>55 years old, FIRE, and renting? Knowledge of your experience wanted!

[aGracefulStomp]

Hey there everyone,

I live in Australia in a city where housing prices are insane (2nd most expensive city in the world actually). While I'd love this housing bubble boom to end, there's a chance it could continue forever or alternatively fail to crash fall to an extent at which prices become reasonable.

I've done the calculations on the capital needed to own a house, and the capital needed to forever pay rent (based on a 4% rule). The difference between the two amounts are ridiculous - pursuing ownership would require me to work many extra years.

However I can't imagine being like 60, 65, 70, 80 and having to move house every few years because my lease has ended and the landlord wants new tenants (or is moving into the house, selling, etc).

So is anyone a bit older and renting? Do you regret not buying and/or do you plan to buy in the future? Are you concerned about having to move again and again forever, particularly if you reach an age with decreased mobility?

Or those that have chosen the "renting life" and are a big younger, have you considered this?

[Aggie1999]

Can't speak for Australia but in the United States a monthly mortgage payment and upkeep/insurance/etc on the house seems to be in the same ballpark as monthly rent. Given that and tax deduction ones gets for mortgage interest I don't see a financial reason one would be a long term renter if they wanted to stay in the same house. Of course there are non-financial reasons such as not wanting to worry about maintenance, etc. Also down payments in the US can be very low. No idea about Australia.

Am I missing something? Anyone disagree?

[urbanista]

Can you retire in Brisbane ? (Hobart, Adelaide?)

Heck, even Melbourne has nice suburbs where you can get a small house for 450K (long commute to CBD but who cares).

[south of 61]

Can't speak for Australia but in the United States a monthly mortgage payment and upkeep/insurance/etc on the house seems to be in the same ballpark as monthly rent. Given that and tax deduction ones gets for mortgage interest I don't see a financial reason one would be a long term renter if they wanted to stay in the same house. Of course there are non-financial reasons such as not wanting to worry about maintenance, etc. Also down payments in the US can be very low. No idea about Australia.

Am I missing something? Anyone disagree?

Aggie - In AUS, mortgage interest on your PPOR is not tax deductible, and interest rates in AUS are higher than the US and property prices in Syd are insane - so I think this makes AUS very different to the US

[rachael talcott]

You might find this of interest:

http://www.madfientist.com/millennial-revolution-interview/

[Dicey]

There are passionate arguments to be made on both sides of this issue. However, I love the freedom of owning my own home. I can paint, remodel, reconfigure to my heart's content. I do not love being at a landlord's mercy or having to follow someone else's rules. I cannot imagine this changing as I get older.

[FrugalToque]

Please post further replies in:

http://forum.mrmoneymustache.com/post-fire/renters-for-lifeforeseeable-future-worried-about-renting-in-old-age/msg1398370/#msg1398370