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 ...."
Want the FREE finance and tax checklist for moving abroad or digital nomads?
Your comment will be posted after it is approved.
Leave a Reply.
Unfinished human, currently v.5.0. Expecting at least 10 more versions. Aspiring adult.