Enough of COVID...what are you doing to the house?

[mimico_polak]

Wow...offer came in. Variable at Prime - 1.3% on a 5 year term.

No wonder people got money to burn. At these rates, I COULD buy a Tesla lol and my monthly payments are lower than financing at 3.5% with TESLA.

 

[crankcall]

and that's where crazy comes from , 1.3% ! we are getting a pool, and a $9,000 BBq. And since the LOC is way cheaper than the CC lets go to Jamaica and start our tans before pool season starts .

live large while its under 3% !! my ex neighbour who treated his LOC like a candy store , every time he saw another $250k gain on the house, up the LOC and use that equity to have the life he deserved. He had paid $550k for the house , now worth 1.25 ish , and owes $600+ . I don't get it, but I don't make his payments.

 

[GreyGhost]

and that's where crazy comes from , 1.3% ! we are getting a pool, and a $9,000 BBq. And since the LOC is way cheaper than the CC lets go to Jamaica and start our tans before pool season starts .

live large while its under 3% !! my ex neighbour who treated his LOC like a candy store , every time he saw another $250k gain on the house, up the LOC and use that equity to have the life he deserved. He had paid $550k for the house , now worth 1.25 ish , and owes $600+ . I don't get it, but I don't make his payments.

My secured debt now exceeds when I bought the house but all money pulled out is invested. Weeee. Up so far but the real test will be whether the dividends have paid off the LOC inside of a decade.

 

[mimico_polak]

Yup, agreed with you 100% @crankcall. People are always saying 'where's all this money coming from?' and now I see it....

I can literally have 130k in my bank account next week and the cost of carrying it annually is approx $3000. With principal it's less than 10k/year in payments. VERY dangerous.

If I had a nut of steel I'd take the money, dump it into dividend paying stocks and let the dividends pay off the loan. With a hope and a prayer the market doesn't tank. Since I don't, and I'm terrified of losing the money...I will use it only for what it's needed for, and then pay it off like an idiot with my own money. So stupid.

 

[GreyGhost]

Yup, agreed with you 100% @crankcall. People are always saying 'where's all this money coming from?' and now I see it....

I can literally have 130k in my bank account next week and the cost of carrying it annually is approx $3000. With principal it's less than 10k/year in payments. VERY dangerous.

If I had a nut of steel I'd take the money, dump it into dividend paying stocks and let the dividends pay off the loan. With a hope and a prayer the market doesn't tank. Since I don't, and I'm terrified of losing the money...I will use it only for what it's needed for, and then pay it off like an idiot with my own money. So stupid.

Market tanking isn't the end of the world. One of your chosen securities going bankrupt would suck. Suspension of dividend wouldn't be ideal. Diversify some and you should be able to avoid a major kick in the nuts.

 

[mimico_polak]

Calling @Gary as I think he's got a good dividend strategy.

My buddy did that. Took out 80k from their house mortgage, didn't tell the wife, and now he's laughing as his dividends are paying down his loan without him lifting a finger. Obvious market timing, etc etc

Crap, I'm convoluting threads again. Sorry. Back to house work.

The repair is going well! Laid the first level of gravel yesterday. Doing the piping today for the new weeper, more gravel, and start locking it back up on the weekend hopefully.

 

[GreyGhost]

Calling @Gary as I think he's got a good dividend strategy.

My buddy did that. Took out 80k from their house mortgage, didn't tell the wife, and now he's laughing as his dividends are paying down his loan without him lifting a finger. Obvious market timing, etc etc

If you're relying on dividends not capital gains, market timing is less important. That's good as we all suck at timing.

 

[crankcall]

not to go off the rails here , advice I was given by a fella I considered pretty smart , was only invest money in something that can fluctuate if its money you can afford to loose.
For everybody that does well , there are those that take a beating, but those guys quietly lick their wounds in the dark. I did , borrowed good whack against home equity and 2008 showed up. big whack owing , bank wanted there money , they didnt feel bad about my strategy, an RBC investment advisor had encouraged me to do it .


On to the house I want to put an electric awning on the back deck, wife wants new entrance door system ( two sidelights, half moon window over top, to replace whats there) . I want the carpet gone in the great room thats not so great, garage door needs to be swapped out for insulated door.

Funny ALL this had been done at the house i sold two yrs ago.....

 

[Gary]

Calling @Gary as I think he's got a good dividend strategy.

My buddy did that. Took out 80k from their house mortgage, didn't tell the wife, and now he's laughing as his dividends are paying down his loan without him lifting a finger. Obvious market timing, etc etc

Crap, I'm convoluting threads again. Sorry. Back to house work.

The repair is going well! Laid the first level of gravel yesterday. Doing the piping today for the new weeper, more gravel, and start locking it back up on the weekend hopefully.

I've never used credit to invest, wish I could help.
Other than a mortgage long ago, I don't think I've ever owed money on anything.
I started putting money into a precious metal mutual fund, about a week after I started working full time. That was 1973.
I still do all the repairs around here....lol.

 

[crankcall]

@Gary , solid advice .


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[crankcall]

If I was to ever invest again with credit it would be with a “funded” investment company .
The usual convo goes “ Sir, where are the customers yachts ?? “ “ well Jimmy the market dropped and they had to sell” “ And yours sir??” “ well that’s leased to the company and we are still charging fees Jimmy!”


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[nobbie48]

If I was to ever invest again with credit it would be with a “funded” investment company .
The usual convo goes “ Sir, where are the customers yachts ?? “ “ well Jimmy the market dropped and they had to sell” “ And yours sir??” “ well that’s leased to the company and we are still charging fees Jimmy!”


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I met a furniture manufacturer that had owned his building but during tough times, sold it and leased it back from the new owner. He had enough equity in it to take back a mortgage that paid his rent. Then IIRC values went down and interest rates went up, getting the owner in trouble and forcing him to sell at a bottom basement price. The furniture manufactuer bought it back cheap.

 

[mimico_polak]

In all honesty I’m leaning away from the second mortgage and toward the LOC. Its a smaller amount, but I only pay back what I use instead of having a big mortgage and possibly using only 25% of it.

 

[crankcall]

Other bit with most LOC , you pay it back when you want with no penalty to pay it out , take some out , put some back . It’s very flexible.
If you finished the project and wanted out of higher interest on a LOC you could then convert to a mortgage, the way a building loan works


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[Scuba Steve]

Other bit with most LOC , you pay it back when you want with no penalty to pay it out , take some out , put some back . It’s very flexible.
If you finished the project and wanted out of higher interest on a LOC you could then convert to a mortgage, the way a building loan works


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But no stonks that way 100 g could become a millionaire on a few weeks.

Sent using a thumb maybe 2

 

[GateKeeper]

Going to do a bathroom reno, kids bathroom, looking at pulling out the tub and doing a shower pan in its place and the glass wall and door, the other 3 walls will be tile, new fixtures and a niche,,,but

any recommendations on who to use for the glass, need it made and installed..

thanks

 

[mimico_polak]

But no stonks that way 100 g could become a millionaire on a few weeks.

Sent using a thumb maybe 2

It still can! Mortgage is 130k and LOC is 110k!

 

[mimico_polak]

Progress!

 

[Hardwrkr13]

Drywall/mud did a cheap job and depending on the time of day the joints all show through on the ceiling in this one room. I gave the ceiling another coat of paint but I’m having a hard time getting them to disappear.

 

[GreyGhost]

View attachment 52895
Drywall/mud did a cheap job and depending on the time of day the joints all show through on the ceiling in this one room. I gave the ceiling another coat of paint but I’m having a hard time getting them to disappear.

That's a bad situation with light on a glancing incidence. If you want it perfect, you need an old guy to skim the whole thing and give you a level five finish. It wont be cheap. Likely mid four figures. Theres a reason most houses have popcorn ceilings.