> It sounds like a Fat FIRE concept that is out of reach of most people. Or at least something the average person would only be able to access later in life.
It's not that far off the amount sunk into a equity+interest view of a mortgage ... eg a $500K house would be about $1M after interest. A $1M portfolio would provide about $2500-3300 a month in passive inflation proof income[1]. A quick rule of thumb is a place should rent annually for about 1/19th - 1/20th the purchase price which conveniently is about ~2200 a month...
So overall if someone could afford to buy, they likely could also afford to choose a portfolio and a reasonable rent.
[1]: we'll have to wait and see how true this remains through the kind of inflation we're seeing lately though...
> I have heard of many renters painting their apartments.
Yes, but they likely either were renting a place that had terrible paint (doing their land lord a favor) or had to return it to the original colors at the end of the lease, else face "repair" costs
It's not that far off the amount sunk into a equity+interest view of a mortgage ... eg a $500K house would be about $1M after interest. A $1M portfolio would provide about $2500-3300 a month in passive inflation proof income[1]. A quick rule of thumb is a place should rent annually for about 1/19th - 1/20th the purchase price which conveniently is about ~2200 a month...
So overall if someone could afford to buy, they likely could also afford to choose a portfolio and a reasonable rent.
[1]: we'll have to wait and see how true this remains through the kind of inflation we're seeing lately though...
> I have heard of many renters painting their apartments.
Yes, but they likely either were renting a place that had terrible paint (doing their land lord a favor) or had to return it to the original colors at the end of the lease, else face "repair" costs