Effects of housing/apartment cost on investment or wealth accumulation goals. ‎

[Cryptomultiplier]

‎The cost of housing and accommodations keeps rising in recent times without a decrease, unless one is constantly moving in between apartments within the same local government or to another, that is, from an apartment in a more urban settlement to an apartment in a slightly urban or rural settlement.
‎The cost of living is affected by one's source income and it is a factor to be heavily considered when a potential investor is considering investment into assets for wealth accumulation and fulfillment, besides looking for the plan to follow to achieve such success, realistically.
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‎Consider that if you get to choose a more modest home and invest what is left, the compounding effect spanning over 10 - 20 years can be worth hundreds of thousands of dollars more than the home’s appreciation.
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‎If the unrecoverable costs of owning are higher than rent, you are technically "losing" money by owning, which could have been used to fuel a high-yield investment portfolio.
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‎Aim for a cheaper apartment that saves you an income ratio of 25% or less. This creates a bank of surplus after the money left over after getting the cheaper apartment, this is the single most important driver of wealth accumulation.
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‎To achieve better investment returns, the cost of housing should not be viewed as a standalone expense, but as a capital allocation decision. Before you even begin a wealth accumulation process, your housing strategy dictates the pace at which your other investments can grow.
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‎To get better returns overall and minimize your fixed costs which is the cheaper apartment, is to maximize your variable output of which is the investments you want to get into.
Before you buy or sign a lease, calculate the Future Value of the difference. If choosing a cheaper apartment saves you $400 a month, that $400 invested at 8% for 30 years becomes roughly $750,000.
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‎What's your opinion?
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[Findingnemo]

First of all buying a house for your own purpose is not an investment or asset, it's just a liability because it doesn't generate any revenue but you are going to spend money on it, for maintenance, bills and taxes.

And then it is not just finance, we all want to live a comfortable life so buying a house is also got emotional connect, one can buy that after getting rich and no need to worry about making money again, because they will have the source already and it will keep generating them money but then there is middle class who will pay more than half of their salary to mortgage for the most part of their remianing lives, instead they could compromise and live better in a rented house.

[Odusko]

Owning a home could save you alot, if you know what type of house that goes with you present level and finances, investment with shelter will definitely end in frustration let say you have working for years and yet still keep struggling to pay rents instead of owning one when you are much younger, the cost of renting is crazily increasing daily and one can't compared the long term impact of rented apartments to owning your own piece of the earth.

[programmer3666]

Housing cost definitely plays a huge role in how fast someone can build his/her wealth. If too much of your income goes into rent or a mortgage, there is little left to invest, no matter how good your plans are. So choosing a cheaper apartment is not about lowering your standard of living, it is about freeing up money to work for you.

[letteredhub]

Housing cost definitely plays a huge role in how fast someone can build his/her wealth. If too much of your income goes into rent or a mortgage, there is little left to invest, no matter how good your plans are. So choosing a cheaper apartment is not about lowering your standard of living, it is about freeing up money to work for you.

Often times when people make huge funds, get promoted in their job leading to increment in income or won a big contract that can earn them life changing funds, next thought they have is how to move from their current location to a higher standard area where the house rents are expensive. The average man should be thinking of making their money work for them by investing it in different assets but some choose to live their tomorrow today and when the tomorrow eventually arrives they have nothing to show off for all the years of strives and hustles.

[Hypnosis00]

Renting these days has gotten more expensive as everything in life is now expensive. But my point is, if you can't still afford to buy or build a house, then why force yourself or rush into it? It will only compromised your budget plan and ruin your priorities in life.

Its way more economical if you can still find a comfortable place on your own and rent it. Investing will follow, but the amount of investment should not jump into starting with big capital. Just start it small and adjust your investment or wealth accumulation when your finances is already working in progress, or when your resources have started generate consistent income for you.

[uneng]

It's good to purchase a house or a property when you have plans of turning it into a business or renting it to someone else. It's necessary to put your patrimony to work for you. To adopt green sources of energy like solar production is also a very good idea, because it will allow you to decrease electricity bill's costs. To choose carefully where to buy a property is also important, as you want a safe and prosperous area, far away from trouble.

In this sense, prosperous doesn't mean status, neither a wealthy area necessarily. It means an area where you have a healthy and peaceful neighborhood. By doing your analysis this way, you can find balance between living costs and life quality.

[abhiseshakana]

Before talking about investing and having property, i suggest you to check your financial safety first. First, emergency fund saving for 6-12 month is unnegotiable, i put it on gold. Considering healthy is important especially for approaching old age, health insurance is a must. Zero debt & avoid debt especially with interest is my principle, but if you have healthy debt ratio below 30% from monthly income, you can consider investing or having property.

If sequenced, i prefer buy a house if possible because it is stable asset and owning house is security of life. 2nd option investing even i should rent an apartment / rent a house, because i think this is the smartest strategies. Buy an apartment never be on my investing list at the meantime, because my kids is small, when they go to college, they will need it and i think owned one is good decision. I never buy something which will make my financial condition fragile.

[ancafe]

To get better returns overall and minimize your fixed costs which is the cheaper apartment, is to maximize your variable output of which is the investments you want to get into.
Before you buy or sign a lease, calculate the Future Value of the difference. If choosing a cheaper apartment saves you $400 a month, that $400 invested at 8% for 30 years becomes roughly $750,000.
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‎What's your opinion?
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This is similar to my scenario of building a house. I previously preferred renting over buying and I searched for a much cheaper house so that the remaining money could be invested in Bitcoin. Buying a house to live in is not an investment but rather a necessity that ultimately will not provide financial benefits. Instead, we will spend a regular amount of money on maintenance costs, taxes, electricity, water and other expenses. This can be calculated into other processes that may have nothing to do with investment as we all need a home for a comfortable place to live.

Before we can afford to build our own home, it's much better to rent an apartment to reduce the large rental expenses. We can leverage this potential for investment, using the money we would otherwise pay for rent. I don't mind living in a modest place, as long as we have a much better plan for our financial future rather than just the prestige of living in a large luxurious house.

[CONVOAI]

In reality most people cannot maintain this discipline due to behavioral finance. If people move to a cheap house and end up in lifestyle inflation or impulsive spending then theoretical compound growth does not come into reality. Therefore, it is important to talk about investment automation and forced saving systems or mandatory asset allocation plans in addition to housing decisions. Simply saying spend less will not work if you cannot create a system for where will the saved money go the whole strategy will collapse. Housing has a strategic location value that directly affects income potential. Being close to the city often means more networking and better job access and less commute fatigue and productivity gain. If someone moves away and lives at a lower rent but loses 2 or 3 hours on the road every day then calculating that opportunity cost can eat up a large part of the savings. Therefore it is not just the rent vs. invest equation that should be calculated but rather the location-adjusted earning potential.

[Agbamoni]

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‎Consider that if you get to choose a more modest home and invest what is left, the compounding effect spanning over 10 - 20 years can be worth hundreds of thousands of dollars more than the home’s appreciation.

Depending on your definition of modest. When choosing a home, regardless of your financial goals, the thing you should look for is security, cost, maintenance, and other benefits. It will be stupid to choose an apartment without good security because it is cheaper. Your life is better than any investment plans you have. You also need to know that a good apartment can be very beneficial, especially for those who work from home. It increases productivity and gives you the comfort to upskill.