View Poll Results: Was/is your forever home INFLATION ADJUSTED...
|
The most expensive home/homes we’ve ever owned
|
|
74 |
45.68% |
The same or less expensive home/homes, or the same home (didn’t move)
|
|
88 |
54.32% |
|
|
Poll: Did You Retire in your Most Expensive Home?
10-02-2018, 06:58 AM
|
#1
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,303
|
Poll: Did You Retire in your Most Expensive Home?
We’re planning on relocating and buying a “forever home” that’ll cost significantly more inflation adjusted than any house we’ve ever owned, about 160% of our current homes valuation. Property taxes and general expenses will go up about the same.
I’m still having a tough time with it, especially since owning homes well below our means helped us achieve FI early. And conventional wisdom seems to be downsize and reduce housing costs in retirement, some folks even plan on cashing in some home equity to enhance their nest egg.
OTOH DW says she wants this house to be exactly what she’s always wanted (not unreasonable IMO), and the numbers say it’ll be (comfortably) within our retirement spending projections - unless returns are much worse than ever. She doesn’t worry about what we can afford, she considers that my responsibility...and I’d never mislead her.
Neither one of us wants to stay where we are or further renovate the current dump house.
If you bought a second home in retirement, use total value vs prior home.
For those who traded up $ wise for your forever home/homes, any regrets?
For those with rental properties, this poll probably doesn’t apply.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
|
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!
|
10-02-2018, 07:09 AM
|
#2
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,714
|
What difference does it make if the new house is more or less expensive than your current home? What matters is affordability and how it impacts your budget.
|
|
|
10-02-2018, 07:12 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,891
|
"OTOH DW says she wants this house to be exactly what she’s always wanted"
There's the only poll that matters.
"and the numbers say it’ll be (comfortably) within our retirement spending projections"
So why not?
I don't understand why people worry about what other people think/did?
-ERD50
|
|
|
10-02-2018, 07:14 AM
|
#4
|
Full time employment: Posting here.
Join Date: Feb 2015
Location: S. California
Posts: 779
|
No regrets. Our current home, purchased six years into FIRE, was 50% more expensive than the selling price of our prior home, but it also came with a complete change in lifestyle that is hard to put a price value on. In addition to getting the coastal-close view location we'd long desired, we are able to play daily at the beach, always temperate here in S. California, and that has resulted in unexpected savings elsewhere. Our utility bills are lower due to cooler climate, as is our EQ insurance (we're now further from a major fault line), we do less fine dining in that we prefer to eat out in our lovely backyard, and less travel due to still much enjoying our new geographic location. Should any of these things change for the negative at some point, we can always sell and relocate either elsewhere, or to someplace less expensive. We won't regret our years here, regardless.
|
|
|
10-02-2018, 07:14 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,371
|
Quote:
Originally Posted by MichaelB
What difference does it make if the new house is more or less expensive than your current home? What matters is affordability and how it impacts your budget.
|
+1 this is all you need to know.
Quote:
Originally Posted by Midpack
.....the numbers say it’ll be (comfortably) within our retirement spending projections...
|
not only that, while your principal reason for buying is to live there, as a byproduct it is a quasi investment and will hopefully appreciate in value.
Our current main home that we moved into 6 months before I retired... our "retirement" home.... is worth twice what we sold our former main home for 7 years ago... despite being less square footage.... but it is what we wanted where we wanted and we can afford it... so no worries.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
10-02-2018, 07:18 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,303
|
Quote:
Originally Posted by MichaelB
What difference does it make if the new house is more or less expensive than your current home? What matters is affordability and how it impacts your budget.
|
As you know, nest egg>35 year retirement income isn’t an exact science. “Affordability” is a set of probabilities at best. Don’t we all have a safety factor we’re comfortable with?
e.g. I’d never withdraw 4%, others do...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
10-02-2018, 07:27 AM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,371
|
^^^ but at the same time, SWR's are pretty much based on really unlikely scenarios, so it is more likely than not that people with a 4% WR will die rich...
From the Trinity study:
Quote:
For stock-dominated portfolios, withdrawal rates of 3% and 4% represent exceedingly conservative behavior. At these rates, retirees who wish to bequeath large estates to their heirs will likely be successful. Ironically, even those retirees who adopt higher withdrawal rates and who have little or no desire to leave large estates may end up doing so if they act reasonably prudent in protecting themselves from prematurely exhausting their
portfolio.
|
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
|
|
|
10-02-2018, 07:32 AM
|
#8
|
Recycles dryer sheets
Join Date: Nov 2014
Posts: 269
|
No, not the most expensive house but it is definitely in the most expensive place we've lived so far with probably the least amount of services. That being said it is in an area for the activities we enjoy most.
FWIW: The assessor here definitely thinks it's worth way more than I do...!!!!!!!
|
|
|
10-02-2018, 07:32 AM
|
#9
|
Recycles dryer sheets
Join Date: May 2008
Location: Treasure Coast
Posts: 472
|
We shuffled our two previous homes into two different ones. 56% more total for the new ones including decorating and furnishing two different place. Not a big deal, still earn more than we spend even after increased expenses.
|
|
|
10-02-2018, 07:37 AM
|
#10
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,714
|
Quote:
Originally Posted by Midpack
As you know, nest egg>35 year retirement income isn’t an exact science. “Affordability” is a set of probabilities at best. Don’t we all have a safety factor we’re comfortable with?
e.g. I’d never withdraw 4%, others do...
|
My post wasn't intended as a challenge. Safety is something different and very personal for each of us. Some people are comfortable standing at the very edge of the cliff while others prefer to remain a few feet back.
With this purchase are you still comfortably safe, or does that move you from "safe" to "safe-ish"? One aspect of the "perfect" house is you sleep well at night.
|
|
|
10-02-2018, 07:40 AM
|
#11
|
Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,884
|
We're planning on relocating in a couple years. The plan is to have fewer square feet than we currently do.
Always thought that would mean buying a house valued less than our current one, but the housing market in our new location is expensive, and we will likely be paying more for the next house than the current one, despite the smaller size.
Won't be a great deal more expensive, and it should appreciate in value faster, so not something that bothers me all that much.
|
|
|
10-02-2018, 07:40 AM
|
#12
|
Full time employment: Posting here.
Join Date: Sep 2010
Location: Orlando, Fl
Posts: 952
|
We just moved into a house on a lake in Central Florida in July. It is only 0.5 miles from our previous home we had lived in for 10+ years, and in the same 55+ golf community. But...the lake view is fabulous with a huge covered lanai and lovely gardens, and that's what we both wanted. It's about 200 sq ft larger(1950 sf total), is a more recent build, and was indeed much more expensive than our previous home, and the most expensive home we've owned. We feel very lucky to not need a mortgage, and didn't need to touch any of our investments.
No regrets, but moving has been a lot of work. We're just now starting to feel settled in.
__________________
"Some people describe themselves as being able to see things as a glass half full. For some, the glass is half empty. Me? I can't even find the f***king glass."
Silver
|
|
|
10-02-2018, 07:41 AM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,303
|
Quote:
Originally Posted by ERD50
I don't understand why people worry about what other people think/did?
|
Because other people might have insights from experience that others haven’t had yet. Isn’t learning from each other what this and most forums are for primarily?
If it doesn’t float your boat, no worries. It would be impossible for every thread and post to appeal to every reader.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
10-02-2018, 07:42 AM
|
#14
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,303
|
Quote:
Originally Posted by ElizabethT
No regrets. Our current home, purchased six years into FIRE, was 50% more expensive than the selling price of our prior home, but it also came with a complete change in lifestyle that is hard to put a price value on. In addition to getting the coastal-close view location we'd long desired, we are able to play daily at the beach, always temperate here in S. California, and that has resulted in unexpected savings elsewhere. Our utility bills are lower due to cooler climate, as is our EQ insurance (we're now further from a major fault line), we do less fine dining in that we prefer to eat out in our lovely backyard, and less travel due to still much enjoying our new geographic location. Should any of these things change for the negative at some point, we can always sell and relocate either elsewhere, or to someplace less expensive. We won't regret our years here, regardless.
|
Lovely post, thanks!
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
10-02-2018, 07:59 AM
|
#15
|
Recycles dryer sheets
Join Date: Sep 2009
Posts: 99
|
|
|
|
10-02-2018, 08:11 AM
|
#16
|
Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
|
No, not the most expensive home. It’s nice and sort of luxury but not the most luxury. Our area is like living in a resort in Hawaii. But the property tax is the highest we pay.
|
|
|
10-02-2018, 08:42 AM
|
#17
|
Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,128
|
We moved into our "forever" home 20 months ago and it is not the most expensive house we've bought but is much larger than we really need. We bought it for several reasons including location and the fact it gives us plenty of space, especially when we have family or friends staying.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
|
|
|
10-02-2018, 09:16 AM
|
#18
|
Gone but not forgotten
Join Date: Jul 2012
Location: Peru
Posts: 6,335
|
For the first 15 years of our retirement (1989-2004) we lived 6 months in our Woodhaven Campground, in Illinois, and six months in our Lake Griffin Harbor 55+ Community in Leesburg FL.
In 2004, we bought into our CCRC, Liberty Village in Peru, Il. At that time, our home cost $140K... Now valued @ $180K. It's where we live today, 'til it's time for us to move into the apartments.
But... on a totally different note, we bought our first home in Falmouth, Mass. 78 Oakwood Ave, in 1966. That cost $12,500 plus $1,500 for renovations. Looking that up on Zillow... the same house, today... $527K. Zillow shows it as being built in 1982, but the real date was 1940.... I looked it up on Street Scene, and for sure, it's the same house. Go figure... Same increase for all of the rest of the houses on that street.
https://www.zillow.com/homedetails/7...55892680_zpid/
__________________
If you want others to be happy, practice compassion. If you want to be happy, practice compassion.
--Dalai Lama XIV
|
|
|
10-02-2018, 09:17 AM
|
#19
|
Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,413
|
At the time 30 years ago, this seemed like a very expensive home. What made the purchase possible on the household income was the appreciation of the prior home. The mortgage made everyone nervous, although the interest rate was much lower than on the prior home. Now you can't buy a studio condo in the worst part of town for the purchase price.
A smaller and newer house in a less crowded but more attractive area is certainly appealing. This house is now of an age where maintenance and repairs are constant worries. However, the tax consequences of selling this house would be very costly. Buying down and renting out this house remains on the table.
|
|
|
10-02-2018, 09:25 AM
|
#20
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
|
The only house so far...
To paraphrase Jerry Reed: I’ve got a house that’s mine alone, that me and the finance company own...
__________________
Have Funds, Will Retire
...not doing anything of true substance...
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|