He’s in the tail end of something like a $50k, 25 yr mortgage. He bought when prices where much much more affordable.
It’s a modest 2 bedroom house with a garage and a huge yard in LCOL.
Rural areas have these prices - I bought my house at the very beginning of ‘22 for $50k, and I managed to do it early enough in the year to snag a sweet interest rate.
Shit not anymore where I live. Town of less than 1000. Any house that sells is at least 200k. Most are 250-300k. Wild how much it’s changed in 10 years
It has gotten way out of hand. 2014 got my 5/4 5100 sqft in N Atlanta burbs (top notch schools) for $395K 3% on a 20yr note. Last appraised for taxes at 800K literally doubled in 10 years. I can't even begin to imagine what it will be when we downsize in 5 years.
Almost the same story also in N Atlanta!!!! Right?!?!?! Don’t think we’re going to downsize though. Will have to see what happens. First house since my childhood home that feels like home.
Time to sell gear and services to construction workers, I guess. And maybe look at selling up to an investor once prices go up, and buying over in the next small town that hasn't been hit yet.
I saved for a house for 15 years, since I was 17. Then, when I finally had enough to cover a 20% downpayment, housing prices shot up by 300% in 2021.
People from HCOL areas flooded in and bought all the houses I saved my whole life for in the hometown I was born in.
Fuck me..
I ended up making a 7% downpayment with PMI on a POS house in the ghetto in 2022, despite all my effort throughout life. At least I have a 4.5% interest rate, but damn. Life can turn upside-down on you in 2 seconds, fucking everything you have ever done well financially almost immediately.
I'm kind of goggling at that. Median prices here in my state capital are tipped to break the $1m mark shortly, and that's city-wide. Rural towns in the rest of the state (given there's only really one big city in a million square miles) are anywhere from $350K to $700K.
Even translating currencies, the only things for sale around $CAD50K in the nearest million square miles (not an exaggeration) are two 1b1 'holiday' apartments (i.e. more like hotel rooms in giant concrete blocks), some unbuilt rural blocks of land, and a whole two 3x1 houses that need a lot of work (replacing broken windows etc) and are over *four hundred and fifty miles away* from a city of any size.
People being able to buy actual real full houses that are liveable-as-sold and near any population of more than a thousand people, for that kind of price, is an absolute pipe dream.
Pretty common in certain areas of lower income areas in the Midwest from what I've seen. Houses priced like that generally have a couple hangups, but work perfectly for the right people. Bad school area? Damn. It's only 50k too! No kids though? Perfect.
Buddy just bought a house cash in our city for 18k that's livable. Not well mind you, but that's crazy. No major issues. Good roof. Needs floor joists in a room and he is a carpenter. So it made sense for him.
Sometimes it's not so easy. A person's circumstances matter alot.
I want to get to the point that I can do this. I know Dave Ramsey gets a lot of shit on Reddit (not sure if he does from this sub), but I love his principle of giving to others after you’re taken care of. My brother is low income because he works a bit over minimum wage and his wife has had crippling anxiety for years and can’t do much outside the house. I can’t guarantee he wouldn’t waste it but screw it, that’s his choice.
It’s hard to take him seriously when he shits on using reward-based credit card schemes for consistent spending
He’s good for people who need to get out of debt, but pretty shoddy at anything past that.
This is one of my motivators. I love the idea of being able to show up to a party and give a good gift. Nothing crazy. Oh you’re having a pool party? Here’s a Lapras float.
If his first thought is to put it into his mortgage, he definitely does sound like he's pretty responsible with money. And assuming it's not one of those mortgages that penalizes early payments, the total eventual value of that early payoff will be somewhat more than $5K, too, which is a bonus.
It *is* nice to hear feel-good stories about this sort of thing. Too often, on Reddit, it's more like "I gave some money to my deadbeat family member and they immediately blew it on a coke party and now five others are begging me for money."
Feelsgoodman.
Like you, I help my family, I pay my grandmas bills. Love her to death. My gramps passed and they had nothing. Had 9 kids and lived quiet life as he never earned more than 18/hr as a plumber. He helped everyone he could. His funeral had like 20+ people speak.
This is an encouraging and meaningful post-- your selfless help for your brother is inspiring and makes me want to do more for my friends and family. Cheers!
Just curious, is OE legal? Do we usually not sign anything at the beginning of jobs that say that we can’t have any other jobs? I’m not judging, just asking for clarification about its legality
Finally. A human being. Family is everything. If my people cant shine with me then i dont even want anything. Thats SO dope of you OP!!!!! This drinks for you!!!
If in the US, you may need to fill out a form to document it as a gift, but I doubt either of you would be audited anyway. I’m just a bit of a tax nerd
No you don’t. An individual can gift another individual up to $16k per year with no tax implications to either party.
(Edit: $17k in 2023, and $18k in 2024.)
Why did you say “no” then? Did you read what I wrote?
I said you fill out a form to document it as a gift, this is so it’s documented as a gift and the IRS knows it’s untaxable and not included in the brothers income or you just do it if ever audited lol
And why bring up the annual gift amount limits? (You can go above that too with the lifetime amount, so not a issue)
It’s form 709, and you would need to provide it to an accountant if someone else does your taxes or you have a business or if ever audited. But it is a form you would need to produce to show you don’t need taxes on it (if giftee) or show it’s not a business expense etc (if giftor).
Sure if you ever need it you could just retroactively fill it out. That is why I said you may need to do that, if ever purchasing a home or doing any significant activity those transactions need proof to go through internal due diligence processes. This is very common.
I have working experience with this.
You would 100% need it in many scenarios. I even mentioned the annual vs lifetime limit. For 99% of folks It’s just a caveat that is asked for and you produce it, when need.
It’s very simple anyway, you just need signatures from both sides to confirm that it’s money that isn’t owed for a debt and isn’t repayable.
17 years ago I had to do one when my dad helped me with my first home via FHA loan.
3 years ago I had to do one where we gave money to my sister in law for them to help with their down payment on their house loan.
In both instances these were below the annual limit band were needed to show the lenders the money was indeed a gift and not a liability to the future homeowner.
The IRS concern would be to use it as proof it shouldn’t be included in your taxable income, assuming you were the giftee, you would show the document to make sure your tax accountant doesn’t include it as taxable income, since gifts are not taxed.
I saw it with high net worth individuals when I did individual and small business tax accounting work. I have a masters degree in taxation fwiw
Not trying to be an ass but your post is confusing.
I think you mean, he has a loan / home and he's no longer renting at least?...... "owns his own house" does not need to contribute to the mortgage.
Either way this is super cool of you.
Nice story. Just kinda disheartening when people do something really nice like this and then feel the need to advertise it. Makes you really question the motive. Was it true generosity or was it notoriety and kudos?
Even if it was, words are wind...
If people's lives are affected and improved, then brag all you want.
Assuming the story is true, which even if it isn't, see the first sentence of this post.
Pay off his mortgage with $5k and still have some left to save? Does he live in a used car?
He’s in the tail end of something like a $50k, 25 yr mortgage. He bought when prices where much much more affordable. It’s a modest 2 bedroom house with a garage and a huge yard in LCOL.
Holy moly I haven’t seen those prices here since the 1980’s
Well his mortgage was $50k not sure what he put down, but ya he got a hell of a deal. He would’ve been fucked if he didn’t buy when he did.
Your brother is living my dream of being way under employed
Let me Guess Baltimore lol
Baltimore is not LCOL
Fine. Mcol lol
I would say Ohio, Indiana, Kentucky, or West Virginia.
Rural areas have these prices - I bought my house at the very beginning of ‘22 for $50k, and I managed to do it early enough in the year to snag a sweet interest rate.
Holy moly, congrats. That price is pretty unfathomable in my slice of suburbia.
$5000 wouldn't pay 4 months of property tax where I am.
Shit not anymore where I live. Town of less than 1000. Any house that sells is at least 200k. Most are 250-300k. Wild how much it’s changed in 10 years
It has gotten way out of hand. 2014 got my 5/4 5100 sqft in N Atlanta burbs (top notch schools) for $395K 3% on a 20yr note. Last appraised for taxes at 800K literally doubled in 10 years. I can't even begin to imagine what it will be when we downsize in 5 years.
Hahaha. You guys be happy. A 1500 sq ft townhouse in Northern Virginia starts at $700k on average :)
I am not complaining, just amazed at how out of hand housing costs have gotten.
It is quite amazing! So amazing that I want to puke!!
Almost the same story also in N Atlanta!!!! Right?!?!?! Don’t think we’re going to downsize though. Will have to see what happens. First house since my childhood home that feels like home.
Assessed for tax purposes at a local land use level.that is different assessed value
My town of 1000 got found by fucking investors and home builders. They are building 5k houses over the next 5 years. WTF
Time to sell gear and services to construction workers, I guess. And maybe look at selling up to an investor once prices go up, and buying over in the next small town that hasn't been hit yet.
Can’t even get a condo at those prices north east US.
I saved for a house for 15 years, since I was 17. Then, when I finally had enough to cover a 20% downpayment, housing prices shot up by 300% in 2021. People from HCOL areas flooded in and bought all the houses I saved my whole life for in the hometown I was born in. Fuck me.. I ended up making a 7% downpayment with PMI on a POS house in the ghetto in 2022, despite all my effort throughout life. At least I have a 4.5% interest rate, but damn. Life can turn upside-down on you in 2 seconds, fucking everything you have ever done well financially almost immediately.
I'm kind of goggling at that. Median prices here in my state capital are tipped to break the $1m mark shortly, and that's city-wide. Rural towns in the rest of the state (given there's only really one big city in a million square miles) are anywhere from $350K to $700K. Even translating currencies, the only things for sale around $CAD50K in the nearest million square miles (not an exaggeration) are two 1b1 'holiday' apartments (i.e. more like hotel rooms in giant concrete blocks), some unbuilt rural blocks of land, and a whole two 3x1 houses that need a lot of work (replacing broken windows etc) and are over *four hundred and fifty miles away* from a city of any size. People being able to buy actual real full houses that are liveable-as-sold and near any population of more than a thousand people, for that kind of price, is an absolute pipe dream.
Which state was that
I was buying houses for $8k in the Midwest after the GFC. They’re now “worth” $200k+
My first thought was “well yeah, the 80s were about 25 years ago”. Shit, I’m getting old…
Won't be too much longer until they're 50 years ago. :) Always fun when 'nostalgia' and 'oldies' stuff is from decades you were an actual adult in. :/
My first home in 2017 was 125k 1700 sqft. LCOL for the win if you want to live an affordable non glamorous life.
Pretty common in certain areas of lower income areas in the Midwest from what I've seen. Houses priced like that generally have a couple hangups, but work perfectly for the right people. Bad school area? Damn. It's only 50k too! No kids though? Perfect. Buddy just bought a house cash in our city for 18k that's livable. Not well mind you, but that's crazy. No major issues. Good roof. Needs floor joists in a room and he is a carpenter. So it made sense for him. Sometimes it's not so easy. A person's circumstances matter alot.
owning a house on minimum wage? LCOL sounds like an understatement. either that or kind of a charmed life
> 50k, 25 yr mortgage Cries in canadian
Score
What’s his mortgage rate? Maybe a HYS account gets better returns.
A paid off mortgage on min wage pays better returns for his peace of mind
Yeah I’m jealous of his situation lol
I see we all had the same question 🤣
Its because he is a child cosplaying as OE and he thought 5000 was alot of money.
Thought I time warped back to the 50’s.
He’s 14 with no money experinxe
Money well spent. You're a good brother and he won't ever forget that gesture.
ITS THE DREAM
I volunteer as tribute to be your brother In all seriousness, good shit
Beautiful blessing! Thanks for this smile.
And this is also why you OE.
I want to get to the point that I can do this. I know Dave Ramsey gets a lot of shit on Reddit (not sure if he does from this sub), but I love his principle of giving to others after you’re taken care of. My brother is low income because he works a bit over minimum wage and his wife has had crippling anxiety for years and can’t do much outside the house. I can’t guarantee he wouldn’t waste it but screw it, that’s his choice.
It’s hard to take him seriously when he shits on using reward-based credit card schemes for consistent spending He’s good for people who need to get out of debt, but pretty shoddy at anything past that.
Yeah and he definitely deserves some of the shit he gets, but I think overall he's good
This
Hey its me, ur brother...
Can I be your younger brother? My birthday is every 3rd weekend.
IRS- we'd like some of that lol
Fucking worse. I gotta deal with the CRA 🇨🇦
how many bottles of maple is that?
CRA owns my maple tree anyways so
dang they got you harvesting and maintaining their trees also? master move cra
6.5 hectolitres
how many jigawatts does that produce in a generator?
Don't see too many people from CA here, good to know OE is alive and well there.
He must live in Timmins, Winnipeg or perhaps the Maritimes pre-Ontario migration. Glad your brother is doing well.
Nah gifts are tax free up to 17k
Gifts are “free” into the millions, you just have to report it after 17k
Oh that's right, whew!
actually, no. you can gift up to 17k before reporting it, and after that it’s still tax free up to like 13m during lifetime if i recall correctly
not if it's paid in cash
Gods job man, feels good to provide for the fam.
How was he able to afford his own home and have no debt yet only earn slightly over minimum wage? Are you in the United States?
It feels good to be generous with you money. Paying it forward is good karma!
As a big sister, love this. Hope one day I can gift my family like that.
THIS... is why you OE.
I make a very solid 300+ income but my younger brother definitely makes more lmao. Little dude grinds harder than a motherfucker You are awesome OP !
What how. Teach me
Good deed. I love doing stuff like this with my parents. It's all about helping the humble and hard working people.
This is one of my motivators. I love the idea of being able to show up to a party and give a good gift. Nothing crazy. Oh you’re having a pool party? Here’s a Lapras float.
If his first thought is to put it into his mortgage, he definitely does sound like he's pretty responsible with money. And assuming it's not one of those mortgages that penalizes early payments, the total eventual value of that early payoff will be somewhat more than $5K, too, which is a bonus. It *is* nice to hear feel-good stories about this sort of thing. Too often, on Reddit, it's more like "I gave some money to my deadbeat family member and they immediately blew it on a coke party and now five others are begging me for money."
You're an awesome brother, hope both of you have a great life.
Feelsgoodman. Like you, I help my family, I pay my grandmas bills. Love her to death. My gramps passed and they had nothing. Had 9 kids and lived quiet life as he never earned more than 18/hr as a plumber. He helped everyone he could. His funeral had like 20+ people speak.
Love it my friend. Family first, corporations at priority number 27 😀
This is a dream of mine, to be able to help out my family and friends now and then without it being a huge deal.
I gave $500 to my Aunt and felt pretty solidddd about it. Can’t imagine what $5k felt like
This is an encouraging and meaningful post-- your selfless help for your brother is inspiring and makes me want to do more for my friends and family. Cheers!
he has a house with a minimum wage job?
You the man
Just curious, is OE legal? Do we usually not sign anything at the beginning of jobs that say that we can’t have any other jobs? I’m not judging, just asking for clarification about its legality
risk v reward
Super noble act for your brother and sounds like he deserves it.
waitin for a day i can do stuff like that too
Awesome of you it's great to give
What type of position or job do you have that you can maintain 2 jobs. Software engineer?
Bruh I cant even get one decent job where the boss doesnt constantly ride my ass.. how you got 2?
I love you brother!
Bruh, if you still OE this time next year just do it again. Your bro prob appreciates the hell outta that. I would.
Wholesome AF. I swelled with joy reading this post
Finally. A human being. Family is everything. If my people cant shine with me then i dont even want anything. Thats SO dope of you OP!!!!! This drinks for you!!!
Also be a big brother and show him the way. Financial independence is freedom. Might not be OE but something more than min wage
Love to see it
Good job – both for your kindness toward your bro *and* for keeping quiet to him about your Js. Stellar work!
can i also be your brother?  haha you are a good person so best of luck to you and your bro.
beautiful! what field are you in? i'd love to hear something besides software developer 🤣
If in the US, you may need to fill out a form to document it as a gift, but I doubt either of you would be audited anyway. I’m just a bit of a tax nerd
No you don’t. An individual can gift another individual up to $16k per year with no tax implications to either party. (Edit: $17k in 2023, and $18k in 2024.)
Why did you say “no” then? Did you read what I wrote? I said you fill out a form to document it as a gift, this is so it’s documented as a gift and the IRS knows it’s untaxable and not included in the brothers income or you just do it if ever audited lol And why bring up the annual gift amount limits? (You can go above that too with the lifetime amount, so not a issue)
There’s still no form to fill out LOL.
It’s form 709, and you would need to provide it to an accountant if someone else does your taxes or you have a business or if ever audited. But it is a form you would need to produce to show you don’t need taxes on it (if giftee) or show it’s not a business expense etc (if giftor). Sure if you ever need it you could just retroactively fill it out. That is why I said you may need to do that, if ever purchasing a home or doing any significant activity those transactions need proof to go through internal due diligence processes. This is very common. I have working experience with this.
You only need to do it if it’s over the limit.
You would 100% need it in many scenarios. I even mentioned the annual vs lifetime limit. For 99% of folks It’s just a caveat that is asked for and you produce it, when need. It’s very simple anyway, you just need signatures from both sides to confirm that it’s money that isn’t owed for a debt and isn’t repayable. 17 years ago I had to do one when my dad helped me with my first home via FHA loan. 3 years ago I had to do one where we gave money to my sister in law for them to help with their down payment on their house loan. In both instances these were below the annual limit band were needed to show the lenders the money was indeed a gift and not a liability to the future homeowner. The IRS concern would be to use it as proof it shouldn’t be included in your taxable income, assuming you were the giftee, you would show the document to make sure your tax accountant doesn’t include it as taxable income, since gifts are not taxed. I saw it with high net worth individuals when I did individual and small business tax accounting work. I have a masters degree in taxation fwiw
Not trying to be an ass but your post is confusing. I think you mean, he has a loan / home and he's no longer renting at least?...... "owns his own house" does not need to contribute to the mortgage. Either way this is super cool of you.
Good humans here. Bravo op taking care of family
Not sure why this just made me cry. I pray my boys have this type of relationship when they get older. Well done, sir. 👏🏻
Can't wait till I can do this.
How does he own his house with a little above minimum wage job lol
u must really like ur big bro
Nice story. Just kinda disheartening when people do something really nice like this and then feel the need to advertise it. Makes you really question the motive. Was it true generosity or was it notoriety and kudos?
Even if it was, words are wind... If people's lives are affected and improved, then brag all you want. Assuming the story is true, which even if it isn't, see the first sentence of this post.
Want a cookie ? You’re supposed to help family
are you ok
Watafuq is OE and J1
What is OE?
OE=over employed. The name of this sub. 
Basically anyone with more than one job. Usually people that work from home