Living below your means is the easiest and only sure way I’m aware of to financial security. It’s one of bogglejeads.org mantras. LBYM
I’ve often thought the same thing and I think it’s something the younger generations are thinking a lot about especially if they want to be able to be able to pick up and go to different areas without much effort. When I’ve voiced this in conversation with others, what I hear back is, “But if you own, you can eventually pay off your mortgage. Do you really want to pay rent in your 70s?”
It will be interesting to see what the generations behind us do…
I do think the younger generation is smart to move towards smaller housing and less yard, etc. McMansions and large older homes are increasingly out of fashion in my area. Younger people want to walk places and want $ for experiences over physical possessions. Seems smart to me.
Were I 22 years old and wondering how to spend $80,000 I would think first of spending it on my future. That much money invested at age 22 could easily be worth over a million dollars at age 62. That is almost triple the net worth of the average American at that age.
There are many posts here about students fretting over whether they should attend school X or Y and dissecting the nuanced differences (all magnified by other’s comments) while the cost difference over 4 years is >$80,000 between the two options. Fast forward 4 years or so, and the same person will be deciding between jobs and apartments with relatively minuscule differences in cost. My point is that it is much easier to play with $80,000 of someone else’s money than $100 of one’s own. It is crazy the amount of debt students (and their unwise parents) accumulate for college.
Our S is really wanting to buy a place bout struggling with it because he’s not sure if he will stay in the area and doesn’t want to be an absentee landlord like the person he’s renting from who moved to NY and is renting there and renting to S in DC. He just likes the idea of building equity.
He wants a place so he can make improvements but isn’t so keen on the monthly association fees for the condo either.
There is a LOT of maintenance if you own real estate.
Oh! Oh! I WISH we could get out of our house. Alas, it is still underwater. Our area is not bouncing back anytime soon. When I look around at things that need maintenance or updating (to sell), I feel sick to my stomach!
Blech! I want to rent!
Interesting that the wealthiest people I know, NEVER went to college (e.g. Uncle - , built his own company after coming from a welfare family - net worth $50 million; a good friend quit college after one year, became an electrician, started his own company - net worth $10 million). College isn’t for everyone, nor is the debt.
Disclaimer: I went to college and so did all my children.
“Which is a recipe for long term debt.”
Absolutely, but that is what many people do when they live paycheck to paycheck. Wasn’t there a thread awhile back citing that most people couldn’t come up with $300 in an emergency?
@CountingDown, I’m doing two bathrooms right now. The biggest is 10’x 6’ with an alcove for tub. The whole bathroom was gutted from top to bottom w/all plumbing in same place. Custom bamboo vanity with a trough sink (two faucets) - granite counter, marble backsplash, porcelain travertine tile on bath surround to the ceiling and floor with radiant heat. We also stole space from quest room closet to put in five 38"x10" shelves. $32k. Powder room with same but smaller vanity/counter and same toilet and tile is $10k. I’m wondering if putting in the walk-in shower is what is adding so much to your costs. I did put in a new soaking tub but the tub inself was only $1k.
^Tell me about it! I just sank a few grand to get a few rooms painted.
One issue about renting is when the owner or landlord wants to sell or switch tenants of jacks up the rent which forces you to move time and again. We have friends who had to keep moving from their rental place each year did about 4 or 5 years in a row. It was exhausting.
It’s also tough if you have allergies and need a low allergy environment and all rentals have carpet, smokers, and other things that set off your allergies. You can also have bad neighbors, whether you own or rent. 
"You can also have bad neighbors, whether you own or rent.
Oh, I know too well! >:P
The shower floor will be a step-in; there jyst will no longer be a tub. I think the deal is DC-area contractors who are happy to charge big bucks to make your house look like something out of HGTV. It doesn’t make sense in our starter home neighborhood – it’s too easy to over-improve these houses. OTOH, the bathroom is 50 years old and needs repair. Just am leery of taking that leap.