Are you back? Good. Most people aren’t even aware of 99-year leaseholds. If this sounds right for you, like if you never intend to have kids, I may have just saved you a few hundred thousand. Buy me a beer sometime!
Anyway, I have an enviable Home for my age. I’m 27 and I have 71+ years of Rent paid off with my leasehold. That’s what 99-year leaseholds are: paying ≤99 years of Rent all in one go, and reaping the benefits of Home Ownership. Mine worked out to $170,000, or $199.53/month. I own my property and the right to live there until 2087. Technically, I don’t own the land underneath it, but I’ll be dead by 99 and really don’t care. I’ll never need a mortgage, and I’ll never need a freehold. I don’t plan on having kids. I guess I’m set! Even if I change my mind and sell the remaining years when I’m 65, there’ll still be 33+ years left on the lease! I estimate I’ll be able to get AT LEAST $120,000 for the remaining years. $50,000 to live somewhere for 38 years? That’s $109.65/month.
Wait, it gets crazier. My place is over 1,000 square feet and has two bedrooms. My girlfriend’s moving in on May 1, and with my current roommate staying, I’ll be collecting $950.43 from them in Rent. $633.62 of that gets eaten up by miscellaneous building maintenance fees, and the remaining $316.81 pays literally ALL MY BILLS. Electrics, Internet, Netflix, Rogers. Right now, I have zero Expenses aside from Food, Alcohol and Entertainment, and I was able to pull it off with my Rental Property.
A key thing to note about this is you don’t live forever. Take a moment and ask yourself why you REALLY want to own your place, freehold and all. Is it an investment? Is it for status? Are you hoping to pass it down? Now ask yourself: Is this worth extending your career OVER 33% MORE?
My Home is modest. It probably wouldn’t impress anyone. Secretly, that’s another reason it rocks. We’ve already talked about how Shiny Things Are Stupid, and that applies DOUBLY to a Home. Realistically, even if you were the friendliest gal in town and you loved showing off your place, you’d invite maybe 100 different people to it over a number of years. Is having an expensive Home – and in Vancouver, we’re talking at least $1M – worth briefly impressing 100 people? There’s always the argument that it’s not about THEM, it’s about YOU, but isn’t that even dumber? WHY WOULD YOU SPEND A 40+ YEAR CAREER MAKING $1M JUST SO YOU CAN MAKE COFFEE ON A GRANITE COUNTERTOP? FYI, poor people drink the same damn coffee. You’d be happier with more Time and Experiences, not heated toilet seats. Snap out of it.
The insane thing is I’m not even leveraging my Home to its full potential. I sometimes leave the country for weeks at a time and I’ve been told I should Airbnb my place out to make even more Money while I Travel. I COULD GET PAID TO TRAVEL. You can too! Read this.
Home Ownership isn’t black and white. 99-year leaseholds are the happy grey area where dreams are made. It seems silly to me that someone would spend their entire Life working towards a beautiful Home only to live there for 10 years before they croak. Wouldn’t it be better to have an average leasehold Home and shorten your Career voluntarily?
Additional perspective: You may “own” 2,500 square feet someday but outside, there are 197 million square MILES that you can explore. Guess what? Those 197 million square miles look the same to you as they do to Bill Gates.
Go outside. You must already be rich as fuck if you share 197 million square miles with Bill Effing Gates. Just remember, you owe me a beer.