Thanks WCI Advisors! We'll be renting!

[WhiteCoatSpouse]

We have decided on renting instead of buying even though we have enough for 20% down payment on starter homes with minimal debt. We live in an HCOL area where starter homes are roughly in the 1 million range. We qualified for 1.5 million purchase but decided on renting. Why??

1) Renting is not throwing away money

2) Can't stomach paying 1 million for a starter house in a not great school district

3) Spouse might not like first job as attending

4) Can't imagine paying $15,000 a year on just property taxes

However, in the process of buying a model 3 since we would commute roughly 90 miles round trip (carpooling together) and my job allows me to have free electric car charging. So theoretically, minimal gas payments from here on out.

Thanks to all the advise about renting!

[MaxPower]

Thanks for circling back. I think you’ve made a good decision. It’s not easy to do what you’ve done (deciding to rent or coming back here to let us know what you decided). Best of luck!

[fatlittlepig]

WhiteCoatSpouse wrote:

We have decided on renting instead of buying even though we have enough for 20% down payment on starter homes with minimal debt. We live in an HCOL area where starter homes are roughly in the 1 million range. We qualified for 1.5 million purchase but decided on renting. Why??

1) Renting is not throwing away money

2) Can’t stomach paying 1 million for a starter house in a not great school district

3) Spouse might not like first job as attending

4) Can’t imagine paying $15,000 a year on just property taxes

However, in the process of buying a model 3 since we would commute roughly 90 miles round trip (carpooling together) and my job allows me to have free electric car charging. So theoretically, minimal gas payments from here on out.

Thanks to all the advise about renting!

Click to expand...

If you’re going to rent, you should rent closer to work. That’s not a good commute.

[Panscan]

Ya why rent so far away?

[q-school]

as long as we are piling on, why not leaf?

 

[treesrock]

q-school wrote:

as long as we are piling on, why not leaf?

 

Click to expand...

Have you driven both cars?  Its not even comparable....

[Lordosis]

hold on a sec here....

A million dollar home's property tax is only 15K?

I am paying more then that on less then half as much house.  New York State strikes again.

[q-school]

treesrock wrote:

q-school wrote:

as long as we are piling on, why not leaf?

 

Click to expand…

Have you driven both cars?  Its not even comparable….

Click to expand...

if the purpose is electric, it meets the need.  if the purpose is to save money, even better.  if purpose is access to HOV lanes, it meets need.

if purpose is to have a nicer car, then that's fine too.  i'm just curious.

i don't agree with conventional wisdom that buying is bad, especially in HCOL areas.  frequently there is money to be made in those areas.  there are always exceptions to every rule.  generally my neighbor makes money selling his fancy cars from what he tells me.  i don't fact check but apparently there are some cars that you can consistently expect to appreciate.  he always invites me for a spin, but i'm afraid to sit in it.

[hightower]

WhiteCoatSpouse wrote:

We have decided on renting instead of buying even though we have enough for 20% down payment on starter homes with minimal debt. We live in an HCOL area where starter homes are roughly in the 1 million range. We qualified for 1.5 million purchase but decided on renting. Why??

1) Renting is not throwing away money

2) Can’t stomach paying 1 million for a starter house in a not great school district

3) Spouse might not like first job as attending

4) Can’t imagine paying $15,000 a year on just property taxes

However, in the process of buying a model 3 since we would commute roughly 90 miles round trip (carpooling together) and my job allows me to have free electric car charging. So theoretically, minimal gas payments from here on out.

Thanks to all the advise about renting!

Click to expand...

Sounds like a good plan to me.  It is curious that you're living so far away and renting, but I'm going to guess it's because the job is located in a less than desirable part of town?

Congrats on the model 3.  I drive an i3.  When the model y comes out we're going to be replacing my wife's honda fit with one.  Can't wait

[WhiteCoatSpouse]

Thanks everyone. We decided to do the commute since family will be helping out with our kids. Otherwise we would definitely live closer. We will revaluate once our lease is up.

The stress of buying has been lifted. Now we will see about the commute.

[HikingDO]

Lordosis wrote:

hold on a sec here….

A million dollar home’s property tax is only 15K?

I am paying more then that on less then half as much house.  New York State strikes again.

Click to expand...

Gotta love Arizona, paying less than $3000/year property tax on a 1/2 million dollar house. Of course, the heat today makes me feels like I'm in Dante's third circle of ************************, but the winters are great!