Wow, that’s a lot of rent money!
Tuesday, July 29, 2008 3:59 pm
I just wrote about everything that that has happened in the past month and thought I’d blah — I mean, blog — about this:
We checked out of the apartment. I’d lived there for just about 6 years. My rough estimate is that I gave Avalon Redmond Place around $68,000 in rent over that time (plus all the money Chris and Andrew gave them while we were roomies). In return they kindly gave me back my entire deposit of $250 (oh, and a place to live).
$68,000 in rent. Wow. It’s scary when you think about it. The obvious observation is, “shouldn’t you have brought a condo/house instead?” With 20/20 hindsight, sure, that would have been the right thing to do, but only because of a Fed-induced housing bubble.
When I first moved to Seattle, I didn’t have plans to stay that long. Specifically, I had to see if I liked my job and the area before committing. Common sense indicates that you should expect to own an house for 5 years before you recoup closing costs and turn the corner on paying mostly interest.
Of course, the housing bubble artificially caused a lot of temporary house value increases; if I’d bought something when I moved there and then sold it when I left, I could have made some decent money. On the other hand, the bubble could have popped earlier and I could have lost all my appreciation. And you also have to keep in mind that rent/buy ratios are way out of whack in the Puget Sound.
But, of course, the move back to the Boulder area was always in the cards and I did end up changing jobs much sooner than I would have guessed when I moved to Seattle, so who knows. :-)
Update (7/30/08): I just realized I calculated the rent total wrong. It should be ~68K over 6 years (corrected above).
