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It would be interesting to find out... some areas definitely have more renters than others.
I've also been surprised at the number of single family homes that had been rentals being sold to owner occupants... I guess the single family rental business is not lucrative enough?
This is one of my biggest gripes with "split roll" property taxes. (Where rental property is taxed at a higher rate than owner-occupied homes.)
Whenever a SFR comes on market, owner-occupants have an inherent bidding advantage over landlords because the property tax differential affords them a lower monthly payment (carrying cost) than an investor.
And, yes, SFR rentals are less profitable, which should be no surprise given the dramatically lower median income of renters - half that of homeowners.
Outside the luxury rental niche, the highest SFR rent rolls probably come from student or group rentals where several unrelated adults share housing in pricey micromarkets. But that probably entails greater local regulation and unrelated occupancy restrictions, which impair profitability.
That's pretty filthy to me. That's a lower-upper class lifestyle without lifting a finger.
You have to lift a lot of fingers to get and save $6 million; then you can relax and take it fairly easy, on $240,000 a year (before tax, at a 4% withdrawal rate). Upper middle class is more like it.
the problem is you have two schools of thought going on in this thread and it is creating the great debate over what 1 million dollars represents .
to those who think in terms of hitting the lottery and having 1 million dollars EXTRA to blow and deplete on things it is a lot of money even today .
but for anyone to do that they already need their retirement well funded and taken care of so they have a million they can just spend .
those who don't have that pre funded retirement and got 1 million have nothing more then the lifestyle a 40k nyc sanitation worker pension gets you who has little savings . .
here in nyc it ain't much and certainly falls short of even a middle class life style .
the reality is if you need to support yourself it ain't about the pile of money , it is only about how much that pile of money can generate and how long it can support you and your spouse .
remember just drawing 4% inflation adjusted is based on the possibilty that all the money can be gone by the 30th year , principal too .
if all we had is 1 million , living here in queens i can tell you there is no way i would have retired at 62 voluntarily . it would fall way short for even a modest middle class lifestyle here . not only would most of our wants have to be eliminated but we would stress over every unexpected bill.
like we just saw medicare jump 300% and go from 104.50 to 390.00 a month for just my wife . a property sale in 2014 before we were retired or she was even on medicare triggered it . there is still a 2900.00 dollar a year supplement bill and a 300 a year drug plan bill to go with that and that is without my costs for medical since i am to young for medicare
Last edited by mathjak107; 03-27-2016 at 03:35 AM..
the problem is you have two schools of thought going on in this thread and it is creating the great debate over what 1 million dollars represents .
to those who think in terms of hitting the lottery and having 1 million dollars EXTRA to blow and deplete on things it is a lot of money even today .
but for anyone to do that they already need their retirement well funded and taken care of so they have a million they can just spend .
For those of us without a defined benefit pension, $1 million in investable assets is equivalent to having a public sector job with a $40k pension when you retire in your early 60's. You combine that with a Social Security check and you have a comfortable middle class retirement but nothing like what is projected in a golf tournament financial services money management advertisement or an erectile dysfunction commercial. You're not going to be doing elaborate trips around the world. You're not doing 3-star dining every week.
For those of us without a defined benefit pension, $1 million in investable assets is equivalent to having a public sector job with a $40k pension when you retire in your early 60's. You combine that with a Social Security check and you have a comfortable middle class retirement but nothing like what is projected in a golf tournament financial services money management advertisement or an erectile dysfunction commercial. You're not going to be doing elaborate trips around the world. You're not doing 3-star dining every week.
For those of us without a defined benefit pension, $1 million in investable assets is equivalent to having a public sector job with a $40k pension when you retire in your early 60's. You combine that with a Social Security check and you have a comfortable middle class retirement but nothing like what is projected in a golf tournament financial services money management advertisement or an erectile dysfunction commercial. You're not going to be doing elaborate trips around the world. You're not doing 3-star dining every week.
exactly , folks have to differentiate between having 1 million to just spend vs 1 million to support yourself . supporting yourself for decades on it isn't much in the scheme of things .
most folks will earn a million dollars working their careers but it is used to support themselves . it is as consumed as that million generating your income in retirement could be .
here in nyc a 120k -160k pretax income from 3 million dollars still only buys a middle class lifestyle with quite a bit of budget watching . we are in that income range now in retirement and we don't live in manhattan but the boroughs . it buys us a decent middle class life style although we don't have a paid off home . . .
1/3 of the budget goes for health insurance , long term care insurance and rent . that is before we figure in taxes .
we would likely need half that in the lower cost areas but we like it here and to us worth the costs .
Last edited by mathjak107; 03-27-2016 at 08:27 AM..
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