Where to start? Investments and Property Check up.
Lets do some back of the napkin math….Can you make it?
The current value of Magrath Mansion property was $270 000 (Samson’s old house, before he moved in with the girl. This is now a rental property). There was only $165 000 on the mortgage. So after selling it, he had $100,000 left over.
As always the thought of NOT selling it and keeping it as a rental property did creep into his head.
The logic of this was that if the Rental was paid for completely the $650 (condo fee & Property tax) would come out of the regular rent $1650 , to give him a $1000 a month paycheque from the current renter. The same $1000 would pay for their existence in Asia.
This was a great back up plan for when he were in Asia. Just in case the investments dipped .
He also had investments through Real Estate Exempt Funds that he would be drawing from.
$65000 with a dividend paying 10% was $542 a month in “income”
Olympia Trust (the rrsp holding bank charged $25 per transaction taken out)
He withdrew 1 year of dividends at a time to have that $6500 liquid and not get charged the penalties. Letting it sit in the “Bank” made no sense as it didn’t accrue any interest there. But having no cash in Asia really wasn’t a good idea.
What’s your property and investment check up look like? Do you have enough for that $1000 monthly existence ?