Financial tests

ING has a 3% interest rate for anyone who deposit into their system.
A 3.7% yearly interest rate if you deposit for 270 days.
Quite confusing. The real number is you get a 3% increase if you deposit 1k for a year or if you chosed their 3.7% term deposit for 270 days, you get 2.737 increase over a 9 month period.

My coca cola has earned me a 2.737% increase just by the dividend alone. Of course, if you add in all the fees I have to pay and the fact that I bought at the worst time possible, I am actually losing money. But the 20 share that I bought a long time ago was actually my attempt at getting my money free from my dad's control. Bought at 47 dollars, current price at 43.

My recent more educated purchase at 41 dollars has netted me a 3% increase over 4 months. Take away the comission I earned nothing but the 10$ dividend. That is still a 1% increase over 4 months. If I do this over a year with a greater number of cash to lower the importance of the comission, I'd still earn more than 3%.

Proves that putting your money in any institution is the shittiest way to earn money. Now the question comes, should I buy a house or rent an apartment?

Rent comes to about $3600 per year. Say if I want to buy a house at average of $214,856 with the current morgage rate of 11.1%. I have to pay $1,297 per month for 5 years which amounts to $15564 per year
15564-3600 = $11964 is the difference between buying and renting.

Say if I can net about 3% gain per year by playing stocks. That is a $358.92 loss.
In 5 years it is a $1794.6 loss

The approximate amount of years I need to stay in this apartment before I can reap the benefit is 214,856/3600 = 60… huh?

Well wrong calculation. Rental is $900 for the 3 of us combined so 214,856/(900*12) = 20.

Still, it's only a $400 difference per month.

Conclusion is that the saving isn't significant enough to earn anything with it. So I will continue on to look for a home to buy.

Now the question I have is, can I still be paying for the morgage while renting it out? The answer is most definitely yes.
Next question is, can I rent it out at a rate higher than the mortgage rate? To answer this, I have to look at the lowest mortgage rate and the rent of a particular area. I can just sell the house again and use the money to pay off the rest of the morgage. But that'll depend on the current price of real estate. Montreal is at an all time high right now so, it's not a good idea.

It comes down to… not enough capital.