Should we continue renting?

germanflat

Last year, Mr. German and I moved into a rental apartment in a nice area of our city.

At the time, we were in a pinch to find something fast so ended up settling for a place that was over our agreed upon budget.

I like it here, I really do. But ever since we moved in 7 months ago, I’ve been wanting us to move out.

The frugalista in me can’t take that it’s so pricey for the area. If it was 100-200 EUR per month cheaper, I would love it. But because it costs so much, and will go up every year by 20 EUR per month (which btw, I think is illegal!), I have higher expectations and can’t get over that we are getting a bad deal.

I hate bad deals!!

So we started apartment shopping immediately after moving in, but have been looking to buy, not rent.

This made sense as we finally feel we are in a position to buy. Though buying a place will mean an increase to our expenses, and also a decrease of liquid capital.

Since my goal is to bring our expenses down, and to generate passive income through dividend stock investments, I’m unsure if owning our primary residence makes financial sense to us.

There is another rental down the street for 100 EUR less per month, and it appears to be in better condition too. It also has 2 bedrooms instead of just 1, is closer to the train station (good for me!), and is a 3rd floor rather than a 5th floor walk-up. No parking though.

It’s a pain in the ass to move again, especially so soon. Especially for another rental.

We are also in the privileged position of not having to chase cheap rents. Even though our rent is a lot right now, paying an extra 100 EUR per month is manageable. Although I still think it’s a lot of money to lose.

Rent is our biggest expense. If we went around tweaking everything else, we probably wouldn’t be able to save 100 EUR per month. So adjusting our biggest expense will also have the biggest impact.

I think what I would like to do, is to visit this cheaper rental, talk to the landlord, and find out more about it. Maybe it could be the right place for us and we could stay there for a few years while focusing on saving and generating passive income. Or maybe we’ll figure out that it’s better to stay put.

We won’t know until we try.

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3 thoughts on “Should we continue renting?

  1. Pingback: Would you consider downsizing to a studio apartment? | Ms. Canadian Expat

  2. Pingback: The 4% Rule | Ms. Canadian Expat

  3. Pingback: Renting is great! | Ms. Canadian Expat

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