renting vs living at home?
 

i had type out a really long post but then figured it was too long. so here it is in summary:

i currently live at home with parents. whilst i get on very well with parents, having spent half of the last 4 years at university, i've found now 3 months since ive been back i'm feeling i'd like a place of my own.

i can't afford to buy anywhere i'd like. i have $160k in savings from poker.

i'd pay about $2.5k in rent per month for somewhere i'd like, maybe as much as $3k per month (i'd like a riverside apartment, for some reason i just really want a riverside apartment)


4 weeks time i start as trainee accountant with big4 firm. wage is $53k so about $3.5k/month tax free.

expenses at home about $1.5k/month. expenses living in rent place about $3k/month

thus living at home i make $2k/month and renting it costs about $3k/month

i should make about $2k/month from passive sources and at least $2k/month from online poker, should be more. i.e. i should make $6k/month living at home versus making $1k/month renting.

would i be crazy to rent?

just that i feel i would enjoy so much living in a riverside apartment, and although it would cost me $60k in lost earnings over a year to do so, i feel given the number of variables money-wise and how lucky i have been to have $160k in savings that maybe it's time to reap the some of what i've sowed. i've always been of the view of enjoying today whilst building for a more secure future, but i feel the future would be good without having to save over the next few years given my salary would double after 3 years of working.

would this be really financially irresponsible?

just that part of me thinks given if i'm still alive and all goes according to plan, i'll be on $100k/yr in 3 years time and it'll keep going up and up as the years go by, and so effectively i'll get more enjoyment out of the money now than i will in the future.

i don't want this to come across as 'well done you've saved some cash', i just don't know whether i'd regret spending so much on rent'

thanks for taking the time to read, and any thoughts greatly appreciated.

edit: one thing i'd like to add is that i don't want to look back in a few years time and think 'wait a minute, i should of had a really fun time aged 23-26 rather than an alright pretty good time'. i feel at uni from 20-23 i had a great time becuase i never put saving over having a good time (yet still played a sod load to grind out as much as i could), whereas i feel by living at home i will be.

Re: renting vs living at home?
 

You need to move out of your parents house. Being an accountant will already hold you back enough in your chances to get with the ladies, living with your parents will kill any chance you have left. Consider splitting a 2 bedroom apartment with somebody, it's dirt cheap and a cool roommate makes being at home much less lonely.

Re: renting vs living at home?
 

move out...and it's not even close

Re: renting vs living at home?
 

[ QUOTE ]
You need to move out of your parents house. Being an accountant will already hold you back enough in your chances to get with the ladies, living with your parents will kill any chance you have left. Consider splitting a 2 bedroom apartment with somebody, it's dirt cheap and a cool roommate makes being at home much less lonely.

[/ QUOTE ]

Exactly, your choices are not live with parents vs. whatever this riverside apt is. Your choices are how much to spend on a place of your own and whether or not you want to go the roommate route.

J

Re: renting vs living at home?
 

[ QUOTE ]
move out...and it's not even close

[/ QUOTE ]

Re: renting vs living at home?
 

convince your parents move to a florida retirement home. take over the old home. otherwise, move out.

Re: renting vs living at home?
 

thanks a lot for the replies. i think ill probably move out, i just feel being 23 i don't want to live with my parents, even though we do get on very well.

an example place id like:

http://www.londonriverproperties.co....ntal-147.html#

property prices in the UK imo won't rise, although london likely will.

regardless though i'd like to live in london for 3 years or however long it takes me to qualify as an accountant then go work either in the US or australia (been to oz for 6 months and loved it) for a couple of years, then go back to london maybe and buy somewhere, have to wait and see i guess.

one thing though which makes it a bit odd;

my brother, 3 years older, lived at home for 3 years and then moved out. he is currently on a bit over $100k/year and renting somewhere for $1600/month. i think he has about $120k saved up from last 4 years of working as an accountant.

my parents would be like 'wtf, why are you renting somewhere 50% more expensive than your brother?' (they don't know how much i've made online, they probably think about $30k).

so i guess i'd have to tell them. but they would probably be 'wtf, this is still really reckless' but then i'd have to be 'well, i just really want to do it'.

that apartment above though looks really nice, except i'd want a view over the river thames not at an angle. other than that looks awesome imo.

i'd have to decide if i wanted to rent with anyone, preferably i would i think, but i think i've left it too late as everyone has already got places sorted for the year ahead, maybe i could switch after a year.

thanks again for the replies.

edit: that place above is $600/week which works out as $31,200 per year, my salary would only be $10k posttax more than that. good old poker i guess would have to come in handy....

edit2: i'd leave it till a month or so after i've started work, so mid-november, as i'd need to see if i can stick with this job which almost everyone says they want to quit a few times during the first few year.

Re: renting vs living at home?
 

you can always rent out a room or two in whatever you buy to help make payments for the place you buy. nothing over the long run is better for some people than to own your own place. no landlords to deal with or being asked to move. and rents go up over the years.
it sounds like you can afford to buy more and build your income to it. just buy something that seems saleable in the future.
prices will rise very much in london.

Re: renting vs living at home?
 

[ QUOTE ]
you can always rent out a room or two in whatever you buy to help make payments for the place you buy. nothing over the long run is better for some people than to own your own place. no landlords to deal with or being asked to move. and rents go up over the years.
it sounds like you can afford to buy more and build your income to it. just buy something that seems saleable in the future.
prices will rise very much in london.

[/ QUOTE ]

I like this advice a lot. Maybe you could live with your parents for liek 6 more months to save that extra 30k or whatever. Then make a larger down payment on the house (lowering your monthly expenses), and maybe get a room mate or two.

Re: renting vs living at home?
 

i wish i could afford a place, but it's way off. the minimum i'd have to pay for somewhere i'd consider living in is $500k for a 1 bedroom apartment. at the moment if i got a full mortgage the most i could pay is $160k+$200k=$360k, so i'm well short.

really is living with folks vs renting.

my problem is i guess i just want to live somewhere pretty expensive given my salary (like 60% of my salary). most people my age would be paying no more than $300/week whereas im considering paying double. just wondering whether it's pretty stupid paying so much.