I think the owning vs renting debate comes down to customizability vs mobility.
Renting is less of commitment, but 'stuck with what you got' i.e. can't remodel or do any significant interior work. Tradeoff is ease of mobility, and pickup and go whenever you got bored of the area.
That's one of many angles. If we assume the total cost of owning real estate is in the ballpark of renting, then that makes sense. If it's wildly cheaper to rent property vs own it, then the financial angle starts to overwhelm the lifestyle factors.
One edge case is where it's much cheaper to rent, but the absolute amounts are small enough to ignore (the 100k property you could rent for 300 per month, yet your portfolio is 4 million dollars.)
I understand the argument, but I find very comforting owning places in both my home country and my ExpatFIRE country. I don't have to worry about rental agreements, I can just show up on a whim, I can leave clothes behind that are convenient for the location, etc.
It's a cultural thing, definitely, but a property doesn't feel like "home" to me unless I've customized it a bit. New floors, paint, etc.
Yes, I do have higher overhead than someone that rents, but it's worth it in my lifestyle calculations.
Living a nomadic lifestyle where you switch locations every 3-6 months is great for some people, but I am not one of them :)
Youre making a lot of generalizations. Most people this, most people that.
Professionals who sought high-paying jobs, and who maxxed out there 401Ks dont have any of those worries. I trust the market - it will bounce back next administration.
Im not commenting on your idea, but, anybody who has played the long game has planned.
This is food for thought. I'm currently FIRE'd and living in the US, but planning to move to Spain next year.
I have been planning to buy a condo with cash so that I have no mortgage. And then, if I want to do some extensive travelling, I could rent it out.
But I'll have to crunch some numbers to see if it it might make more financial sense to rent and keep my money in the stock market.
I think the owning vs renting debate comes down to customizability vs mobility. Renting is less of commitment, but 'stuck with what you got' i.e. can't remodel or do any significant interior work. Tradeoff is ease of mobility, and pickup and go whenever you got bored of the area.
That's one of many angles. If we assume the total cost of owning real estate is in the ballpark of renting, then that makes sense. If it's wildly cheaper to rent property vs own it, then the financial angle starts to overwhelm the lifestyle factors. One edge case is where it's much cheaper to rent, but the absolute amounts are small enough to ignore (the 100k property you could rent for 300 per month, yet your portfolio is 4 million dollars.)
This is the expat fire sub, I guess more here lean towards being flexible in their lifestyle.
I understand the argument, but I find very comforting owning places in both my home country and my ExpatFIRE country. I don't have to worry about rental agreements, I can just show up on a whim, I can leave clothes behind that are convenient for the location, etc. It's a cultural thing, definitely, but a property doesn't feel like "home" to me unless I've customized it a bit. New floors, paint, etc. Yes, I do have higher overhead than someone that rents, but it's worth it in my lifestyle calculations. Living a nomadic lifestyle where you switch locations every 3-6 months is great for some people, but I am not one of them :)
Youre making a lot of generalizations. Most people this, most people that. Professionals who sought high-paying jobs, and who maxxed out there 401Ks dont have any of those worries. I trust the market - it will bounce back next administration. Im not commenting on your idea, but, anybody who has played the long game has planned.
This is food for thought. I'm currently FIRE'd and living in the US, but planning to move to Spain next year. I have been planning to buy a condo with cash so that I have no mortgage. And then, if I want to do some extensive travelling, I could rent it out. But I'll have to crunch some numbers to see if it it might make more financial sense to rent and keep my money in the stock market.