Barry Darsow
Recycles dryer sheets
- Joined
- Sep 12, 2009
- Messages
- 84
I'm asking for advice for a friend.
- He's almost 60 and divorced
- The only property he currently owns is a vacation property out of state. I think he has approx 10 years left on that mortgage, and this is the only property he currently owns.
- As for his primary residence, he's paying a very reasonable rent for a house he likes, probably 400-500 below market rate, but the house is being sold by his landlord this fall. He's on a month to month lease so the new owner can let him stay there (and quite possibly raise the rent; possibly significantly) or send him packing. With a dog, he's going to have a hard time finding another comparable house to rent for the money.
- He found a small house for an affordable price but it needs some work done - some of which he would pay others to do, other work he'd do himself.
His plan is to stay in the area for two years and then at least semi-retire in a couple years and move to where his girlfriend is (who owns a house near his vacation property). At that point, he would then either sell or rent out this house that he is now looking to buy. His girlfriend would like him to move now but his family (mother, adult kids) are in the area he currently resides in and there are not many job opportunities where the girlfriend is.
What would you all recommend? If he bought the house, his mortgage would be half the amount of renting an equivalent house. He is concerned that there will be another 2008 and would have difficulty selling if he needed to sell. OTOH he has been renting since being divorced and see it as throwing money away. Even though he doesn't want to do it, he has hinted selling the vacation property. He would be able to stay with the girlfriend when he vacations there. He would be out of the red by not owning property but would have no property of his own to fall back on if the relationship ends or something happens to her. He is expecting a pension (not huge but would supplement SS).
- He's almost 60 and divorced
- The only property he currently owns is a vacation property out of state. I think he has approx 10 years left on that mortgage, and this is the only property he currently owns.
- As for his primary residence, he's paying a very reasonable rent for a house he likes, probably 400-500 below market rate, but the house is being sold by his landlord this fall. He's on a month to month lease so the new owner can let him stay there (and quite possibly raise the rent; possibly significantly) or send him packing. With a dog, he's going to have a hard time finding another comparable house to rent for the money.
- He found a small house for an affordable price but it needs some work done - some of which he would pay others to do, other work he'd do himself.
His plan is to stay in the area for two years and then at least semi-retire in a couple years and move to where his girlfriend is (who owns a house near his vacation property). At that point, he would then either sell or rent out this house that he is now looking to buy. His girlfriend would like him to move now but his family (mother, adult kids) are in the area he currently resides in and there are not many job opportunities where the girlfriend is.
What would you all recommend? If he bought the house, his mortgage would be half the amount of renting an equivalent house. He is concerned that there will be another 2008 and would have difficulty selling if he needed to sell. OTOH he has been renting since being divorced and see it as throwing money away. Even though he doesn't want to do it, he has hinted selling the vacation property. He would be able to stay with the girlfriend when he vacations there. He would be out of the red by not owning property but would have no property of his own to fall back on if the relationship ends or something happens to her. He is expecting a pension (not huge but would supplement SS).