How to Make Money Building a House the Bank Paid For (canada)

This is another archived post from a finance thread on 4chan.

I’m tired of seeing people posting that “mortgages are just the bank fucking you” and “owning property is letting the jews win” and all this shit.
Here’s how to own a house and make more money with the bank’s money than the bank is making.

Find a decent vacant lot for ~$50k. There are lots around if you look online in your area, it doesn’t have to be huge but the more you can get over a half acre, the better.

Now the bank will fund you to build a house on that lot, it’s called a builder’s mortgage. They give you money in increments based on what the final value of the house/lot will be. They have no problem with lending you $200k to build a house that would sell for $300k.

Their first payment has the cover the cost of the lot AND get your house to 40% completion, though, which is where most people struggle to get through. You’ll probably need to borrow some money to get through this part, but don’t worry, you’ll get it back once the build is done. They are giving you the FULL cost to build the house in full, they’re just lame about the increments they give it to you in, in order to cover their ass. They don’t want to give you the first payment and have you go to Vegas and blow it, and all they can take from you is a vacant lot that isn’t worth what they’ve given you already.

Build a decent house. As in, don’t build a piece of shit. Spend some time looking at floorplans and decide on what you’re able to afford square footage wise. I just recently built a 1750sq ft home with a fully finished basement for ~$230k. The monthly payment on our mortgage is ~$1150. Make sure your building contractor is including the price of a fully finished basement in the total cost. Two bedrooms, kitchen, bathroom, laundry room in the basement, and there are two sets of stairs to access the basement. One is from the garage, one is inside.

Two sets of stairs mean basement tenants never have to enter your actual house; they access the basement from the garage.

Complete the house, and rent the basement out to either a couple or two separate people.

Price the rooms comparatively to what a dorm room costs at your nearest college/university if you’re near one, and if you’re not, make sure it’s priced comparatively to other rented properties in your area. If shitty ass two bedroom apartments that are small in an apartment complex are being rented for $1000/mth, you can get more than that easily. You are offering a brand new, clean, never been lived in, LARGE two bedroom apartment.

Now, use their rent to pay your mortage off. Where I am, shitty fuckin dorm rooms are rented for around $600/mth. That makes renting the basement to two students EASY for $1200/mth, because it’s the same price as a dorm but a hell of a lot nicer. We’re close to a university, so that allows us to be a bit more choosy with who we want living there as well.

With the mortgage being $1150/mth and rent coming in at $1200/mth, any amount of money you are able to save is able to be chopped right off of your mortgage. My fiance and I budgeted ourselves around $1100/mth, so I know we are comfortable with giving that up. So we put that on top of the rent, and the mortgage gets paid of way faster.

By renting the basement out and also holding ourselves responsible for “paying” the mortgage ourselves as well, we are able to pay off a shitpile of the mortgage over the course of two years. The interest in the first year was around $6500, and we’re aiming to pay off close to $28k. The second year we’ll pay off a similar amount, but the interest will be less.

Here’s the numbers because I know people will try to say that it’s bullshit. You need to make enough money in order to support an $1,100 mortgage payment, that’s it. If you can make the mortgage payment, the bank is happy to give you the money and rape you on interest over many years.
Those of you paying rent probably pay close to that already.

My bank is CIBC so I used their mortgage calculator for reference.2.79% on a two year fixed rate

https://www.cibc.com/ca/mortgages/calculator/mortgage-payment.htm

First year

$230,000 + $6417 interest = $236,417 owed
Payment is $1,064/mth = $12,768 per year
1200 in rent x 12 months = $14,400 per year
You are paying $1,100 per month = $13,200 per year
So you’re paying off $27600 total minus the interest per year

Which means, after the first year, you owe $208,319

>2nd $208,319
>3rd $186,028
>4th $163,112
>5th $139,551
>6th $115,329

So now you’ve lived in your house for five years. The bank will make ~$3200 off of you in interest the following year.

>7th $90,426
>8th $64,823
>9th $38,501
>10th $11,440

And obviously the entire mortgage is paid off in the 10th year. Paying a brand new house off in 10 years is not fucking common for young people to accomplish. If you can manage to get the bank to loan you the money when you’re 20, you could own the house in full by the time you are 30. That’s nuts.

1472654865511

So, to round this all up, the bank lent you $230,000 with the intent of you taking 25 fucking years to pay it off. This amounts to them raping you in interest because you took so damn long to pay it.

You paid the entire thing off in 10 years, and you were under zero pressure the entire time because, if something were to happen in that time and you were in need of money, your mortgage for that month was already paid regardless. You don’t even have to be frugal with your savings, this is assuming that you’re holding yourself obligated to pay for your own mortgage and that’s IT.

Now, you own a house that costed $230,000 to build.
The bank made ~$34,480 in interest.
You own a house that can be sold for $300,000+ easily, and now you are making $1200/mth right into your pocket if you don’t want to kick your tenants out and take the basement back for yourself. My municipality just raised my property taxes and my house was appraised at $400,000+. You can make a lot of money doing this if you do it properly.

You borrowed money from the bank… and you made a lot more money with it than the bank did, as well as got yourself a new house to live in, and worry-free mortgage payments for a decade. Oh, and you own a house in 10 years, and that’s by holding yourself to the bare minimum of paying your own mortgage and having tenants. If you can save more than that, you could have it paid off faster.

How to Design a Community Garden

It’s only been two weeks since we moved in, but I’ve already been put in charge of designing community gardens at our co-op. I have a 7k Canadian peso budget and a copy of sketchup at my disposal.

After a few iterations, I have this.

Image

I’ve designed the different sized beds to appeal to different levels of competence. Gardeners just starting out can take a 4×4, and experienced gardeners who grow a lot can spread out into a 12×4. In addition, the 12x4s can be split in half to accommodate more gardeners.

Culinary herbs grow in the tall planter behind the bench.  Any resident of the co-op can take herbs from here. Its psychological ulterior motive is to trick residents into signing up for plot of their own.

Image

The Solar Audit

I came up with a method to design for the sun. In food gardening, sun hours is critical. Without sun, you can’t grow anything with calories in it.

Every hour on the hour, I took pictures of the area. Here it is at 11 AM.

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And here it is at 2 PM.

Image

By counting hours of sunlight in various places, I know what can grow where. I only put beds in the areas with a minimum of four hours.

Unfortunately, that’s still very little sunlight to work with. With the four and a half hours of sun we get on this part of the property. We can grow Broccoli, Peas, Beets and anything that’s a leaf – kale, salad and other rabbit food.

In my opinion, most people want a garden to grow tomatoes. And for tomatoes, six hours is bare minimum, and really you need eight for adequate results.

Here’s a chart Mother Earth News came up with that lists a number of low light plants that would still work here.

Crop Shade Notes Growing Tips
Arugula At least three to four hours of sun per day. Arugula welcomes shade, as this crop is prone to bolting as soon as the weather turns warm if in full sun.
Asian greens At least two hours of sun per day. Asian greens such as bok choi (also spelled “pac choi” and “pak choi”), komatsuna and tatsoi will grow wonderfully with a couple hours of sun plus some bright shade or ambient light.
Chard If you grow chard mainly for its crisp stalks, you will need at least five hours of sun per day; if you grow it mainly for the tender baby leaves, three to four hours of sun per day will be enough. Expect chard grown in partial sade to be quite a bit smaller than that grown in full sun. Baby chard leaves are excellent cooked or served raw in salads.
Culinary herbs At least three hours of sun per day. While many culinary herbs need full sun, chives, cilantro, garlic chives, golden marjoram, lemon balm, mint, oregano and parsley will usually perform well in shadier gardens.
Kale At least three to four hours of sun per day. You’ll notice only a small reduction in growth if comparing kale grown in partial shade with kale grown in full sun.
Lettuce At least three to four hours of sun per day. Lettuce is perfect for shadier gardens because the shade protects it from the sun’s heat, preventing it from bolting as quickly. Often, the shade can buy a few more weeks of harvesting time that you’d get from lettuce grown in full sun.
Mesclun One of the best crops for shady gardens. Grows in as little as two hours of sun per day and handles dappled shade well. The delicate leaves of this salad mix can be harvested in about four weeks, and as long as you leave the roots intact, you should be able to get at least three good harvests before you have to replant.
Mustard greens At least three hours of sun per day for baby mustard greens. Mustard grown for baby greens is best-suited for shady gardens.
Peas and beans At least four to five hours of sun. If growing these crops in partial shade, getting a good harvest wil take longer. Try bush and dwarf varieties rather than pole varieties.
Root vegetables At least four to five hours of sun per day for decent production. Beets, carrots, potatoes, radishes and turnips will do OK in partial shade, but you’ll have to wait longer for a full crop. The more light you have, the faster they’ll mature. Alternatively, you can harvest baby carrots or small new potatoes for a gourment treat that would cost an arm and a leg at a grocery store.
Scallions At least three hours of sun per day. This crop does well in partial shade throughout the growing season.
Spinach At least three to four hours of sun per day. Spinach welcomes shade, as it bolts easliy if in full sun. If you grow it specifically to harvest as baby spinach, you’ll be able to harvest for quite a while as long as you continue to harvest the outmost leaves of each plant.

 

Finding Free Campsites, Swimming, Boating, Cabins and other outdoor activities in BC

British Columbia has dozens of provincial parks, but many of them are turning into rather expensive places to recreate. 20$ for a night of camping far exceeds what I spend in rent per day, and here I have internet and a dishwasher. To me, the only acceptable price for a night of camping is 0$.

I’ve found a great rule of thumb for finding places where freedom is still intact.

The root of the “camping price inflation” problem can be seen on many of the BC parks listings on the BC provincial parks website.

Here I’ve included a random BC park’s page. Can you spot what’s jacking up the entry prices?

bc-parks-privatization

Who the hell is Kaloya Contracting Ltd.? Sounds suspiciously like a private, for-profit corporation charging for access to public land.

bc-parks-privatization-problem

The fact is, Kaloya Contracting is not the only company taking over management of public lands, there are at least a dozen I’ve seen so far.

Management means Money

Almost without exception, when you see “This park proudly operated by,” you will be paying cash out the nose for most available amenities. This particular park is one of the “light offenders” charging an exorbitant 18$/night for camping but at least they don’t seem to charge for entry if you just want to paddle or hike on the lake.

Now fortunately for canadians who love a bit more freedom from being nickle and dimed into greater and greater debt, there are still several parks without the scourge of one of the private/public “partnerships.”

I discover these free options by looking at a map for provincial parks, then cross referencing with the BC parks listing.

Exploring for Free Provincial Parks

Here’s a section of the Comox Valley I pulled up in google maps, with 2 provincial parks on the beach.

prov-parks-near-comox-valley

This is my favorite example to use, because you’ve got 2 provincial parks practically next door to each other, but one is “managed” by a private company and one is not.

kitty-coleman-and-miracle-beach

First look at Kitty Coleman, you will find there is no mention of fees whatsoever for camping, or anything else for that matter. That even includes group camping, which is usually charged for even at “province run” provincial parks.

Kitty Coleman Beach Park Listing (no fees at all as of May 2015)

Then there’s the exorbitant fees for absolutely everything next door, even a 50$ charge for group picnicking.

Miracle Beach Provincial Park Listing (group camping, 100$+ per night, group picknicking 50$, camping 33$/night.)

And this is why, at least for me, the hunt for a good park to visit begins with making sure the park is not managed by some for-profit entity. I don’t know about you, but when I leave the city, it’s to get away from the commercialization of absolutely everything, rather than exchange one collector of rent for another.

The Downside of Free?

This post wouldn’t be complete without a fair assessment of what you don’t get at a a free park.

First of all, the most popular parks are the ones that get “managed” because the managing company thinks they will attract enough “customers” so they can operate them profitably. So it’s the lesser-known, further out, or small parks that don’t get swallowed by business interests and remain gratis.

Secondly, these managing companies want to tailor to a middle-class crowd with expensive middle-class tastes. Those tastes include flush toilets, shower facilities, electricity, RV hookups, maybe even on-duty lifeguards. All those services cost money so don’t be surprised when they siphon that money from you.

Advice for Extended Truck Camping

From a 4chan thread about living in your pickup truck.

living-in-pickup-truck

  • It gets cold. Real cold. Insulate your truck bed and camper shell as well as you can. Get a really good mattress to lay on.
  • You will want to install privacy curtains in your shell. You can do without for a few days but you will need some privacy. Velcro and cheap cloth will work.
  • You will want a way to heat up food and make a cup of coffee. Eating out all the time will destroy any savings you are achieving by living in a truck. I recommend a propane stove because butane doesn’t work well below 32F and white gas is too messy in an enclosed environment.
  • You will probably want a weapon. There’s no telling who is going to come rattle the door handles of your truck in the middle of the night. Being armed with something more effective than strong language is advised.
  • You will need a mailing address. There are a few options for this, but you will need to have one. Maybe you can receive mail at work. Maybe you have a friend in the area willing to receive your mail. Maybe you need a PO Box.
  • You will want electricity. Not much, but you will want it. You can wire a deep-cycle marine battery into your trucks’ 12V charging system and then run an inverter to power a laptop, or charge a cell phone, or power a reading light.
  • You will want a lockbox or safe. Burglary from automobiles is very common compared to home burglary. You don’t want to be worried about your valuables any time you’re away from your truck. A strongbox can be bolted to your truck bed and will give you a semi-safe place to store cash, IDs, passport, weapon, camera, etc.
  • You will need of a reliable way to dispose of waste. Have a plan for disposing of garbage, 3am piss, and emergency shit or vomit. Somewhere secluded. Your boss won’t want you tossing piss bottles in the company dumpster. A 5-gallon bucket makes a good trash can and can double as an emergency shit bucket.
  • You will want at least minor water storage and disposal. Cooking, sponge baths, dish washing… all require a little water. Expect to use 1 gallon per day. I used a 6 gallon “Jerry can” for my primary storage and then had some 1L canteens I used for my daily washing. I topped it off every 3 or 4 days with plain old tap water.
  • Disposing of used water involved another 5 gallon bucket. I’d dump waste water in it until it was nearly full then dispose of it somewhere out of sight – an alley or the roadside at night.
  • Last but not least you need to have SEVERAL parking locations mapped out. Staying in the same spot for night after night is a great way to find yourself talking to the cops. 4 or 5 good private parking spots should be considered the minimum. Wal-Mart is generally very accommodating to overnights in their parking lot, so that’s a good back up. You won’t want a bunch of HOA type neighborhood watch people talking about your truck and jotting down your licence plate. Stick to blue-collar neighborhoods, or park along fencelines where you’re not within easy view of anyone’s house. I live in a low-rent area. It’s safe but it’s not prim and proper. There’s a guy who lives out of his van 3 doors down. He’s nice to everyone. Doesn’t put anyone on edge. Nice guy, just down on his luck. No one cares. But if he tried to set up shop in a richer area he’d be fucked.

Don’t Burn your House Down! Here’s how to not suffer a disaster with your Electric Heater.

I love electrical heat, but it’s dangerous. Electric heaters burn down more houses than anything else. Be sure you understand the electrical needs of your heater and the electrical system in your home before using them for an extended period of time, like an entire winter.

Prevent Electrical Fires

Never plug more than one in at a time, the typical electric heater will pull almost 15 amps, and the typical older home in canada only has circuits that go up to 15 amps. If your wiring is 15 amp like mine is, you should dedicate 1 entire circuit to the heater, don’t plug in anything else on that circuit, not even a light bulb. You can test circuits by flipping one breaker and plugging something into various outlets. Outlets that don’t work are on the chosen circuit. Outlets that do work are on another circuit.

Never use an extension cord with a space heater unless you know what you are doing. If you must use extension, make sure you use the shortest possible and the highest gauge possible (lower numbers are thicker.) I use a 6 foot, 16 gauge extension cord for our heater. I would not go any smaller. You can get higher gauge extension cords at Home Depot, that’s where we got ours. The “contractor’s” stuff is usually a good gauge because it’s meant for power tools which are max 15 amps, the same power draw of a heater.

You can always test whether your heater is drawing a dangerous amount of power.  Run your heater on your chosen circuit for a few minutes, then unplug the cord from the wall and feel the plug. A little bit warm is ok but if it’s hot you need to either reduce draw or buy a thicker extension cord. A electrical heater fire starts in the walls which is why they go out of control fast – you can’t get at the fire to put them out.

Heat the Smallest Space Possible

The proper way to keep warm is to heat as small of a space as possible. I live in 206 ft^2 RV but I still close up the cab, the bedroom, the bathroom, and the overcab sleeping area when I run the heater. So I’m only heating about 120 ft^2 which means it gets warm in here and it gets warm fast. Don’t try to heat 900 ft^2 with electrical heat, that’s a good way to increase your risk of fires and to make yourself broke. One electrical heater going all out will cost 16 cents an hour (assuming you are in Ontario) which is 115$ a month just for one single heater. To keep a 900 ft^2 home warm you probably need 3, which will run you almost 400$ in electricity, not counting everything else you run – dryer, computer, oven, etc.

Try to heat up a room in the “heart” of your house rather than the periphery. The fewer windows the better. If you must have windows, pick a room on the south side rather than the north so at least you can heat partially with the sun.