Hello all,
I have a general question for the math savvy in this group. I live in a very HCOL area, but I have the great good luck of having extremely cheap rent. So I have absolutely no reason to buy into my current market. Landlord is an individual around 50 - 60 years old, does not raise rent on a regular basis.
I plan to FIRE in 10 years. I will be 55 years old. My stash will be on the small side about 450k, but I only need it to fully fund the years until I'm 65 and SS kicks in. Then it will just be a supplemental. I easily live on about 20,000/year and only expect to add 2,000/year for travel. I will also have an income stream of about 8,000/year, so I will draw about 14,000/year, well within the SWR.
At the point I FIRE, my partner and I have discussed moving to a LCOL area and buying a small house. We are assuming the landlord may not be around anymore, or much longer, by that time. This will stabilize our "housing expenses" and free us from inflation worries, in that budget area.
We are extremely handy. We can handle any job, except hazardous waste remove (i.e. asbestos removal). Plumbing, electrical, and jacking up foundations are not scary for us.
The question is, is this a good or bad idea? When I do the math, artist here, so read super simple math, It really does seem like a good idea, but my gut tells me that buying a house at 55 years old, and newly FIREd, is a bad idea.
What say you all?