Aussie FIRE | Financial Independence Retire Early 24. House vs apartment: How to optimise your home price for FIRE
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Oct 25, 2024 The podcast dives into the debate of buying a more expensive home versus a cheaper one and investing the difference. It examines the pros and cons of houses and apartments in relation to financial independence. A key focus is on strata fees and their hidden benefits in apartment living. Listeners also hear about the role of timing in property investment, alongside personal anecdotes that highlight how living arrangements impact savings. Emotional factors in property decisions are discussed, revealing the complex interplay of finances and personal circumstances.
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Listener Reached FI With Small Apartment
- A listener bought a cheap inner-city apartment, paid it off, invested savings, and reached FI in their 40s.
- They now wonder whether upsizing to a house for space and future aged-care funding makes sense.
Less Debt Lowers Stress And Diversifies Risk
- Lower leverage reduces stress and increases life flexibility, which is a meaningful non-financial benefit.
- Holding both shares and property diversifies risk compared with being concentrated in one asset.
Account For Stamp Duty And Hidden Fees
- Don’t ignore upfront and hidden housing costs like stamp duty and LMI when comparing outcomes.
- These fees can materially reduce the apparent gains touted when people tout gross sale prices.