Urban vs Suburban - 2 styles enter, one style leaves!

[LFRENCH]

Originally Posted by fusili

Cars have utility, but are crap investments.

Fusili normally I agree with you, however I must say I have made tons of money on cars and they have performed much better than any other investment I have made. However I must admit, I'm a bit of the Neil Smith of automobiles( I think you can get the reference).

the thing about housing and something tangible is that unlike stock you can invest something not worth a lot(my case time and skills) into improving their market condition.

[Ramsayfarian]

Originally Posted by suburbia

Interestingly, paying weekly doesn't actually save you any interest, rather, what it does is add 4 more one week payments, which if you convert back to monthly, it would be like paying a 13th month.

I actually keep mine monthly, but simply amortize faster (so same as what weekly would do / mean, but I don't have months with extra payments).

Anyway, off on a tangent at this point. I will tell you this ... anyone who thinks I'm a finance or home owner amateaur is quite mistaken. Any of course I've enjoyed paying down on my mortgages by accepting rent from people who think renting is where it is at

And all this time I thought you were a crimefighter.
I know the magic behind paying weekly, but thanks for explaining how it works for those who don't.

An extra payment a year totally saves you interest. It's not a huge amount but it does. I'm surprised, a real estate tycoon such as yourself should know that.

Shorter amortization saves way more than paying weekly. I, like many, can't afford a 10 year mortgage payment.

For me paying weekly is a painless way to get an extra payment in and deny the 1% a few $$

[Ramsayfarian]

Originally Posted by Policy Wonk

Maybe over thirty years you will do okay, but I don't think eating cat food in your empty house till then is anyone's idea of a life.

I'm just going to travel on the cheap, either backpack or motorcycle from South Africa to some place in Asia that is tropical and has cheap golf/opiates.

I'll golf until I can't anymore and the then once my funds start to run out or I get really bored, I'll start chasing the dragon and eating mangos. Until poof!

[suburbia]

Originally Posted by Ramsayfarian

An extra payment a year totally saves you interest. It's not a huge amount but it does. I'm surprised, a real estate tycoon such as yourself should know that.

I did not say paying more money doesn't save you interest. Paying weekly in and of itself does not, rather, paying more on a yearly basis makes the difference. If the sum of your 12 monthly payments equals the sum of your 52 weekly payments, there is virtually no difference in the interest. The problem with math amateurs is that they compare one month to four weeks. That comparison is not fair, because one year is 52 weeks, not 48. Again, if your monthly payment is the sum of your 52 payments divided by 12, your interest and amortization length is basically the same.

There are many mathematically bankrupt websites that compare, as an example, difference in interest / amortization between a $600 monthly payment versus a $150 weekly payment. The reality is, if you keep the amount your paying the exactly same, it would be comparing a $600 monthly payment with a $138.46 weekly payment ($600 * 12/52). Comparing apples to apples, the interest over the entire amortization and the amortization length are exactly the same. If you actually do pay $150 per week in this example, you're not actually saving interest because it is weekly, rather, you're actually paying down your mortgage faster because you are paying more on a monthly basis ($150/wk is actually $650/month (150*52/12), not $600/month). Do the amortization calculations yourself, and you'll see I'm absolutely correct.

Anyway, off on a tangent. If you want to learn more, connect with me at the university and I'll hook you up with an appropriate instructor / tutor.

[sim]

Originally Posted by suburbia

I did not say paying more money doesn't save you interest. Paying weekly in and of itself does not, rather, paying more on a yearly basis makes the difference. If the sum of your 12 monthly payments equals the sum of your 52 weekly payments, there is virtually no difference in the interest. The problem with math amateurs is that they compare one month to four weeks. That comparison is not fair, because one year is 52 weeks, not 48. Again, if your monthly payment is the sum of your 52 payments divided by 12, your interest and amortization length is basically the same.

There are many mathematically bankrupt websites that compare, as an example, difference in interest / amortization between a $600 monthly payment versus a $150 weekly payment. The reality is, if you keep the amount your paying the exactly same, it would be comparing a $600 monthly payment with a $138.46 weekly payment ($600 * 12/52). Comparing apples to apples, the interest over the entire amortization and the amortization length are exactly the same. If you actually do pay $150 per week in this example, you're not actually saving interest because it is weekly, rather, you're actually paying down your mortgage faster because you are paying more on a monthly basis ($150/wk is actually $650/month (150*52/12), not $600/month). Do the amortization calculations yourself, and you'll see I'm absolutely correct.

Anyway, off on a tangent. If you want to learn more, connect with me at the university and I'll hook you up with an appropriate instructor / tutor.

With all your math wizardry, you'd think you'd be able to do simple geometry. Go ahead an pretend like you don't know what I'm referring to.

[suburbia]

Originally Posted by sim

With all your math wizardry, you'd think you'd be able to do simple geometry. Go ahead an pretend like you don't know what I'm referring to.

I have absolutely no idea what you're talking about. Not pretending.

[Ramsayfarian]

Originally Posted by suburbia

I did not say paying more money doesn't save you interest. Paying weekly in and of itself does not, rather, paying more on a yearly basis makes the difference. If the sum of your 12 monthly payments equals the sum of your 52 weekly payments, there is virtually no difference in the interest. The problem with math amateurs is that they compare one month to four weeks. That comparison is not fair, because one year is 52 weeks, not 48. Again, if your monthly payment is the sum of your 52 payments divided by 12, your interest and amortization length is basically the same.
. Do the amortization calculations yourself, and you'll see I'm absolutely correct.

I stand corrected. All these years I just assumed for some reason that my bank took my monthly payment, divided it by 4 and I paid that amount 52 times.

I still have saved a bit of interest, but you're right it's not a huge amount.

[suburbia]

Originally Posted by Ramsayfarian

I stand corrected. All these years I just assumed for some reason that my bank took my monthly payment, divided it by 4 and I paid that amount 52 times.

I still have saved a bit of interest, but you're right it's not a huge amount.

I saved the same amount by simply increasing my monthly payments by the same proportion as you increased your yearly contribution by making 52 payments.

Anyway - at least you own something and your mortgage payments go towards decreasing the principal. Better than paying someone else's mortgage!

[sim]

Originally Posted by suburbia

Actually - no. I'm amazed at how quickly you all forget that only 1/6th of all jobs in Calgary are in the CBD, and the rest are outside of it. I am extremely happy that I do not work or need to go through the CBD. Much better to live close to one's work.

Refresher.

Wouldn't have brought this up again, but a response was begotten on the implicit claim of being good at math. May well be the case, just apply that ability across the board. Feel free to go back about 4 pages to get more refreshed.

[suburbia]

Originally Posted by sim

Refresher.

Wouldn't have brought this up again, but a response was begotten on the implicit claim of being good at math. May well be the case, just apply that ability across the board. Feel free to go back about 4 pages to get more refreshed.

Interestingly, with only 1/6th of jobs in the CBD and surrounding areas, that means each quadrant of the city independently has more jobs then the centre. Extremely easy to remain in one area of the city over multiple stages of a career, find good work within that area, not have to deal with CBD traffic hassles (or hassles of traveling to the CBD), not have such high prices, have numerous amenities including things for kids and recreation (skating arenas, golf courses, tennis courts, etc.) , restaurants that are small business family run operation (as opposed to the million dollar types in the core), etc.

[sim]

Originally Posted by suburbia

Interestingly, with only 1/6th of jobs in the CBD and surrounding areas, that means each quadrant of the city independently has more jobs then the centre. Extremely easy to remain in one area of the city over multiple stages of a career, find good work within that area, not have to deal with CBD traffic hassles (or hassles of traveling to the CBD), not have such high prices, have numerous amenities including things for kids and recreation (skating arenas, golf courses, tennis courts, etc.) , restaurants that are small business family run operation (as opposed to the million dollar types in the core), etc.

BTW - your rent goes up June 1.

So in conclusion, geometry is a difficult subject for you.

[suburbia]

Originally Posted by sim

So in conclusion, geometry is a difficult subject for you.

Actually, in conclusion, you're the ultimate troll.

[freeweed]

If you're a McDonald's worker or sell used cars, dividing jobs by quadrant vs the core makes sense.

For the rest of us, not all jobs are created equal and it's a matter of quality over quantity. I can think of very few professional careers where you can casually dismiss jobs in the core for equivalent work anywhere else in the city.

[suburbia]

Originally Posted by Ramsayfarian

Don't forget those of modest income that bought in the inner city before it become cool. I bought my first place in Ramsay for $132K. At the time, friends and co-workers thought I was insane for buying in Ramsay.

Interestingly, yesterday's suburb is tomorrow's inner city.

[suburbia]

Originally Posted by freeweed

If you're a McDonald's worker or sell used cars, dividing jobs by quadrant vs the core makes sense.

For the rest of us, not all jobs are created equal and it's a matter of quality over quantity. I can think of very few professional careers where you can casually dismiss jobs in the core for equivalent work anywhere else in the city.

Good point. Homeless seem to congregate in particular areas.

My skew is of course to specialist doctors and owners of corporate Calgary. A very small proportion do choose the core, but most do not.

[RyLucky]

Originally Posted by suburbia

My skew is of course to specialist doctors and owners of corporate Calgary. A very small proportion do choose the core, but most do not.

If you'll give your skew, I'll give mine. Incoming anecdote: I probably know more doctors than any non-medical professional in the city (similar undergrad, years of research, my partner is a doctor), and I'd estimate that around 75% of the doctors I know live in the inner city, including areas as far out as Parkdale and Capitol Hill. Then again, the vast majority of my sample have no children and are under 35.

Incoming fact:Interestingly, medical professionals tend to be more politically liberal or socially-minded than age-matched peers. Of course, this does not necessarily mean that doctors are more likely to live in the inner city. Just an observation.

And another anecdote: As for owners of corporate Calgary, the majority of ones I've met were through their philanthropy, and/or parties hosted at their homes. So far, most of these have been either in Mount Royal, Crescent Heights, Rideau/Elbow Park, or the far west side of the city in Springbank or Elbow Valley or Discovery Ridge. Most of those areas I know a few older doctors who live there too. In conclusion, I think you are partly right, but more so for old millionaires, born before 1950, now on the edge of retirement. Surely there are doctors in every part of the city, disproportionately so in wealthy areas and near hospitals, which certainly does not describe all suburbs.

[suburbia]

Traffic snarl as downtown Calgary building begins to shed bricks. Fifteen firetrucks shut down quadrant of the core:
http://www.cbc.ca/news/canada/calgary/fa...wn-calgary-building-evacuation-1.2648505

Downtown shut down with potential building collapse in Calgary
http://www.calgarysun.com/2014/05/20/bui...ary-evacuated-over-fears-it-may-collapse

Downtown area shut down after bricks begin falling from building
http://globalnews.ca/news/1342453/downtown-area-shut-down-after-bricks-begin-falling-from-building/

Video
http://globalnews.ca/video/1342617/global-1-bricks-falling-in-downtown-calgary

Bus routes 1, 2, 4, 6, 9, 10, 18, 112, 301 and 305 all being detoured. Building wall now reported to be bowing.

[suburbia]

Originally Posted by RyLucky

Surely there are doctors in every part of the city, disproportionately so in wealthy areas and near hospitals, which certainly does not describe all suburbs.

Agreed regarding economic diversity in the core and the quadrants - just as the Beltline, Lower Mount Royal and East Village house amongst the poorest of the poor in the city.

[DizzyEdge]

Originally Posted by suburbia

Traffic snarl as downtown Calgary building begins to shed bricks. Fifteen firetrucks shut down quadrant of the core:
http://www.cbc.ca/news/canada/calgary/fa...wn-calgary-building-evacuation-1.2648505

Downtown shut down with potential building collapse in Calgary
http://www.calgarysun.com/2014/05/20/bui...ary-evacuated-over-fears-it-may-collapse

Downtown area shut down after bricks begin falling from building
http://globalnews.ca/news/1342453/downtown-area-shut-down-after-bricks-begin-falling-from-building/

Video
http://globalnews.ca/video/1342617/global-1-bricks-falling-in-downtown-calgary

Bus routes 1, 2, 4, 6, 9, 10, 18, 112, 301 and 305 all being detoured. Building wall now reported to be bowing.

I have to admit that when I heard bricks were falling off a downtown building, I didn't expect it to be one built in 1968.

[RyLucky]

Originally Posted by suburbia

Agreed regarding economic diversity in the core and the quadrants - just as the Beltline, Lower Mount Royal and East Village house amongst the poorest of the poor in the city.

You should expect any neighbourhood with a median age around 30 to have among the lowest income in the city.