Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
F.I.R.E without physical property?
Old 10-21-2020, 11:24 PM   #1
Recycles dryer sheets
 
Join Date: Oct 2020
Location: Sugar Land
Posts: 50
F.I.R.E without physical property?

Hello. Is anyone here plan to retire and/or retired without ever buying physical property? Perhaps, buy/bought one after retirement?
F.I.R.E User is online now   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!

Old 10-21-2020, 11:38 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 10,378
Is that like renting
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is online now   Reply With Quote
Old 10-21-2020, 11:38 PM   #3
Recycles dryer sheets
 
Join Date: Oct 2020
Location: Sugar Land
Posts: 50
Quote:
Originally Posted by Sunset View Post
Is that like renting
Yes.
F.I.R.E User is online now   Reply With Quote
Old 10-22-2020, 12:55 AM   #4
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,897
I bought a couple of properties (one condo + one house) on my way to FIRE, but they were more a hindrance than a help to me on my FIRE journey.

I would have gotten to FIRE more quickly, and with less stress, had I never bought any property.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 10-22-2020, 12:57 AM   #5
Recycles dryer sheets
 
Join Date: Oct 2020
Location: Sugar Land
Posts: 50
Why not buy a REIT fund like VNQ? You don’t have to do any work managing a property.
F.I.R.E User is online now   Reply With Quote
Old 10-22-2020, 12:58 AM   #6
Recycles dryer sheets
 
Join Date: Oct 2020
Location: Sugar Land
Posts: 50
Quote:
Originally Posted by Onward View Post
I bought a couple of properties (one condo + one house) on my way to FIRE, but they were more a hindrance than a help to me on my FIRE journey.

I would have gotten to FIRE more quickly, and with less stress, had I never bought any property.
Do you regret the decision?
F.I.R.E User is online now   Reply With Quote
Old 10-22-2020, 01:34 AM   #7
Administrator
Alan's Avatar
 
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 27,611
We were renters 6 years before retiring and for 7 years afterwards. It was only when we stopped traveling extensively that we bought a house.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
Alan is offline   Reply With Quote
Old 10-22-2020, 03:33 AM   #8
Full time employment: Posting here.
Bryan Barnfellow's Avatar
 
Join Date: Feb 2004
Location: Switzerland
Posts: 712
We owned our own homes when we lived in the States; but upon moving to Europe we rent. We feel this gives up the most flexibility and doesn't tie up our income generating funds. To compensate in our portfolio we have an appropriate weighted component of US REITS.

-BB
__________________
FIREd, April 1, 2015. My Retirement Benefits Package includes: 6 months vacation, twice a year.
Bryan Barnfellow is offline   Reply With Quote
Old 10-22-2020, 03:37 AM   #9
Thinks s/he gets paid by the post
Major Tom's Avatar
 
Join Date: Nov 2009
Location: SF East Bay
Posts: 3,499
I owned a home that I lived in for a mere 4.5 years during my working years. I also owned 3 rental houses for just 2 years, which I lucked out on, and managed to sell at a good profit. For all of my adult life, with the exception of those 4.5 years, I have lived in rented accommodations. I have been retired for 11 years and currently have no plans to buy property, though that could change.

However, I do own a 1993 Airstream B190 camper van, which is a bit like owning a home, isn't it?
__________________
Contentedly ER, with 3 furry friends (now, sadly, 1).
Planning my escape to the wide open spaces in my campervan (with my remaining kitty, of course!)
On a mission to become the world's second most boring man.

Major Tom is offline   Reply With Quote
Old 10-22-2020, 03:54 AM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 7,117
We rented for 6 years before buying a house last year. Before I was FIRE, it was just easier to rent due to less maintenance work with my heavy work schedule.
We are glad we own a home now, as we don't want to be subject to rent increases and potentially moving when not our choice.
__________________
TGIM
Dtail is offline   Reply With Quote
Old 10-22-2020, 05:27 AM   #11
Full time employment: Posting here.
 
Join Date: Mar 2014
Location: Dallas
Posts: 532
Everyone is different, I may be in a minority but I don't like traveling as much. Its all the same everywhere I go, frenzy. I like to have my base.

If you like to travel then not owning any physical property or pets will give you more flexibility. Just look at your personality, interest and past history of those two. You will find the answer on your own.

Edit: Lately, we have been traveling mostly to natural places where I don't see a lot of people. I like that kind of travel.
pjigar is offline   Reply With Quote
Old 10-22-2020, 06:18 AM   #12
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 6,736
If I didn't know for sure where I wanted to live, and had no anchors like family, it might be cool to apartment hop, rent and travel, airbnb around, etc. But that requires not having much stuff (because, otherwise you're at least paying for storage which is silly), and never having pets, or, having young ones that are mobile. Older cats and dogs to not like big moves.

As it is I like where I am for the mid-term, I have pets and family...and stuff.
Aerides is offline   Reply With Quote
Old 10-22-2020, 08:57 AM   #13
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,897
Quote:
Originally Posted by F.I.R.E User View Post
Do you regret the decision?
Definitely. All that house $$ plowed into index funds would have left me with a bigger nest egg, and fewer grey hairs, now. Even after subtracting out what I would have paid in rent.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 10-22-2020, 09:26 AM   #14
Recycles dryer sheets
 
Join Date: May 2010
Posts: 62
Rent if the monthly payment is below 0.5% of the purchase price. Big popular cities eg San Francisco, are like this. Think about buying the higher the %. 1% is a rule of thumb for the property to be suitable as a rental investment. So we buy those for income but live and pay rent in the opposite area. Rent arbitrage?
captain3d is offline   Reply With Quote
Old 10-22-2020, 12:49 PM   #15
Full time employment: Posting here.
Retch The Grate's Avatar
 
Join Date: Jul 2010
Location: San Francisco
Posts: 619
I've been renting for my adult life and expected to keep doing so unless I ended up somewhere it made financial sense, but my wife really wants to nest so we are looking at converting some of my investments into a house. It will definitely put back my FIRE progress (renting is still a bargain compared to buying in San Francisco), but it will make her happy so... If I was making the decision in a vacuum I'd be staying property free and being FIRE sooner.
Retch The Grate is offline   Reply With Quote
Old 10-22-2020, 03:37 PM   #16
Recycles dryer sheets
 
Join Date: Aug 2017
Posts: 99
I've been renting for the past 3.5 years as I prepare to retire in another 2 or so and move out of the area. This is the longest I have ever rented. I cringe as I see the real estate market continuing its fast paced rise. I feel that I am losing more buying power every day as prices continue to rise.


By the same token I try to reason with myself that I'm best to not take on a mortgage when my plan is to evacuate the area in the next couple of years. I also know that with the money I would put into my own place I would probably forfeit any market appreciation. With the modest rental home I am in I have no motivation to make improvements.


I have to convince myself regularly though that I'm making the best decision for my circumstance.
firemediceric is offline   Reply With Quote
Old 10-22-2020, 03:47 PM   #17
Recycles dryer sheets
 
Join Date: Oct 2020
Location: Sugar Land
Posts: 50
Quote:
Originally Posted by Alan View Post
We were renters 6 years before retiring and for 7 years afterwards. It was only when we stopped traveling extensively that we bought a house.
Because it was cheaper overall?
F.I.R.E User is online now   Reply With Quote
Old 10-23-2020, 10:41 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,265
Send a message via Skype™ to kcowan
We rented for 6 years after retirement, then bought a snowbird property (6 months). Still renting northern property. No change anticipated.
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Old 10-23-2020, 03:39 PM   #19
Thinks s/he gets paid by the post
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 4,587
We happened to own at the time of FIRE but we rented almost as much as we owned over our life times. Now we own and I would not want to rent. There are some advantages to owning once stable FIRE has been established. YMMV
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 10-23-2020, 04:13 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 10,378
Quote:
Originally Posted by firemediceric View Post
I've been renting for the past 3.5 years as I prepare to retire in another 2 or so and move out of the area. This is the longest I have ever rented. I cringe as I see the real estate market continuing its fast paced rise. I feel that I am losing more buying power every day as prices continue to rise.


By the same token I try to reason with myself that I'm best to not take on a mortgage when my plan is to evacuate the area in the next couple of years. I also know that with the money I would put into my own place I would probably forfeit any market appreciation. With the modest rental home I am in I have no motivation to make improvements.


I have to convince myself regularly though that I'm making the best decision for my circumstance.
Some places the housing is not going up much ...
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is online now   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


Similar Threads
Thread Thread Starter Forum Replies Last Post
Financing rental property and using property management services GreenER FIRE and Money 12 01-12-2015 09:00 PM
Financial Health vs: Physical Health Intuit Life after FIRE 29 02-22-2006 09:10 PM
Exercise & Physical Fitness in ER education Other topics 34 10-30-2005 02:39 PM
Buying physical Gold GTM FIRE and Money 10 01-14-2005 09:26 AM

» Quick Links

 
All times are GMT -6. The time now is 11:14 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.