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Old 04-14-2015, 11:20 AM   #21
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I currently have house #1, in retirement, I plan to have house #2. The reason is that I plan to spend more than a half of my time on slow travel around the world in retirement. There is no need to have a huge house in the U.S. that I do not use very much.
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Old 04-14-2015, 12:13 PM   #22
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I do not understand what the OP was trying to get across....

He tells the tale of two different couples that have retired.... both seem to be doing what they want to do... no indication that either couple can or cannot afford what they are doing... and in the end kinda snubs the 'rich' couple....

...

Without any more details, I think OP is showing some bias against the 'rich' couple.... why
Right. I really don't get the post at all. What is the OP saying (trying to say)?

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Old 04-14-2015, 06:16 PM   #23
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+1 Not sure what the point is other than bashing someone with a nicer house.

We have some friends in Florida who have houses like house #1 and others who have houses like house #2. As long as the owners can afford them, who cares? Mom lives in a house #2, could afford a house #1, but wouldn't want one. Fine with me, whatever she wants. I personally would probably prefer house #1 but DW would probably prefer house #2.
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Old 04-14-2015, 07:06 PM   #24
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Right. I really don't get the post at all. What is the OP saying (trying to say)?

-ERD50
OK, I'll ask the OP: "OP, what are you saying (trying to say)?"
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Old 04-14-2015, 07:09 PM   #25
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Not everyone has a "Manny type" as some "Mannys" don't enjoy that type of do it yourself work. "Jane" may have needed the type of home she and partner built with an HOA to take care of some things. Without more information it is purely speculating just to comment on this. In some households, neither enjoys DYI stuff. That is why is it great to be able to do what works for you.
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Old 04-14-2015, 07:11 PM   #26
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I wish I only had to pay $1200 a year in property taxes, but unfortunately around here with a tax rate of 3% of appraised value that would require a $40,000 home - something I don't believe I'm going to find unless it's an older single wide on a small country lot.
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A tale of two retirements
Old 04-14-2015, 07:33 PM   #27
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A tale of two retirements

No bias or bashing at all (at least none that I am aware of.). they can spend their money as they please. They are not rich.
My experience visiting both was more about an observation: 1) you don't need a $500k house to be happy.
As to whether they can afford the house. Jane said to Me "I need to stop spending" new car and lots of new stuff for that beautiful house. They always spent liberally which occasionally created stress. I worry they over did it.

My post was also about
2) simplicity.
I don't want or need a lot of stuff. I've come to hate clutter. A cup of coffee in the morning, some blueberry whole wheat pancakes, the NY times, a place to use a fishing rod, a lawn chair and I'm in heaven.

They have found their own piece of heaven in their own ways - I was struck by the similarities and the diversity. I am struggling with - what does my piece of heaven look like? I think I'd liked hearing what many had to say about their preferences.

I don't think I want a cookie cutter home that looks like every other home in the neighborhood - how is that me? Retirement to me should not just be living in another suburb albeit in a warmer climate. A solar cabin in the cooler hills of NC or colorado? The options are endless. It isn't about money it is about some upcoming very difficult choices.


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Old 04-14-2015, 08:54 PM   #28
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I'm with those who say "to each his own" as long as they are both living within their means. House #1 would be very nice, and I could easily have it, but it would have meant retiring later. Instead I wanted to retire early and downsized and now live in House #2. I love my simple home, but I'm really easy to please.
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Old 04-14-2015, 10:17 PM   #29
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...
I don't think I want a cookie cutter home that looks like every other home in the neighborhood - how is that me? Retirement to me should not just be living in another suburb albeit in a warmer climate. A solar cabin in the cooler hills of NC or colorado? The options are endless. It isn't about money it is about some upcoming very difficult choices.
You can certainly decide the type of life you want to live. There is another guy that has moved up here to the Ranch where I live that is doing it on about $12,000 per year. He is in his 40s, medically retired on SS, and has Medicare. He has a trailer and a dream of building a small cabin. I think he will get it done. I have the same basic annual fees as he, am in the process of building my cabin and I should be comfortable on between $40 & $50 K per year once the cabin is completed and my son is finished with college. Here are two very widely different amounts for the same area and life style either of which some folks might say is living a miserly life. In my case I am living the life I want to live.

Good luck on figuring it out for you.
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Old 04-15-2015, 12:56 AM   #30
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Location, location location. Which house will be the better investment ten years from now? I don't know. Just asking. The $500K house could be overpriced or maybe a steal for the neighborhood. Initial cost and expenses aren't the total picture. The $500K house may be in a great school district, have better appreciation potential and may be a better investment long term.
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Old 04-15-2015, 08:51 AM   #31
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At this point the home isn't an investment...its a place to live out your days
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Old 04-15-2015, 09:46 AM   #32
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At this point the home isn't an investment...its a place to live out your days

+1
I've always believed the home you occupy is an expense, not an investment. That way of thinking helped me save more and grow real investments.
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Old 04-15-2015, 09:56 AM   #33
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At this point the home isn't an investment...its a place to live out your days
Maybe so, but if things go bad, one certainly can sell the home and buy or rent a less expensive place. Not an ideal strategy, but it is a way to live in the house you want but still have an emergency fund. You can argue that it's not a very liquid asset, but I won't wait until I need the money in a hurry. If I see my nestegg is shrinking and won't last, I'll put the house on the market well before I run out.
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Old 04-15-2015, 10:25 AM   #34
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We all have different wants and needs...
We're now very comfortable in 1600sf... in IL, but came very close to buying the OP's choice in FL... sounds very nice. Too many different considerations to detail as to the "final" choice.

Having said that., our first "post retirement" home in 1990... 900sf and $50K including our owned land in Woodhaven Lakes. First 15 years of retirement split betweeen here and FL. Still own and use this as a retreat.

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Old 04-15-2015, 10:32 AM   #35
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At this point the home isn't an investment...its a place to live out your days
Would you rather live out your days in a house losing value or tripling in value? The triple in value house can be left to kids, charity or used to pay for a nice nursing home. If the $500K house triples in value and the retirees get to live in a nicer house in retirement than house #2, that might actually be the more economical choice over the long term. If couple #1 can easily afford the $500K house, why should they live in a lower socio-economic neighborhood where they might not fit in? The best choice for them depends on many more factors than house price alone. As others have posted, both couples might be living well below their means. We have friends that moved to a much lower COL area in retirement than they lived in before and now realize they have nothing in common with their neighbors.
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Old 04-15-2015, 10:39 AM   #36
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As long as the homeowners are happy with the choices, good for them. Homeowner no. 1 is likely protesting too much about "I need to stop spending."
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Old 04-15-2015, 11:11 AM   #37
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Would you rather live out your days in a house losing value or tripling in value? The triple in value house can be left to kids, charity or used to pay for a nice nursing home. If the $500K house triples in value and the retirees get to live in a nicer house in retirement than house #2, that might actually be the more economical choice over the long term. If couple #1 can easily afford the $500K house, why should they live in a lower socio-economic neighborhood where they might not fit in? The best choice for them depends on many more factors than house price alone. As others have posted, both couples might be living well below their means. We have friends that moved to a much lower COL area in retirement than they lived in before and now realize they have nothing in common with their neighbors.
I am quite sure the house I am building will only be worth what I paid for it to the county assessors. It will not fetch anywhere near their assessed value. The commute up here is too difficult and long for working people. I will leave the place to my DD as a weekend place or retirement place of her own. Future value is not a consideration. What is important is that it is next to the kid's camp I intend to help and support for the rest of my life. It also has a magnificent view in a very peaceful high mountain valley.
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Old 04-15-2015, 11:14 AM   #38
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At this point the home isn't an investment...its a place to live out your days
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Old 04-15-2015, 11:17 AM   #39
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Maybe so, but if things go bad, one certainly can sell the home and buy or rent a less expensive place. Not an ideal strategy, but it is a way to live in the house you want but still have an emergency fund. You can argue that it's not a very liquid asset, but I won't wait until I need the money in a hurry. If I see my nestegg is shrinking and won't last, I'll put the house on the market well before I run out.

I agree with your argument.... just going to throw out a couple of thoughts...

But, has anybody put a pencil to this to calculate if it really makes a difference... IOW, using the $500K and $200K examples... assuming no mortgage, the $200K person has $300K more invested somewhere else... the return on that money probably will be more than on the house....

A second thought.... the $500K house cost more each year in taxes, insurance, maintenance etc. etc.... so it would have to go up a higher % to overcome that negative cash flow while you lived in the house... it might not be able to do that....
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Old 04-15-2015, 11:18 AM   #40
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Would you rather live out your days in a house losing value or tripling in value? The triple in value house can be left to kids, charity or used to pay for a nice nursing home. If the $500K house triples in value and the retirees get to live in a nicer house in retirement than house #2, that might actually be the more economical choice over the long term. If couple #1 can easily afford the $500K house, why should they live in a lower socio-economic neighborhood where they might not fit in? The best choice for them depends on many more factors than house price alone. As others have posted, both couples might be living well below their means. We have friends that moved to a much lower COL area in retirement than they lived in before and now realize they have nothing in common with their neighbors.
Actually I try not to buy a house on the premise of what will happen when I'm dead. just me. my house is for living NOW.

let's see my kids
went to college no loans
attending law school, tuition fully paid for.
If I kicked the bucket today they'd get a pocketful of cash.

So nope, not really worried if my house is increasing in value. I'm not selling unless an asteroid hits and when I'm dead, well any problems my kids encounter I can call it payback for all the nights they made me lose sleep from worrying where they were at because they were 4 hours late and "forgot" to text.
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