Meet The House in our case study
I bought a house in Denver Colorado in November 2014. I lived in it until 2016 when I moved away and never returned. During this time, I kept impeccable records as a proper accountant does. I went back through and organized the numbers to show a column of what the person who rented this house spent to live here. Then I added in a column of what the buyer residing here would have spent to live here. I tracked the cash difference in the last column. I excluded any costs that I incurred which were related to being a landlord such as property management fees or other leasing expenses that I would not have incurred by being the owner occupier.
The numbers laid bare
And if you want to know the general maintenance and renovation expenses they are:
Interpreting the results
I am not the first to argue that buying the roof over your head may not be a good investment. Nor am I the second. I was inspired to do this case study by Episode 047 of the Choose FI Podcast. But it is much more illustrative to give a live example with real numbers to back it up.
"BUT you're not factoring in ...."
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Unfinished human, currently v.5.0. Expecting at least 10 more versions. Aspiring adult.