For some, time has become more important than income and material things. Experiences, people and memories serve as souvenirs from a life well lived. No longer were we subject to the white picket fence that meant we had to settle down in one place for as long as possible.
In the workshifting, lifestyle design and internet business world, we are coming to a piece of mind that renting may actually be a better option to this lifestyle. Renting allows us the freedom to move from place to place, traveling the country or the world and putting our saved monies into other investments, or even in experiencing more things. A recent article from Housing Watch notes that "a mere 55% of adults say buying a home is the best investment families can make."
Personally, I still believe in the power of real estate investments. But my mindset in working from home, the beach or the park tells me that 6-12 month rentals are not only freeing mentally, but they can save you a ton of money in the short term to enjoy your time. I am not pretending to be an expert in real estate (I read everything I can get my hands on, but still get confused), but I can see that investing in a home that is depreciating faster than the interest is rising is not a good financial plan for my own future. Much like many of us have made the decision to work location independent, whether for a company or out on our own - we did it to better our situations in life.
A recent article from the LA Times echoes that fact for people in upside down mortgages as proposed by Professor Brent T. White:
Go ahead. Break the chains. Stop paying on your mortgage if you owe more than the house is worth. And most important: Don't feel guilty about it. Don't think you're doing something morally wrong.Renting may be the answer, but maybe its not. In my own life, I am torn between these 2 worlds. There are benefits and advantages to both. What I want to do is turn the conversation over to the community and see what you think of the situation. What do you think about the following questions:
- Are you renting or do you own a home?
- Have you thought of foreclosing, a short sale, etc?
- How do you manage your travel and work schedule with your living situation?
Photo Credit: Azhure
These are VERY important questions in today's market & something that we have been watching for a long time.
We foresaw the coming financial and housing collapse, thus sold our dream home in 2005 which certainly enhanced our open ended family world tour lifestyle.
I first wrote about it on our blog in 2006 with a post entitled "timing is everything" as well as plenty about renting abroad.
Housing in the U.S. (and much of global housing) has a long way to fall yet. There will be a 2nd wave of foreclosures as many mortgages are due to reset this year, many in the summer months. Commercial real estate is also in huge trouble and that will impact, not to mention continued problems with banks failing.
Look to history, like how Japan's housing market fell after a big boom and stayed down for more than 15 years. Every one should read Shiller's 100 year History of Home Values chart and NYT's "This Very,very old house" to get a clearer picture of reality, rather than the false myths that most have acquired about buying a house.
We are living in a beautiful,new,nicely furnished, rental home with spectacular Med sea views and pool in warm, sunny Spain for a pittance. This is our 4th winter in this charming small village just an hours drive away from Malaga and Granada (which also has gorgeous mountains with the best snow skiing in Spain) and 5 minutes to stunning beaches.
We have high speed internet connection to handle all our needs & our daughter goes to the local school where she immerses in her 2nd language, takes flamenco lessons and ceramics. She also takes piano & violin lessons and CTY online courses with teachers on another continent via webcam calls etc. ( I wrote about this in 4HWW as we are a featured case study).
Next winter we will get a rental home in Malaysia overlooking another beach, where she will immerse in Mandarin at a Chinese school.
As much as we loved our dream home, we have not missed it at all and find renting furnished homes around the world as an excellent (& very frugal) means to "workshifting" as we travel the world! We find that we can travel the world and live large (even in "expensive" Europe) for MUCH less than living at home and not owning a home now grants us so much more freedom and quality of life.
@soultravelers3 - That is a great story and situation you have put yourself into. You are one of the few who saw it coming and got out before the real damage would have come to the value on your home.
Thanks for the info and I look forward to reading your case study in the new 4HWW.