Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Needs vs Wants
Old 04-03-2007, 11:52 AM   #21
Full time employment: Posting here.
shiny's Avatar
 
Join Date: Jun 2005
Posts: 673
Re: Needs vs Wants

Quote:
Originally Posted by Sandy
This is the answer to your question. I wouldn't call it shallow. This is how you enjoy your life and the results of your efforts. You may need to take more time, assess the homes available at the different price ranges. As you look at them and do the YMOYL internal dialogue (and with your spouse), the type of house and price that is best for you will become clear.
Yeah, I don't think it is shallow either DangerMouse. Having a nest with things that you treasure seems very fulfilling.

We are entering a phase of our lives where we are getting rid of things we've had for a long time - useful things, but not cherished things. I feel good (if a bit overwhelmed) by it. We'll live overseas and travel for a while, but after that we really hope to find a small home and have only things that we truly like. I think that will just be great.
__________________

__________________
I'm made of atoms, you're made of atoms, and we're all in this together. Ben Lee
shiny is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Needs vs Wants
Old 04-03-2007, 11:56 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,386
Re: Needs vs Wants

Quote:
Originally Posted by tricky88
I take it you live in a very expensive area as far as real estate goes. How did you calculate and arrive at your calculations that it's better to rent? We live in Los Angeles, and our rent isn't terribly high - we like the neighborhood -but we feel like we should buy our own place. Doing so though would at least triple the amount of money we put towards shelter each month, it would drastically limit the amount we save and invest each month, and it would take up a big chunk of our existing savings to make the 20% downpayment.

We just looked at a nice townhouse near our apt. It was $620,000, and that price actually seemed "reasonable" compared to the last 2 years of prices we've seen.

I know your post went far beyond this part, but I'd be curious what your thoughts are of renting / buying in a very expensive area.
Not Dangermouse here, but I would like to comment on your question. I take it that it is the monetary aspect that concerns you, not the emotional one.

Implicit in what you say is that you are afraid of being locked out of the market, or losing out on appreciation. I think it is a complicated question, because the correct answer depends entirely on the assumptions you make about appreciation of the home that you might buy and escalation of rents if you don't buy.

In a way, you are forced into speculating-since a decision to rent is a speculation that rents will not escalate rapidly. And a decision to buy is a speculation that price appreciation of the home will pay back with interest all the extra cash you are laying out each month.

IMO, no pat answer. If it were me, and I was absolutely committed to staying in LA, I would probably bet that prices will come down more, but be looking for that chance to buy the place I want.

If moving to a cheaper area were a possibility, then I might just stay with renting.

Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is online now   Reply With Quote
Re: Needs vs Wants
Old 04-03-2007, 12:43 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Re: Needs vs Wants

Several years ago, we were in the process of working out a deal to build a large custom home. Long-story short, we stepped back and decided it was too much... although we could afford it.

We actually bought a lesser house that is still very nice. I paid to finish the walkout basement and put a pool table, foss ball table, bar, It has a fire place leather furniture. I also setup a room for a Big Screen TV with Surround sound. We have about 3400 Sq ft.

Bottom line, it is more than we need. We will sell and get a smaller place in a few years.

Our previous house was half the size of our current house and it met our needs.

We bought what we thought we wanted... Found out we really want less. Our needs are probably even less.

We found that we would be perfectly happy with having our needs met with less house.
__________________
chinaco is offline   Reply With Quote
Re: Needs vs Wants
Old 04-03-2007, 08:23 PM   #24
Thinks s/he gets paid by the post
DangerMouse's Avatar
 
Join Date: Jan 2007
Location: Silicon Valley
Posts: 1,812
Re: Needs vs Wants

Quote:
Originally Posted by tricky88
I take it you live in a very expensive area as far as real estate goes. How did you calculate and arrive at your calculations that it's better to rent? We live in Los Angeles, and our rent isn't terribly high - we like the neighborhood -

I know your post went far beyond this part, but I'd be curious what your thoughts are of renting / buying in a very expensive area.
Probably our situation is different from yours. We will be eventually living in Australia where there is no deduction for mortgage payments, so removing the tax advantage alters the difference significantly. However, we do live in an expensive area in the US, San Diego, and we decided some time ago not to buy here because we felt we would resent paying the outrageous amounts demanded for cookie cutter, poor quality, unimaginative, square boxes built on top of each other. We pay a lot in rent, but enjoyn our surroundings and it's great not having to come home and do yard work etc.
__________________

__________________

I be a girl, he's a boy. Think I maybe FIRED since July 08. Mid 40s, no kidlets. Actually am totally clueless as to what is going on with DH.
DangerMouse is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 03:35 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.