Forever-a-Renter?

[BRUTE]

The likelihood of finding a rental home equivalent to my owned home is practically nil, though I bet there are a few. Rental homes usually don't come with acreage and timber rights and workshop buildings.

opposite also true: brute is hard pressed to find a place to buy small enough for him. seems that if humans buy houses, they must be big enough for at least 10 humans. renting is possible even for just 1.

[Peanut]

I was thinking that mortgage amortization schedules, loan origination fees and real estate sales commissions taken together make short-term home ownership foolish, so those who buy tend to move much less often than those who rent. People rarely rent the same home for twenty years whereas most people (except mortgage-free Jacob) who buy a home must live in it for a long time to make the numbers work in their favor.

How do we measure a growth mindset? Always learning? New friends? New skills? New hobbies? New healthy habits? Fewer negative habits? Constant evolution.

Depends on location. My neighbor just sold his house for 15% more than he paid two years ago. Not a flip job either. Now his ROI is likely a much smaller percentage, but in most situations one would expect to lose a bunch of money on a turnover like that. The average turnover for real estate in the area is six years.

In my limited circle I can't correlate vibrancy in seniors with whether or not they rent or own. It seems to have more to do with personality traits than any financial factors. And as for the growth mindset itself, the ultimate worthiness of the goal somewhat escapes me. It sounds like self-actualization which seems a bit self-absorbed to me. Of course they're not mutually exclusive, but I tend to think it's better for those around me that I strive first to be good than perfect, interesting, or accomplished. Like, I could learn a new instrument or language, but teaching a class to seniors in a subject I already know would likely have a much greater positive effect on the community.

[Peanut]

The likelihood of finding a rental home equivalent to my owned home is practically nil, though I bet there are a few. Rental homes usually don't come with acreage and timber rights and workshop buildings.

opposite also true: brute is hard pressed to find a place to buy small enough for him. seems that if humans buy houses, they must be big enough for at least 10 humans. renting is possible even for just 1.

Your comment made me remember this gem:

http://sfist.com/2015/04/15/san_francis ... _sells.php

[DeanPeacock]

I've read the biography of Vladimir Nabokov - he had never had his own home (except parents house until migration) and died in a hotel. So maybe it depends on your lifeway. Just don't worry about other people's opinion

[enigmaT120]

The likelihood of finding a rental home equivalent to my owned home is practically nil, though I bet there are a few. Rental homes usually don't come with acreage and timber rights and workshop buildings.

We're not supposed to want all that stuff.

I wonder what I could rent my place for. I doubt I would unless I planned to travel somewhere for a long time. And I don't really plan to do that. Even if I bike the Great Divide Mountain Bike trail, I don't think I would do it all at one time.

[Did]

@sclass i guess there are different levels of shit hitting the fan. i meant more personally, rather than at a societal level. Things turn to shit for most people at some stage in their life: mental health, physical health, jobs, returns etc. Not having to make rent and having somewhere safe to go is reassuring. When I was a young man, before I thought of any of this FIRE stuff, I used to say if you own your house all you need is baked beans money. My mate says surfboard wax instead of beans. And it's pretty much true.

[BRUTE]

@Did: it's certainly true that such a "safety net" is nice, but what about the opportunity cost? if instead of buying the house a human saved the money (even in a checking account), they would still have years of rent until they'd have to worry again.

now if buying a house is the only/best way for an individual human to commit to a savings/investment strategy, then that's one thing. brute believes this to be true historically. even a generation ago, most humans probably had no idea about investing or stocks. if humans wanted to save for retirement, a house it was. but that's different now, and for many more mobile humans today, the "house strategy" brings some disadvantages.

[Did]

@brute yeah I guess opportunity cost is something to consider. My tenants pay me A$550 a week rent. We live in a place that cost us about A$100k including modest renos. My mother in law is staying with us. Too early for a retirement village but frankly couldn't organise a pissup in a brewery, let alone moving from rental to rental.

[JL13]

@jacob

What cap rate are you using for NAV?

[jacob]

The long term rate + 1% risk (+ 1% maintenance unless you subtract the dollars amount in the numerator depending on how your equation looks).

[JL13]

10-year Treasury real rate or 30-year nominal rate? I think the former produces NAV approaching infinity.

[jacob]

Nominal, dude!