How to convince my wife?

[broberts]

I will also have to take a huge housing loan/mortgage to buy the property and be in huge debt for the next 20 years. A sure way to live poor and die rich!

The rental income is only 1/4 of the monthly payment on the loan. So no money left for any holidays, leave alone expensive cruises.

 

You are right, there is.

We are currently staying on rent in this one particular apartment, and my wife wants to own the apartment that we are renting, as a solid asset & security in case of any calamity. It is very close to my office in the heart of the city (high property prices). There are very few apartments available for sale in my area.

I am trying my best to butter her up with ideas of a 20th honeymoon (had many before) with 7 ports in Greece, Italy, Croatia and many more countries.

She also enjoys cruising and we have been on many cruises together, but she says that we should do only 1 cruise per year[emoji33] [emoji25]

 

So you are actually talking about replacing rent payments with mortgage payments. Makes a great deal of sense to me.

 

Cutting back to one cruise a year is a pretty small sacrifice compared to the benefit of having a solid, appreciating asset. Once the mortgage is paid off, the money that was used for payments can be applied to things like extra cruises.

[drsel]

. Once the mortgage is paid off, the money that was used for payments can be applied to things like extra cruises.

What is the guarantee that we will be physically fit, active and healthy enough (or even alive) after 20 years to enjoy ANY holiday?

[iancal]

Does she want to be the richest person in the nursing home when she retires? Or spend her days wishing she had done this or that?

 

There is no doubt a healthy balance between investing and spending. You need to reach the fulcrum.

[broberts]

What is the guarantee that we will be physically fit, active and healthy enough (or even alive) after 20 years to enjoy ANY holiday?

 

No guaranty. But I can guarantee that it would be annoying to be physically fit, active and healthy (as most are into their 70's and even 80's) still paying rent and being unable to afford more than a cruise a year.

[rose6]

With the additional information you have now shared with us, I would like to suggest that one obvious compromise would be to alternate "expensive cruises" with cheap land holidays. This compromise would allow you both to feel that your desires and needs are being met. If one spouse does not have his or her desires respected it could lead to tension and resentments that could destroy your marriage.

Do you like the apartment you live in enough to want to make the commitment that buying the property would require? I sensed from your prior posts that you are not enthusiastic about taking on the responsibility of a mortgage. Only you know how you really feel and you need to share those true feelings with your wife.

[NantahalaCruiser]

The monthly rental income is currently 0.20℅ of the apartment value, but it will increase by 8℅ every 2-3 years.

The monthly expense is just 0.02℅, including property tax and maintenance.

While the monthly payment on a home loan is fixed at 0.74℅ on the loan amount for 240 months (no increase).

The capital appreciation can't be predicted, but is expected to be at least 5% pa

5% over 20 years would only be 2.65 times not 10 times!

 

Buying your current apartment is not a good investment just because it's "your current apartment." You need to compare it with other property investment opportunities - or even other types of investments that you are not currently part of your portfolio if your desire is to further diversify your portfolio.

[lenquixote66]

I love cruising and i know that cruises can be great value, especially if you spot the right deals.

But how to convince my wife? She thinks that I am spending too much time and money on cruises. She wants me to stop cruising and invest the money in property instead. Help! Any advice would be highly appreciated. Thanks in advance!

 

 

 

 

We were on a cruise in 1994 and it took me 14 years to get my wife to do another cruise .We have been doing 2-3 a year since then.

[drsel]

5% over 20 years would only be 2.65 times not 10 times!

 

Buying your current apartment is not a good investment just because it's "your current apartment." You need to compare it with other property investment opportunities - or even other types of investments that you are not currently part of your portfolio if your desire is to further diversify your portfolio.

Ok, I will make it simple with a realistic example.

If the apartment you are renting @1500/month, is worth 750,000 (in the heart of the city); would you borrow 750,000 and pay 5550/month (fixed) for 240 months to own it (total outflow 1,332,000) ? And also pay 110--150/month as maintainence & property taxes?

Even if your landlord increases the rent by 100--150/month every 3 years (not annually)? And the apartment is expected to appreciate 5% pa?

[drsel]

drsel....ours to. We arrange a land trip to Italy, Greece, Croatia, Spain, etc. We keep our travel agenda loose and do not book more than a few days in advance. Then we keep our eye out for a last minute Med or Adriatic cruise. Had four like this so far plus numerous in the Carib.

Thannks, iancal. What exactly were the 4 last minute cruise deals you found in the Med? In terms of $/person/day (including port fees & taxes)

[drsel]

No guaranty. But I can guarantee that it would be annoying to be physically fit, active and healthy (as most are into their 70's and even 80's) still paying rent and being unable to afford more than a cruise a year.

Kindly see my post 58. What do you think I should do?

[broberts]

Ok, I will make it simple with a realistic example.

If the apartment you are renting @1500/month, is worth 750,000 (in the heart of the city); would you borrow 750,000 and pay 5550/month (fixed) for 240 months to own it (total outflow 1,332,000) ? And also pay 110--150/month as maintainence & property taxes?

Even if your landlord increases the rent by 100--150/month every 3 years (not annually)? And the apartment is expected to appreciate 5% pa?

 

Kindly see my post 58. What do you think I should do?

 

Sublet your place for 5,000/month and use the difference to buy a new place. :cool:

 

Properties rarely rent for substantially less than the carrying costs. Unless of course one is in a rent controlled property.

[iancal]

drse;...over the last four-five years our target price for a balcony had been $100-$110. per diem per person. Net of any OBC's or prepaid gratuities that we sometimes get from our on line TA or from the cruise line.

 

We did three Med cruises and an Adriatic cruise on Celebrity for that rate. All were 14 day. We also did a 9 day RCI two years ago Rome-BCN for very slightly higher however their one way post cruise air home sealed the deal for us. It was booked about 6 or 7 days out as when we were touring in Sicily. All of them in mid Sept-October. We did exactly the same when we were travelling in Australia and were able to score a balcony on an RCI 21 day cruise for what worked out to be $90. USD per diem (we booked in OZ with AUD). We watched the Aus/NZ forum on this web site. A poster was kind enough to give us a heads up on the offer.

 

We don't really care about the cruise line. Ship is more important to us. We were also following HAL and Princess ships on similar itineraries. They did drop their prices however Celebrity did first so we booked. Solstice and Mil. class ships. On at least half of the cruises we selected our own location. The others were gty, but not just balcony gtys. They were balcony gtys at a certain cabin class or higher. Worked out well.

 

Prices appear to be up this year. We have switched to more independent travel days.

Edited June 3, 2018 by iancal

[JimAOk1945]

Personally I think I prefer going on cruises with my wife than doing anything else for a vacation. It's all a matter of perspective and personal preference. We both enjoy cruising and seeing the world. It's a great way to travel.

 

Sent from my SAMSUNG-SM-N920A using Forums mobile app

[donaldsc]

You could "invest" in one of the staterooms on The World cruise ship - http://aboardtheworld.com/our-story/

 

LOL!!!

 

DON

[navybankerteacher]

Sublet your place for 5,000/month and use the difference to buy a new place.

 

...

 

quote]

 

Good idea, as far as it goes; but, why not sublet it for 10,000/month and use the surplus to drape the DW in diamonds and furs?

[broberts]

Sublet your place for 5,000/month and use the difference to buy a new place.

 

...

 

quote]

 

Good idea, as far as it goes; but, why not sublet it for 10,000/month and use the surplus to drape the DW in diamonds and furs?

 

Read the quotes. The number I suggested was supported by the facts presented.

[drsel]

Sublet your place for 5,000/month and use the difference to buy a new place. :cool:

 

Properties rarely rent for substantially less than the carrying costs. Unless of course one is in a rent controlled property.

Where I live, the rent is 1/4th of the carrying cost.(loan installments+maintenance+property tax)

No way I could sublet the apartment for 5000, it will fetch only 1500 as rent. That is what I pay figuratively.

Edited June 3, 2018 by drsel

[drsel]

drse;...over the last four-five years our target price for a balcony had been $100-$110. per diem per person. Net of any OBC's or prepaid gratuities that we sometimes get from our on line TA or from the cruise line.

 

We did three Med cruises and an Adriatic cruise on Celebrity for that rate. All were 14 day. We also did a 9 day RCI two years ago Rome-BCN for very slightly higher however their one way post cruise air home sealed the deal for us. It was booked about 6 or 7 days out as when we were touring in Sicily. All of them in mid Sept-October. We did exactly the same when we were travelling in Australia and were able to score a balcony on an RCI 21 day cruise for what worked out to be $90. USD per diem (we booked in OZ with AUD). We watched the Aus/NZ forum on this web site. A poster was kind enough to give us a heads up on the offer.

 

We don't really care about the cruise line. Ship is more important to us. We were also following HAL and Princess ships on similar itineraries. They did drop their prices however Celebrity did first so we booked. Solstice and Mil. class ships. On at least half of the cruises we selected our own location. The others were gty, but not just balcony gtys. They were balcony gtys at a certain cabin class or higher. Worked out well.

 

Prices appear to be up this year. We have switched to more independent travel days.

Yes, prices are going up, even though capacity is increasing with so many new ships. It's incredible.

But the unbelievable deals I booked long ago were just $60-70/person/day and now they are all up by 50% to $100/person/day.

So, I feel so bad to cancel and waste those amazing deals

[navybankerteacher]

 

Read the quotes. The number I suggested was supported by the facts presented.

 

It appears that, in that particular market, $1,500 is going rent for that particular property. If you can easily sublet it for almost four times the going rent, why not shoot for eight times?

[drsel]

 

It appears that, in that particular market, $1,500 is going rent for that particular property. If you can easily sublet it for almost four times the going rent, why not shoot for eight times?

Lol, you guys are hilarious!

[iancal]

We have an advantage inasmuch as we are retired and can travel for extended periods. We typically buy one way fares now because we never know if we are going to pick up a good cruise at the end of our travels. We might return home earlier or later. The one place last minutes do not seem to work is Asia. We have been there for four winters. One of the issues for us is itinerary. Not interested in a cruise with Thai, Vietnam, or Malaysia stops.

 

We meet more and more people doing what we do. It used to be primarily Ozzies but over the past two years we are seeing more Americans and Canadians our age doing the same thing. Lots of late booking deals, a week-a month out on many itineraries.

[NantahalaCruiser]

Ok, I will make it simple with a realistic example.

If the apartment you are renting @1500/month, is worth 750,000 (in the heart of the city); would you borrow 750,000 and pay 5550/month (fixed) for 240 months to own it (total outflow 1,332,000) ? And also pay 110--150/month as maintainence & property taxes?

Even if your landlord increases the rent by 100--150/month every 3 years (not annually)? And the apartment is expected to appreciate 5% pa?

My point was not the mathematics of analyzing your particular situation in your own apartment but rather that there might be a better deal elsewhere - for example, in another location the rental income might be 0.25% of the value of the property rather than your 0.20%. If so then it might be better to invest in a different property rather than buying your own apartment.

[drsel]

My point was not the mathematics of analyzing your particular situation in your own apartment but rather that there might be a better deal elsewhere - for example, in another location the rental income might be 0.25% of the value of the property rather than your 0.20%. If so then it might be better to invest in a different property rather than buying your own apartment.

I got your valid point, but the problem is my wife doesn't want to earn any rental income, but rather live in the apartment bought on loan and pay the equivalent of 5550+property tax and maintenance every month for 20 years. So, more holidays for 20 years[emoji25]

We will have to live poor and be rich only when we can sell the apartment at a huge profit, after 20 years or after paying off the entire loan.

If there is another crisis like 2008 or 9/11, then property prices can fall drastically.

[MicCanberra]

I love cruising and i know that cruises can be great value, especially if you spot the right deals.

But how to convince my wife? She thinks that I am spending too much time and money on cruises. She wants me to stop cruising and invest the money in property instead. Help! Any advice would be highly appreciated. Thanks in advance!

I am afraid there is no easy answer. Happy wife = happy life. Cruising also makes for a happy life but not if the wife is not happy.