Author Topic: Apartment dilemma: short commute vs cheap rent  (Read 10662 times)

allspiritseve

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Apartment dilemma: short commute vs cheap rent
« on: June 21, 2013, 03:10:09 PM »
Hi everyone,

My wife and I are currently renting a 3 bedroom apartment for $1075/month (which will increase to $1107.50 in September). We've decided that's kind of steep, and have been able to find 2 and 3 bedroom apartments in the next town over for $750-800. The problem is, where we are now we can walk to work or to downtown. Moving to a cheaper apartment means a 40 minute busride one way or using the city's Park and Ride. I am a freelancer so it's hard not to think of a longer commute as costing me money.

We've tried finding cheaper apartments in the area, but it's a college town and good apartments are hard to come by. We've only got two years left before my wife finishes her PhD, so renting is really the only option right now.

What do you think? Any advice?

smalllife

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #1 on: June 21, 2013, 03:14:22 PM »
Stay where you are.  $300 for two adult commuters will go by fast, not to mention the irritation at the commute if you are used to walking/biking everywhere. 

Have you looked for other apartments in your same area? 

Is it just you and your wife (aka why so many bedrooms)?  If you were looking at 2 bedrooms one town over, why not look at 2 bedrooms in your current location?

matchewed

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #2 on: June 21, 2013, 03:38:04 PM »
Run the numbers a bit more. What is the cost of commuting if you move? Are there jobs in the next town? What other costs would you incur if you did choose to move? The math will lead you to the financially superior choice.

Eric

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #3 on: June 21, 2013, 04:59:19 PM »
Couldn't you downsize your apartment and stay in the same area?  Is there a reason you need 3 bedrooms for what I'm assuming is 2 people?  I bet you could find a large 1BR apartment, save money, and still live downtown.  Something else to consider.

allspiritseve

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #4 on: June 21, 2013, 06:18:21 PM »
Well the commuting costs aren't terrible, we both have free bus passes and there are Park & Ride lots so we wouldn't be driving all the way to work. I guess I'm more concerned about the time, since I'm paid hourly.

We have been looking for 2 or 3 bedroom apartments in both towns... 1 bedroom would be tough for us as we often have family staying, but I suppose is worth considering. The rental market here is pretty tough though, it's slim pickings right now given everyone's trying to find a place before fall. Honestly we've got a good deal for the size of our current apartment and its location, it's just that apartments are overall very expensive here.

kh

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #5 on: June 21, 2013, 06:49:41 PM »
Is the amount it would cost to put up your family in a hotel for their visits greater than the amount that you would save on rent by looking at a 1 bedroom?  Probably depends on what "a lot" of visiting means.  Either way, 3 bedrooms is a lot of space for two people.

This has the same flavor to it as buying a big SUV for the 4 times a year you need to haul something.  Live with smaller day-to-day, rent when you need extra capacity.

matchewed

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #6 on: June 21, 2013, 07:35:36 PM »
Well the commuting costs aren't terrible, we both have free bus passes and there are Park & Ride lots so we wouldn't be driving all the way to work. I guess I'm more concerned about the time, since I'm paid hourly.

We have been looking for 2 or 3 bedroom apartments in both towns... 1 bedroom would be tough for us as we often have family staying, but I suppose is worth considering. The rental market here is pretty tough though, it's slim pickings right now given everyone's trying to find a place before fall. Honestly we've got a good deal for the size of our current apartment and its location, it's just that apartments are overall very expensive here.

Not terrible is also not dollars. I know I come off as analytical with this but it's important IMO when making a financial decision. Put some quantities behind that not terrible. How much will it cost you in transportation to maintain a similar lifestyle; going out, places you visit, friends you hang out with...etc.? Can you reduce that lifestyle and still be happy (answer is almost always yes but it's not easy to always see it)?

How does this affect your hourly pay? Are you active outside of work where you'd be missing out on socializing/volunteering/education if your commute were to increase? Tie those answers back to my first paragraph.

Coneal

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #7 on: June 21, 2013, 08:58:16 PM »
I'd stay where you are.  The cost savings will be eaten up by the gas and care for the commute.  As an added bonus you save and hour and a half of you life.

SnackDog

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #8 on: June 22, 2013, 02:45:20 AM »
If wife is in school this is not the time for the luxuries of living in the best location in a sprawling 3 bedroom apartment. Move a reasonable distance away and try to get a one bedroom. Tell visiting family you are not in a financial position to provide them more than the living room sofa.

Lina

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #9 on: June 22, 2013, 04:09:06 AM »
I would save the 32,50 USD in some other way and stay in the current apartment. You also have to count in the expenses of moving in your calculations.

I would not pay extra for two bedrooms so that my family could stay at my place. I downsized from a 64 square meters to 38 square meters when I moved to another town so now it is a bit to small for my parents to stay in when they visit so I have booked a hotelroom for them.

totoro

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #10 on: June 22, 2013, 07:09:10 AM »
Saving $300-$350 a month less the loss of approximately 27 hours a month worth of time to commuting (plus additional community costs) and the loss of the health benefit of walking would not be worth it for me.
 
I would instead be looking to downsize my living space a bit by keeping a look-out on listings.  Alternatively, given that you have extra space and are set up for guests, if it appeals to you you could register for AirBnB and probably make up part of the difference fairly easily.


katieboo

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #11 on: June 22, 2013, 09:10:56 AM »
I would consider the cost of moving, since you seem to plan on moving in a couple of years anyway, as well as the quality of life of the longer commute compared to the cost savings.

 If you do move, however, I encourage you to consider a one bedroom. Although I know it's not ideal, you and your wife can sleep out in the living room and let your family use your bedroom when they visit.

I'll be honest, I can relate. When I went to law school, I lived in a two bedroom apartment on my own for several reasons. First I previously lived in a three bedroom house before law school, so I viewed moving into a two bedroom as "downsizing" for my new lifestyle as a student. And I needed room for visiting family. And I had to fit in all my furniture from my three bedroom home, after all, I did make a sacrifice of giving away my dining set. And I needed a a nice home office to be successful in law school. I was an older student, and not a twenty-something who could fit all their belongings in a car.

And now I am employed as a lawyer and am in serious debt, which I am managing, but it's a lot. So after I graduated I moved into a cheap one bedroom apartment, for 550 per month, and later a cheap two bedroom house for $625 per month. And although I now live in a pretty large home, my share of the cost, including utilities and cable is only $544 per month. I feel like I did everything backwards. My lifestyle was downgraded somewhat after becoming employed again, but I'm now able to build up my cash reserves again!

Just want to share my experience, I've been there.








Eric

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #12 on: June 22, 2013, 10:42:57 AM »
Well the commuting costs aren't terrible, we both have free bus passes and there are Park & Ride lots so we wouldn't be driving all the way to work. I guess I'm more concerned about the time, since I'm paid hourly.

We have been looking for 2 or 3 bedroom apartments in both towns... 1 bedroom would be tough for us as we often have family staying, but I suppose is worth considering. The rental market here is pretty tough though, it's slim pickings right now given everyone's trying to find a place before fall. Honestly we've got a good deal for the size of our current apartment and its location, it's just that apartments are overall very expensive here.

I think as a general rule, you don't get to rent a 3br apartment for two people and complain about how expensive rents are.  For comparison, my 1br w/ no A/C or dishwasher costs $1400/mo.

But you should do the math.  How often do people really come to stay with you?  And which percentage of those people are friends that would be fine on an air mattress on the living room floor vs. parents that need a bed.  And what's the cost of an average hotel stay?  And how does that compare to the amount of rent that you'd save, even if you generously subsidized your family and friends' visits to you by paying for their stay?  Figure this out and it will help you with your decision.

macky

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #13 on: June 22, 2013, 11:11:12 AM »
if you are in a college town, property is normally priced on the number of bedrooms(it is in the uk anyway), so you should be able to get a place with very large living room for less than a two bedroom place, even if it the same square metres.
there are top quality sofa bed which are every bit as good as a bed, even if it 1000 dollars, it would still take only 3-4months to cover it's cost.

allspiritseve

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Re: Apartment dilemma: short commute vs cheap rent
« Reply #14 on: June 23, 2013, 12:23:56 PM »
I think as a general rule, you don't get to rent a 3br apartment for two people and complain about how expensive rents are.  For comparison, my 1br w/ no A/C or dishwasher costs $1400/mo.

I never said getting the 3 bedroom was a smart financial move. I did, however, say that we were looking for 2 or 3 bedroom apartments in the area, including moving to the next town where rent is comparably much cheaper. I even said it might be worth looking into a 1 bedroom, so I'm not sure why you are lecturing me about what I can and can't say.

Everyone else, I truly appreciate the posts. We ran some numbers and estimated the cost of commuting to be around a $100/month increase with the apartment in the next town. Given a few other calculations based on utilities and such, the difference is about $300/month. We are tentatively deciding to stay in our current apartment and keep our eye on listings to see if we can snag a better deal before our current lease runs out.

 

Wow, a phone plan for fifteen bucks!