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Selling and Renting
Old 04-29-2019, 07:01 AM   #1
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Selling and Renting

I have an older friend and his wife (80 year old) are in the process of selling the acreage and home. They have rented an apartment in town for $850 a month plus utilities. They have their property listed at $285,000. and it is pending right now.

So, my question is financially which way is the best for your buck and the best way to go financially. Which way, stay in home or sell and rent for best move financially? I'm looking at which way saves you money or the cheapest way of living at that age.

Now, in this case their health is good just down sizing etc..
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Old 04-29-2019, 07:29 AM   #2
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Simple calculation if you use the 4% withdrawal rule on $285,000 is $11,400 per year. $850 per month is $10,200 per year. So at those numbers, they should be able to live without worry of depleting the money (base amount).


I think at their age, it may be best to have the flexibility of renting. That may be more important than the pure financial aspects.
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Selling and Renting
Old 04-29-2019, 08:29 AM   #3
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Selling and Renting

I enjoy the privacy of a sfh, but I didn’t retire to be a groundskeeper or maintenance man. Taking care of “acreage” doesn’t sound all that fun for an 80-yo...
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Old 04-29-2019, 08:48 AM   #4
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I enjoy the privacy of a sfh, but I didn’t retire to be a groundskeeper or maintenance man. yo...


For the first time I outsourced my spring clean up. Two guys spent hours in their knees weeding flower beds and a rock river drainage area. My knees hurt just watching them. I told DW that making money was the easy part what they were doing was horrific. Kudos to them for working extra after their day job to upgrade their truck.
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Old 04-29-2019, 08:52 AM   #5
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That’s one reason we downsized to 1400 sq ft. Our yard is low maintenance with Astro-turf. We live in a drought area. We do have some plants that we could just let die if we didn’t want to weed them. Rent here is 1600-2000 for a 2 bedroom apartment and our house costs us 650 so would never rent.
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Old 04-29-2019, 09:18 AM   #6
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Originally Posted by 38Chevy454 View Post
Simple calculation if you use the 4% withdrawal rule on $285,000 is $11,400 per year. $850 per month is $10,200 per year. So at those numbers, they should be able to live without worry of depleting the money (base amount).
Even if they got a 0% return, the $285,000 would last almost 28 years. If it was me and I was 80, I'd worry less about living as cheap as possible and consider a nicer or better located place. At $1,000 or $1,100 a month they'll still never run out of money.
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Old 04-29-2019, 09:51 AM   #7
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True on all accounts. I guess if I get that age I might think differently on what I would do. I will most defiantly get rid of almost all my belongings when I start to get that age.

I have thought about building a small home just for that time in life with all the essentials and rent it out till I need it. I like to have a plan but that doesn't always work the best in situations like this.
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Old 04-29-2019, 10:03 AM   #8
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Our area has a number of garden apartments for retirees, and they're very nice. We also have 1 and 2 bedroom assisted living apartments with food included for those not quite ready for nursing care.

My mother was in a very luxurious apartment in her later years, and she really enjoyed it. And not owning property for many avoids having to go through probate after they pass on.
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Old 04-29-2019, 11:10 AM   #9
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For the first time I outsourced my spring clean up. Two guys spent hours in their knees weeding flower beds and a rock river drainage area. My knees hurt just watching them. I told DW that making money was the easy part what they were doing was horrific. Kudos to them for working extra after their day job to upgrade their truck.
Wow, kudos. When I was working and I had a yard company I could never get them to do anything more than ride a big lawnmower around and blow leaves sort of off my lawn. Even for more money. "We don't weed".

I do it myself now. It's a lot of work just to keep it par with neighbors. I am looking forward to renting.
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Old 04-29-2019, 04:47 PM   #10
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After many years of owning we sold,put things in storage, traveled for seven months, had a furnished rental for a year, then moved into a rental condo. Supposed to be for six months until we found something to buy. Six months turned into four years.

From a financial standpoint renting was definitely better for us at that time.. We noticed it in the first nine months. It does cost a lot to turn that key in your door even if you own the home. Insurance, mtce, taxes, utilities, you name it. In our rental we paid rent. Plus, market was going down. We looked at buying but it did not make any financial sense. We purchased four years later but we are under no illusions that renting would be better from a financial perspective. Unless of course one expects significant short term real estate gains. In our case real estate was going down, market returns were going up. It is a big 'it depends'.
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Old 04-29-2019, 06:50 PM   #11
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I enjoy the privacy of a sfh, but I didn’t retire to be a groundskeeper or maintenance man. Taking care of “acreage” doesn’t sound all that fun for an 80-yo...
I hire a lawn guy to do the yard work and a handyman to do repairs, and always will from here on out. That said, I have seen some older neighbors who seem to actually like doing minor yard work, mowing with a reel type hand mower, sitting in the front yard a lot, and chatting with whoever walks by. Not what I would want but they seem to like it.

After 80, I could see selling one's house and contents just to make it easier on those left behind at life's end.
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Old 05-21-2019, 06:13 PM   #12
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I have tried to explain our CCRC... a full service campus.. houses (Villas) to independent living, to assisted living, to nursing home and alzheimer's units. All with a rehab unit and a full service fitness center.
This article describes a similar operation as if it were unusual, and so far it is.

https://www.globest.com/sites/carrie...20190421192507

There are currently 19 complete service unites owned by the company that owns ours... in Illinois, and in Nevada.

For us,it is a perfect choice. We own our Villa, and are part of the Liberty Village CCRC campus, in Peru, Il. So... we own our home, one of 80... all occupied, and never unoccupied for more than a month. The selling price goes up every year. We have owned since 2004, and when it is time to move into Rental independent living, assisted living, rehab, nursing home or Alzheimer's unit, we are guaranteed first choice as facilities become available. In all it's called the Liberty Village Campus.

Moving will see limited trauma, as we are socially involved, and know what to expect. It also places no strain on the family, when the time comes to move.

This type of "all in one" CCRC is becoming more popular and more available.

The homes, which were in the $140K to150k range when we bought in 2004, are now in the $180K TO $200k range, built for seniors, and 1500sf to 1800sf. range.

We moved in at age 68... about the average age for those moving into the Villas, so a built in similarly situated social group, though there many who buy in, in their 50's.

So, in effect, buy, then rent... with income from the home sale to help pay for the later years. All without the worry about what to do as we age.

.................................................. .................................................. .

We believe it is the coming thing in senior living.
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