If you live in Toronto and have ever eaten/drank/danced at Nazareth on Bloor, that woman is living my dream. Skip the food part and open the music selection beyond Ethiopian dance music, R Kelly and James Brown and that's wtf I would do.
I would invest all of it in a selection of ETFs and avoid excessive fees from mutual funds and DOR's bro who works in securities ...
This.
Absolutely. The principal mortgage payment is a good one too. Spend wisely, my frond.
Or you can get another investor and open a bar.
Co-sign on the above, but would be nervous about opening a bar, unless of course you know the biz well. A bar can be a sweet cash cow in th right hands, or it can leave you bankrupt.
Definitely work towards being mortgage/debt free and invest so you can retire earlier. If it was me, I'd probably put as much as I could against my mortgage, then invest the remaining in a balance of the market, as well as a few low-risk instruments.
eh, i definitely ride for reducing debt but unless you have an absurd mortgage rate or volatile cash flows, almost anyone can find something that will give a better return than paying off their mortgage early
finelikewine"ONCE UPON A TIME, I HAD A VINYL." http://www.discogs.com/user/permabulker 1,416 Posts
Thanks for all the answers so far! How about opening a smal music venue or club? Has anyone here ever run a club?
What are the dos and don'ts?
Thanks for all the answers so far! How about opening a smal music venue or club? Has anyone here ever run a club?
What are the dos and don'ts?
$150.000 would be a tight budget even for a small club. Only German city I'd even consider would be Berlin as leases are much cheaper than anywhere else in the country (unless you want to go to the East -but who would want to go there?) and you can stay open all night plus there are loads of nightlife tourists coming in from the rest of Europe every weekend. I'd go for a smaller venue with 100-200 capacity a bit off the beaten tracks but close to a subway station where several lines intersect and make sure there are and will be no apartments in the same building or right next door, best is to aim for a non-residential neighborhood. Maybe take over a dilapidated old drinking hole that already has the plumbing and the license. I'd say it all completely depends on what type of person you are, if you have the ability to come up with a good program for 6 nights a week and work all night, every night for years to come. I wouldn't want to be closed for more nights than Mondays. You might have to illegally live in there for the first year or two until you start making a profit that won't have to be re-invested right away. Don't take in partners or loan money from the bank.
eh, i definitely ride for reducing debt but unless you have an absurd mortgage rate or volatile cash flows, almost anyone can find something that will give a better return than paying off their mortgage early
There is also the recasting option which enables you, for a small fee ($250), to significantly lower your monthly payment requirement by making a large prepayment. That would be instead of changing the end date of the loan. You'd feel the impact of that immediately.
eh, i definitely ride for reducing debt but unless you have an absurd mortgage rate or volatile cash flows, almost anyone can find something that will give a better return than paying off their mortgage early
No doubt! I think it's a matter of individual taste, though.
For me, I have zero debt, other than my mortgage, and I'd LOVE to be mortgage-free. I just hate the feeling of owing money, and carrying a mortgage feels like an albatross to me--I've got 15 years to go, and I want to be "free".
eh, i definitely ride for reducing debt but unless you have an absurd mortgage rate or volatile cash flows, almost anyone can find something that will give a better return than paying off their mortgage early
There is also the recasting option which enables you, for a small fee ($250), to significantly lower your monthly payment requirement by making a large prepayment. That would be instead of changing the end date of the loan. You'd feel the impact of that immediately.
I don't see how that disproves what I wrote. You could easily invest a similar amount and yield a much higher amount solely from dividends (which you could use to replicate lower monthly payments) while maintaining superior liquidity.
eh, i definitely ride for reducing debt but unless you have an absurd mortgage rate or volatile cash flows, almost anyone can find something that will give a better return than paying off their mortgage early
There is also the recasting option which enables you, for a small fee ($250), to significantly lower your monthly payment requirement by making a large prepayment. That would be instead of changing the end date of the loan. You'd feel the impact of that immediately.
I don't see how that disproves what I wrote. You could easily invest a similar amount and yield a much higher amount solely from dividends (which you could use to replicate lower monthly payments) while maintaining superior liquidity.
I don't know Brian, sounds like false logic to me.
I own a home with a 30 year fixed jumbo loan at around 5%. I'm not going to explain amortization to you - i'm going to assume you know how that works. That said, I would have to invest, say in an ETF (although I do own single stocks with >5 yield) the entire price of my home plus interest to receive the an equivalent monthly amount that I am paying out to my mortgage. And that doesn't include my capital gains tax liability. So If you can point me in the direction of something that would yield that sort of $$ with as low a risk as investing in a property I have insurance and control over, then I'm all ears.
also, do you own a home? what stocks are you long/short in right now? what is it on wall street you do exactly again? I'm always looking for someone to let me help my dollars circulate.
wall street's reason for not investing in real estate is the real estate crash from last decade, which was caused by wall street.
it's all regionally specific of course, but with real estate where I LIVE, i can put more in the bank in one year than a doctor can earn in two.
yes. and it's also entertaining to hear people who don't own homes/property giving advice on how people should handle real estate.
at the very least, it's basically the only commodity that is entirely open to the public to purchase that you can actually see, touch, feel & use, that's gotta count for something.
also, all you have to do is put down 20% at ground breaking and at move in time two years later you're up at least 15% on the WHOLE amount.... that's almost ponzi scheme-ish.
also, all you have to do is put down 20% at ground breaking and at move in time two years later you're up at least 15% on the WHOLE amount.... that's almost ponzi scheme-ish.
There is no doubt that shit is going on...
When I bought a per-construt condo from someone I kinda knew. He told me something crazy. It basically works like this.
Foreigner investor buys a crap load of condos in a new development pre construction putting down 5-10%. Which makes developer happy cause the building sells out quick. Foreigner investor and developer have a right to ???assign??? clause in the agreement of purchase.
Foreigner investor sits for a bit and then begins to offload close to the final closing making some good $$$ ($100G's or whatever).
Foreigner investor pays a fee to developer for the right to ???assign??? clause on each unit ($5G's or whatever).
Foreigner investor $$$ heads offshore and no tax is ever paid.
Think about the $ made when people are doing 25-50 units.
I sold a condo with right to ???assign??? once. Just because my gf and I broke up. And we paid the taxes on it... I can see how easily it's taken advantage of.
eh, i definitely ride for reducing debt but unless you have an absurd mortgage rate or volatile cash flows, almost anyone can find something that will give a better return than paying off their mortgage early
There is also the recasting option which enables you, for a small fee ($250), to significantly lower your monthly payment requirement by making a large prepayment. That would be instead of changing the end date of the loan. You'd feel the impact of that immediately.
I don't see how that disproves what I wrote. You could easily invest a similar amount and yield a much higher amount solely from dividends (which you could use to replicate lower monthly payments) while maintaining superior liquidity.
I don't know Brian, sounds like false logic to me.
I own a home with a 30 year fixed jumbo loan at around 5%. I'm not going to explain amortization to you - i'm going to assume you know how that works. That said, I would have to invest, say in an ETF (although I do own single stocks with >5 yield) the entire price of my home plus interest to receive the an equivalent monthly amount that I am paying out to my mortgage. And that doesn't include my capital gains tax liability. So If you can point me in the direction of something that would yield that sort of $$ with as low a risk as investing in a property I have insurance and control over, then I'm all ears.
also, do you own a home? what stocks are you long/short in right now? what is it on wall street you do exactly again? I'm always looking for someone to let me help my dollars circulate.
Look, I framed this entire thing on the premise that if you have a low mortgage rate and/or stable cash flows, it does not make sense to prepay your mortgage. Do you agree with that?
eh, i definitely ride for reducing debt but unless you have an absurd mortgage rate or volatile cash flows, almost anyone can find something that will give a better return than paying off their mortgage early
There is also the recasting option which enables you, for a small fee ($250), to significantly lower your monthly payment requirement by making a large prepayment. That would be instead of changing the end date of the loan. You'd feel the impact of that immediately.
I don't see how that disproves what I wrote. You could easily invest a similar amount and yield a much higher amount solely from dividends (which you could use to replicate lower monthly payments) while maintaining superior liquidity.
I don't know Brian, sounds like false logic to me.
I own a home with a 30 year fixed jumbo loan at around 5%. I'm not going to explain amortization to you - i'm going to assume you know how that works. That said, I would have to invest, say in an ETF (although I do own single stocks with >5 yield) the entire price of my home plus interest to receive the an equivalent monthly amount that I am paying out to my mortgage. And that doesn't include my capital gains tax liability. So If you can point me in the direction of something that would yield that sort of $$ with as low a risk as investing in a property I have insurance and control over, then I'm all ears.
also, do you own a home? what stocks are you long/short in right now? what is it on wall street you do exactly again? I'm always looking for someone to let me help my dollars circulate.
Look, I framed this entire thing on the premise that if you have a low mortgage rate or unstable cash flows, it does not make sense to prepay your mortgage. Do you agree with that?
Well if unstable cash flows means what I think it does, then he should pay off all rotating credit card debt, get out of a rental (because i'm assuming to qualify for a mortgage the cash would be stable in the first place) and put the rest in a moderate CD with no early withdrawal penalties. Risky investments in any market product would be the absolute last thing I would advise, transaction and management fees would eat up the usefulness of the whole venture.
here's the thing, the OP is presumably about to inherit 150K. he wants our advice as to whether or not he should **invest** in entertainment. The resounding answer (aside from your "follow your dreams let the haters hate post") is "no, please don't. take it from all of us who have owned labels or worked in entertainment, you will lose your money. And quickly." It's the same advice I'm sure you give if he came here and said hey guys should i buy 150K in OTC/Pink sheets? I would say HELL NO as I'm sure you would, because like Entertainment, that game is rigged and just waiting to eat up bright eyed newbies.
So what are the other options? If he's renting, he should buy a house or look at purchasing a multi-unit and living in one space and renting out the others, both covering his own mortgage and building equity in a piece of real estate. If he already has a mortgage then that $$ could go towards paying off the principle, effectively erasing payments at the end of his loan term. For this to be a worse idea than Teh Markets, then he would have to find (in the market)
a) a sure bet product with
b) a greater yield (post capital gains) than his current mortgage rate at
c) the equivalent investment amount
So to use myself as an example, I pay approx 5% interest, 30 year fixed. Dont make fun of my rate, its Cali and i'm financing over a mil. If I recieve 150K, I would first pay off my most costyl debt, which would be CC debt, which I do not carry. Next. The mortgage, 6K a month. Is there an investment in the market which could give me 6K a month in yield? Not likely with 150K to invest. Considering i'm in the very early years of my 30 year mortgage I pay mostly interest every month with very little money going toward principal, thats how it works. The sooner you start paying a bit of extra principal, the less interest you'll pay over the life of the loan, and the more money the extra payments will save you in the long run. Now granted a home is a large, illiquid asset, but it's one that I control and enjoy. So yes, if I could put 150K into the principal of the loan right toff the bat, it does do is reduce the life and lifetime cost of the loan, even though the only savings is the interest on the final payments, it's still a hell of a lot of money.
So based on that, no i dont agree that prepaying a mortgage is always a bad idea - in many circumstances its a safe way to effectively gain your mortgage rate interest percent on your money and build early equity.
More importantly though, its one of the safest easiest options I can think for someone who might ave to ask financial advice on a record collecting forum >.
I know I know TL;DR right broz? I got to go right rapz now. Love yaz.
i don't think we're disagreeing on anything there. i'll reply when I have a sec (if you're actually interested in discussing vs painting me as some boogie man by throwing out assumptions about what i do/what I own/etc) but you're misquoting quote a bit of what I wrote. no one even knows if this guy has a mortage, I was just replying to someone who said that they would pay off their mortgage
eh, i definitely ride for reducing debt but unless you have an absurd mortgage rate or volatile cash flows, almost anyone can find something that will give a better return than paying off their mortgage early
There is also the recasting option which enables you, for a small fee ($250), to significantly lower your monthly payment requirement by making a large prepayment. That would be instead of changing the end date of the loan. You'd feel the impact of that immediately.
I don't see how that disproves what I wrote. You could easily invest a similar amount and yield a much higher amount solely from dividends (which you could use to replicate lower monthly payments) while maintaining superior liquidity.
I don't know Brian, sounds like false logic to me.
I own a home with a 30 year fixed jumbo loan at around 5%. I'm not going to explain amortization to you - i'm going to assume you know how that works. That said, I would have to invest, say in an ETF (although I do own single stocks with >5 yield) the entire price of my home plus interest to receive the an equivalent monthly amount that I am paying out to my mortgage. And that doesn't include my capital gains tax liability. So If you can point me in the direction of something that would yield that sort of $$ with as low a risk as investing in a property I have insurance and control over, then I'm all ears.
also, do you own a home? what stocks are you long/short in right now? what is it on wall street you do exactly again? I'm always looking for someone to let me help my dollars circulate.
Look, I framed this entire thing on the premise that if you have a low mortgage rate or unstable cash flows, it does not make sense to prepay your mortgage. Do you agree with that?
Well if unstable cash flows means what I think it does, then he should pay off all rotating credit card debt, get out of a rental (because i'm assuming to qualify for a mortgage the cash would be stable in the first place) and put the rest in a moderate CD with no early withdrawal penalties. Risky investments in any market product would be the absolute last thing I would advise, transaction and management fees would eat up the usefulness of the whole venture.
here's the thing, the OP is presumably about to inherit 150K. he wants our advice as to whether or not he should **invest** in entertainment. The resounding answer (aside from your "follow your dreams let the haters hate post") is "no, please don't. take it from all of us who have owned labels or worked in entertainment, you will lose your money. And quickly." It's the same advice I'm sure you give if he came here and said hey guys should i buy 150K in OTC/Pink sheets? I would say HELL NO as I'm sure you would, because like Entertainment, that game is rigged and just waiting to eat up bright eyed newbies.
So what are the other options? If he's renting, he should buy a house or look at purchasing a multi-unit and living in one space and renting out the others, both covering his own mortgage and building equity in a piece of real estate. If he already has a mortgage then that $$ could go towards paying off the principle, effectively erasing payments at the end of his loan term. For this to be a worse idea than Teh Markets, then he would have to find (in the market)
a) a sure bet product with
b) a greater yield (post capital gains) than his current mortgage rate at
c) the equivalent investment amount
So to use myself as an example, I pay approx 5% interest, 30 year fixed. Dont make fun of my rate, its Cali and i'm financing over a mil. If I recieve 150K, I would first pay off my most costyl debt, which would be CC debt, which I do not carry. Next. The mortgage, 6K a month. Is there an investment in the market which could give me 6K a month in yield? Not likely with 150K to invest. Considering i'm in the very early years of my 30 year mortgage I pay mostly interest every month with very little money going toward principal, thats how it works. The sooner you start paying a bit of extra principal, the less interest you'll pay over the life of the loan, and the more money the extra payments will save you in the long run. Now granted a home is a large, illiquid asset, but it's one that I control and enjoy. So yes, if I could put 150K into the principal of the loan right toff the bat, it does do is reduce the life and lifetime cost of the loan, even though the only savings is the interest on the final payments, it's still a hell of a lot of money.
So based on that, no i dont agree that prepaying a mortgage is always a bad idea - in many circumstances its a safe way to effectively gain your mortgage rate interest percent on your money and build early equity.
More importantly though, its one of the safest easiest options I can think for someone who might ave to ask financial advice on a record collecting forum >.
I know I know TL;DR right broz? I got to go right rapz now. Love yaz.
Thank you. This is pretty much how I think. Is it boring? Sure. But erasing one's mortgage is key to financial freedom in my uneducated opinion. I am netting an 11%+ return playing the market right now, but shit can go south at anytime, so I cautiously invest a few Gs and focus instead on chipping away at the large chain around my neck and continue driving my 7 year old Toyota, even though I crave and can buy a new BMW.
I am very happy that I paid off my mortgage in 15 years.
I love owning debt free.
My home is where I live and work so that is a lot of security.
I have been told that paying it off early was not the best investment option. I believe that.
But it was the best option for me.
OP is in Germany I believe.
The +s and -s of owning/renting may be very different there, than here.
Hey Fine Like Wine, you have proven that you are willing to get up early and work hard to find records.
You have a good eye and ear for good records.
If you are hell bent on throwing away your money you should build on your strengths.
Sell on the internet and fairs and maybe markets.
If you find some unknown/lesser known stuff try to put together a legit reissue. Your used sales will benefit from the prestige.
Comments
This.
haha, I was just about to do that
Yep.
If you live in Toronto and have ever eaten/drank/danced at Nazareth on Bloor, that woman is living my dream. Skip the food part and open the music selection beyond Ethiopian dance music, R Kelly and James Brown and that's wtf I would do.
HA. I just can't help myself on using that quote any chance I get. And yes, I stay away from mutual funds.
But it's either that, or two chicks at the same time...
http://gizmodo.com/5038783/worlds-largest-record-collection-is-worth-50-million-no-one-wants-it-for-3-million
Absolutely. The principal mortgage payment is a good one too. Spend wisely, my frond.
Or you can get another investor and open a bar.
Co-sign on the above, but would be nervous about opening a bar, unless of course you know the biz well. A bar can be a sweet cash cow in th right hands, or it can leave you bankrupt.
Definitely work towards being mortgage/debt free and invest so you can retire earlier. If it was me, I'd probably put as much as I could against my mortgage, then invest the remaining in a balance of the market, as well as a few low-risk instruments.
What are the dos and don'ts?
$150.000 would be a tight budget even for a small club. Only German city I'd even consider would be Berlin as leases are much cheaper than anywhere else in the country (unless you want to go to the East -but who would want to go there?) and you can stay open all night plus there are loads of nightlife tourists coming in from the rest of Europe every weekend. I'd go for a smaller venue with 100-200 capacity a bit off the beaten tracks but close to a subway station where several lines intersect and make sure there are and will be no apartments in the same building or right next door, best is to aim for a non-residential neighborhood. Maybe take over a dilapidated old drinking hole that already has the plumbing and the license. I'd say it all completely depends on what type of person you are, if you have the ability to come up with a good program for 6 nights a week and work all night, every night for years to come. I wouldn't want to be closed for more nights than Mondays. You might have to illegally live in there for the first year or two until you start making a profit that won't have to be re-invested right away. Don't take in partners or loan money from the bank.
There is also the recasting option which enables you, for a small fee ($250), to significantly lower your monthly payment requirement by making a large prepayment. That would be instead of changing the end date of the loan. You'd feel the impact of that immediately.
No doubt! I think it's a matter of individual taste, though.
For me, I have zero debt, other than my mortgage, and I'd LOVE to be mortgage-free. I just hate the feeling of owing money, and carrying a mortgage feels like an albatross to me--I've got 15 years to go, and I want to be "free".
It's a simple plan, but again, that's just me.
1) Only hire people you trust implicitly
2) Don't hire any one you can't trust
3) Trust no one
If you're not going to be there at all times to oversee everything it's a damn hard thing to do.
I don't know Brian, sounds like false logic to me.
I own a home with a 30 year fixed jumbo loan at around 5%. I'm not going to explain amortization to you - i'm going to assume you know how that works. That said, I would have to invest, say in an ETF (although I do own single stocks with >5 yield) the entire price of my home plus interest to receive the an equivalent monthly amount that I am paying out to my mortgage. And that doesn't include my capital gains tax liability. So If you can point me in the direction of something that would yield that sort of $$ with as low a risk as investing in a property I have insurance and control over, then I'm all ears.
also, do you own a home? what stocks are you long/short in right now? what is it on wall street you do exactly again? I'm always looking for someone to let me help my dollars circulate.
it's all regionally specific of course, but with real estate where I LIVE, i can put more in the bank in one year than a doctor can earn in two.
yes. and it's also entertaining to hear people who don't own homes/property giving advice on how people should handle real estate.
at the very least, it's basically the only commodity that is entirely open to the public to purchase that you can actually see, touch, feel & use, that's gotta count for something.
also, all you have to do is put down 20% at ground breaking and at move in time two years later you're up at least 15% on the WHOLE amount.... that's almost ponzi scheme-ish.
There is no doubt that shit is going on...
When I bought a per-construt condo from someone I kinda knew. He told me something crazy. It basically works like this.
Foreigner investor buys a crap load of condos in a new development pre construction putting down 5-10%. Which makes developer happy cause the building sells out quick. Foreigner investor and developer have a right to ???assign??? clause in the agreement of purchase.
Foreigner investor sits for a bit and then begins to offload close to the final closing making some good $$$ ($100G's or whatever).
Foreigner investor pays a fee to developer for the right to ???assign??? clause on each unit ($5G's or whatever).
Foreigner investor $$$ heads offshore and no tax is ever paid.
Think about the $ made when people are doing 25-50 units.
More info here.
http://www.torontorealtyblog.com/archives/whats-really-behind-canadas-condo-bubble/7120
I sold a condo with right to ???assign??? once. Just because my gf and I broke up. And we paid the taxes on it... I can see how easily it's taken advantage of.
Look, I framed this entire thing on the premise that if you have a low mortgage rate and/or stable cash flows, it does not make sense to prepay your mortgage. Do you agree with that?
Well if unstable cash flows means what I think it does, then he should pay off all rotating credit card debt, get out of a rental (because i'm assuming to qualify for a mortgage the cash would be stable in the first place) and put the rest in a moderate CD with no early withdrawal penalties. Risky investments in any market product would be the absolute last thing I would advise, transaction and management fees would eat up the usefulness of the whole venture.
here's the thing, the OP is presumably about to inherit 150K. he wants our advice as to whether or not he should **invest** in entertainment. The resounding answer (aside from your "follow your dreams let the haters hate post") is "no, please don't. take it from all of us who have owned labels or worked in entertainment, you will lose your money. And quickly." It's the same advice I'm sure you give if he came here and said hey guys should i buy 150K in OTC/Pink sheets? I would say HELL NO as I'm sure you would, because like Entertainment, that game is rigged and just waiting to eat up bright eyed newbies.
So what are the other options? If he's renting, he should buy a house or look at purchasing a multi-unit and living in one space and renting out the others, both covering his own mortgage and building equity in a piece of real estate. If he already has a mortgage then that $$ could go towards paying off the principle, effectively erasing payments at the end of his loan term. For this to be a worse idea than Teh Markets, then he would have to find (in the market)
a) a sure bet product with
b) a greater yield (post capital gains) than his current mortgage rate at
c) the equivalent investment amount
So to use myself as an example, I pay approx 5% interest, 30 year fixed. Dont make fun of my rate, its Cali and i'm financing over a mil. If I recieve 150K, I would first pay off my most costyl debt, which would be CC debt, which I do not carry. Next. The mortgage, 6K a month. Is there an investment in the market which could give me 6K a month in yield? Not likely with 150K to invest. Considering i'm in the very early years of my 30 year mortgage I pay mostly interest every month with very little money going toward principal, thats how it works. The sooner you start paying a bit of extra principal, the less interest you'll pay over the life of the loan, and the more money the extra payments will save you in the long run. Now granted a home is a large, illiquid asset, but it's one that I control and enjoy. So yes, if I could put 150K into the principal of the loan right toff the bat, it does do is reduce the life and lifetime cost of the loan, even though the only savings is the interest on the final payments, it's still a hell of a lot of money.
So based on that, no i dont agree that prepaying a mortgage is always a bad idea - in many circumstances its a safe way to effectively gain your mortgage rate interest percent on your money and build early equity.
More importantly though, its one of the safest easiest options I can think for someone who might ave to ask financial advice on a record collecting forum >.
I know I know TL;DR right broz? I got to go right rapz now. Love yaz.
Thank you. This is pretty much how I think. Is it boring? Sure. But erasing one's mortgage is key to financial freedom in my uneducated opinion. I am netting an 11%+ return playing the market right now, but shit can go south at anytime, so I cautiously invest a few Gs and focus instead on chipping away at the large chain around my neck and continue driving my 7 year old Toyota, even though I crave and can buy a new BMW.
Less complexity = less stress, for me.
I love owning debt free.
My home is where I live and work so that is a lot of security.
I have been told that paying it off early was not the best investment option. I believe that.
But it was the best option for me.
OP is in Germany I believe.
The +s and -s of owning/renting may be very different there, than here.
Hey Fine Like Wine, you have proven that you are willing to get up early and work hard to find records.
You have a good eye and ear for good records.
If you are hell bent on throwing away your money you should build on your strengths.
Sell on the internet and fairs and maybe markets.
If you find some unknown/lesser known stuff try to put together a legit reissue. Your used sales will benefit from the prestige.
mobile phones china and india. that's where you want your money.
peace, stein. . .
Mother of God...that is the best gif I have ever seen.
It's from Anthony Bourdain: Parts Unknown Myanmar. The whole eps is good.