Cost of moving vs cost of commute

[iohannleclerc]

Hi guys!

Step 1 mustachian here. I’m trying to build a plan and get things going.

We currently live in a kind of countryside village, next to a major city. It made sense back then, but now I get to commute 45/60 minutes each way everyday. The mortgage is super low and we love it (700$) but we’d like to move closer.

The caveat is that houses in the city will cost us 3x4 the amount that we pay now, and I’d prefer to keep and rent our semi-detached so we can build wealth in the long run. That means no cashdown as of now.

I pay a huge price for the commute (the equivalent of 12 weeks of full time work spent in my car each year…. The stuff of nightmares) but I can’t wrap my head around the math of moving to an expensive house versus the cost of transport.

I’d love advice and words of wisdom from you guys!

[Greystache]

Maybe rent a studio apartment close to work and stay there during the week and go back to your house in the hills for the weekends. You could also Vrbo your house when you are not using it.
I worked with a guy who bought a retirement home 150 miles from work and then was offered a huge amount of money to stay on one more year. He got permission to live in his RV in the parking lot during the week and he went home on the weekends.

[iohannleclerc]

I failed to mention something important, I have 3 young kids (7months, 2yrs and 5yrs) and I did try the work during the week and go home for the weekends thing for a while, when I was posted to a place of duty far away and my family wasn’t willing to follow. It **** sucks to see your kids 8 times per month…

But maybe renting in town should be considered, that might actually be a very good advice.

[Askel]

I faced this same dilemma when stepping up my mustachian game. I ran the numbers using the IRS mileage rates for our current commute and looked at how much more house I could buy if that went to a mortgage instead.  The numbers were surprising.  We could afford a lot more house the less we had to drive. 

And take a good hard look at those mileage numbers- it's not just commuting. Wait until those kids are teenagers and need to be to 87 different things each every week. 

Another thing to remember: time and money spent on car commuting is usually lost and gone forever. Houses tend to hold their value or appreciate.  And we all know how valuable that time can be, especially when juggling a family. 

Best of luck, the numbers probably work out quit differently for different locales, but for us- moving closer to town was a no brainer. The money aspect is great, but getting that time back is immeasurable.