2023 Real Estate Observations (Boston, Brookline: mall, parks, cemetery)

[charolastra00]

Originally Posted by simplexsimon

Renting sounds better than owning by a lot for your situation.

What do you feel you're missing by not owning?

I'm 35 and have paid almost 200K rent that could have been building equity if I ever had enough of a downpayment. And in the past 5 years, my rent has gone up $1000 a month, where if I had been able to buy at that time I'd be in incredible shape. Unfortunately, at my age it's no longer just looking for a starter home but looking for somewhere where my future kids will spend their first few years.

Not that I expect anyone to remember, but as I have shared before, I'm at crux right now where in 2 years my financial picture will be very different. My salary has tripled in 4 years, and doubled in the past year alone. For the first time in my life, I'm able to max out my 401K, get bonuses and RSUs, and have access to an ESPP that I max out. I just haven't started getting any of those payouts yet. While anything could happen with the economy, obviously, I'm pretty confident in my company so I expect to get a significant portion of a downpayment in bonus and initial RSU vesting next year - not to mention the ESPP (which I feel confident in) and additional savings over that time. My partner is also working to sell his company or at least the intellectual property behind it in the next year, which means he would be able to contribute to a downpayment. Even without his contribution, in a year I'll have a decent downpayment but if I could stretch it to 2 years, I'd be in much better shape even as costs go up. But because none of that has happened yet, I'm budgeting for house savings and rent as if my boyfriend can't sell the business and the stock bottoms out.

I'm a lot more risk averse than most because of my cancer history and the poverty I experienced as the result of getting sick. I also don't have family to go to if things go sideways, so my emergency fund minimum is probably higher than many people in my situation would feel the need to have.

Gently for those who question, if you've never had to not fill cancer prescriptions because you have maxed out your credit cards and are already late on rent, you really cannot understand.

[massnative71]

Originally Posted by msRB311

I've seen it work that way for some

Not likely for somebody like her who started a brand new position, in a corporate environment.

[redplum33]

Originally Posted by charolastra00

My current place is not OK with it, which is part of the reason we need to move. The dog does not live here and is unable to visit, and the 3 hour round trip commutes are killing me (literally - the weight gain alone from lack of activity, quick meals, and stress is tough to deal with).

Oh, I thought the dog was currently living with you.

So, if the dog can't currently visit and your boyfriend is currently tied to his business in NY, would it make sense to go with a 1 year lease for like a $2500 one bed on Comm Ave in Allston? You'd have an easy commute, you could save some money, and you'd have a year to figure things out.

[msRB311]

I've heard so much about this situation that I couldn't help but come up with another option.

[simplexsimon]

Originally Posted by charolastra00

I'm 35 and have paid almost 200K rent that could have been building equity if I ever had enough of a downpayment. And in the past 5 years, my rent has gone up $1000 a month, where if I had been able to buy at that time I'd be in incredible shape. Unfortunately, at my age it's no longer just looking for a starter home but looking for somewhere where my future kids will spend their first few years.

Not that I expect anyone to remember, but as I have shared before, I'm at crux right now where in 2 years my financial picture will be very different. My salary has tripled in 4 years, and doubled in the past year alone. For the first time in my life, I'm able to max out my 401K, get bonuses and RSUs, and have access to an ESPP that I max out. I just haven't started getting any of those payouts yet. While anything could happen with the economy, obviously, I'm pretty confident in my company so I expect to get a significant portion of a downpayment in bonus and initial RSU vesting next year - not to mention the ESPP (which I feel confident in) and additional savings over that time. My partner is also working to sell his company or at least the intellectual property behind it in the next year, which means he would be able to contribute to a downpayment. Even without his contribution, in a year I'll have a decent downpayment but if I could stretch it to 2 years, I'd be in much better shape even as costs go up. But because none of that has happened yet, I'm budgeting for house savings and rent as if my boyfriend can't sell the business and the stock bottoms out.

I'm a lot more risk averse than most because of my cancer history and the poverty I experienced as the result of getting sick. I also don't have family to go to if things go sideways, so my emergency fund minimum is probably higher than many people in my situation would feel the need to have.

Gently for those who question, if you've never had to not fill cancer prescriptions because you have maxed out your credit cards and are already late on rent, you really cannot understand.

Without having a down payment years ago it might be counter productive to think about what was “lost” since buying was not on the table to begin with. And even if you did, it’s possible you wouldn’t be that far behind, if at all, after having to pay for interest, insurance, taxes, maintenance, and transaction costs vs having invested the difference. It sounds to me that you did the best things for your situation and risk tolerance.

With all that said, when you do start looking you should not look to equate mortgage to what you’re paying in rent since the rental price is about the maximum a renter pays and the mortgage is the minimum an owner pays.

[newenglandgal123]

Originally Posted by simplexsimon

Without having a down payment years ago it might be counter productive to think about what was “lost” since buying was not on the table to begin with. And even if you did, it’s possible you wouldn’t be that far behind, if at all, after having to pay for interest, insurance, taxes, maintenance, and transaction costs vs having invested the difference. It sounds to me that you did the best things for your situation and risk tolerance.

With all that said, when you do start looking you should not look to equate mortgage to what you’re paying in rent since the rental price is about the maximum a renter pays and the mortgage is the minimum an owner pays.

She already mentioned that she's basing all the decisions on only her income for risk aversion purposes.

[newenglandgal123]

Originally Posted by massnative71

Um, that's not how the world works.

It's called PFML in MA...so it is possible...at least for a certain amount of time which is 26 weeks.

[massnative71]

Originally Posted by newenglandgal123

It's called PFML in MA...so it is possible...at least for a certain amount of time which is 26 weeks.

I believe one has to be employed at job for a certain amount of time before one qualifies? As for the 2nd suggestion about demanding WFH after returning from maternity leave, yeah I definitely wouldn't recommend that.

[charolastra00]

I was only sharing my experience with rentals since this is the real estate thread and the rental market is relevant. Could I afford more? Yes. Do I want to? No. Do I want to save money so much that I'll move into another 1 bedroom and keep working from home a few days a week perched at the end of my bed? Hell no.

This wasn't a request for advice, but sharing of an experience. Unless you're offering to take on the cost of IVF and daycare, or an off-street parking space in Allston, then kindly avoid sharing "advice." I'm perfectly happy to ask when I need it!

[msRB311]

You've shared your living situation and desire to have kids many times. No need to be rude when someone offers a suggestion. This is a public forum so just like you people can post what they want.