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Old 05-05-2017, 11:40 AM   #21
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One expense that I didn't count in the $92K, is the increase in Medicare Part B for this year due to my income supposedly being higher in 2015. That was because of selling funds to buy the house. Anyway, I am paying about $1K in higher Medicare this year but my understanding is that it will go back down after this.
it does go down, they go by the following years tax returns, it happened to my at the time 86 year old mother, when she sold her house of 57 years.
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Old 05-05-2017, 11:43 AM   #22
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.

I am wondering if there might be anything we've overlooked in our excitement at making change? One can definitely lose perspective on a decision like this I think.
I appreciate the updates you posted to our questions, i think you guys have not over looked anything. Enjoy the new home.
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Old 05-05-2017, 12:04 PM   #23
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it does go down, they go by the following years tax returns, it happened to my at the time 86 year old mother, when she sold her house of 57 years.
That's wonderful! I am looking forward to it going back down. The income on my tax returns was nice and low in 2016, after being so high in 2015.
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Old 05-05-2017, 01:05 PM   #24
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ElizabethT, I think once before you mentioned in a previous post wanting a nicer patio area. We have a nice backyard with lots of trees, flowers and wildlife, and sitting outside chatting with coffee or the occasional beer, sometimes just watching the hummingbirds, is a part of almost every day we really enjoy. If it were me I'd probably move for the patio area. Part of the reason we have not downsized has been not being able to find a smaller place with as nice a backyard as we have now.
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Old 05-05-2017, 02:16 PM   #25
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ElizabethT, I think once before you mentioned in a previous post wanting a nicer patio area. We have a nice backyard with lots of trees, flowers and wildlife, and sitting outside chatting with coffee or the occasional beer, sometimes just watching the hummingbirds, is a part of almost every day we really enjoy. If it were me I'd probably move for the patio area. Part of the reason we have not downsized has been not being able to find a smaller place with as nice a backyard as we have now.
Yes, I definitely did, and that is still our top priority in any replacement home. Years of RV'ing have left us with a permanent longing for open space to look at. I'm fact, the first thing I look at online are the outdoor space photos. I can change everything else about a house, but I can't change that.
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Old 05-05-2017, 03:09 PM   #26
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We did what you are proposing and so far we are very happy with our decision. Our new house is probably worth 300-400K more than the one we sold, our home comprises a much larger percentage of our net worth than yours, and we still have a mortgage (pensions cover our expenses, including the mortgage). Our CA property taxes did double, but since our beach house was a fixer upper and we remodeled before moving in, it could have been much worse.

We would not have predicted just how much moving has added to our quality of life. For one, we are in a smaller city. Neighbors are nice. We spend more time outside - a lot more. We get more exercise. We take walks together on the ocean bluffs. And we have a great house - not oceanfront or even ocean view, but close enough to get there anytime we want.

OP, I say go for it.
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Old 05-06-2017, 08:53 AM   #27
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You are thinking of the old law. The new law doesn't allow rolling the money. I think if there is a capital gain over $500K, there will be taxed.
Yup and also confusing it with a 1031 exchange as well. Worst thing is - I actually went through the process of selling and excluding the $500K just a few years ago.

I guess I'd better give up the diet soda so dementia doesn't get any worse. Wait! That's another thread.
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Old 05-07-2017, 12:44 AM   #28
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We may well be in a bit of a small bubble, however not sure what I would do about it if we were/are? We'd take a hit here if it burst, a slightly bigger hit there if it burst, but since I can't foresee the future I can't foresee the future (if you know what I mean). I can say that prices are not yet back to the crazy post-2008/2009 recession highs, so I think there is still room to grow. And in the long run I can't see the coast ever taking a long term dive given the great weather, strong job economy, limited land, and overall desirability of S. OC.



It's a tough, big decision for sure, but one we can afford, which is what I have to keep knocking myself on the head with.


I agree, sounds like you've thought this through well and can afford it. While a temporary crash in So CA real estate values would be consistent with history, continued appreciation of oceanfront property especially in OC is very likely over the long term IMO. Just budget plenty for the transition and for redecorating/refurnishing and you'll be fine. Personally I would take out a mortgage at least through the transition. You can always pay it off but initial purchase mortgage is cheaper than HELOC or cash out later.
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Old 05-07-2017, 02:34 AM   #29
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That's what we did too. We can afford it, it enhances our life, and it's a reserve of money that will pay for our CCRC and more or less keep pace with inflation.
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Old 05-15-2017, 02:37 PM   #30
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In that I know it's nice to hear about outcomes at times, an update that we are listing our current home later today, with our sights set on a home near the coast, and all the lifestyle changes that will bring with it. Much time spent going back and forth on this, but we've gleaned enough data about possible homes and activities to feel confident this is the right decision for us both at this point in our lives.

I am very appreciative that there is a forum like this available with so many generous members willing to share their thoughts and experiences.
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Old 05-15-2017, 03:45 PM   #31
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In that I know it's nice to hear about outcomes at times, an update that we are listing our current home later today, with our sights set on a home near the coast, and all the lifestyle changes that will bring with it. Much time spent going back and forth on this, but we've gleaned enough data about possible homes and activities to feel confident this is the right decision for us both at this point in our lives.

I am very appreciative that there is a forum like this available with so many generous members willing to share their thoughts and experiences.
How exciting!! I hope your future home is truly wonderful, and brings you as much happiness each day as my own dream home does for me.
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Old 05-15-2017, 04:11 PM   #32
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Good luck ElizabethT with the house sale. Orange County near the beach definitely sounds like a nice retirement spot.
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Old 05-16-2017, 08:44 PM   #33
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In that I know it's nice to hear about outcomes at times, an update that we are listing our current home later today, with our sights set on a home near the coast, and all the lifestyle changes that will bring with it. Much time spent going back and forth on this, but we've gleaned enough data about possible homes and activities to feel confident this is the right decision for us both at this point in our lives.

I am very appreciative that there is a forum like this available with so many generous members willing to share their thoughts and experiences.


Congratulations! Hope you find the change to be everything you're dreaming it will be. So CA on or near the beach is hard to beat!
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Old 05-29-2017, 08:26 PM   #34
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Update: What a whirlwind of a month! We hemmed and hawed, finally listing last week only to get multiple offers within a few days on our current home. When they started rolling in DH and I looked at each other, gulped, and got to work countering until one offer managed to stand out, which we finally accepted.

In that we are buying up, the original point of this thread, it shouldn't be quite as crazy when it's our turn to submit proposals, but we're still expecting to have to compete against one of two other buyers.

We expect to be living coastal by mid-summer.
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Old 05-29-2017, 08:47 PM   #35
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How exciting is this! Keep us posted. I am so happy for you...(been following this thread as DH and I hope to sell/buy soon).


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Update: What a whirlwind of a month! We hemmed and hawed, finally listing last week only to get multiple offers within a few days on our current home. When they started rolling in DH and I looked at each other, gulped, and got to work countering until one offer managed to stand out, which we finally accepted.

In that we are buying up, the original point of this thread, it shouldn't be quite as crazy when it's our turn to submit proposals, but we're still expecting to have to compete against one of two other buyers.

We expect to be living coastal by mid-summer.
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Old 05-29-2017, 08:54 PM   #36
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Update: What a whirlwind of a month! We hemmed and hawed, finally listing last week only to get multiple offers within a few days on our current home. When they started rolling in DH and I looked at each other, gulped, and got to work countering until one offer managed to stand out, which we finally accepted.

In that we are buying up, the original point of this thread, it shouldn't be quite as crazy when it's our turn to submit proposals, but we're still expecting to have to compete against one of two other buyers.

We expect to be living coastal by mid-summer.


Congratulations! You will love the coastal life!! We live in an area where we can easily walk to dozens of restaurants, the bank, the eye dr, the theatre, the dog groomer, and lots of other places. When I first moved here after many years of suburban living, I couldn't believe the difference. 25 years later, I'm still thrilled with the lifestyle. And the ocean view is pretty nice too! Good luck on your house hunt. I'm sure you'll find something great.
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Old 05-29-2017, 09:03 PM   #37
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We have lived at the beach in Orange County for 16 years now and have loved every minute of it. I don't think you will be disappointed. Good luck finding the new home!
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Old 05-29-2017, 09:53 PM   #38
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Good news on the house sale. I hope you find your dream home.
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Old 06-04-2017, 05:30 PM   #39
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We downsized dramatically when I retired to a modest house of about 2100 SF and a small yard. Less than a year later, we sold it and upsized to something larger and about double the cost.

Downsizing had some downsides. Visiting relatives were more frequent than we expected, our furniture was too large scale for small rooms and I did not like having to dodge furniture to walk around in my own house. Plus we missed having a big yard since we could not put in a proper pool with a 60 ft wide lot. So we fixed that, 1/2 acre, so still small, but enough for pool & gardens. No regrets.
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Old 06-04-2017, 05:56 PM   #40
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We downsized dramatically when I retired to a modest house of about 2100 SF and a small yard. Less than a year later, we sold it and upsized to something larger and about double the cost.

Downsizing had some downsides. Visiting relatives were more frequent than we expected, our furniture was too large scale for small rooms and I did not like having to dodge furniture to walk around in my own house. Plus we missed having a big yard since we could not put in a proper pool with a 60 ft wide lot. So we fixed that, 1/2 acre, so still small, but enough for pool & gardens. No regrets.
I wish I have 1/2 acre. Around here it's considered a big lot if it's 6000 sqft and above. I was looking for a very large lot like 14,000 sqft. But that's a luxury.
My brother has almost 1 acre, boy do I envy him. But not the heat.
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