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Old 05-27-2014, 03:12 PM   #41
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If we buy it, I will have to retire from this forum.
If you can afford it, all power to you.

Live frugally and skimp to get to that goal, SURE, then enjoy it!
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Old 05-27-2014, 03:19 PM   #42
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It is amazing actually how torn I am with his decision because I have made that exact decision at least twice, in both directions and I don't think I would change either decision.......
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Old 05-27-2014, 04:11 PM   #43
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I live alone in a 500 square feet apartment, before that about 1.200. Before that anything ranging from 350 up to 900. City life.

In terms of comfort I am a bit short of closet space, but other than that the square footage doesn't really matter. Stuff you own does tend to expand with more space i've found

I'd say go for the best location, and calculate how impactful it is for your financial plan. If you can live with that, go for it. Don't worry about the realtor fees and move the stuff yourself. Seeing all the things you actually own might motivate you to get rid of some of it

As for me, i'll probably never own a house unless a girlfriend insists. Too much of a concentration risk in terms of assets, bad liquidity and not so much attached to the "place of your own" idea.

Try this article, it sort of sums up my view
Why your house is a terrible investment
But hey, to each his own
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Old 05-27-2014, 04:28 PM   #44
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I am also a car hobby person, so I understand exactly the need for more garage. I have always said "in retirement give me a 3000 sq ft garage and a 1500 sq ft house" and I will be happy. I do not think you need the bigger house, but you do need bigger garage; and a 2 car attached with 2 car detached is no enough. So my recommendation is to buy a similar size house to what you have, but on a bigger property that you can build or already has a bigger shop garage. You have time and flexibility on your side, so start looking now and you should be able to find what you want.

BTW, my current house has 2 car attached garage and I built a 26x48 detached (1248 sq ft). I wish it was bigger, but that was my limits with setbacks. Believe me, you will fill up the 2 and 2 set-up you are looking at, so I recommend to get something bigger. Do it right the first time.
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Old 05-27-2014, 04:51 PM   #45
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Just a thought if you do spring for the big lake house - tell any Realtor that you'll do both houses with them if they agree to a large commission break on selling your current place - something like 4.5%. They will make a lot more on the buy anyway since it sounds like it will be 2x the selling transaction.

I'd do that and I'm a Realtor.
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Old 05-27-2014, 04:53 PM   #46
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I'm guessing there's no feasible way you could build a separate garage on your property? What about a compromise...find a fairly modest house on a large lot, and have your own dream garage built?

I had a 24x40 garage built for around $30,000, although that was back in 2005/2006. It was post-and-beam construction, which is cheaper than stud walls. That cost also included a lot of grading, bringing in dirt, adding about 200 feet of gravel driveway, and running electricity from the house to the garage, a distance of about 175 feet.

**edit: I'll echo the sentiment about filling up a garage fast. Originally, I wanted to have a 30x40 garage built, with a gambrel roof second story. However, the county shot me down because it was too big, and too tall. One regulation is that no secondary structures could be larger than the primary. Well, 30x40 is 1200 square feet, and they have my house listed at 1106. It's really more like 1500, and I tried to argue that, but they said they wouldn't bite. I'm curious though, why they didn't count the square footage of the second level of that garage, which would have been another 1200 square feet.

Anyway, I got fed up, and just went with one of their basic stock sizes, and no attic. Well, today that 4 car garage barely fits three cars, and I have a lot of stuff balanced up in the roof trusses as well. In retrospect, I probably could have gone with a non-stock size that got me a bit closer to 1106 square feet, and maybe done an A-frame/Cape Cod style roof. But, hindsight is 20/20.
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Old 05-27-2014, 05:45 PM   #47
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In the traditional sense, we can absolutely afford it. I have been making 300k+ the past few years and should at least make 200/250 a year for the next few years.

You want to retire when ?


Do the old sayings...

"don't count your chickens before they hatch " and "house poor"

... mean anything to you ?


.
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Old 05-27-2014, 05:54 PM   #48
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There is an open house today for a home in the next town. $500k house, 4,000 sq ft, newer construction, 2 acres, 2 car attached garage plus a 2 car separate garage. Also is close to a very nice downtown area and a park we love.

In the traditional sense, we can absolutely afford it. I have been making 300k+ the past few years and should at least make 200/250 a year for the next few years...
I don't know what to tell you. In California, $500K buys you a bitty and very old fixer-upper, and people do not make the money you do. Yet, they are buying houses like crazy all over again.

So, if it is just the house that you want, I do not see that as a big deal. But then, I am also one who owns two homes (but I am frugal in other ways, and fully retired).
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Old 05-27-2014, 05:55 PM   #49
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This reminds me to go clear out my 2 car garage to have room to park in it. more space = more junk. I wish I had a smaller house right now.. more time to travel.

Oh, and how can you make 300k+ and still be in debt? wow.


Just like more space equals more stuff.

More income equals buying more stuff on credit.


.
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Old 05-27-2014, 06:09 PM   #50
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What seems like lifetimes ago, before I woke up as it were, I was very materialistic. Having found a more simplistic, elegant approach to life, I find I'm much happier. What I find particularly ironic is that while I live in a very "nice", trendy and chic area, this in fact makes me unhappy because it's all so shiny, happy, vacant, and synthetic. And I'm talking about the people, not the place. Moving in the not too distant future will change all that.

For now, I can definitely afford to spend more, to be less frugal, but why? Comfortable and satisfied now, what would spending more get me? More stuff? Materialism, whether it be "expensive" hobbies, houses, cars, neighborhoods, etc., can never replace an internally derived sense of satisfaction, IMO. As they say, your money or your life.
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Old 05-27-2014, 06:13 PM   #51
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What seems like lifetimes ago, before I woke up as it were, I was very materialistic. Having found a more simplistic, elegant approach to life, I find I'm much happier. What I find particularly ironic is that while I live in a very "nice", trendy and chic area, this in fact makes me unhappy because it's all so shiny, happy, vacant, and synthetic. And I'm talking about the people, not the place. Moving in the not too distant future will change all that.

For now, I can definitely afford to spend more, to be less frugal, but why? Comfortable and satisfied now, what would spending more get me? More stuff? Materialism, whether it be "expensive" hobbies, houses, cars, neighborhoods, etc., can never replace an internally derived sense of satisfaction, IMO. As they say, your money or your life.

What kind of area are you moving to ?

.
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Old 05-27-2014, 06:30 PM   #52
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I'm guessing there's no feasible way you could build a separate garage on your property? What about a compromise...find a fairly modest house on a large lot, and have your own dream garage built?

I had a 24x40 garage built for around $30,000, although that was back in 2005/2006. It was post-and-beam construction, which is cheaper than stud walls. That cost also included a lot of grading, bringing in dirt, adding about 200 feet of gravel driveway, and running electricity from the house to the garage, a distance of about 175 feet.
Good thoughts. The tough part about where I live is that if you want some land, you will almost certainly have to live off of a dirt road. I have a hobby car and one of my motorcycles that would absolutely be miserable on a dirt road (a Porsche and an MV Agusta).
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Old 05-27-2014, 08:16 PM   #53
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I live alone in a 500 square feet apartment, before that about 1.200. Before that anything ranging from 350 up to 900. City life.

Try this article, it sort of sums up my view
Why your house is a terrible investment
But hey, to each his own
Wow - 500 square feet! I am curious: do you live in a very high cost urban area? What sort of income do you have and what sort of interests?

My space issue is that I own big toys: three cars, a boat and two motorcycles. Plus 1-2 of my kids will be living at home over at least the next few summers and they both have their own cars as well. So, including their cars (college students) I have like eight vehicles registered in my name and would like to buy a couple more motorcycles.
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Old 05-27-2014, 08:46 PM   #54
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Wow - 500 square feet! I am curious: do you live in a very high cost urban area? What sort of income do you have and what sort of interests?

My space issue is that I own big toys: three cars, a boat and two motorcycles. Plus 1-2 of my kids will be living at home over at least the next few summers and they both have their own cars as well. So, including their cars (college students) I have like eight vehicles registered in my name and would like to buy a couple more motorcycles.
If you got your pilot's license and took up flying, you could have an even bigger toy
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Old 05-27-2014, 09:19 PM   #55
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Did you not just state that it's just the two of you now? You would each have 2000 sqft apiece in this new place? Why would you even consider this? All your expenses will be going up with this place: property taxes, cleaning, maintenance, extra furnishings, utilities, etc...
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Old 05-27-2014, 09:34 PM   #56
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While I own two homes, I do not think of them as investments, but rather as consumption items. They are better than other consumption items like cars, boats, RVs, airplanes in that they usually hold their values. That's it.

What many people consider home appreciation is actually just correction for inflation. The expenses like taxes, maintenance, insurance etc..., are gone and never recovered.

But I have to live somewhere, and not having to pay rent and having a permanent place is nice. It was the right size when we raised our children. Now that they are gone, it costs money to move, so we don't.

Hmm... How do I explain the 2nd home? Well, I was rebalancing some stock gains into, ahem, a consumption item that I fell in love with. Heck, why not? It cost a few hundred Ks, but it has been worth it. I am frugal in other areas, which make up for this.
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Old 05-28-2014, 06:27 AM   #57
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Wow - 500 square feet! I am curious: do you live in a very high cost urban area? What sort of income do you have and what sort of interests?
The apartment I currently rent is about $19k USD a year, in Amsterdam. Not nearly as insane as New York or London, but still quite costly.

My net income (after tax) varies a bit, but it has been between $90k and $120k the last few years. It's probably going to drop in the coming months though.

I own no expensive nor big toys, I rent them on occasion. Sports cars for example. It's much cheaper and less hassle (no maintenance, insurance, ..). I actually don't own a car at all right now, but rent one every few days or weeks when needed. Public transportation and living close to your workplace, it is a blessing!

My other interests are mostly travel, a bit of sports (gym), reading and things like this forum. Only travel ranks high in expenses.
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Old 05-28-2014, 07:40 AM   #58
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We drove by the house last night to take a peak - seeing it with the realtor after work today. What a setup: 4,000 square foot house on a very nice all sports lake, sandy beach, 3/4 of an acre, 2 car attached garage plus a 3.5 car detached garage (not a pole barn - heated and finished like the exterior of the house). Finished walkout basement. Off of a paved road, nice landscaping.

Looks like a dream house to us with the lake and the garage setup. Wish it was less expensive and more like 3000 square feet. Asking price is $775k and taxes are going to be around $9000 a year. Oh my, having heartburn over those numbers. We can afford it but it is the very top of our range.

Funny part of course is that when I put in my income and all that into mortgage calculators, it says I can buy a $1.5M house.
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Old 05-28-2014, 08:08 AM   #59
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As you requested, I am telling you:

Don't buy a bigger house.

Whether you take the advice or not is your call.
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Old 05-28-2014, 08:30 AM   #60
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We drove by the house last night to take a peak - seeing it with the realtor after work today. What a setup: 4,000 square foot house on a very nice all sports lake, sandy beach, 3/4 of an acre, 2 car attached garage plus a 3.5 car detached garage (not a pole barn - heated and finished like the exterior of the house). Finished walkout basement. Off of a paved road, nice landscaping.

Looks like a dream house to us with the lake and the garage setup. Wish it was less expensive and more like 3000 square feet. Asking price is $775k and taxes are going to be around $9000 a year. Oh my, having heartburn over those numbers. We can afford it but it is the very top of our range.

Funny part of course is that when I put in my income and all that into mortgage calculators, it says I can buy a $1.5M house.
You better hurry up and buy this or the one you mentioned initially and get it out of your system before you move up to a $1.5 mil house.
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