As the end of this year gets closer, I find myself thinking obsessively about what paycheck retirement will be like. What will I cook on a daily basis in my new and wonderful kitchen? What will it feel like to use the Jacuzzi tub when I’m having trouble sleeping? What will I do with all that free time? While I don’t have the answers to these questions just yet, I know one thing will be fact: I will be in debt. Most of the debt will come from the construction of the attic apartment. Materials and labor totaled, I’m looking at a bill for around $25,000. This would max out both my line of credit and my credit card, and leave me with a monthly payment of at least $1,500 if I want to pay it off by the end of next year. Starting paycheck retirement off with a massive debt and limited resources is not as fun to think about as soaking in a Jacuzzi tub, so I starting looking for alternatives.
The other day I had a thought. What if I lived in one of Property 5's apartments instead of building the attic apartment from scratch?
The thought is appealing. I mean, I won’t have to spend the massive amount of money on the attic apartment. I’ll only have to renovate Apartments 1 and 3, while living in the Apartment 4 and fixing it up as I’m there. Numbers-wise, it will save me from an initial cost of $25,000 and give me a debt-free start to paycheck retirement. But there’s a downside to those numbers.
You see, living in Apartment 4 of Property 5 means I lose potential money every month. At first I thought I’d lose $600 in rent, but after Alfonso and I checked Apartment 4 out, I believe the massive one-bedroom can easily go for $700. So I would lose $700 a month along with the loss of job income, plus the cost of National Grid. To me, that’s a worse start to paycheck retirement. The short-term savings, in my opinion, is not worth the long term loss of rental income.
Besides, I’m really looking forward to custom-building my own apartment. Not many people can have that type of luxury. Living in an pre-built apartment is nice, but there’s something special about picking and choosing every aspect of your living space from top to bottom. Large bedroom. Raised bathroom sink so that I won't have to bend over when brushing my teeth. Double wall oven to bake chickens and make pizzas. Central air conditioning in every room. Overall monthly costs at around $50 a month?? Just lovely.
The other day I had a thought. What if I lived in one of Property 5's apartments instead of building the attic apartment from scratch?
The thought is appealing. I mean, I won’t have to spend the massive amount of money on the attic apartment. I’ll only have to renovate Apartments 1 and 3, while living in the Apartment 4 and fixing it up as I’m there. Numbers-wise, it will save me from an initial cost of $25,000 and give me a debt-free start to paycheck retirement. But there’s a downside to those numbers.
You see, living in Apartment 4 of Property 5 means I lose potential money every month. At first I thought I’d lose $600 in rent, but after Alfonso and I checked Apartment 4 out, I believe the massive one-bedroom can easily go for $700. So I would lose $700 a month along with the loss of job income, plus the cost of National Grid. To me, that’s a worse start to paycheck retirement. The short-term savings, in my opinion, is not worth the long term loss of rental income.
Besides, I’m really looking forward to custom-building my own apartment. Not many people can have that type of luxury. Living in an pre-built apartment is nice, but there’s something special about picking and choosing every aspect of your living space from top to bottom. Large bedroom. Raised bathroom sink so that I won't have to bend over when brushing my teeth. Double wall oven to bake chickens and make pizzas. Central air conditioning in every room. Overall monthly costs at around $50 a month?? Just lovely.
So is it worth digging myself into an entire year of debt for? Yeah, I think so.
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