Just because it’s normal doesn’t mean it’s right! What you should think about before buying a house/ruining a pefectly good life.

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As a young adult, I would always be attracted to the story line behind troubled yet naturally talented people whether it be athletes or businessmen. The bigger and badder the better. Jon Jones, pound for pound best ever UFC light heavyweight champion of the world springs to mind when thinking on this subject.

jon-jones

Jon “Bones” Jones

Jon Jones was the youngest to be crowned world champion in the UFC at the age of 23. He ran a train through the best of the best in the entire division without any real effort. He was a wild man that didn’t really take fighting in the UFC too seriously and was well known for his antics outside of the ring as well as inside the ring by his peers even though his on-screen media persona perceived him to be a well mannered devoted Christian. Now many that have witnessed his action’s outside of the ring have kept tight-lipped about his bad habit’s but few incidents have made it through to the media.

 

I enjoyed hearing about these type of people because I thought I could relate. Sadly I could, but only in negative un-championship belt holding ways. Being young and naive I would try and emulate these athletes/party animals. I mean look at his life, he barely trains, isn’t all that disciplined and still win’s. maybe there is a lesson to be learned here? From then on I would always look to make friends those that were not what most would describe as normal.Why was that? I have always looked up to people doing it different whether it be Idols or just friends. If they stood out I was drawn to them.

 

I have never wanted what most want. Which is normally a mortgage, marriage, and kids. My view on the world is we are on this planet for on average 75 years. We are kids for 18 years, young adults until 30 and then it’s time to stop mucking around. Lock yourself down with a relationship, mortgage, kids and live the next 40 years paying off all the debt you have a accrued because that is an acceptable life as seen by those that are perhaps brainwashed. Guess what happens after that…..DEATH!!! Explains why I dreamed/idolized about those doing it differently!

banks stealing from us.JPG

Now, I figured this out at an early age. It might have had something to do with being in a position to buy a house a such a young age due to my income. I still remember getting advice from people in 2008, telling me I was crazy to not buy a house. I was open to the idea of buying a house, it sounded like a good idea. I could have a home cinema, a games room, a swimming pool the ideas were endless. I was literally so excited that I headed straight for the bank to get my very first loan. to cut a long story short I went to my local bank, received my pre-approval for a home loan of $500k. There is still a crater in the ground where my jaw dropped. Over 30 years I would be paying at the time roughly about 1.2 million dollars over the duration. As anyone with half a brain would also do, I scrunched up the home loan pre-approval in front of the banker and said good day. Is it really normal to knowingly rip yourself off? Another reason I was more drawn to people outside of the box.

 

I would later talk to those that had suggested that I had bought a house. I looked at them in disbelief and questioned them on how they would even consider going anywhere near that “deal”. They would launch a bunch of one liner’s at me that sounded like they had gotten their real estate license or at least memorized what their real estate agent and/or a banker told them. Ummm…thanks?

 

Now I understand that real estate is an investment but here is a little bit of math:

Earnings: 100k

Home loan cost over 30 years: 1.2ish MILLION

Post-tax earnings: roughly about 70k

Time to pay loan off if I was to use entire 70k per year: 17.5 years

Amount I would have to pay without fail to see the 30-year loan: $40,000 per year

Interest paid per year at 4.5% average: $22,500 (This is just interest, does not

contribute to paying the principal)

Interest paid over 30 years: $675,000

Principal: $500,000

Amount left over to live: $30 000

Car Loan cost per year: $7,200 per year over 5 years/$600 per month.

Car loan annual interest at 7%: $2520

How much I have to spend/live out of 100k with a 30-year loan: $22,800

How much of MY 100k the bank has to spend per year: $25,020

How much of MY 100K the government has to spend per year: roughly 30k

How long it would take to save 500k in cash if I saved 100% of earnings: 7.2 years

How long would it take to save 50% of my annual pay post-tax: 14.4 years

1st prize: government

2nd prize: bank

3rd/last “prize”: ME

Now you’re probably thinking but once my house goes up in price I have a $100,000! Do you really? Think about it! Your house has gone up $100,000 over 5 years so if my math is right your still $575,000 in debt. Perhaps you sell the house to cash in, take into consideration how long you have had the loan! 5 years paying the loan off is $22,500 Interest x 5 years = $112,500 interest over 5 years which means your 100k profit turns to $12,500k in the red. But I still have a $100k right? Yes, you do BUT this is less than what you would have if you had of deposited the money in the bank and sacrificed a good tax return as the government loves to see us suffer.

cash-joker-fire

Those seem to think for themselves will be considered trouble makers…Guilty as charged!

Now you only live once and guess what, this ain’t living! I know I know there are different strategies to getting tax back and it won’t take that long to pay it off. News flash 30 years out of the best years of your life is a big sacrifice to be locked into something that you may not be able to pay off. It is a lot of pressure to continue to pay off $22,500 of just interest let alone $30k or $40k per year to pay a house off.

I’m not against real estate, as it is a great asset to own but banks should be burnt to the ground for stealing from every single person trying to acquire shelter for their family. I do not have the answer’s to this issue, it is more a food for thought but perhaps this way of life is not the best route. It just seems strange to me out of the three parties that benefit from our annual income (Banks, government, Us) We are getting the smaller piece of the pie if you go by my calculation’s above. Bring on Fast Brick! Let’s get those houses up and those prices down!

I wonder if Jon Jones is as good at investing as he is in the octagon?

So to be normal is to give up on trying to find a better way of life it would seem. I have never taken the dive to become normal and buy a house, although I have considered it. There must be some benefit as there are those that actually start with nothing and become rich but it seems to be a very small percentage. I haven’t given in just yet, neither am I done spending a decent chunk of my life locked into traveling the world as I currently sit and type from a studio apartment I pay $190AUD per month for, in Pattaya, Thailand. Hmmm, perhaps I will struggle through just a little more of this affordable living before I take the plunge and become normal. Perhaps I will simply refuse to be fooled by those looking to make money from desperate or naive.

One last thought, how well do you think your house will look by the time you pay it off in 30 years? I mean, I’m just about 30 and I’m in terrible shape! Living in Thailand you need your plumbing checked regularly for leaks…

Bangkok-hospital.JPG

 

 

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