Very discouraging market for renting.
The whole housing market has gone crazy from house prices to rent, however in Ontario Canada it is still possible to find affordable rents in smaller towns. Thanks for watching.
@@ThisIsOurRetirement How did you find your place? Did you use a real estate agent? Did you just tour around and see different buildings? Did you pick a new town and then decide on the building? Thanks. (I plan on selling my home in Mississauga and moving to a smaller town).
I own a small condo in Montreal since 2006, a good deal. I'm keeping it as long as I work here (work hard to build an early retirement). But, I will sell it when I retire at age 55 and move to ancestral Portgal and rent. I will chose to rent when I retire so I can be more mobile; you never know what part of the country you like best; sometimes you got to move around to get a picture of what works for you. As far as capital, I agree, investments generate more revenue than Real Estate without the maintenance, property taxes or condo fees.
Sounds like a wonderful plan you have and we wish you well, selling the Condo will give you funds to invest and generate income or the money to travel 🧳 Have a great day Cheers 🙂🍷🍺
I think there are a few points to consider here. Have you thought about wanting to make any changes to the house, after all, it's where you live and want ut to adapt tobyour way of life. Do you just up and go to another place? What about not being lucky with the owner who may not be an easy person to deal with over anything? When banks decide to reduce interest rates to almost zero, then what? Not everyone lives in an area where rent levels are controlled as you say. Are we sure that keeping a fixed rate and subletting at a higher price is entirely fair on younger generations who start house hinting later than you? Repairs (roof etc.) Still need to be made whether the house is yours or not. Is the landlord encouraged to jump to it and get it done quickly, especially When it's a cistly repair? When you sublet, who sees to the repairs? Don't get me wrong, I'm sure your choice has turned out to be the best for you, but I would think twice about suggesting it to everyone. Are we not likely to move towards a world where the number of property owners will get smaller and smaller (and they'll get richer and richer) and the number of people who don't own property gets bigger and bigger. Here's an example, a characteristic small village in England was enchantingly beautiful until someone, or some a firm, bought up all the cottages. They now all have exactly the same aspect, same fixtures and fittings, same front gardens and gates etc. etc. The charm has been completely lost. Although I too love your travel videos and thank you for sharing them with us and I'm sure you've chisen what's right for you (and have been lucky!) I would suggest that not all situations are the same. By the way, I have had to clear out houses of hoarding parents, it may be a temporary nuisance , but with the help of charities, scouts and so on, it is soon done. In any case it is not something that goes on forever.
We do realize that there will never be a one size fits all solution. The goal of our videos is to present concepts that you may never have heard about and give you the chance to think about them, to see if they are relevant for your situation or taste. We are happy with our apartment and have no need to alter it, we have it furnished to our taste. We have indeed sold our large family home to allow a younger generation to use it and raise a family, which we feel good about. We are not going to sublet our apartment as we can afford to keep it and travel. We have to be resident in Canada for at least 5 months a year to maintain our healthcare, summers after all are beautiful in Canada. Thank you for your observations and watching our video we appreciate it.
Unfortunately I don't have links, but even articles about money and investing profess that for the majority of people home ownership as an investment does not outperform actual investing. People often say you can have have a mortgage equal to monthly rent, but most mortgages last for 30 years, plus property taxes, plus home owner's insurance, plus maintenances and repairs to the house and property. After finally selling the home you have to subtract all those other expenses that have accumulated over 30 years against what you finally sell your home for vs. investing additional money after you pay rent into a managed retirement and or brokerage account for 30 years.
You are right, most homeowners don’t get it, the only advantage to homeownership is the forced savings aspect, whereas it takes discipline to stay the course for investing. Thanks for your comment, glad you made it.
I disagree. I own five rental properties and my tenants are paying for all related costs including the mortgage on my primary residence. In five years my investments are all paid off. FYI, the bulk of regular millionaires are property owners and they built it from rental income and leverage.
I'm catching up on some of your older videos that I haven't seen yet. I see how selling your house and having that set aside as an investment (orchard) has many advantages. What I'm unsure of is are you saying that owning a home in the first place was a mistake? Do you feel you would have had the discipline to save the same kind of nest egg that you have now because you sold your home if you had rented instead? It probably would be possible to do that if you invested the difference between what you paid on rent and what you paid for the carrying costs of the house for all those years, but would you really have had that discipline? I know I wouldn't. I would have spent it on fun stuff like travel and restaurants and entertainment. I know that if I had only ever rented, there would not be as much for my kids to inherit. I also want to be part of the legacy. My parents inherited from their parents. I have inherited from my parents, and I want my kids to inherit from me. All that being said, emptying my parents' house and selling it was quite an ordeal! I will probably go your route one day as well, but I feel having a house in the first place was never a mistake for me.
We have never said owning a house is a mistake, we have owned many homes and loved them all and selling our last one was part of our plan in retirement. Maybe you should ask your self do you need a house or money 💰 in the bank to be considered a legacy if that is what you are worried about 🤔Cheers 🍷🌺🍺
@This Is Our Retirement I agree it's the money that is the legacy. In my case it I hadn't bought the house while I was young, I wouldn't have had the stamina to save and invest enough to have that to give them. I think selling it before I leave the world would be another gift to them. It is a lot of work clearing out and selling a home. Plus, I like the idea idea of not having to shovel snow. 🤣 You may have sold me on apartment living during retirement!
Another great video full of great information, Thanks for sharing it with us, we enjoyed watching 👍🥰 hope your both keeping safe & well, Take Care 👍🤩🇬🇧x
I can see why you rent based on the Canadian laws etc. Unfortunately, we don't have these option in the US. Here the rent go up AT LEAST $100.00 (and often much more) each year. We don't have rent control apartments in our area; mainly in larger cities like New York etc. Would you not have to pay income taxes on that $5,000 rental income? We figure clearing out the family home is working for your inheritance!!
I’m seriously considering doing what you’re doing, investing and renting. Just wondering, do you think you might get to an age where you would prefer to buy again? Particularly so that you’re not having to move at an older age (if the owner is selling)?
We rent from a large corporation who owns 80-90 buildings and their business is renting , we have rent control so our increases are very small around 1.2% a year . We are happy with our decision Cheers 🌺🥂🙂
My wife and I retired and sold our home of over 30 years to live in an apartment. Before the move, I made a spread-sheet showing potential dividend stock income from the sale of the house, which we owned outright, the local and school taxes saved, the maintenance cost savings, the repair and upgrade cost savings, the insurance and utilities savings, the time savings or additional costs for lawn, trees, gutters, cleaning, snow and leaf removal, etc, etc. If you love doing all that, stay in your house. If you do just a decent job of picking dividend stocks, you will pay your rent down to nothing or even make money. And one more thought...one housing bubble could reduce what your house is worth overnight. If you lose 100K or 200K, how will that make you feel and how many years could it take till property values return?
How you manage your finance? Asset diversification? Main dividing stocking? I’m 35 thinking of going dividend way. But still concerned the stock market falls and short on cash flow some point in life…. I want to retire at 50, so 15 yrs to go. Would you share how you manage it over 30 yrs, it’s amazing, thank you
the opposite is also true, you mentioned the housing bubble could force a reduction in house value...how about a stock market correction, your $30 dividend stock could easily drop to $15, that dividend paying company could one day vanish. I do agree that owning a home does lock up plenty of capital and requires maintenance etc. As you age all this maintenance becomes a burden. It really does come down to working out the numbers but the stock market has major risk/reward consequences that need careful planning.
Hey I have really enjoyed your videos there good to watch. Question. If you had a work pension would you recommend investing your money into a house or just rent?
Well for many years we had a house but then we sold and now we rent and life is good , no unexpected maintenance and expenses and we can get on with having a great retirement Cheers 🍷🌺🙂🍺
Hello Tina and Norm! Nice to meet you 🙂 Your videos are very interesting and entertaining. I'm starting to consider selling my place and renting an apartment in 5 years. You're right, children don't want to be left with our mess and they don't necessarily want to live in their parents house. Are you in Quebec? I live in Montreal presently. Keep up your great work! 🤗🤗
And this is where I believe regulation oversteps. If the landlord doesn’t have the right to increase the rent they charge you, then you shouldn’t be allowed to sublet at market prices!
Renting is an interesting area lots of places won’t let you sublet, we are fortunate in Ontario we have rent control so our last increase was 1.2% have a great weekend Cheers 🍷🌺🙂
@@ThisIsOurRetirement rent control is great for the person renting. I just think its not fair that you get the benefits of rent control but then you can turn around and charge whatever you want throug a sublet! Just interesting in my opinion! Have a great retirement! 8 more years for me fingers crossed!!
Thank you for the video. My wife and I are planning on doing the very same thing, only we are moving from the U.S to Portugal then to Spain and whatever country after that strikes our fancy.
Sounds like a great plan, we love 🇨🇦 Canada and have family here so renting in both places gives us the best of both worlds 🌍 enjoy your weekend Cheers 🍷🍺🙂
I need to think this through. But I feel I am in a different situation. You see I bought a house in the country when I retired at 2.5 interest rate. I only pay $1000 a month. There are other cost, but I feel like this house is my hobby. I garden and landscape. I planted over a hundred daffodils in November and are waiting for them to come up. I walk in the wood near a canyon for at least 40 minutes every morning with my dog. I have never liked just going sightseeing. When I was working, I spent at least seven summers living with people aboard learning their language. I was an elementary teacher, so learning an additional language was helpful when communicating with parents. I think renting is for those that have cared for the house for long that it has become a chore that they want to break free of.
Another down side to leave the house as an estate: the time your children could sell the house they have to assume the cost related to it. It could be quit a burden if it take 18 months of more to sell it.
We would probably rent also if we had rent control. It sounds like it’s a win-win. Unfortunately, rent in So. Calif per month is almost as much as our current mortgage payment. It’s worth paying the little bit high mortgage payment to have a garage, yard, no neighbors above or below us and the equity that we are building. Thank you for the information. I love your perspective, knowledge and experience. 6 months to retirement.
We do know how lucky we are with rent control, it helps a lot of people on modest incomes. On the bright side you get the good weather we would love 😂😂 We wish you a great retirement, we have really enjoyed it so far. Thanks for finding us and watching our video, have a good weekend.
Loads of money to be saved if you work it right yes. I own my house but i dont have kids to leave it to. I also never got anything from my parents so it sort of balances out. Great video my friends.
Yes home ownership is the way towards wealth, we had kids, do you know how much university is lol. You couldn’t keep your lovely chickens 🐓 in an apartment lol Thank you so much for watching 😀😀🐓🐓
Just found your channel and now I’m binge watching all your videos! It’s great to see advice from people who are retired and enjoying their life like you two, keep it up! ❤️
Thanks for watching! so glad you enjoyed it have a great week Cheers 🍷🐣🍺🌺
No way you are throwing away your money on rent. I just contracted with an Arborist to remove Spanish Moss and fertilize my 4 trees… $750! Last month $900 in AC repairs… it never ends. Owning my home and keeping it in good repair in order to resell it at a competitive market rate costs a fortune. Looking to sell this house and downsize to a rental apartment or possibly a cottage in a resort that handles all the maintenance. Every year, without fail, there is at least one big repair. This summer: new driveway to replace the terribly cracked 35 year old driveway.. cost: $8500 😟. I miss the good old days of carefree apartment living in my younger years.
Yikes 😱 exactly all those unexpected ownership costs just to keep up so you can sell, we are so glad we did and love our apartment where they take care of the problems Cheers 🍷🌺🍺
I say this with Respect, You are like UA-cam Parent's to us Millennials with all these future decisions about our own retirement. God Bless you both with long life. Peace!
Thanks for your comment, we really want to talk to the younger generation.
My wife and I have always rented. We hear the arguments about how we're throwing away our money. Well there's a few things to consider. We live in Houston, Texas. Texas has no state income tax and a very reasonable sales tax. But owning homes in any city is very costly because of outrageous property taxes. You never truly own your home. Don't forget home owners insurance and the must have flood insurance. Then there's the upkeep, repairs etc.
If you rent from a quality ran apartment complex that has good management and a strong corporation behind it, life is pretty easy. No paying for air conditioning break downs, no pay for a new dishwasher etc. Great facilities, quality pool, workout rooms and even meeting rooms and offices for your use on site.
We treat our apartment like we own it. We don't abuse the appliances etc. The first sign of trouble we communicate with the property manager. Our rent has rarely gone up over the years.
We enjoy living on the top floor. No one above us. We have no children, but if we did, the fruit trees would be much easier on them.
Freedom from the above mentions brings value to our lives.
Who wants to be retired and not have true freedom to do the fun stuff.
Like always, great videos!
Oh my you are kindred spirits, when you use critical thinking and analysis and don’t delude yourself on the cost of carrying a mortgage free home then the logical step is renting and living for yourself and not being owned by the house. Such a great comment thank you for sharing your insights and congratulations on getting it.
I have always owned -- 2 houses, 2 rental houses, and an apartment complex. It takes an entire day just to mow all the grass. I am nearing retirement, and have vowed to sell everything. Making someone else cut the grass is my dream.
I found this video very interesting because I've never owned any property. I'm 70 y/o and have been retired almost 10 years. I was fortunate to find an inexpensive apartment in which I lived for 18 years before retiring (owned by an older couple who weren't trying to make a 'killing' so they didn't bother to raise the already-reasonable under-market rent) and before that I shared an apartment for 12 years in another city. This enabled me to save a large chunk of my salary for retirement. On the other hand, I've known a few people who LOST money by buying a house: one lost a job and had to move to another area for a new job, but ended up paying two mortgages until the first house sold, and the other had a similar issue but real estate prices fell where he lived, so he lost considerable money. I asked the second man why he had bought a house, and he said "I thought that is what a person is supposed to do!" I'm in the US, and I suspect adhering to the "American Dream" mentality has caused financial problems for many people.
Great comment Bob thanks for sharing this, if your disciplined with money and can save then renting is probably the better investment.
@@bert1450 Where do you live? How long have you lived there? Unfortunately, because of most people having to live near where one's job is located, living in such a place isn't necessarily an option.
Regarding leaving your “family home” as a legacy to your kids, in 2021 this isn’t the culture of an agrarian society. Many folks don’t understand that your children don’t want your stuff. They don’t want your house, they don’t want 98% of your belongings.
They don’t want to have to clear a lifetime of possessions from the family home either. We agree with you, that is the path we have chosen. Have a good weekend
@@ThisIsOurRetirement oh yes....when my parents died, they had a retirement house on North Vancouver island in a fishing village..It was a nightmare flying out there and clearing out 40 years of stuff..
Before we could sell the house..I think you are being very considerate of your children...
Cheers from Toronto
It depends on where you live. In the UK, many boomers are becoming millionaires after inheriting their parent's homes.
@@guenthermichaels5303 Thanks for watching Cheers 🍺🌺🍷
@@TR4zest Guess they won’t complain about clearing it then LOL 😂😂
Sometimes it's just nice to not have to mow the lawn, fix the faucet, re roof the house, replace the water heater or the fridge. Renting can also free up quite a bit of leisure time. Just lock the door behind you and go hike up a mountain side, see a movie, have lunch with some friends.
Absolutely you got it ! have a great weekend Cheers 🍷🌺🍺
Yes! I did the homeowner and also the landlord thing for 15 years. Home ownership is overrated. 😊
A super late comment. From my own experience, living across Canada....i got more out of it than most. I did not own property, i did not have a family, and i did not incur debt. I paid cash for uni. and got to see more than the average man's lifespan by the age of 30. Then i trained young adults how to play in the alpine and rivers safely, in Canada. Glad to see that you are so positive with your situation. You arw both so sweet!
My wife and I have been married 23 years. We rented a very small apartment the first year and a half. We look back and as we were operating only 1 car, buying very little for the house, no maintainance costs and we were able to save a full salary and live off the other salary. Our Vancouver area house has done very well but we never have had as much cash for investments or to spend on fun like travel and entertainment. In the suburbs we needed a second expensive car.
This is exactly what I've been thinking of doing for a long time now; I will retire in a few years and would love to stop dealing with a house; and just rent, I am constantly putting money into the house to keep it in top shape, but after awhile I don't think I am gaining much at all. So its nice to hear others that are doing it already and also understand that its not always just throwing money away. And I always said that I don't want to leave that burden on my kids to have to clear out and sell my house; and most of the time that's all it is, they have their own homes.
Hi Barb all we can say we did it sold the house then rented 5 years ago and never looked back , when we had a house mortgage free what it cost us per month in running costs to us renting was $100 different but so much less stress life is great .
What we would say is the sooner you get in on renting the better deal you get if you came in to our place as a new tenant you would be paying $400 a month more than us .
TFW and have a great week Cheers 🌺🍷🍺
You’re off your rocker if you don’t think landlords don’t think of those costs when figuring rent pricing
@@wlonsdale1 exactly. There would be no landlords if there weren’t huge profits in Owning the apartments.
Hello, really enjoy watching your videos....just one word of caution, I dont think you can sublet for a price more than the rent you pay to the landlord and you actually need the landlord's permission to sublet!....pls check that out, before your landlord finds out!
True, in Ontario you can sublet but one of the stipulations is that you can not profit. Here are the regulations to subletting. A tenant who sublets a rental unit cannot:
Charge a higher rent than the landlord does for the rental unit
Collect any additional fees for subletting the rental unit, or
Charge the sub-tenant for additional goods or services.
If you do want to leave your kids something in your will, your way of doing things is good--if you do the following. Rent an apartment that is less expensive than paying a mortgage, taxes, etc., and then take those savings and invest them along with what you got for your home. Then live on less than what you are receiving in interest payments from your investments. It would all depend on what those numbers amount to, and whether you can live comfortably on it. And also taking into account whatever taxes you have to pay at the end of the year. But yes, you could work out a nice tidy little package that benefits you and your children in every way. The only problem I foresee is our insane governments spending way more than they can afford and then plundering everyone to pay for their irresponsible spending.
This is my second video of your channel and I am just loving it. You two are adorable and so polite, and I come away for lots of food for thought. I feel like we bumped into each other on a cruise and had a nice chat. Thank you for your uploads!
Thank you so much!!
This is the deal owning a house is rarely a good investment, this is fact but many will debate this fact. I own two homes and pay a combined property tax of 36,000 per year lets not even get into repairs, upgrades and the mortgage. Why then do I not rent and never plan on renting, I have and I hate living in apartments. For me its like living in a cage. But I totally agree with your financial advice. Many years ago someone coined the phrase you can't loss in real estate, which is not true. I have done OK in real estate but all my real wealth has come from the stock market. I may be wrong but from what I have seen you live in or near a big city where housing prices are insane. I could be wrong. As soon as I retire I am selling my way over priced house near NYC and moving to my country home. For many selling a low cost rural home makes no sense as the cost is low, renting options are limited, no apartment building for example.
There will always be a debate on this topic we had a gorgeous home for 20 years, we did the maths on staying even mortgage free and renting and for us renting won hands down. We have a very spacious 2 bed 2 bath 1340 sq ft Apartment with huge balcony with ensuite laundry so definitely not cramped at all .
Hope you have a great week Cheers 🍷🍺🌺
As every choice one makes, depending in the country of residence, there are pros and cons to every situation. I am so happy for you that your planning, researching and knowledgable backgrounds have helped you get to where you are in life. Your positiveness can be felt through the screen with those happy smiles. Thanks for that interesting peek into rental options. Keep safe, keep smiling and enjoy the good life. 🍷👍🎥❤️🌷🙋♀️
Good morning ☕️ Thanks for dropping by we do feel very happy with our decision and you are right we all have choices to either change or stay the same.
We hope you are managing some local travel stay safe , keep well and enjoy your weekend Cheers 🍷👍🍁😎🌺
this may not be a popular opinion...but why worry about leaving something for your adult children ? I mean, if we all had loads of money, ok..but we want to retire early and try and enjoy our remaining years..there is no guarantee as to how long or short of a time we have...ever...we will be cashing out our assets to live on and enjoy...doubt there will be much left...my father died, fairly broke and i didn't get a dime, his new wife got it..i survived and didn't have any expectations of him leaving me anything...my mother is an expensive retirement home living a good life...she deserves to spend all her hard earned money..doubt there will be anything left for me..thats totally ok, she earned it !! if u have extra money, fine, but don't live a frugal life to leave something for your kids !! enjoy life !
We aren’t we live how we want to and not that interested in buying stuff.
Thank you for debunking this myth! My husband and I are in our early 40s, no kids, and living in Vancouver. Buying even the most modest of homes/condos is astronomical (!) but so many people still have the mindset that we’re throwing money away on rent. So from time to time the notion of buying still creeps into my head. Your videos do an excellent job of reminding me that indeed, renting is best for us! Thank you!! 😊❤️
That is awesome! we love renting have a great weekend Cheers 🌺🍷🙂
I still believe buying a house is the best investment for any family. Everyone always needs a place to live. If the price goes up, you sell, the capital you get will buy an equivalent property. If the price goes down, same thing. It’s security buying a house and a good investment. Difficult for first time buyers to begin in the market, but in the long run a very sound investment.
Hongcouver houses are bank accounts for CCP members laundering money.
This is such an important video. I love how you guys are going on your channel. You have definitely helped me rethink what I should be doing in retirement. You bring such a fresh perspective to the benefits of renting. I love your advice. Thank you 🥰🙏🏴🍷🍷
Thanks Karen we thought it a very important topic as a lot of people have preconceived ideas that aren’t true about renting and we thought the same too😱. Hope you and your family are keeping well enjoy your day ATB 🍷🍁🍺🎃
Recently discovered you two. Love your videos and you give us lots to think about but most of us in the US do not have access to rent controlled properties.
Yes rent control is awesome, very few U.S. states or cities have it.
Twenty years ago I would be emphatic about owning and not "Throwing money away!" Now I prefer renting when it's less than 1%, per month, of the fair market value. In any case, do what makes you happy 😎
Absolutely couldn’t agree more we are very happy with our decision to rent and since taking early retirement 5 years ago we haven’t looked back have a wonderful weekend Cheers 🌺🍷🍺
I’m about 5 yrs out till retirement and I like your ideas. Especially about renting vs owning.
TFW it has worked for us , hope your plans for retirement work out have a great weekend Cheers 🍷👍🍺🍁
Renting means no maintenance repairs or lawncare.
Renting means you can move after a year without having to pay closing costs each year.
This is very interesting because, I am planning to retire in 7 years. (67) Your choices maybe not everyone's, but it does give a person something to think about.
Thanks for watching we wish you well for your retirement have a great week Cheers 🍺🍷🌺
My husband and I have recently been playing with the idea of selling our home, investing the money, and renting an apartment. We live in the US and do not have rent control in our state, but we still believe this will be a great way to downsize and save our initial investment from our home. Thank you for your well thought out advice.
@@bert1450 Yes, losing our beautiful yard and screened porch is terrible. Rental units are outrageously expensive where we live, but we are weighing those costs. Having the money earned from the sell of our home in an investment account would help with those costs and/or travel. We are 70 and 73, do not want to leave this 4,000 square ft home full of stuff for our kids, and are tired of the maintenance and yard work you mentioned. We travel a good bit and would be able to travel more without the worry of a home. Good luck to you!
There is a time in your live to own (when you are young and growing a family). And time to rent(when you are retired and your family has grow ). We owned our home for 42 years and over that time the equity grew 11 times what we paid for the house. It was like winning the lottery .We will be able to live on the interest from the money with no debt. And the big thing is that the upkeep is the landlords problem.
What a great comment we are living just that and it is wonderful guess like winning the jackpot 🎰 wishing you a wonderful retirement and great Easter 🐣 weekend Cheers 🍷🐣🍺
@@ThisIsOurRetirement UYeh but the jackpot is only for people who had bought their houses/property some 15/20 years back , the same can't be said about buying now as the appreciation will never hit that level even in next 10/15 years
Owning a mortgage free house in the GVA was the #1 reason we were able to retire in our 40's. Now that we are "Seniors' we considered renting or downsizing
but with the very high cost of rent of at least 24k (30k before tax) for 1/4 the space, it doesn't seem like a good option. Most of the proceeds from selling would have to go into non-registered taxable portfolios. Plus we enjoy all the space and the maintenance and gardening keeps us in shape. Might be a more attractive option when we get older. Great videos BTW :)
Thank you for watching, everyone’s situation is different and we appreciate a one size fits all solution is unrealistic. It is a series of decisions that we took, selling our home moving to a cheaper area and living for ourselves, not our house. We value experiences at this time of life more than possessions. We really appreciate you adding to this discussion.
I agree with your thinking. I owned a home for 20 years and now that I'm a few years from early retirement I sold during the pandemic and moved to an active senior apartment. It is costing me less and I have lots of fertilizer for the orchard. I now have the freedom to decide which country I want to live in once I retire. I have no regrets and anything left will go to my estate. Yes, my former home is still appreciating, but I do expect the market to crash at least once in the next 20 years and didn't want to be stuck with it in a down market. I am also realizing gains on the capital, maybe not as much as the equity is going up in the house but I eliminated the downside crash.
That’s great, we have had 2 houses in our life where we sold it for less than we bought it for due to market corrections and inflation. You have given yourself mobility so you can move within 30 to 60 days if you wish and reduced social isolation. Also you have reduced the liability to your capital but not having unforeseen housing maintenance. We wish you a great retirement wherever that takes you, it sounds exciting. Thanks for your great comment.
Always good to see you both keeping well and productive during this time. x
Thanks we always appreciate you dropping by and it’s great to connect with things we are all going through have a wonderful week Cheers 🍷👍🍺🍁
My husband has been trying to get me to consider renting as well - we would make more in interest per month by investing the money from our house sale than we would pay in rent per month. Plus - no property tax, utility payments, etc.
Financially it makes a lot of sense and protects your capital however if you are not certain about it it may not work for you.
My thinking is renting an apartment you can have awful loud neighbours.
We still live in our house which is mortgage free . We can’t move into the country villages because of health problems.
I did check the rents and there very high in Calgary.
So for us it makes no sense to rent.
We are close to our doctors and hospital.
We used to be avid travellers but do to medical conditions out of the blue we can’t travel at this time and probably never will again.
Everything stops once your diagnosis is established.
Of course we thinking of downsizing but it is still cheaper to live in our house at the moment.
Great video. Thanks! Owning a home is expensive from a maintenance and tax perspective. We are often oversold on the values of owning a home.
Yes we hear you and we thought that way for many years , very glad we changed we have enjoyed every minute of our 5 years here. Have a wonderful weekend Cheers 👍🍷🍺🍁
And most.people tend to severely underestimate the amount that upkeep and the true costs of ownership come to. When we owned a beautiful home in Ottawa it cost us over $80k in the space of a few years. Siding, tree removal (dead trees from ash beetle), fencing, pool deck, pool liner, new furnace, well pump, etc). Or even worse, they completwly ignore the upkeep and let their house basically fall into disrepair. And property tax was about $500/month alone, never mind the mortgage.
Please don’t tell me you think the landlord, out of the goodness of his heart, is covering those expenses. YOU are paying those
@@debbielockhart7762 and if you rented it out, you would have charged enough in rent to cover it.
@@wlonsdale1 Rents are dictated by the market, not by the size of the landlord's expenses. In overpriced markets many people take a monthly loss on their rentals.
Welcome to Canada and wait for....surprise...surprise....surprise..God Bless You and enjoy Canada
Yes! Thank you! we are loving being here Cheers 🍺🍷🌺🇨🇦
I think one of the reasons people are reluctant to rent is the imagined stigma. Being older you have the joy of not giving a damn!!
Great comment thank you , we love your sense of humour 😂 hope you both are stay and keeping well have a great weekend Cheers 👍🍷🍺🍁
LOL. Great comment. We own our home (3 more years to go), but given current housing market in many cities around North America, many young people don't have the option of buying unless they have a high salary or other windfall (inheritance, etc.). If I was starting over today, I'd rent and invest the delta (i.e. from what I'd be paying in Mortgage + property tax + maintenance). After 25-30 years, I'd have a nice retirement portfolio.
@@jaxwylde2139 Exactly. There's more than 1 way to skin a cat. Here in Victoria, BC I find renting makes more sense as housing is so overpriced. I save a lot this way.
@@jaxwylde2139 Not true. I came from nothing and have a moderate typical fresh-out-of-college salary. After 9 months of renting with my first job, I am buying a condo. It's about being responsible with the money you do earn and having realistic expectations when house shopping. The only benefit of the doubt I will give is that my student loans aren't bad and I haven't had to pay a penny of even my small payments because of the Covid forbearance. But other than this young people can buy a house if they want to.
@@jaxwylde2139 Just noticed you said "invest the delta." As a math enthusiast I approve lol! And I'll be continuing to invest for retirement too (401K match and Roth IRA limit), so I have taken that into account. :P
After decades in our home we are now in an apartment renting. It suits us much better as my spouse has health issues. There is always something falling apart, needing to be fixed or replaced in a house, including the roof etc. so we don't miss that whatsoever. We have even given up our vehicle to save money, We have great public transit very close, and we rent a car when needed for getaways. We love to garden and have beautiful flowers and even tomatoes on our balcony. Looking forward to a bit of travel after the pandemic for sure.
That’s awesome we are so glad you are enjoying your apartment Sandra we love ours and yes hopefully 2022 will be goodbye 👋 to Covid and we can all start travelling again Cheers 🍷🌺🍺
I really enjoy your advice,BUT our main problem is finding a GP. No one is willing to take on seniors. We emigrated to Ontario many years ago,and we’re lucky enough to find a GP but when we moved it now means a long drive ( we live in Dundas near Hamilton) and both our GPs are due to retire.😊
We were in the same situation Gillian not able to get a local doctor, we listen to local news and saw a new practice was going to be built, so kept an eye open for enrolment and got in on the third intake two years later (as new doctors set up in the building), Just keep trying and listen to local news and newspapers. Good luck.
Great job on the videos, very clear and informative.
I pay 6;000 a year for prop. Tax in Carlsbad ca. By the beach. That is it. Neibors renting down the street paying 30,000 yr. also I was 24, bought for 78000 sold for 270000 in 13 years.
You do still have to add all your other monthly expenses as well as the taxes to compare , TFW have a great week Cheers 🍺🐣🍷🌺
We are looking for a cheap car rental company out of Faro Airport for December 1/21 for 90 days. Can you give us a suggestion. We are having great difficulty finding the cheap deals you talk about. Thank you.
All the car rental companies are at the Faro airport just email them direct we hope you have a wonderful time Cheers 🍷🇵🇹🇨🇦🍺
My home has increased in value by over $200,000 (I live in Scottsdale, AZ, USA) in the last five years. It will increase at least $30,000 in 2021. It has been a sound investment & 8 will be renting it out to live in a small apartment some day in the future. But the increase in value has been a true benefit for me.
I do love your channel, btw & want to see some more of the world before I am too old to enjoy it, LOL. Hopefully, I will have a nice family living in my home, financing my trips with the rent they pay me!😎
Property might appreciate ( as generally happens over 20-30 years. But the capital remains fixed, since you are taking away the interest to buy apples :). Alternatively, you should spend only part of the interest you get and leave the remaining to the capital.
We actually don’t spend any apples, we just reinvest in more trees. The rule of thumb used to be in high inflation, only take half the dividend or interest and leave the other half to offset inflation. Thanks for sharing your ideas.
So love your channel, such a good example to us all.
Thanks so much we appreciate you watching, hope you have a great week Cheers 🙂🍷🍺
When you are young and have higher income owning a home builds equity and creates financial security over time. Most of our net worth is from our home & my townhome I rent. Stocks in our IRA's have to deal with stock market downturn. Nice you were able to sell your home to finance your retirement. We will continue to own our home as property taxes can go down once over 65. No rent control in most of USA. Your apartment is great value with rent control and being able to sublease.
Sounds good Diane we are fortunate having rent control in Ontario have a great week Cheers 🍷🌺🙂
it strikes me you are both fortunate to have each other, and survival costs et al., but Me I am single 70 and have been fortunate in cheap rent in a rustic cabinon beach vancouver island. But if I think if things change , it could be nigh on disastrous with the cost of living and rent at market rates, personally I think a lot of folks sitting on million dollar homes with 3000 sq feet, the national disparity in security for most canadians is apalling, a plan B My Gawd,,,,
Thanks for watching we do realize we are fortunate to have each other and enjoying life we have visited briefly Vancouver Island and it was wonderful Cheers 🍺🍷🌺🙂
Where do you guys keep your play stuff, like bikes, ski’s, backpacking gear etc? I’m having a hard time selling the rent to my husband bc of this
Apartment buildings usually have storage lockers in the basement that you can rent, also we have lots of closets and we have a storage shed at our trailer. Our apartment building also has a bike storage room which is free and a locked door.
Sorry guys but no, no, no. Yes, there are advantages in renting as you say, but there are many disadvantages too. Yes if you sell your house you can keep the cash and spend only the interest (the apples) but every year your capital reduces anyway due to inflation (even if you don't chop down the trees Norm). Also you are the mercy of the market. I am in Oz and I know people who have tried your plan and it has been a disaster. True we do not have rent control so many who do not have a house now cannot afford to rent because rents have shot up. House prices have exploded too so if you are out you will be out for good because your capital will not be enough to buy you back in. So I suggest great caution over this and at least consider carefully taking into account the market and rules where you are located.
Thanks Bill for you perspective, house ownership is a constant dripping bucket of dollars, relatively small but constant if you want to maintain the home’s value. Add to this utilities to heat and cool a house that is bigger than you need, add property tax and major repairs. We can’t convince everyone but we have zero regrets and have not spent a penny of our homes value. Thanks for watching and sharing your thoughts.
I was told that since I was little, and one day I put the dollars to the test on paper, and it was a lie. A huge lie. Anyone can write down everything they spent on their home vs rent and utilities and see if that difference is worth have renting instead. We made more money putting the difference away and retiring early by getting rid of our home. We saved so much doing this, that I was able to retire 2 years earlier and we only rented for 2.5 years. If I had to do it all over again, we would have never bought a home until we were ready to settle down permanently and could have easily retired around 40. The money you make from selling your home, will not likely ever come close to what you can make if you put away the difference (total home costs vs renting) into your vanguard index funds and let them ride. I lost so much money over the years not figuring this out sooner. Why are we not teaching our kids in school the truth? Great work sharing this with others and we don't all have to get the breaks like you guys have had with where you live specifically. Even without the breaks and deals you guys have, this all still works. The bank interest, the home repairs, the taxes, the time you spend working on your home, the higher utilities, and all the other expenses you give to others instead of just paying yourself and making money on "your money" without them. Why do people let everyone else get a stake in your claim? It is because people aren't sharing things like this. Loved your video. ❤️👍👏 Donovan & Jodi
Hi Donavon and Jodi what a great comment thank you for sharing , we often wonder why they don’t teach finances in school , about saving or what options there are in buying a house or renting and saving the difference and other ways of getting passive income . What we are finding is that that there is a huge fear of retiring and we are hoping that sharing our stories will help others realize that to not be afraid and just do it ! Life can be short and we don’t know what is around the corner ie Covid 😱or health issues so do it and enjoy it . We hope you are both staying safe and keeping well have an awesome week Cheers 👍🍷🍺🍁
Thanks for watching we really appreciate your support 😎
@@ThisIsOurRetirement ❤️ ❤️ ❤️
When a landlord cannot increase the rent, his taxes increase, he still has maintenance, etc. Something has to give, and it is usually the maintenance, which is why we have slums. Duh. If you own a gas station, and cannot raise your price when your cost of fuel increases, how long can you survive that?
We don’t agree our Landlord has put in new energy toilets, painted all the balconies, new thermostats for Heating /AC , all new LED lights just in the last few months they are great at upkeep of maintenance in our building. Cheers 🍷🙂🌺
Also that might be a particularly good strategy if the climate where you live is a bit severe in winter; however, we like to garden - one key hobby in retirement, and the climate where we live you can garden all year round if you want.
But certainly I understand the advantages in renting, owning a home is not always the most cost effective plan
Thanks for sharing have a great day Cheers 🍷🌺🍺
My buddy's Tennant sublet his condo to people and voila flooded and caused water damage so Great for you but not the owner landlord that's the part I don't like not fair really ..
In Ontario you can sublet , but not good if someone floods it , In our building Tenants Insurance is mandatory so would cover that we hope . Have a wonderful weekend Cheers 🍷🐣🍺🌺
I don’t think this would work in the U.K. though as there is very little security in private renting and landlords can sell up and just give you a few months notice
The same happens here, that’s why we advocate renting from a company that is a rental corporation.
You people look soo nice and lovely would love to meet you both
Thanks for such a nice comment 🌺we hope you have a great day Cheers 🍺🌞🍷
👍👍✌️ Yes most older people will have a lot stuff built up in their homes after a long period of time. Like mine.
We didn’t downsize enough when we sold our home and rented our apartment Cheers 🙂🌺☕️
You are right if you have rent control
Most people don't
Buying for me was an incredible bonus
I have very little over head now and everyone pays me
Thanks for sharing Susan Cheers 🌺🙂🍷
My most prized possessions if you call them that are my 10 dogs. Who would rent to me with 10 dogs? I have to own
Then renting might not be for you unless you rent a farmhouse 🧐Cheers 🌺🍺🍷
I was in BC and paied $1200 a month for three years thats $43,200 over 3 years.
I bought a house in Nova Scotia for $120,000 cash. I get appreciation of capital, prices are up 20%, no rent, no aweful neighbours, no bad landlords.
So there are swings and roundabouts to buy and rent.
We agree, but there is a cost of moving 10% of the house value, all the Home Depot / Canadian Tire visits, property tax, replacement items p, garage doors, windows roof, etc but hey if you wish to leave your capital at risk for unexpected expenses that’s OK.
Yeah, these "renting is smart" videos always ignore appreciation. I've been in my current house 15 years, paid $0 rent, $125/mo property tax and $250k appreciation. So my net is about a $610k profit (assuming compound interest at 4%) vs losing $360k paying rent ($1500/mo for 15 years and losing 4% on that money). The difference is almost a million dollars.
@@ThisIsOurRetirement My garage doors are still good thankfully, but here are a few of my expenses over the last 5 years: Hot water tank: $1200; appliance replacements: $4,000; roof: $17,000; fence repairs: $3,000; concrete repair: $4,000; flooring replace: $9,600; tree trimming: $1000+ every few years... the list goes on... :-)
@@kjmorley depends how big your house is......big house big bills...
david True. Also, old house, big bills.
Thanks for the wisdom. Suggest you say people should read the fine print before subletting though. Differnt places have different rules. Love your forum and keep up the ingenuity!
You are right and we keep trying to say that we are not financial advisors and you should seek professional advisors to suit your circumstances, thanks for your comment and suggestion.
You must live in Ontario ? If my parents left me their house ...I would happily clean it up to sell ....I would be grateful !
That’s great we did that too.
Appreciate your comment. Many others are thinking of the hassle to “clean” what their parents thought was their fortune... you are very respectful. Hope our kids will think the same.
Great rental terms there. Not the same here in the UK. Tenants here are subject to rent increases at the whim of the landlord and can also be evicted at just two months notice, also at the whim of the landlord. I think renting is a great option for retirees as it allows them to spend any capital they have built up by owning a home, and also removes the pressure of managing and maintaining a home. Unfortunately, not with the lack of security of tenure here in the UK.
Wow yes that doesn’t sound good in the UK 🇬🇧 we have it a lot better in Canada 🇨🇦 Cheers 🍷🇬🇧🇨🇦🙂
In Scotland there is currently an eviction ban & a rent freeze. Normally landlords have to give 6 months notice … unlike England
@@mollyt4639 yes, but that will no doubt soon result in there being hardly any places offered to rent so there'll still be a problem. For example, how can landlords sustain frozen rents when their costs increase through inflation and rising interest rates?
Can't the landlord sell the whole property and some new owner demolish and rebuild, voiding your rent control? We don't have that type of rent control where we live.
We rent from a corporation that has 86 buildings, they thrive on renting thats what they do , we are fortunate our increases are very small 1.2% have a great weekend Cheers 🍷🌺🍺
I don't understand the logic of renting verses owning your home. I live in the UK (Snowdonia). I own my home outright so no mortgage. If I rent in this area I would have to pay around £750pm. That is £9000 per year out of my own pocket. My house has increased in value during 2021 by 15%. That is £45,000 based on the pre 2021 valuation of £300,000. If I had rented I would have lost out of this £45,000 plus spent £9000 of my money in rent enriching the owner instead of myself. Years ago, prior to owning a home I rented in London for 6 years. Needless to say, after those 6 years I had no equity of my own.
Renting takes away the unexpected maintenance and expenses of home ownership , we looked at what we were paying 💰monthly for our morgage free home and there was a $100 difference. In selling and investing the money in dividend stock we are way ahead and so stress free. Have a great weekend Cheers 🍷🇬🇧🇨🇦🍺
It's all about preserving your capital, we have a set cost for housing that stays the same, no surprises, no travel to the hardware store, no paint, unexpected maintenance. You have said previously that you buy homes to renovate, so you have to invest in renovations, then repairs etc Council rates, electricity, gas. We don't it's the rent and that includes all utilities and maintenance. We even get a tax refund on a portion of property tax that is in our rent. Think of renting a car for a trip, you pay your fee and then only petrol and parking. You don't have to change the oil, replace the tires or do engine maintenance filters, belts etc. Well this is how rent works for us and we have the capital out of our house and getting pretty good income from dividends plus stock appreciation. We have been in a bull market for 15 years, stock market has made us great returns. Thanks for your question.
The factor is: if you aim for rent where wages are lower then you come out ahead. Also nowadays there are many investors with excess space in some parts of the world. They are hungry for income on vacancies.
Income property has its stresses
Hey Guys, I somehow missed this video and that is exact topic I am very interested in. Considering rent or buying apartment to downsize, I have found out that staying living in you home is much, much less expensive. We live in Calgary, out wonderful home is located in Estate area just 50 metres from great park we use fro jogging and walking. I love this area so much that I would never relocate. So, we started thinking about either buying or renting apartments in this area. So.... Renting of 2 bedroom is bw 4000-7000 CAD per month. It is honestly throwing all money we saved for rent. Which is crazy... Staying in our house: we are spending for land tax, utilities about 1000 per month maximum, adding to that, leaving in much better conditions with walk in basement and our sport utilities and plenty of space for both of us... So we started considering buying instead and selling home eventually in 10 years maybe to use these money for investment and live of dividents
Angela that’s why when we downsized we went to a smaller town from a larger metropolitan area, quality of life is better and cheaper. Just imagine having to replace your roof, garage doors and furnace. Thanks for watching we appreciate it.
@@ThisIsOurRetirement That is a good point, I agree, but lets talk numbers: replacing roof, garage doors a furnace will be much cheaper than spend 60.000 for rent per year. And We are not going to do it every year. Besides, houses are increasing in price at least 5% a year in our area.
Brilliant! My wife and I live in Manitoba and our province has rent controls as well. We've said for a number of years we'd rather rent than sell our home and buy a condo. You've made a brilliant case supporting what we're considering. To be honest one of the things holding us back is the "stuff" we've accumulated in our home over the past 30 years. We're certainly not hoarders but we have "stuff" to get rid of before considering a move. I can certainly see where the whole process could take a year. Thanks again for sharing your experiences and insights.
We are so glad we did it , make a plan with an end date a year worked for us that’s the push to make you get rid of stuff, sell it , throw it away , give to charity shops start one room at a time . It’s very freeing getting rid of stuff , we should of got rid of more !! Have a great weekend Cheers 🍷🙂🌺🍺
I would think most offspring would rather have the cash than the house for the reasons you present. I ask myself if what I clear in the sale of my house would cover rental of an apartment in earnings if I invested that money. I figure I would not ($350,000 times 4% equals $1,200 monthly). Rents today for a reasonably safe and decent apartment in my low cost of living area are more like $1,500 to $2,000 if you could find an apartment at all.
On average with Canadian banks you can get 5% together with pensions easily covers $1500 rent Cheers 🍷🌺😎
@@ThisIsOurRetirement My housing cost would be 50% of my income like when I was young and struggling. I had hoped and planned for a retirement without struggle. If I knew how long I would live, I'd know how much I could draw down my savings and when. Still, I do have savings which is more than many people have in the US.
Well, being from northern Spain I don´t have apple trees to leave but I have chestnut trees.
We love 🌰 chestnuts!
We dont have rent control...I wish we did
Rent control is great , hope you have a great week Cheers 🍺🍷🙂
And how did I get this alert of your video when I didn’t even subscribe?
It’s nothing to do with us, it’s UA-cam testing out audiences.
Just watched this and very much appreciate the point of view expressed. I have no kids, but as the kid of a parent who left a house as a legacy for the kids, I wholly agree with the notion of how difficult it is to dispose of that hard asset after the owner has passed. I also struggle with the notion of depriving yourself so that you can leave a legacy for the kids. But since I have no kids... I do have one last question though: you sold your house for all the reasons stated, but now I think you own a vacation trailer that requires maintenance and upkeep. That seems a bit contrary to your philosophy. Why not just rent a cottage or vacation home instead?
The rent is more than ownership of the trailer, we bought an old trailer for minimum $ traded it for a newer model and being on a permanent site adds $$$
@@ThisIsOurRetirement Interesting. I would not have expected that to be the case, but I shouldn't be surprised either that you looked into it thoroughly and made an informed decision. Learning a lot from you, thank you.
Norm your wife looks like the American actress Geena Davis
Thanks Danielle, you're not the first to say that!
There is a massive problem right now with renting. Everything out there is now over priced and tiny. The rents that people are asking for these days makes it very difficult to find an apartment bigger than a bread box. Very discouraging market for renting.
The whole housing market has gone crazy from house prices to rent, however in Ontario Canada it is still possible to find affordable rents in smaller towns. Thanks for watching.
@@ThisIsOurRetirement How did you find your place? Did you use a real estate agent? Did you just tour around and see different buildings? Did you pick a new town and then decide on the building? Thanks. (I plan on selling my home in Mississauga and moving to a smaller town).
@@dt8787 Yes we picked a town then looked at all the buildings with the list of what we wanted in them Cheers 🍷🇨🇦🍺
Agree entirely.
@@johnballard6725 We love renting Cheers 🍷🌺🍺
I am not so sure a rent-controlled unit would permit sub-letting. That sort of defeats the intention of the law.
It is a thing here, it’s in our lease but we can’t charge more than we pay.
I own a small condo in Montreal since 2006, a good deal. I'm keeping it as long as I work here (work hard to build an early retirement).
But, I will sell it when I retire at age 55 and move to ancestral Portgal and rent. I will chose to rent when I retire so I can be more mobile; you never know what part of the country you like best; sometimes you got to move around to get a picture of what works for you. As far as capital, I agree, investments generate more revenue than Real Estate without the maintenance, property taxes or condo fees.
Sounds like a wonderful plan you have and we wish you well, selling the Condo will give you funds to invest and generate income or the money to travel 🧳 Have a great day Cheers 🙂🍷🍺
Work out exactly where you want to live....then you don't need to move...and you save a lot of money..
people dont realize the opportunity costs of ownership of a house which you speak about
We agree they don’t they think even if it’s morgage free there is no costs 🤔Cheers 🍷🙂
What’s the name of the town/province you guys live
We live in Southern Ontario have a great week Cheers 🍷🍺🌺
I think there are a few points to consider here. Have you thought about wanting to make any changes to the house, after all, it's where you live and want ut to adapt tobyour way of life. Do you just up and go to another place? What about not being lucky with the owner who may not be an easy person to deal with over anything? When banks decide to reduce interest rates to almost zero, then what? Not everyone lives in an area where rent levels are controlled as you say. Are we sure that keeping a fixed rate and subletting at a higher price is entirely fair on younger generations who start house hinting later than you? Repairs (roof etc.) Still need to be made whether the house is yours or not. Is the landlord encouraged to jump to it and get it done quickly, especially
When it's a cistly repair? When you sublet, who sees to the repairs? Don't get me wrong, I'm sure your choice has turned out to be the best for you, but I would think twice about suggesting it to everyone. Are we not likely to move towards a world where the number of property owners will get smaller and smaller (and they'll get richer and richer) and the number of people who don't own property gets bigger and bigger. Here's an example, a characteristic small village in England was enchantingly beautiful until someone, or some a firm, bought up all the cottages. They now all have exactly the same aspect, same fixtures and fittings, same front gardens and gates etc. etc. The charm has been completely lost. Although I too love your travel videos and thank you for sharing them with us and I'm sure you've chisen what's right for you (and have been lucky!) I would suggest that not all situations are the same. By the way, I have had to clear out houses of hoarding parents, it may be a temporary nuisance , but with the help of charities, scouts and so on, it is soon done. In any case it is not something that goes on forever.
We do realize that there will never be a one size fits all solution. The goal of our videos is to present concepts that you may never have heard about and give you the chance to think about them, to see if they are relevant for your situation or taste. We are happy with our apartment and have no need to alter it, we have it furnished to our taste. We have indeed sold our large family home to allow a younger generation to use it and raise a family, which we feel good about. We are not going to sublet our apartment as we can afford to keep it and travel. We have to be resident in Canada for at least 5 months a year to maintain our healthcare, summers after all are beautiful in Canada. Thank you for your observations and watching our video we appreciate it.
Unfortunately I don't have links, but even articles about money and investing profess that for the majority of people home ownership as an investment does not outperform actual investing. People often say you can have have a mortgage equal to monthly rent, but most mortgages last for 30 years, plus property taxes, plus home owner's insurance, plus maintenances and repairs to the house and property. After finally selling the home you have to subtract all those other expenses that have accumulated over 30 years against what you finally sell your home for vs. investing additional money after you pay rent into a managed retirement and or brokerage account for 30 years.
You are right, most homeowners don’t get it, the only advantage to homeownership is the forced savings aspect, whereas it takes discipline to stay the course for investing. Thanks for your comment, glad you made it.
I disagree. I own five rental properties and my tenants are paying for all related costs including the mortgage on my primary residence. In five years my investments are all paid off.
FYI, the bulk of regular millionaires are property owners and they built it from rental income and leverage.
Wow. Eight houses. My wife and I have been married for almost 34 years and we've only had 2 houses and 2 apartments.
Guess we are older than you Robert ! married 47 years but it’s not a race it’s just life Cheers 🍷🌺😎
@@ThisIsOurRetirement According to my math, you were 19 years old when you got married, assuming I am corresponding with Norm.
LOVE the apple tree story. Makes so much sense!
Thanks just keep picking those apples 🍎🙂
Again.... You guys are lovely!
Keep it up. Polite and gracious!
I'm catching up on some of your older videos that I haven't seen yet. I see how selling your house and having that set aside as an investment (orchard) has many advantages. What I'm unsure of is are you saying that owning a home in the first place was a mistake? Do you feel you would have had the discipline to save the same kind of nest egg that you have now because you sold your home if you had rented instead? It probably would be possible to do that if you invested the difference between what you paid on rent and what you paid for the carrying costs of the house for all those years, but would you really have had that discipline? I know I wouldn't. I would have spent it on fun stuff like travel and restaurants and entertainment. I know that if I had only ever rented, there would not be as much for my kids to inherit. I also want to be part of the legacy. My parents inherited from their parents. I have inherited from my parents, and I want my kids to inherit from me. All that being said, emptying my parents' house and selling it was quite an ordeal! I will probably go your route one day as well, but I feel having a house in the first place was never a mistake for me.
We have never said owning a house is a mistake, we have owned many homes and loved them all and selling our last one was part of our plan in retirement. Maybe you should ask your self do you need a house or money 💰 in the bank to be considered a legacy if that is what you are worried about 🤔Cheers 🍷🌺🍺
@This Is Our Retirement I agree it's the money that is the legacy. In my case it I hadn't bought the house while I was young, I wouldn't have had the stamina to save and invest enough to have that to give them. I think selling it before I leave the world would be another gift to them. It is a lot of work clearing out and selling a home. Plus, I like the idea idea of not having to shovel snow. 🤣 You may have sold me on apartment living during retirement!
I am a landlord and I’ve had tenants rent from me for 8 years and I never raised rent. A good tenant is hard to find and well worth it.
That’s wonderful 🙂
I guess you have quite a bit of money. People are in variety of situations..
There are all sorts of apartments available just with fewer amenities so everyone can find one you just need to look . Happy Easter 🐣
Another great video full of great information, Thanks for sharing it with us, we enjoyed watching 👍🥰 hope your both keeping safe & well, Take Care 👍🤩🇬🇧x
Thank you so much 🤗 glad you enjoyed it hope you are all keeping well have a great week Cheers 👍🍷🍺🍁
Good video I should show this to my grandkids. Where do you live in this world of ours?
Southern Ontario thanks for watching Cheers 🍷🌺🍺
I can see why you rent based on the Canadian laws etc. Unfortunately, we don't have these option in the US. Here the rent go up AT LEAST $100.00 (and often much more) each year. We don't have rent control apartments in our area; mainly in larger cities like New York etc. Would you not have to pay income taxes on that $5,000 rental income? We figure clearing out the family home is working for your inheritance!!
Interesting stuff Guys, thanks for sharing, and have a good weekend. Paul and Suzanne.
Hi Paul and Suzanne thanks for joining us this morning , glad you enjoyed it hope you are both well have a great weekend Cheers 🍷🍺🍁😎
I’m seriously considering doing what you’re doing, investing and renting. Just wondering, do you think you might get to an age where you would prefer to buy again? Particularly so that you’re not having to move at an older age (if the owner is selling)?
We rent from a large corporation who owns 80-90 buildings and their business is renting , we have rent control so our increases are very small around 1.2% a year . We are happy with our decision Cheers 🌺🥂🙂
@@ThisIsOurRetirement That definitely makes the decision easier, knowing you won’t be moved on by the owner.
Like couple 😁👍, cheers and health my dear friends. 💪🍻💕💯🙏.
Hi Edu TFW hope you are well have a great weekend Cheers 👍🍷🍺🍁😎
You were always paying a mortgage what if you owned your house OUTRIGHT!!!?
We did, carry cost of the mortgage free home were within $100 of the apartment rent we took, but NO repairs or maintenance.
Still pay for property taxes, home insurance, repairs, replacements.
Very good points, thank you for breaking this paradigm. I love the flexibility it proportionate. I am loving your videos!
You are so welcome! Sussumu have a wonderful weekend Cheers 🍷🌺🍺
My wife and I retired and sold our home of over 30 years to live in an apartment. Before the move, I made a spread-sheet showing potential dividend stock income from the sale of the house, which we owned outright, the local and school taxes saved, the maintenance cost savings, the repair and upgrade cost savings, the insurance and utilities savings, the time savings or additional costs for lawn, trees, gutters, cleaning, snow and leaf removal, etc, etc. If you love doing all that, stay in your house.
If you do just a decent job of picking dividend stocks, you will pay your rent down to nothing or even make money. And one more thought...one housing bubble could reduce what your house is worth overnight. If you lose 100K or 200K, how will that make you feel and how many years could it take till property values return?
Great comment TFS we agree with you , we took early retirement 5 years ago and haven’t looked back . Enjoy your day Cheers 🍷🌺🍺
How you manage your finance? Asset diversification? Main dividing stocking? I’m 35 thinking of going dividend way. But still concerned the stock market falls and short on cash flow some point in life…. I want to retire at 50, so 15 yrs to go. Would you share how you manage it over 30 yrs, it’s amazing, thank you
the opposite is also true, you mentioned the housing bubble could force a reduction in house value...how about a stock market correction, your $30 dividend stock could easily drop to $15, that dividend paying company could one day vanish. I do agree that owning a home does lock up plenty of capital and requires maintenance etc. As you age all this maintenance becomes a burden. It really does come down to working out the numbers but the stock market has major risk/reward consequences that need careful planning.
Oh, I just Love you two!! Ya'll are SO cute!!! Thanks for the wonderful videos!
Thank you so much!!
Hey I have really enjoyed your videos there good to watch. Question. If you had a work pension would you recommend investing your money into a house or just rent?
Well for many years we had a house but then we sold and now we rent and life is good , no unexpected maintenance and expenses and we can get on with having a great retirement Cheers 🍷🌺🙂🍺
Thanks thata a good response and really enjoying the videos.
Hello Tina and Norm! Nice to meet you 🙂 Your videos are very interesting and entertaining. I'm starting to consider selling my place and renting an apartment in 5 years. You're right, children don't want to be left with our mess and they don't necessarily want to live in their parents house.
Are you in Quebec? I live in Montreal presently.
Keep up your great work! 🤗🤗
Thank you so much no we live in Southern Ontario , all we can say we sold and then rented an apartment and never looked back Cheers 🍷🌺🍺
What a great subject! So nice to meet you guys and thank you for visiting us! We look forward to learning so much from you guys! Many blessings! 🤗 💕
Thanks and welcome to our channel , hope you have a great week Cheers 🍷🍺🙂🌺
And this is where I believe regulation oversteps. If the landlord doesn’t have the right to increase the rent they charge you, then you shouldn’t be allowed to sublet at market prices!
Renting is an interesting area lots of places won’t let you sublet, we are fortunate in Ontario we have rent control so our last increase was 1.2% have a great weekend Cheers 🍷🌺🙂
@@ThisIsOurRetirement rent control is great for the person renting. I just think its not fair that you get the benefits of rent control but then you can turn around and charge whatever you want throug a sublet! Just interesting in my opinion! Have a great retirement! 8 more years for me fingers crossed!!
Thank you for the video. My wife and I are planning on doing the very same thing, only we are moving from the U.S to Portugal then to Spain and whatever country after that strikes our fancy.
Sounds like a great plan, we love 🇨🇦 Canada and have family here so renting in both places gives us the best of both worlds 🌍 enjoy your weekend Cheers 🍷🍺🙂
I need to think this through. But I feel I am in a different situation. You see I bought a house in the country when I retired at 2.5 interest rate. I only pay $1000 a month. There are other cost, but I feel like this house is my hobby. I garden and landscape. I planted over a hundred daffodils in November and are waiting for them to come up. I walk in the wood near a canyon for at least 40 minutes every morning with my dog. I have never liked just going sightseeing. When I was working, I spent at least seven summers living with people aboard learning their language. I was an elementary teacher, so learning an additional language was helpful when communicating with parents. I think renting is for those that have cared for the house for long that it has become a chore that they want to break free of.
Another down side to leave the house as an estate: the time your children could sell the house they have to assume the cost related to it. It could be quit a burden if it take 18 months of more to sell it.
Great point and the upkeep costs can mount up plus the stress of trying to sell it Thanks for watching have a great weekend Cheers 🍷🇨🇦🍺
We would probably rent also if we had rent control. It sounds like it’s a win-win. Unfortunately, rent in So. Calif per month is almost as much as our current mortgage payment. It’s worth paying the little bit high mortgage payment to have a garage, yard, no neighbors above or below us and the equity that we are building. Thank you for the information. I love your perspective, knowledge and experience. 6 months to retirement.
We do know how lucky we are with rent control, it helps a lot of people on modest incomes. On the bright side you get the good weather we would love 😂😂 We wish you a great retirement, we have really enjoyed it so far. Thanks for finding us and watching our video, have a good weekend.
Loads of money to be saved if you work it right yes. I own my house but i dont have kids to leave it to. I also never got anything from my parents so it sort of balances out. Great video my friends.
Yes home ownership is the way towards wealth, we had kids, do you know how much university is lol. You couldn’t keep your lovely chickens 🐓 in an apartment lol Thank you so much for watching 😀😀🐓🐓