Author Topic: New City. Low Housing Affordability. How to Get Ahead Mustachian Style?  (Read 1414 times)

DiamondIce

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I moved across the country to a city with low housing affordability. There are no affordable duplexes, triplexes, or rental suite properties that would not require a massive mortgage. What is the best way to get ahead Mustachian style? Is it better to rent, and invest in another city a long way away? Settle on a condo? Can anyone recommend an article?

mskyle

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Re: New City. Low Housing Affordability. How to Get Ahead Mustachian Style?
« Reply #1 on: December 27, 2016, 01:10:54 PM »
How do the numbers work out on renting vs. buying (i.e. have you checked out the NYTimes rent vs. buy calculator if you're in the US)? How long will you be living in this area? How big is your family currently and do you expect that to change in the next 5-10 years?

As for me, I live in a HCOLA and I happily rent (in a house and neighborhood where I would never consider buying) and invest what I save in the stock market (index funds). We could probably just about break even if we bought and lived for 5 years in a condo similar to the half a duplex we're currently renting, but a SFH, duplex, or triplex is way out of our budget and I think a bad investment given the ratio of rents to purchase prices (and a triplex costs 3x as much or more compared to a condo in a converted triplex).

NoNonsenseLandlord

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Re: New City. Low Housing Affordability. How to Get Ahead Mustachian Style?
« Reply #2 on: December 28, 2016, 07:06:12 AM »
Rent.  It gives you the option to move, when you want.  Rent the size of place you need.  Do not rent a 3BR of you only need 2BR.

Do not buy rakes, shovels, lawn mowers, etc.  Live close to work so you can walk or bus.  If you switch jobs or locations, move again.

Poundwise

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Re: New City. Low Housing Affordability. How to Get Ahead Mustachian Style?
« Reply #3 on: December 28, 2016, 07:22:48 AM »
I think a Mustachian thing to do would be to live in a marginal neighborhood, and volunteer to make it a safer and more beautiful place.  I don't want to toot my own horn, but I used to rent in a poor area with a lot of public housing, and I am proud that I did my tiny part by picking up litter and volunteering for the struggling public schools and other organizations. I saved money, but I also helped make that part of the world a better place.

clarkfan1979

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Re: New City. Low Housing Affordability. How to Get Ahead Mustachian Style?
« Reply #4 on: January 07, 2017, 03:43:54 PM »
Rent a smaller than average apartment.

Typical Comment: How can you live in Hawaii? It's so expensive!

Me: Our apartment is $1,100 month, utilities and internet included. We also live less than a mile from the beach. How much is your mortgage?

Typical Comment: Uhhh..... about $2,000. But I heard the schools are really bad there.

Me: I'm not sure. I don't have any kids.