Help with a real estate decision

[ivinsfan]

Quote:

Originally Posted by Texas Proud How much longer does she plan to work You can do a long commute for a year pretty easily... But, if she is planning to work many more years.... I would not buy right now... unless you are SURE that is where you want to be... You did forget option 3... buy the house and rent it out until you retire... and keep living where you are...

I was also wondering why this one wasn't on the table. More rent money, hopefully a lot less hassle. You are in a financial position to screen, screen, screen looking for perfect tenants. Only ties up a year at a time.

[FIREd]

Quote:

Originally Posted by MichaelB Is this a dream house or unique opportunity? If so, perhaps you should buy it now. Otherwise, your search for housing unavoidably includes the commute to work as a requirement. What are the chances that, once retired, your profile of a desirable location changes? With no commute needed will consider different options?

This is not a dream house or unique opportunity.

The housing options available for a short commute are very expensive and unappealing to me. So with no commute, then yes, I would consider different options, like this one about 20 miles away.

It is possible that a location one finds desirable today may not be so desirable tomorrow. Things change. But then, why ever become a homeowner.

[FIREd]

I am a landlord already. The last thing I want to do is double down, especially in a location famous to be unfavorable to landlords. If anything, I'd prefer to be out of that landlording business altogether.


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[Meadbh]

Quote:

Originally Posted by FIREd I am a landlord already. The last thing I want to do is double down, especially in a location famous to be unfavorable to landlords. If anything, I'd prefer to be out of that landlording business altogether.

Then I think you have your answer.

[haha]

Quote:

Originally Posted by FIREd This is not a dream house or unique opportunity. The housing options available for a short commute are very expensive and unappealing to me. So with no commute, then yes, I would consider different options, like this one about 20 miles away. It is possible that a location one finds desirable today may not be so desirable tomorrow. Things change. But then, why ever become a homeowner.

Why indeed? If I remember you had previously planned on retiring to SE USA, a very different ball game from where you are now.

It is quite possible that you could rent for your entire lifetimes, and still be better off than buying on the current SF market.

One of my sons has been looking for a family home in NE SF. OMG, what a wild scene. He has decided to rent at least until he gets a better lay of the land.

I do agree with the other posters, under no circumstances take on a 20 mile commute in Bay Area traffic. IMO, a person has time and energy for work, maintaining health and self, maintaining a love relationship and children if any. An owned home always adds considerably to this, even if you live next door to work. Add in a commute, and you will have gone tilt.

If you are very sure that you want to stay in the city, it might change this, since SF is the poster city for geographically and rule limited expansion.

Ha

[W2R]

Quote:

Originally Posted by FIREd I am a landlord already. The last thing I want to do is double down, especially in a location famous to be unfavorable to landlords. If anything, I'd prefer to be out of that landlording business altogether.

(Emphasis mine). Then perhaps a better task for this year might be to sell your Alabama house and any other rentals (instead of looking at more real estate right now).

[FIREd]

Quote:

Originally Posted by haha Why indeed? If I remember yoku had previously planned on retiring to SE USA, a very different ball game from where you are now. It is quite possible that you cold rent for your entire lifetimes, and still be better off than buying on the current SF market. One of my sons has been looking for a family home in NE SF. OMG, what a wild scene. He has decided to rent at least until he gets a better lay of the land . I do agree with the other posters, under no circumstances take on a 20 mile commute in Bay Area traffic. IMO, a person has time and energy for work, maintaining health and self, maintaining a love relationship and children if any. A home always adds considerably to this, even if you live next door. Add in a commute, and you will have gone tilt. Ha

I think I just have to get over my almost primal need to own a piece of land and plant roots. There is much I like about being a renter.

[FIREd]

Quote:

Originally Posted by W2R (Emphasis mine). Then perhaps a better task for this year might be to sell your Alabama house and any other rentals

That's the plan.

[NW-Bound]

If you buy a home without a plan to immediately occupy it, and your wife may not be ready to retire in 2 years either, then it is an investment decision and should be looked at as such.

It appears real estate market up there is really hot. And for an investment, perhaps you can even buy close to work even if it is expensive provided you have the cash flow for it. And then, that should be looked at as an investment too. If you think people will pay higher and higher for a tiny condo which you may sell in a few years, then it does not have to satisfy your longer term requirements either.

[Brownkristy]

Option 1 hands down. I was in a similar situation many years ago and I did buy the attractively priced home and a rental property in the same area far from my job. The time I spent commuting, the gas, and maintenance on my vehicle far outweighed the benefits in the long run. When the housing market went down, I had to do a short sale on the residential property. Thankfully, I was able to short sale without being penalized. So glad to be back closer to my job.

[FIREd]

Thanks for the thoughtful responses and cautionary tales. It's pretty clear now that option 1 is the only one that makes sense. So we'll keep on renting close to DW's work for now and keep our options open.

[ivinsfan]

Quote:

Originally Posted by FIREd Thanks for the thoughtful responses and cautionary tales. It's pretty clear now that option 1 is the only one that makes sense. So we'll keep on renting close to DW's work for now and keep our options open.

You probably actually thought this before you started this thread. Sometimes we want to do something that actually isn't the best financial choice. Maybe you miss having a house more then you know, or really want your DW to retire now.Sometimes it just isn't all about the dollars. If you find yourselves still scanning the MLS something else might be going on. If that's the case the more options you have the better.

[Jmo1969]

A good friend of mine bought a small cottage the he wants to retire in. He downsized his home close to work and goes to the cottage on Thursday nights after work. Telecommutes on Fridays And goes back to work BEFORE the crack of dawn on Monday mornings. It is 5 hours from his work. He gets 3 full days at his dream spot and 4 days of the daily grind.

[FIREd]

Quote:

Originally Posted by ivinsfan You probably actually thought this before you started this thread. Sometimes we want to do something that actually isn't the best financial choice. Maybe you miss having a house more then you know, or really want your DW to retire now.Sometimes it just isn't all about the dollars. If you find yourselves still scanning the MLS something else might be going on. If that's the case the more options you have the better.

I do miss living in a house sometimes. We have no outdoor space right now and I miss being able to putter around the garden and firing up the grill. I also think that DW and I are eager to secure a little corner of California for our retirement. But we'll just have to make do for now.