32 days to possession
Any good story’s meant to start at the beginning, but what of a mad-hatter’s experiment? We’re still in such a giddy state of shock and delight, we don’t really know where to start. Kelly advised that we start in celebration. Noted. A 4-day bender of Vancouver’s best: fish and chips on the dock, fireworks, cherries, sunshine galore… and more fireworks.
Consider us celebrated.
Consider our yet-to-be-returned damage deposit spent.
And consider us vindicated - we really do live in the best place on earth.
Well now bloody what? This deer’s looking mighty frozen in her headlights. She’d be off sprinting, if she could sit down and decide for one second which way to go. While I fire up Excel and fill full legal pads with too many ideas, I’ll sidetrack slightly.
What are our flip goals, and why?
This is a profit-driven exercise with anything but money at its roots. Want the house? Want the family-filled backyard with the hammock and apple tree? Sign yourself up for this toad’s wild ride. But! When doing anything half-baked with your money, first make damn sure it’ll do better than it would in a generic savings account at your local bank.
ING Direct’s current interest rates: 1.30%.
Can you think of any way to make more than a meagre 1.30% in 12 months’ time? Flip an ugly baby.
What about [name your preferred investment]?
- In 12 months’ time you’d maybe make 4, 5, 6, 7 or 8% from a TFSA, mutual fund, RRSP or something similar. Is this accepted logic?
- If you bought an ugly baby for, say, $400,000 – could you use your every last creative fibre to flip it in 12 months’ time for $432,000 (8%) or more? (Hopefully more, inclusive of your renovation costs).
Probably, right? You’d need a decent dose of cockiness, a chunk of optimism and maybe some luck – but if you picked the right property, you could probably do it.
That’s how I’m looking at flipping.
What am I doing with my money here, that’s a better idea than tucking it over there?
I far prefer words to numbers – and to speak in percentages and ‘rate of return’ smacks of shiny-suited douchery. But I think it’s fair to lay out some goals.
I want our project to be fun, but it needs to be worth it. If we hand back the keys in 367 days’ time, with more than 8% extra in our pockets – to me, that’s a win. That’s better than I could have done elsewhere, with memories and new skills included for free.
The second goal? Enjoy the chaos. Ready? Down the rabbit hole we go.
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Full photo credit & utmost thanks to 3 amazing Vancouver photographers: kennymatic, il.irenelee and TylerIngram, via Flickr Creative Commons. Love these photos.
Hey, you want a s'more? Some more of what?
Lauren, those are AMAZING fireworks pictures. I’m just getting the hang of my DSLR (a Nikon D90). Did you take these? What settings did you use? I can only assume the camera was on a tripod. Absolutely stunning…
Also, looking forward to following along with your remodel-should be awesome.
Hi Fred! I wish I could claim the fireworks photos as my own – but not even close! They’re all via Flickr Creative Commons: kennymatic, il.irenelee and TylerIngram’s crazy skills, linked to at the bottom of the post’s text. A few others are displayed on Flickr’s own blog, whether they’re Creative Commons or not. Somehow I think they’ve made them look even better than the real thing. Really glad to have you as a reader as we ready the trenches! Thank you!
Good to see that you celebrated
Wow, those fireworks are awesome!!
I’m totally not a money person, which is probably why I’m always broke
But I think your logic sounds pretty good — I’d say your money is better invested in an ugly baby than a bank account with a puny interest rate. And to think there was a time when we could make $25 a month with $1,000 in our account….
Whether not you make 8% or more on your investment, you’re going to get so much out of your flip. It’s going to be a great learning experience, and could be the start of a whole new career for you
Kelly
Ooh, when was that time? It sounds like a way better time! Yes, this next year is definitely the “100-level” course, where ‘grades don’t matter as much’. Sounds like a very dusty career, but I wouldn’t miss ironing one bit!! Thanks Kelly!
That time was a long time ago!! Close to 30…. wow, I’m old!!
Who needs an iron when you can have power tools and a paint sprayer??
Kelly
Very very smart idea and fantastic blog. Good luck! I’m going to follow your baby’s year of transformation.
Thanks Danielle, glad to have to as a reader!