Ultimate Wealth

May 12, 2006

I had full intentions of writing about phase two of my million dollar plan today but the subject of real estate and buying a house in mazatlan Mexico is at the top of my mind. I am going to write this as it pops into my head and see if this actually makes sense or not.

You see, part of the reason I want to make a million dollars is so that I can have my own house that will eventually be paid off and then a monthly mortgage will no longer be a monetary concern of mine. This means less work to maintain my currant lifestyle. The bottom line is; I want to make more money to achieve freedom of time.

I live in Calgary Alberta right now, and visit Mazatlan Mexico once a year and I love it. The thing about the Calgary real estate market is that it has gone insane. Yes property is appreciating at something stupid like $500 a day, and makes a great area for investors. The problem with investing is you need money. Right now, being self employed means that it doesn’t look like I make very much on paper to the bank because everything I do is basically a write off. If you don’t make much, you don’t get pre approved for much of a mortgage.
My girlfriend and I got pre approved for $180,000. That may buy you a parking stall in the currant Calgary real estate market. Even the smallest condo’s in Calgary are hard to get for under $220,000 NOW LETS GET BACK TO MAZATLAN MEXICO.

In Mazatlan Mexico (which I love and consider is a goal of mine to retire there), The property I’m interested in is has 4 bedrooms and 1.5 bathrooms. The House is listed for $75,000 US dollars. The House has an area of about 270 square meters. It is on a private cul de sac and has a 13 house common area. It also has a patio with a view. It is also less than a 5 minute walk from the beach.

Now maybe I miss out on the booming Calgary real estate market, but I could end up with more of a house, in SUNNY MEXICO, where I plan to retire anyway, for less than half of what a cookie cutter house in Calgary would cost me. Not to mention that my retirement dollars would go a heck of a lots further in Mazatlan Mexico than they would in Calgary. By the way, Internet income can be made anywhere. Hence the name World Wide Web.

Now a $220,000 house in the Calgary real estate market would cost me $1554.91 a month on a 25 year mortgage. That’s more than I can spend anyway right now without having to eat Kraft Dinner and cut out cable TV. Sacrifice now for gain later? Nope, not my style and I am willing to face the consequences. For all I know, I may not be here tomorrow, so I am going to soak it now.

So lets say I rent in Calgary for $750 and I live in a half duplex. So far so good. I buy this property in Mazatlan Mexico for $75,000 and it has a monthly mortgage of $530 per month on a 25 year term.

For $1280 per month I am liquid in Calgary and a homeowner in Mazatlan Mexico.

There is the initial brainstorm for now. As I look further, I will share my thoughts.

CREATE YOUR FUTURE

SOLDADO