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Why Did I Sell My Condo To Rent a Room (An Update 2 Years Later)

  • February 14, 2020
  • By simplycloverliving
  • 12 Comments
Why Did I Sell My Condo To Rent a Room (An Update 2 Years Later)

I sold my condo in April 2018 to rent a room, so I could travel more. Click here for a recap on why on Earth I would do that.

Since then, I have kept a close watch on my nest egg.

Stock Market Performance vs. Real Estate Performance

Are you curious how my stock portfolio is performing compared to the real estate market?

Here are some numbers and transparency!

It has been 21 months since I sold my condo and invested my money into the stock market. I saved $20,000 CAD during this time, which is nothing close to my plan of saving $2000/month. However, my portfolio is now up $50,000 (including my savings) in this short time! But this is only a 18% increase.

Financial Independence

Oops, missed all those gains, but hey it’s a balance of having fun in the present and planning for the future, right?

This is mediocre performance due to the many boo-boos I made:

1. I hired a financial advisor that charged a 1% fee. He made me a very conservative portfolio at 60 equity/40 bonds. All the gains pretty much went to the fees. So I really didn’t “make” money until 6 months ago when I started investing myself.

2. I didn’t invest more money during the market downturn in December 2018. Missing out on potential gains.

3. I didn’t save even close to what I have planned (Goal of $42,000 vs. Reality of $20,000). Missing out on the compounding effect of investing for a longer period.

If I invested properly, with a higher weighting in equity (90/10, which it’s what I am doing now), the stock market would’ve returned 27%! When I compared that to my condo, it is a similar appreciation! (This is the crazy Toronto market, according to my realtor)

That means, by selling my condo and renting my room, and investing in the stock market, it would have gained a SIMILAR amount of *”appreciation” in this period. 

But of course, we don’t really calculate appreciation this way. We don’t really make money until we sell. And it depends on your asset allocation in comparison to the specific real estate purchased and timing. But you get the point!

*2018- S&P 500 Index was down 6.24% , 2019 – returns 28.88%, 2020 – so far returns 4.43%. Average 27%. Higher when dividends are reinvested. Source

Even though I didn’t make the same gains (18% vs 27%), (but  would have if I stuck to my saving goal), investing in the stock market did allow me the freedom to have travelled TWENTY-TWO times in this period!

I travelled so much I went to a travel conference!

2018 – I didn’t save at all this year and went crazy travelling:

Can I just live in Bali forever?

April/May 2018 – Bali for 3 weeks

May 2018 – Barbados for 3 days

June/July 2018 – Peru for 3 weeks

Climbing and Ziplining the Sacred Valley in Peru. Who is going to pay $500 for the bubble hotel when I can climb up for $99?

August/September – Nepal, Mount Everest Basecamp Hike

Oct 2018 – Swimming Holiday in Crete, Greece for one week

Taking a water break during swims

Oct 2018 – Chautauqua event, Financial Independence Retire Early week-long retreat in Greece

Oct – November 2018 – Mexico for a week of scuba diving and cenotes

November 2018 – Tony Robbins Unleash the Power Within Conference for 4 days

December 2018 – Maui, Hawaii for a week

2019 – I realized I spent WAY too much money and needed to scale back a bit. That’s how I saved $2000/month for 9 months straight. But I still splurged and went on my vacations.

I started this blog!

Janurary 2019 – Las Vegas for a weekend. Did the plane ride over Grand Canyon.

March 2019 – Ottawa for a weekend. WALKED, not skated, on the frozen Ottawa River.

April 2019 – Yosemite National Park Hike for 4 days

Can’t this more gorgeous? Yosemite?

May/June 2019 – Vietnam for 2 weeks

June 2019 – Travel Con Boston

July 2019 – Vipasanna Meditation for 10 days

September 2019 – Summit of Greatness in Ohio for 4 days

October 2019 – Santorini holiday and swim holiday for a week

Swimming in the volcanic waters of Santorini

November 2019 – Rise business conference in Charleston, South Carolina for 4 days

November 2019 – Miami for 2 days

November 2019 – New York for 3 days

December 2019 – Norway for a week during Chirstmas/New Year (stayed with a local friend)

Ah why do you have only 5 hours of sunlight in winter, Norway?

2020 – I can’t get rid of this travelling itch, but I want to make it more meaningful and keep it on budget, so I am travelling to a lot of digital nomad hub (hello, affordable!) to meet fellow FIRE friends.

Jan/Feb 2020 – Chiang Mai for 3 weeks

Feb/March 2020 – Back to Bali for 2.5 weeks

March 2020 – San Francisco for 3 days

And many more trips to come!

Moral of The Story

This post is to show you that investing in index funds gave me more flexibility in travelling. I might have not “gained” as much appreciation compared to real estate, (mainly because I messed up and went a bit crazy jet-setting the world), but the experiences I have accumulated in these two years were priceless! Hey, I travelled TWENTY-TWO times! I met all the cool people, did all the things! Most importantly, I have learned a lot about life and about myself.

I wasn’t stuck in my mortgage, and I had extra cash to use for travel/ increase my saving rate.

But this type of lifestyle is not for everyone.

However, if you also believe that life is too short, that it’s important to live life to the fullest, but feel responsbile to also take care of your future, share this article with someone you think will find it useful!

 

 

By simplycloverliving, February 14, 2020
  • 12
12 Comments
  • WTK
    February 15, 2020

    Hi Clover,

    Nice update.

    I think that the most important thing is to be happy in the things which you like to embark on. Life is short. No one knows what will happen the next moment. It makes more sense to live life to the fullest with the knowledge that the investment portfolio can last one for a lifetime (subject to flexible spending as per the existing generated dividends).

    My two cents worth of views.

    WTK

  • Carlos
    February 22, 2020

    Nice blog! Keep it up! Interesting investment story!

  • Paul C
    February 24, 2020

    My goodness Clover; I didn’t realize you traveled so much!

    Living the dream, girl!

    You still plan on doing the Jesse Itzler event this summer? I may wanna join ya!

    This is amazing! Lets catch up soon…hope you are well.

    • simplycloverliving
      February 24, 2020

      Yea and that doesn’t even include the 3 to 4 trips I take a month for work! That’s just vacations! I actually back out of the Everesting event! I don’t feel like I’m ready this year. But it will still be at the top of my bucket list though!

  • Financial Orchid
    March 24, 2020

    Yay! Great to meet another PF blogger! Hope u r ok @AC during these turbulent times! It will be a lot more challenging than 2008, but looks like you have lots of useful transferable skill sets. Lots of ppl will need personal/mental/physical wellness services in these times!

    • simplycloverliving
      March 24, 2020

      Thank you financial orchid! It is definitely a very turbulent time, no puns intended! Thanks to the power of FU money and very low expense, it will buy me some time! You are very right regarding the much-needed service for mental and physical health right now. Hence, I am starting a youtube channel that talks about exactly that! Coming up very soon! I will update on my facebook and instagram @simplycloverliving if you are interested 🙂

  • deej
    May 16, 2020

    Great blog, keep writing! I’ve been wanting to sell my house for a while to fund a more relaxed lifestyle full of travel. Have you had any regrets selling?

    • simplycloverliving
      May 25, 2020

      Hi deej,
      Thanks so much for your support! I definitely don’t regret it. I’m so blessed I made that decision especially given the situation. Although I can’t travel as much now but looking back at my memories I’m so glad I took the leap. It also works out that my expenses are so low because I sold the condo so even though I am on hiatus from work with no travelling, my saving rate is still 50%! It will drop to 30% if I’m officially laid off, but still! I wouldn’t be able to do that if I kept the condo! Good luck with your situation! It was HARD to go against the societal narrative and following your own dreams, but it’s so worth it at the end, but make sure the math makes sense for you!

  • Matthew
    May 24, 2020

    Very impressed with the amount of traveling you experienced the past couple of years. It was definitely the right move to sell your house and travel the world when you did; especially in light of the current travel restrictions. I’m a firm believer in not putting something off into the future when you have the means and ability to do it in the present. Nice job on your blog and I look forward to reading more about your journey.

    • simplycloverliving
      May 25, 2020

      Thanks Matthew! I definitely lucked out! And also thanks to Kristy and Bryce from the Millennial revolution! Yea I am just looking back at my travels and so thankful I did! Even if I lose that now, I have no regrets 😀 Thanks so much for following! It will be an interesting ride going forward!

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About Me
Hi, I am Clover
I show the intimidated how to turn adventures into reality by exploring: - Adventurous Travel - Right Mindset - Financial Independence
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