Monday, November 26, 2012

The idea of buying a place wasn't an impulsive decision, I'd been thinking about it for a while and gave a great deal of thought to buying an apartment in Paris, but real-estate values here are outrageous. A few years ago I spent a fair amount of time looking at property in my price range and frankly I was disappointed with what I found. Either I would need to take more cash out of Kim & Co for my salary or I'd need to move money from other investments in order to bring more cash to the deal.
My current salary allows me to do most of what I want and it is not aggressive when considering the company's net revenue, so is see no reason to change that. From an investment point of view, I also strongly believe in OPM, other people's money and given the interests rates are so low using more of my cash for a housing investment seemed unwise. Even if I had done this, the place I'd be living would be only moderately larger than my current apartment in a perhaps slightly better neighborhood, there was no way that I would be buying a 200 m2 apartment in Le Marais.

I love my apartment, its small, lacks closet space and the neighborhood is a bit sketchy, but I've come to terms with the space and the area is improving. Thankfully we avoid the tourist hordes. Positives about this place are that I have parking in the basement and its convenient to my office being on the same Métro line, though it is somewhat out of the way relative to fashionable Paris. When I moved here it was a stretch considering the budget that I had set for myself, but today it is cheap living, besides I now consider the wino's neighbors.

So like others in places like NY or London, I own a vacation home and rent my primary residence.

A different routine, some surfing and a mostly working vacation, I feel more rested than I've felt in months and can't wait till Christmas when I can go back.



Anonymous Robert taylor said...

When Joan and I decided to purchase a house, we knew that it was impossible in the Toronto market. So we looked at the rural area where Joan grew up. We chose a house in Stirling, Ontario that was wheelchair accessible for Joan and that we could afford. As Will Rogers said, "Buy land. They ain't making any more of the stuff." The asset has increased about 50% since we bought it in 2003.

7:20 PM  
Anonymous VJ said...

I only wish I had the money to buy in some of the places I've lived in over the years. Toronto would have been a splendid buy. But so few can afford the taxes & upkeep from a distance and down thorough the decades. Locally, it's only the local gentry who are 'in the know' who get in on all the good real estate deals. But the real secret is to live well below your means. If you manage that, you'll be doing OK for the future. Mostly! Cheers & Good Luck, 'VJ'

1:09 PM  
Blogger shelley said...

Congratulations on your new home! x

11:55 PM  

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