Being “Homeless” and Rich: Why Personal Home ownership Might Not Be Worth It (and Why Chiang Mai Beats Your Property Tax Bill)
Have you ever wondered why you’re busting your butt to own a house that’s quietly draining your wallet faster than a bad night in Vegas? You’re not alone, and the Wall Street Journal just hit us with some sobering stats to prove it. For many homeowners, monthly payments on property taxes and insurance now exceed the actual mortgage. Let that sink in: we’re paying more for the privilege of having our own roof (taxes and insurance) than we are for the principal and interest on that mortgage loan.
According to the Intercontinental Exchange, a whopping 32% of single-family mortgage payments in September went directly to taxes and insurance. And if you think that’s high, consider five metro areas—Rochester, Syracuse, Omaha, New Orleans, and Miami—where at least a quarter of borrowers spend over half their monthly mortgage on just taxes and insurance. Ouch. Nationwide, 9% of all mortgages now allocate more than half their payments to these overhead costs, up from less than 4% in 2014. This uptrend is rewriting the script on home ownership and rebranding it as a luxury headache.
The Real Cost of “Owning” Your Home
Let’s talk about that classic notion of “owning” a home. In the olden days (like last decade), your biggest cost was the mortgage itself. But property taxes have been skyrocketing, in no small part because home values surged in recent years. Counties see your bigger home value, set higher property assessments, and—voilà—your tax bill doubles. Meanwhile, insurance companies, battered by natural disasters and rising construction costs, keep jacking rates to insulate their bottom line. So now, your monthly “mortgage payment” might look deceptively reasonable until you add in the line items for taxes and insurance that can surpass what you pay for principal and interest.
We tend to think once the mortgage is paid off, we’re home free. But look no further than older homeowners living on a fixed income who have discovered the cruel math of never-ending property taxes and insurance premiums. Sure, you can choose not to have a mortgage, but you can’t choose not to carry homeowners insurance if you actually want to protect your investment—and you definitely can’t skip out on taxes. The result is that even mortgage-free retirees find themselves scrambling to cover these ballooning costs on a limited budget.
The “Rich but Homeless” Paradigm
So, why not do something radical? Instead of funneling your hard-earned money into a piece of real estate that acts more like a tax black hole, imagine funneling it into experiences, travel, or genuine investments that pay you back. That’s where the concept of being “rich but homeless” comes in. The phrase sounds odd, but it’s basically living without a permanent home base while enjoying the freedom and flexibility your cash can provide. Think of it as downsizing your biggest liability—your house—and using that money to build wealth, reduce stress, and live more adventurously.
This doesn’t mean you have to crash on a friend’s couch forever or live out of a van (though some people do enjoy that #VanLife). It means rethinking your standard approach to housing. After all, if property taxes and insurance are outpacing your mortgage, maybe that capital is better spent elsewhere.
Why Abroad? The Magic of Geographic Arbitrage
Ever heard of geographic arbitrage? It’s the fancy term for earning money in a high-income area or currency (like the U.S.) and then living in a lower-cost region. If you’re not tied to a specific workplace—maybe you’re a remote worker, a freelancer, or retired—why pay through the nose for a house in an overpriced American city?
Let’s talk about a few gorgeous destinations where you can stretch your dollars to new horizons.
1. Chiang Mai, Thailand
Chiang Mai’s old city is brimming with temples, hip cafés, and a robust digital nomad community. The cost of living is famously low. You can easily find a modern one-bedroom apartment in the city center for a fraction of what you’d pay in the U.S. A night out with dinner, drinks, and a Thai massage can total less than a single property tax bill back home. Suddenly, you’re free from house-related financial burdens and living in a place that feels like a year-round vacation. Healthcare is also affordable, which makes it an appealing long-term option.
2. Kuala Lumpur, Malaysia
Cosmopolitan, diverse, and unbelievably budget-friendly, Kuala Lumpur (KL) is a fusion of Malay, Chinese, and Indian cultures that results in a culinary scene you’ll daydream about. English is widely spoken, and you’ll find modern amenities at every turn. Want to live near a gleaming skyscraper with a pool in your apartment complex? No problem. If you’re used to U.S. housing costs, you’ll find KL downright cheap. Plus, Malaysia offers a relatively straightforward visa process for longer stays, allowing retirees or semi-retirees the chance to plant some roots if they want to.
3. Da Nang, Vietnam
If beaches are your jam, Da Nang pairs a stunning coastline with a rapidly developing urban center. The cost of rent is a fraction of what you’d pay for a beachfront view in the States. The city is big enough to have a global feel—complete with coworking spaces, world-class restaurants, and easy flights to other parts of Southeast Asia—but still small enough that you don’t face the big-city hustle and bustle. Throw in the friendly locals and vibrant coffee culture, and it’s no wonder this coastal gem keeps popping up on expat radar.
The Financial Equation of Being “Homeless” Abroad
You might be thinking, “Isn’t traveling expensive?” The truth is that living in Chiang Mai for a month can cost less than your monthly property tax and insurance in some U.S. cities. Consider this: you rent a modest apartment in each place you visit. You pick up cheap flights on regional budget airlines. You dine like royalty for the price of a McDonald’s combo meal in America. Meanwhile, you’re pocketing the difference that you’d otherwise pour into an endless pit of property taxes, insurance premiums, repairs, and upkeep back home.
If you still want to invest in U.S. real estate, consider buying rental properties in emerging markets or stable suburban areas. Let the tenants pay off your mortgage while you’re sipping a fruity beverage under a palm tree in Southeast Asia. Or if direct property management seems like a headache, look into Real Estate Investment Trusts (REITs). You get diversification, reduced hassles, and monthly dividends without being tethered to a skyrocketing insurance bill.
Quality of Life
Some folks might balk at the idea of giving up the “American Dream,” but let’s be real—our dream has evolved. We’re past the white-picket-fence fetish. Quality of life today might include freedom from soul-crushing expenses, the chance to immerse yourself in different cultures, and the flexibility to pivot whenever you want. Minimalist living doesn’t mean scarcity; it can mean abundance in experiences, friendships, and personal growth.
If health and community are priorities, many expat-friendly destinations offer robust social networks. Whether it’s meetups for entrepreneurs in Da Nang or yoga classes and coffee chats in Chiang Mai, you’ll often find yourself meeting fascinating people from around the globe—all while your monthly budget remains laughably small.
Overcoming Skepticism
“Isn’t it dangerous?” “But don’t you want stability?” These are valid concerns from your well-meaning relatives. Yes, you’ll want to do your homework regarding safety, visas, and local laws. You may need to be flexible about time differences if you still work with clients or an employer in the U.S. And you’ll need a strategy for healthcare (though private insurance or local plans can be considerably cheaper abroad).
However, the trade-offs can be worth it. Instead of wrestling with city councils over property tax assessments or playing phone tag with your insurer after the next big storm, you can channel that energy into building a life that’s defined more by passion than by possessions.
Final Thoughts
The Wall Street Journal’s recent look at escalating property taxes and insurance is a neon sign flashing “Caution!” for would-be homeowners. Yes, the pride of homeownership can be a beautiful thing—but if that sense of pride comes with a monthly burden that surpasses even your mortgage payment, it’s time to rethink the script.
With remote work options expanding and the planet brimming with affordable, vibrant corners to explore, going “homeless” might just be the best financial move you ever make. Whether you park yourself on a Thai mountain, bask in Malaysia’s multicultural mosaic, or soak up the sun in Vietnam, the key is simple: channel that wasted housing spend into a lifestyle you’ve always dreamed about. Because in the end, life is short, property taxes are relentless, and the call of adventure is waiting—so why not answer it?