Bermuda

[Cruising Caribbean]

@LukeJ Life is all about balance right? I can't imagine going through life constantly saving and not enjoying. I'm thankful I have the opportunity to do both. Just barley scraping by is a hard position to be in. I'm willing to lower my daily standard of living in order to afford one vacation a year. I don't necessarily need a luxurious vacation, but I do thrive on a relaxing getaway. Even just camping in the woods can be relaxing enough. I prefer to cruise and I find the resources to do it, but it's not always feasible for everyone. If you both agree on cruising, that's huge! It's clearly both of your preferred ways to vacation. The thing about cruising is that there are things to do for everyone. I love that about cruising! You can be active or you can do nothing and a cruise offers all of that and more to guests. Even if I can't afford cruising to dream destinations, I still choose to cruise because the vacation experience is comparable to none.

[LukeJ]

@Cruising Caribbean it certainly a fine balance. I do prefer to be the saver in our relationship, and I happily admit that. In the UK, we are being ripped off left, right and centre by everything, and that does worry me with a family. So I'm happy to be the saver, and not worry about any bills at all. We do spend, and happy to go on cruises, but my wife wants everything else as well, and that's something that I cannot get my head around sometimes. If you want a new kitchen, then fine but we cannot afford both, a cruise and new things too.

[Cruising Caribbean]

@LukeJ Everyone needs a good saver! Typically one is aaa better saver and the other is a better spender. It's all about balance in a relationship. I don't understand why some areas are worse than others about gouging people. What are some areas of spending that you think are huge rip offs where you are located? The cost of cruising seems a bit higher over there! Well we all want the best of everything if we can have it! I don't blame your wife for wanting it all, but not everything is feasible. I try to cruise minimally once a year, but I'm not sure if next year will be a cruising year for us. I really would like it to be but I think I'm opting for a land experience instead. Because my family plans to move, the costs associated will likely be too much from fixing up a new home to moving everything across state boarders. A new kitchen is an expensive project, I have done it more recently myself! 

[LukeJ]

With the political battle going forward in the UK at the moment about which party gets to be the main government, I fear the favourite is going to bankrupt us all. So I doubt we will have enough money to go cruising next year after the tax hike that's been warned. I don't really tend to get involved in politics, however I am concerned about what's coming this time around. I hope it doesn't have a bearing on vacations and the cruise industry in general. 

[3Sisters]

@LukeJ That's crazy! Politics has a huge impact on the economical climate. I'm in the process of potentially moving and the housing market is so fragile right now. With the higher rates and prices, I'm worried about the longterm effects. We will see if our house sells once it's listed, but with the market's fragile state I will unfortunately be selling at a loss. One of those industries that isn't really impacted by the elections is cruising. It seems the market for a great vacation is still hot! With all of the headaches and economical instability it's fair to say cruises are more than ever needed for people to decompress from the heaviness of life!

[LukeJ]

@3Sisters the housing market is ridiculous at the moment. Firstly I personally can't understand the constant rising of prices of houses. It's unbelievable. I don't see the justification of costs. An average mid terrace house with nothing going for it averages 250k where I'm from. I can't believe how it keeps going up. When will it stop? Will it be 500k in 20 years time? Rent costs are unbelievably high. Tax per month that our council charges us are almost as much as my mortgage. Will it ever flatline or is the 2-5% raise per annum keep going until it crashes and nobody can afford to live.

[3Sisters]

@LukeJ The US has experienced this too, but to a lesser degree in most areas. You must be in a desirable area. I just don't see this market game changing. In Florida it has settled some, but that's mainly due to the crazy changes in interest rates. I have heard the market won't drop much and if anything the cost for renting will just continue to go up. Isn't that crazy? The tax raises per month is certainly an issue. I find that to be one of the bigger issues with cost of living. My area is so expensive random sketchy campers park just wherever to live (including on the streets in my nice neighborhood), and the cops seemingly can't get rid of them. It's a serious issue. People are struggling to afford basic things now!

[LukeJ]

@3Sistersi live in a popular area, but certainly nothing that would justify the costs of the houses. A house down the road for me is far smaller and has gone up for around that price. So ours would be that as a minimum price for a bench mark. I admit it's not worth that but if that's what the market states, then that's the price. I don't understand how the cost of living can keep rising like it is. Our salary certainly doesn't line up with the cost of living. We are now operating at a loss if we continue our lives the way it is without sacrifice. Because everything has gone up in price, if we continue with the same amenities and products that we had last year for example, we would be spending more. So we end up sacrificing something to balance our monies. To me that's not living.

[3Sisters]

 The costs of housing often correlates to the popularity or demand for that particular area. Iff you live in a safer, more upscale district that is in higher demand those prices will reflect that demand. In a market so fragile as this, it's not always a good idea to sell. If you bought at the right time it's quite unlikely you would ever be able to get a home price like that again. I don't think housing prices will ever return to the value that they were at before. Those old home prices that buyers in years past have locked in on will likely never return again. The minimum wage will need to continue to go up in order to make up for that cost of living deficit. It's not living when you are having to struggle so hard to get by. I think that's why so many graduates are having to go back and live with their parents. Recent graduates can't afford to keep pay those high prices! If you parents can't host you while you get on your feet financially, you are at a much greater deficit that those than have supportive parents. 

Edited July 5 by 3Sisters

[LukeJ]

That's what we fear for future generations I guess. The uprising costs cannot keep going up, when will it stop. I would like to move from my area as they keep gridlocking the surrounding areas with new houses and the roads can't cope with it all. Someone clearly had a load of money in their pockets. I keep wondering how my son would be able to get on the property ladder and I can't see how he can unless he has a wonderful job and gets a partner to help towards the costs. 

[Cruising Caribbean]

@LukeJ That's such a perpetual issue! It's unfair that our children and future generations will have to endure such a fragile economy. It shouldn't be that expensive to live! No one will ever be able to make it comfortably in life without living paycheck to paycheck and working around the clock. That's not what we as a society should want for our children! It's becoming more and more impossible to purchase a home. The costs are ridiculous now!

[LukeJ]

Exactly right. It does need to get looked at. I understand that times and society and economy has grown, but even when my parents were my age and buying houses, my mother was a stay at home mother who didn't work as she had 3 children to raise and my father was in between jobs, and he didn't have a great well paid job when he did work, yet he could afford a house, a very big house with his salary only. However even, when me and my wife bought a house last year, we had to combine our salaries to buy a house. It's a tidy house in a tidy area, but the value has over doubled in even 10 years. We wouldn't be able to buy back our own house if we had to start from now.

[Kendall James-Vargas]

@LukeJ The housing industry has fluctuated so much recently! Because of the interest rates the prices have plateaued or gown down and less people are interested in buying. It's a catch 22 though because once interest rates drop (hopefully) those house prices are going to skyrocket. Unfortunately I plan to sell my current home at a loss soon and that gives me even less of a down payment for my next home. It's such a shame. With the interest rates now, the mortgage payment is going to be way too high. The only hope I have is that I could refinance it at a lower price at some point. I feel for those buying a home for the first time! It's a competitive and unsteady market right now. It's hard to known if buying is even a good choice because of all the factors I mentioned above!

[LukeJ]

Sorry to hear that you will be selling at a loss. It's horrible if that's the case. What I don't like about interest rates is that if a bank lends me 100k for a mortgage of a house and you agree a small percentage to pay it back, then fair enough. But because of interest rise, we are forced to pay even more. That's not what we agreed to. If I agree to pay them back 130k in total, then that's what we should pay them back.

[Cruising Caribbean]

@LukeJ Buying a house isn't even that great anymore! It's so costly sometimes the mortgage rate is higher than rent. When you rent you don't have to worry about a thing and your landlord takes care of it all. I really wonder if purchasing in this economy is even wise because it's all up in the air with the politics right now. The only thing I can vouch for is booking a cruise. Life is short and hard. If you can find a way to afford a cruise, you should do it. You will never regret a cruise experience. I wish I could just life on a cruise with unlimited amenities. So many people find ways to retire on ships and that's a serious goal. Even just the idea of living half the year on land and half the year on a ship would be blissful. It could be amazing to live part of the year in Bermuda. If I was a local, I wonder if I would qualify for some discounts!

[LukeJ]

Yes costs of living is so high it's frightening really. All I think is how my son will cope when he's living. And if that makes me sacrifice things for myself in order to help him then that's my mission. I'm happy to take a few treats along but saving and getting things ready for him is a top priority 

[Cruising Caribbean]

@LukeJ The only way to set our kids up in this economy is by solidifying real estate or certain funds/savings accounts. Without those additional supplements, it's going to be very hard for our children to ever buy a place of their own. I'm not sure why it has become this way, but the cost of living is making more and more people want to just live in an RV. I have even considered it! It could be a really cool lifestyle, but there is lots of travel and  set up/break down involved. At some point I would want to be grounded. Parental love is surely a love of sacrifice. You are clearly a wonderful parent that is willing to make those sacrifices. Not all parents are willing to make those sacrifices. 

[LukeJ]

@Cruising Caribbean the issue is that once these costs go up, they don't really go back down either. Some argue that costs fluctuate but not that much in comparison, not at the speed of the interest of things. I think the only way to survive is sacrificing a few things along the way. And I'm sure we all want what's best for our children, no matter what age they are. 

Thank you for your kind words. I don't know why all parents wouldn't do that. I'm all for them standing on their own feet and learning the ways of the world themselves, but surely it would be better to give them a head start in life. 

[Cruising Caribbean]

@LukeJ That's what's really strange in this decade! Typically markets fluctuate, they ebb and flow. All of the trajectories are showing increases after increases with nothing going back down. It's true that it's all about sacrifice and more sacrifices than before. The idea of kids earning their keep is out the window too. Now, it's about savings and learning rare skills, when in the past it was about being helpful to your family and working together. The world is becoming more and more individualized and less and less a community environment. I liked the community focused atmosphere. The fend for yourself, stop for nobody mentality isn't all that. Giving your kids a head start is the best thing you could do for them. All we can hope is that our children appreciate it and don't take it for granted. 

[LukeJ]

Yes I totally agree. I find it incredible that most people manage to survive with the trajectory speed of living rises. Everything and I mean everything just goes up apart my wages. I hate reading about people's struggles, it's so unfair. Nobody does anything to help these situations and it can easily happen to anybody. It's so fragile and one bad move or a loss of a job can see everything taken from you. The energy companies are the worst, I think their whole set up is disgusting. They charge us so much for so little, and then send demand letters for payment not long after 48 hours of you receiving your bill. hMrc is another company I hate. They are on you if you lie to them, they are on you if you tell them the truth. They make mistakes all the time and blame you and try to punish you for their mistakes. They harass which I don't believe they should be allowed to do, but once you require payments from them, you have to wait up to 3 months, sometimes longer. How disgraceful is that.

[Kendall James-Vargas]

@LukeJ It is what it is! There is nothing I can really do about it, other than be thankful I owned a home and didn't throw that money into renting. If I were to have rented, I would have put all of those payments into a rent. I can't control the market, so I just have to take it for what it's worth. I really value owning a home because I can make it mine. I'm very peculiar about having my home my way and painting the walls if I so desire. Renting is nice during transition, but I don't want to feel displaced at any point if a landlord wants to sell a home or raise the rental prices. I'm hopeful those interest rates will drop a little before I purchase my next home. Those rates right now aren't anything close to what I locked in for the house I'm currently selling. 

[LukeJ]

@Kendall James-Vargas that's a positive way to look at it. And I agree with you. That's also something that I've always said. I'd rather put my money into my mortgage and not pay off someone else's. It's ridiculous how these things have shifted now. I don't know about the US, but here in the UK, definitely since COVID, the costs of rent have doubled that of your mortgage. People would rent because it was easier and cheaper to move straight into a house. And that many couldn't afford the deposit and couldn't even get a mortgage. Now I'm appalled by the cost of renting. 

[Kendall James-Vargas]

@LukeJ It feels better knowing I could do what I wanted with my home for the time that I had it. Realistically, I could have invested it better, but a primary residence isn't an investment. In fact, it was a short term depreciating asset unlike other homes I have had in the past. Sometimes you win some and sometimes you loose some. It's just the fact of life. Eventually I would refinance my property I'm about to purchase, trying to score a lower interest rate. Rates for everything have increased. Everyone struggled during that time, and I know everyone is trying to recover from those losses. The question becomes, how inflated do things need to get before they level off? Renting prices are going to continue to go up because these interest rates aren't budging. It makes buying a home that much more difficult. 

[LukeJ]

I do feel sorry for the next generation as they will struggle to buy their own houses. I keep hearing about the claptrap of helping to buy and affordable houses, yet the prices are still really high. If a youngster has just began work, then unfortunately they won't be on the greatest of salaries, so that will make it very hard for them to get and maintain their homes.

[Cruising Caribbean]

@LukeJ Energy companies are definitely tricky. You can't avoid paying you energy bill. If you don't you have no electricity. You can't live without that in this day and age! Water is the same thing. Usually if you rent your landlord would cover those bases, but not all the time. Currently I have a tenant and we are responsible for the water bill. That is because it's tied to my social and would affect my credit if she didn't pay. Sometimes having a tenant is more of a liability than anything else. Yes, the tenant covers my mortgage, but that's about all it covers. There are better ways to invest over the corse of 30 years such as index funds. Next time, I may invest in that instead of real estate.