I currently hope to reach FIRE in mid 2020 (earning enough to fund the year and max out my retirement accounts one more time). I am currently renting but want to own to have a bit more control over my expenses prior to quitting. I keep going back and forth in my mind over two themes as I look at properties. I will be paying cash; and will have to liquidate investments from my taxable account (cost basis is about 50% of value to cover purchase costs over $170K.
COA1: Purchase a more modest condo further out from the city (where I do most of my socializing) and have to drive anytime I want to do anything. This would also likely not have a garage/storage for toys. Cost would probably be $125-160K for something that I would like the living space. If I take this option, I should be in good shape to live off 3% or so of my assets. (I'm 45 now so 3% is my threshold)
COA2: Purchase a condo or town home closer in with a garage for my toys. While properties in downtown proper are out of my range (if I ever want to attain FIRE). There are some just on the outskirts that are still biking distance/walking to many places I would go. Buying a property I am excited about from a lifestyle perspective would cost $300K minimum... I would not likely spend more than $350K as that would delay my retirement too much.
My question is more philosophical as I can run the numbers and figure out how much the cost difference will delay my goals. Do any of you regret splurging or regret being too cheap? Any tips on how to help me frame my decision-making in my own head? I view this as an asset allocation but with some of the returns being "enjoyment" which is hard to quantify!
My job is soul sucking so I don't want to regret being stuck longer but then once I am retired and have time, I will have so much more enjoyment going with option 2 (and would be able to enjoy living there before quitting).
Thanks!
FLSUnFIRE
COA1: Purchase a more modest condo further out from the city (where I do most of my socializing) and have to drive anytime I want to do anything. This would also likely not have a garage/storage for toys. Cost would probably be $125-160K for something that I would like the living space. If I take this option, I should be in good shape to live off 3% or so of my assets. (I'm 45 now so 3% is my threshold)
COA2: Purchase a condo or town home closer in with a garage for my toys. While properties in downtown proper are out of my range (if I ever want to attain FIRE). There are some just on the outskirts that are still biking distance/walking to many places I would go. Buying a property I am excited about from a lifestyle perspective would cost $300K minimum... I would not likely spend more than $350K as that would delay my retirement too much.
My question is more philosophical as I can run the numbers and figure out how much the cost difference will delay my goals. Do any of you regret splurging or regret being too cheap? Any tips on how to help me frame my decision-making in my own head? I view this as an asset allocation but with some of the returns being "enjoyment" which is hard to quantify!
My job is soul sucking so I don't want to regret being stuck longer but then once I am retired and have time, I will have so much more enjoyment going with option 2 (and would be able to enjoy living there before quitting).
Thanks!
FLSUnFIRE
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