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-   -   F.I.R.E without physical property? (https://www.early-retirement.org/forums/f28/f-i-r-e-without-physical-property-106102.html)

F.I.R.E User 10-21-2020 11:24 PM

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?

Sunset 10-21-2020 11:38 PM

Is that like renting ???

F.I.R.E User 10-21-2020 11:38 PM

Quote:

Originally Posted by Sunset (Post 2500689)
Is that like renting ???

Yes.

Onward 10-22-2020 12:55 AM

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.

F.I.R.E User 10-22-2020 12:57 AM

Why not buy a REIT fund like VNQ? You don’t have to do any work managing a property.

F.I.R.E User 10-22-2020 12:58 AM

Quote:

Originally Posted by Onward (Post 2500698)
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?

Alan 10-22-2020 01:34 AM

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.

Bryan Barnfellow 10-22-2020 03:33 AM

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

Major Tom 10-22-2020 03:37 AM

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? :laugh:

Dtail 10-22-2020 03:54 AM

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.

pjigar 10-22-2020 05:27 AM

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.

Aerides 10-22-2020 06:18 AM

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.

Onward 10-22-2020 08:57 AM

Quote:

Originally Posted by F.I.R.E User (Post 2500700)
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.

captain3d 10-22-2020 09:26 AM

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?

Retch The Grate 10-22-2020 12:49 PM

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.

firemediceric 10-22-2020 03:37 PM

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.

F.I.R.E User 10-22-2020 03:47 PM

Quote:

Originally Posted by Alan (Post 2500701)
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?

kcowan 10-23-2020 10:41 AM

We rented for 6 years after retirement, then bought a snowbird property (6 months). Still renting northern property. No change anticipated.

Koolau 10-23-2020 03:39 PM

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

Sunset 10-23-2020 04:13 PM

Quote:

Originally Posted by firemediceric (Post 2501007)
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 ... :mad:


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