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Hi Taylor
- The housing market has me feeling a little stuck. My wife and I
live in a city, and rent is out of control, but houses in more rural
areas don't feel affordable either. Are there alternatives I don't
know about, or is this just how it is?
Hi Octavio - For a lot of Americans, this is just the way it
is. Rent prices have increased at an unbelievable pace, and the housing
market hasn't really cooled despite years of predictions that prices
would fall. There isn't an easy fix to these issues, but there are
alternatives if you're willing to explore some nontraditional options. |
1. Buy
to rent. You can't afford taxes and a mortgage and a downpayment
on your own, but can you afford two out of the three? If you're
able to find a place that either has a granny unit or is close
to another place you can stay (ie, your parents' basement), you
can spend a few years being a landlord and letting a tenant help
cover your costs. Before you go nuts and decide to start a high-traffic
Airbnb, think about what you can legitimately handle when it comes
to property management. If your schedule allows it, a busy rental
is a great side hustle. If your plate is already full, you're
not going to want more than one tenant.
2. Tiny house. I thought these were nothing more than a novelty
until I went to a tiny house dinner party with three couples and
four kids. Believe it or not, you can live a pretty normal life
in these mini modular homes. It's a lifestyle commitment, without
question, so it's not for everyone. However, if you have friends
or family who would let you live on their property, you can install
a completely functional home for less than $100,000. For people
moving from a city apartment, the size might actually feel comparable.
If escaping the bustle of urban living is a priority, this could
be just the change of pace you're looking for. It's nothing like
owning a traditional home, but that's not always a bad thing.
3. RV. A tiny house will feel a little more permanent than
living out of an RV, but maybe the freedom of a house on wheels
is what you're looking for. A lot of people took to this type
of living during the pandemic and didn't look back. Of course,
the work you do and area where you live will dictate whether or
not you can live in a vehicle. If you work remotely or seasonally,
you can invest in an RV and stop paying rent money while taking
your home on vacation whenever you want. If it's just you and
your wife with no kids yet, this might be the window when RV-living
makes sense.
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| It's hard when
the thing you want feels outside your price range. To the best of
your ability, consider what you want that's within your means. A tiny
house or running a rental might sound crazy at first, but when you
think about the change you actually want to see in your life, those
options might have a little more appeal. Good luck, Octavio! |
| Legal Disclaimer:
Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.
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