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golden handcuffs and renting

July 6th, 2016 at 03:08 pm

This weekend we hung out with my BIL staying at his apartment. He's 36 and never bought his own place. Partially because he's not had a down payment and partially because he's never been sure he wanted to stay put. Truth is his first 2 years working there were layoffs at his company and he wasn't sure if he would stay. He feels secure now but not happy.

So buying a place for a job he isn't in love with doesn't make sense. We've told him if he's unhappy and thinks he'll find a new job or career don't buy. But at the same time he feels he's flushing money down the toilet. And he feels he can't leave his job, he's got some security through a large salary. He's in the middle of being handcuffed to his salary. Honestly if he buys a condo I think he'll be even more handcuffed.

And yes he has been renting his apartment for 4 years and rent keeps escalating. It was $1600, then $1750, then $1900, and now it's $2100/month for a 1 bedroom. But buying means he's committed to the area he doesn't love. It means he needs a big EF in case he loses his job and if he gets a new job and it's not easily commutable he has to sell and move.

SA thread was discussing whether you hate your job. I think if you do you should figure out how to change it or your career. Sometimes it's just the job and sometimes it's the career. And it's hard to leave the job if it's so lucrative for your family/self. It's hard if it's convenient. But you can make a plan and change I think.

What do you think about being handcuffed to a job?

3 Responses to “golden handcuffs and renting”

  1. snafu Says:

    Ownership isn't wonderful for everyone. It would be in BIL's best interest to run his numbers. With $0 DP, what can he afford for mortgage, PMI, homeowner insurance, property tax, utilities, parking + 1 % in repairs etc? Can he stay within 30% income for the same standard, similar location of rental accommodation? Does he want to carry a 30 yr mortgage to his 66th year? What does that do to his image of retirement? Yes, rent increases but so do municipal taxes, utilities and repairs.

  2. Kiki Says:

    If the rent is so high why doesn't he move someplace cheaper. He is paying a mortgage cost in rent every month.

  3. Livingalmostlarge Says:

    He can't move. He lived close to his job and it's in the SF bay are. Good price for the area. It definitely isn't cheaper to buy.

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