In this episode, we tackle the #1 expense in most peoples month spending. Housing costs, and how both renters and owners can reduce and save. As usual the Mechanic, the Accountant, and the Economist sample a couple of beers. This week we’re trying some ‘low cost’ options. If you found this podcast you’re probably familiar with the FI/RE movement that has grown in popularity recently. If not, welcome to the movement! Here at the FI Garage, we’re all on the path to FI, however, we consider the RE part optional.
Beer #1 – Bowen Island – West Coast Lager
What’s in the News?
Ways to Minimizing Your Housing Expense
- Rent out part of your house (including parking or storage)
- Beware of Lifestyle Creep – evaluate your needs and don’t let your wants drive your housing decisions (purchases)
- Consider Renting vs Buying
- Airbnb when you are away – Generating Extra Income With Your Home by The Economist
- Get roommates
- Downsize / rent a cheaper place
- Negotiate rent reductions for services provided or long term leases
- DIY your home maintenance expenses (look on YouTube for assistance)
- Sourcing used or leftover building materials
- Negotiate good mortgage terms
- Saving money with a variable rate mortgage but keeping the difference in payments in an emergency account.
- Homestay students, here is Chrissy’s story
- Put in a suite to generate extra income
- Alternative Housing (Tiny House, Converting Vehicles) like the Mindful Explorer
Show Note Confirmations
- We found a good article on Implicit Rent or Notional Rent or Imputed Rent here. It is taxed in Switzerland as well as a number of other countries and should be considered by owner-occupiers
- Here is an article on the updated tax changes in the US. The mortgage interest deduction rules weren’t fully eliminated but they were reduced. 2019 Tax Changes
- Regarding the solar argument (1) BC Hydro net metering program has changed. Here is an article from the Vancouver Sun; and (2) Here is the Telco Article
- After our recording, we learned that the Federal Government in Canada is looking to start a new home buying incentive program in September
Beer #2 – Stanley Park Brewing – DayTrip West Coast Lager
Stupid Money Move
- Shopping at a retailer who charges high rates because of their location rather than planning ahead. i.e. shopping for snacks at the gas station or the airport.