renters for life a question

[livingalmostlarge]

Has anyone here rented for life and never bought? It's applied to people who rented and then fired then bought?

Did you do the cost calculation? Did you figure out if it was cheaper always renting? Anyone who fired or got close probably rans a ton of numbers for everything. They also tracked what they spent on rent and what the house/condo they rented would have gone for in 2000 and then gone for in 2020.

I'm curious if anyone rented forever and did the calculation on how much more they saved renting? And if they saved the difference between a mortgage and rent? And if they invested the down payment and how the numbers all worked out after say 30 years.

And if you rented, did you ever calculate what the appreciation over the time you were renting there what happened?

 

[F.I.R.E User]

Has anyone here rented for life and never bought? It's applied to people who rented and then fired then bought?

Did you do the cost calculation? Did you figure out if it was cheaper always renting? Anyone who fired or got close probably rans a ton of numbers for everything. They also tracked what they spent on rent and what the house/condo they rented would have gone for in 2000 and then gone for in 2020.

I'm curious if anyone rented forever and did the calculation on how much more they saved renting? And if they saved the difference between a mortgage and rent? And if they invested the down payment and how the numbers all worked out after say 30 years.

And if you rented, did you ever calculate what the appreciation over the time you were renting there what happened?

I have never bought RE. Always rented. For me it is cheaper because I get help from family to pay some of my rent. The highest rent I have ever paid is $635 a month which is current. I am not into the labor work that goes into a house plus other costs associated with it. I am a minimalist, single guy, no kids.

So with that said, we renter's do have more buying power to invest into the stock market right?

Is there a calculator for this? I want to see NW difference say after 30 years or so.

 

[COcheesehead]

I have never bought RE. Always rented. For me it is cheaper because I get help from family to pay some of my rent. The highest rent I have ever paid is $635 a month which is current. I am not into the labor work that goes into a house plus other costs associated with it. I am a minimalist, single guy, no kids.

So with that said, we renter's do have more buying power to invest into the stock market right?

Is there a calculator for this? I want to see NW difference say after 30 years or so.

You are waaaaay different than most renters. You realize that, correct?

 

[F.I.R.E User]

You are waaaaay different than most renters. You realize that, correct?

I consider myself blessed and yes I am but don't each of us have a different journey?

 

[COcheesehead]

I consider myself blessed and yes I am but don't each of us have a different journey?

LOL.
And I quote…
So with that said, we renter's do have more buying power to invest into the stock market right?

 

[jazz4cash]

Location, Location, Timing and personal preferences make rent vs. buy almost impossible to evaluate mathematically. Yeah I know the cliche is location, location, location but there are MANY examples where a location’s value changes significantly due to timing….so I say Location, Location, Timing.

 

[COcheesehead]

I consider myself blessed and yes I am but don't each of us have a different journey?

But you can’t speak for all renters on your blessed journey. You are very unique with your family subsidized rent assistance. You likely are an aberration in the rent space.

 

[dunkelblau]

I've always rented an apartment and have never bought a home to live in. I've been FI for about two decades and only took an ER layoff late last year.

No I didn't do the cost comparison, I just didn't want to deal with the hassles associated with home ownership. I vaguely remember how a 2/2 condo would have gone for five to six times my gross annual salary as a new hire decades ago, but I didn't want to take on the risk of a mortgage as my employer was having problems. Renting might have been the cheaper option, but the main reason I never bought a place was it always felt safer to keep my options open. FWIW as a new hire in the last 1980s my rent was about 15% of gross salary, and when I left San Jose a decade ago it was a hair under double that in nominal dollars (not the same apartment though), so my rent growth averaged ~3% per year in nominal dollars.

Bay Area real estate did very well during the years I lived there, but I don't think it made much difference in my time to FI. For the right location at the right price I'd be willing to buy now, as I'm getting 10% annual rent rises lately.

 

[rodi]

My grandparents always rented. When they retired and moved to San Diego, they lived near the beach and a very nice two bedroom. Two bath. It was the perfect lifestyle for them. No maintenance and a walkable neighborhood.

 

[F.I.R.E User]

LOL.
And I quote…
So with that said, we renter's do have more buying power to invest into the stock market right?

With owning, you always have other that maybe unexpected like repairs.

 

[F.I.R.E User]

But you can’t speak for all renters on your blessed journey. You are very unique with your family subsidized rent assistance. You likely are an aberration in the rent space.

So renting is still best overall unless the owner is house poor?

 

[COcheesehead]

With owning, you always have other that maybe unexpected like repairs.

You greatly overestimate the cost of the average home repair.

 

[COcheesehead]

So renting is still best overall unless the owner is house poor?

You make no sense. You are living on your parent’s dime.

 

[F.I.R.E User]

You greatly overestimate the cost of the average home repair.

What is it?

 

[badatmath]

I know people who have always rented and seem to love every minute of it.

No worries over maintenance. But they live in a LCOL area so it does make more sense for them than it might in some circumstances.

Many home repairs are unfortunate in timing but not unexpected. You know your HVAC will need replaced as well as your roof. You might not know exactly when, but it won't last indefinitely.

I'd like the option to rent in the future again but I fear my finances won't support that unless I move cities/states.

 

[F.I.R.E User]

I know people who have always rented and seem to love every minute of it.

No worries over maintenance. But they live in a LCOL area so it does make more sense for them than it might in some circumstances.

And invest in the index funds?

 

[COcheesehead]

What is it?

The most I have dropped on a home repair over a 40 year period is $1500.

 

[F.I.R.E User]

The most I have dropped on a home repair over a 40year period is $1500.

Wow. I heard many have dropped in thousands. A/C, heater, roof, plumbing, etc.

 

[COcheesehead]

Wow. I heard many have dropped in thousands. A/C, heater, roof, plumbing, etc.

It depends on the age of the house and how well people maintain their systems. I never replaced a roof, A/C, etc. Don’t fall for rumors.

 

[F.I.R.E User]

It depends on the age of the house and how well people maintain their systems. I really think you are clueless.

You bought it brand new? You paid for maintenance.

 

[aja8888]

After my wife died last December, I thought about renting (The Woodlands, TX area). But to rent a one bedroom place in a nice complex, the cost is about $2,000/month, all in. Renting a small house is even nuttier. So I am building 1,500 sq. ft. one level home in a new area. I need more than 800 square feet and I want a garage again. (I sold the previous house as it was too big for just me)

 

[F.I.R.E User]

After my wife died last December, I thought about renting (The Woodlands, TX area). But to rent a one bedroom place in a nice complex, the cost is about $2,000/month, all in. Renting a small house is even nuttier. So I am building 1,500 sq. ft. one level home in a new area. I need more than 800 square feet and I want a garage again.

Sorry, about your wife.

TWL isn’t $2k. It's $1,200. Just saw it on Apt app. It’s a nice upscale complex and area.

 

[aja8888]

Sorry, about your wife.

TWL isn’t $2k. It's $1,200. Just saw it on Apt app. It’s a nice upscale complex and area.

Thanks, I checked out several complexes which were in that price range. Not the type of neighbors I want to live around. I'll just leave it at that. I looked hard at the Alders in Magnolia and I can get 762 square feet for $1,700 + a couple of hundred more for covered parking and cable (which is not optional).

Sorry, nice places out this way are around $2K.

I have a friend at the Alders with a 2 bedroom, garage and all the other costs. He's paying $2,500/month. He has a dog too.

Forgot to add: My dog now has to pay a monthly rental fee in an apartment these days. And also a non-refundable pet deposit in some places. UGH!

 

[COcheesehead]

You bought it brand new? You paid for maintenance.

Makes no sense.

 

[youbet]

The most I have dropped on a home repair over a 40 year period is $1500.

You're a lucky guy....... Just off the top of my head, I can think of the following items that came up over just the last couple of decades: replaced the roof, replaced the HVAC system, hardwood floors refinished, kitchen remodeled, bath remodeled.......... I gotta stop thinking about it. Gives me a headache!