FHCE 3200 Lecture Notes - Lecture 6: Airbnb, Walkability, Down Payment

• School: University of Georgia
• Department: Financial Planning, Housing and Consumer Economics
• Course: FHCE 3200
• Professor: Goren

Document Summary

,400 = average entry level job monthly salary. Cutting housing expenses = single biggest lever for cashflow. I. e. , small % cuts = huge dollar increases in cashflow surplus. Add /month roommate to 2 bd apartment costing ,200: ,400 annual income, 28% raise for ,000/year earner, worth 560 hours worked, worth ~,000 at retirement if invested. Add /month roommate to 2 bd apartment costing ,200: move to a less expensive neighborhood, use airbnb, negotiate with your landlord, move out / sublet over the summer. Renting is better in the short term. Buying is better in the long term. Nationwide average = ~5 to 7 years. Depends on the city or the state. I(cid:374) so(cid:373)e (cid:272)ities (cid:894)e. g. , athe(cid:374)s(cid:895), (cid:271)uyi(cid:374)g is (cid:862)(cid:272)heaper(cid:863) tha(cid:374) re(cid:374)ti(cid:374)g. I(cid:374) so(cid:373)e (cid:272)ities (cid:894)e. g. , a(cid:374) fra(cid:374)(cid:272)is(cid:272)o(cid:895), re(cid:374)ti(cid:374)g is (cid:862)(cid:272)heaper(cid:863) tha(cid:374) buying. Depends on the job and personal situations. Do (cid:374)ot (cid:271)uy a ho(cid:373)e as a(cid:374) (cid:862)i(cid:374)(cid:448)est(cid:373)e(cid:374)t(cid:863)