Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Hello from Illinois - Rent or Buy (my 1st post)
Old 06-01-2007, 08:24 AM   #1
Dryer sheet wannabe
 
Join Date: Jun 2007
Posts: 14
Hello from Illinois - Rent or Buy (my 1st post)

Hi all,

I will be 59 in August and I am now spending most of my time lately trying to figure out 'my' ER plan.

I believe I have enough money, but I still worry about that.

I was divorced 10 years ago and moved into a trailer park home to save money. I planned on leaving after a year but I am still there. The rent has gone from 525 to 700 per month. Also, I could do without my neighbors.

I have $375k in various accounts, 401K, stock market, CD and so on. I own a farm that is work 500K (I want to keep it for my daughter) that nets about 15k per year.

Do I take 40K as a down payment and make mortgage payments of 700 or continue renting?

Anyone have any ideas or insights experience with this?

Thanks,

Jim
__________________

__________________
JDConnell is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-01-2007, 08:47 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Apr 2007
Posts: 1,304
Welcome JD. There are many here who can help you figure it all out.

Here is a quote from another post that may be helpful to make you more comfortable with your retirement decision:
Quote:
Originally Posted by megacorp-firee View Post
...
To FIRE, you need to figure out
1) what you want to do when you are no longer working full time
i.e. part time work (not quite FIREing in my mind), new career, hobbies, traveling, give back type of volunteer work, ...etc.
2) what that will cost;
a) figure out what your current budget is; where do you spend your money
b) how will retirement change the budget (up or down)
3) inventory your assets and income and see if you can support FIRE

It's not really having a million dollars, ... it's having enough money to support the life style that you want to live.

You have to do the homework and math to see if you are comfortable with FIREing.
To figure out the rent/buy issue, since the monthly dollar amount you spend is the same, with the mortgage, you get tax benefits, so the actual amount you lay out is less. You need to figure out if you would need the $40K to generate your retirement income.

Good luck to you JD.
__________________

__________________
Life is GREAT!
megacorp-firee is offline   Reply With Quote
Old 06-01-2007, 10:08 AM   #3
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Quote:
Originally Posted by JDConnell View Post
Do I take 40K as a down payment and make mortgage payments of 700 or continue renting?
Welcome Jim,

Buy or rent is a very personal decision. So let's only look at the financial side:

1) 40K down payment: What the opportunity cost?

2) 700 mortgage payments: Does that also include property tax, home insurance, maintenance and repair, and HOA if applicable.

3) Appreciation (or depreciation) of home value.

4) Possible tax saving with the home. Very unlikely considering the modest mortgage payment.

Good luck,
__________________
Sam is offline   Reply With Quote
Old 06-01-2007, 12:25 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,677
If you are renting I assume your expense includes everything but power and heat. For that $700 isn't bad. The neighbors issue is really what you should consider.

Depending on your zoning it may be possible to put a mobile home on the farm property. You can shop around for a used one and save a bundle but you will still need to have septic, water and power - none of that cheap.

The other option is to rent elsewhere in your community. Often people will rent to long time residents for a modest sum when they know that the home will be well cared for. Put the word out with your local dealers and something might materialize.
__________________
Duck bjorn.
Brat is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
"Hi, I am" needs a "Read this first" post? HobbyDave Forum Admin 3 05-17-2007 09:39 AM
Vanguard Diehards-- dot org! Nords Other topics 42 02-22-2007 10:01 AM
Updatable CD post? MooreBonds FIRE and Money 5 10-02-2006 12:09 PM
Housing: Rent vs. Buy BigMoneyJim Young Dreamers 45 01-19-2005 12:54 AM
Can I Post Here or Not? hocus FIRE and Money 40 03-11-2004 08:57 AM

 

 
All times are GMT -6. The time now is 09:27 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.