See also
- ##[17] loc preferences #index page
- [19] 2phase to manage multiple needs: rental income
- [18] 2phase to manage big rental burden
— livelihood vs FOMO
[L=a livelihood concern] This blogpost was written a few weeks after I defined the 6+ elements of livelihood . Grandpa and Jack.He would agree that Home ownership is not a necessity. The less affluent can stay rented long-term, so heavy rental burden is a livelihood concern.
[f/F=FOMO-related or FOMO-driven] Most of the items below are FOMO-related. The pTax, HOA and mtg burden are part of the “deal” when you join the exclub, and maintain your status … high maintenance !
== Given the multitude of constraints, we want to show (and posses) flexibility. It’s crucial to identify your points of inflexibility, i.e. your unique priorities (half-ranked) compared to peers.
— constraint: CC1 [commute] .. am not flexible. Arguably my #1 inflexibility
Sugg: favor connectivity
As explained elsewhere, long commute is not a livelihood issue
— [L] constraint: high rent in the U.S. .. am flexible
am flexible to keep renting long term, whereas my peers may prefer buying a home ASAP.
am flexible due to my Asia rental income
am flexible with half unit in small home
am flexible with lease spread including sublease
— [f] constraint: oversized price tag .. am flexible with small or old homes
Sugg: avoid big homes or top SDXQ
Sugg: buy small unit and lease spread
— [f] constraint: pTax .. am less flexible, due to my limited income + location requirements
Sugg: 43R lease spread to offset pTax
— [F] constraint: SDXQ .. am flexible with average schools.
Sugg: live rented in a reasonable SDXQ, and move if needed
— [L] constraint: CC2 [Chinese community] .. wife and I are less flexible
Possibly a livelihood issue for wife
— constraint: car-dependency .. I can reduce my inflexibility. This inflexibility severely limits my choice of location.
Sugg: favor walkable neighborhood
— constraint: resale liquidity … in a low-cost, low-growth location such as Bayonne or South Edison
Am less flexible because I hate losing money on rEstate.
“Appreciation” is related word.
— [f] constraint: mtg burden .. am less flexible, due to income
Sugg: lease spread .. pay mtg on rental property while renting
Sugg: pay down the outstanding
— [f] constraint: HOA .. am not flexible when condo location is perfect for family
am also less flexible, due to my limited income
====
— the ffree Q: The constraints listed in this blogpost highlight the limits to … my exclub status or my barebones ffree?
Jolt: If you retire early, then you would probably move to (a cheaper, more Chinese country or ) less expensive locations. Commute would be a non-issue.
You may want to cash out your residential properties and stay rented, with subleasing. Sales proceeds, invested in a “shrinking nest egg”, would pay your net rental for 30 years.
However, some affluent people would want to retire AND still keep their homes. They could use lease spread to retire somewhere “nicer”.
In any case, I don’t think CC1, CC2 are real limits to ffree.
— compared to my Chinese cohort
- am flexible with 1) SDXQ, 2) renting forever 3) home-sharing/sublease,
- we are inflexible with 1) CC1, 2) CC2,
— compared to a 10Y younger guy in a comparable profession
- my #1 advantage: overseas rental income(s), substantial enough to defray the heavy burden of rental.
- my advantage: bigger portfolio, producing a growing current income
- my advantage: less sensitive to peer pressure, more mellow at my age
- my advantage: semi-retired (if I so choose) .. less earn-more/move-up pressure
- my advantage: I figured out a dev-till-70 plan, in my niche position
- my weakness: slower adapting to daily driving
Who has more dependents? a 10Y younger guy may have 2 or 3 kids too.