What to do? Lake House or earlier FIRE ?

[lazygood4nothinbum]

if you like your job enough, a little sunfish or hobie cat on that lake will make those 5 years breeze by.

i lived across the street from a nice sized lake for a while and took the sunfish out every day after work. i converted a golf bag cart to get the boat across the street. worked really well. was a very nice few years living like that.

[panhead]

Great replies, thanks ! I still have no idea what to do, but this is helping. Here's a little more info that might help things make more sense. The lakehouse is 5 miles from my current house, so it's an easy commute from anywhere i was going before. The town my current house is in now is not great, but the taxes are low which really helps on the cost of living. I can reasonable expect to pocket (after costs) about $200k for my house. The lake house is $329k. I might get a little more for my house, but not much, the schools aren't great and that (and other things) is putting a cieling on the prices. I have ALWAYS wanted to live on a lake, problem is, I have certain requirements: The lakefront has to be good to excellent, I need a garage, it has to be year-round or convertable to year round, and I would really like a fireplace. This place has all that. Oh yeah, damn tootin' I'll have a boat ! Actually I have one already.
I understand the maintenance thing, I'm quite handy,so that doesn't scare me
very much

As for RE on the fringe, I don't really have any intentions of doing it, i plan on building up a larger nest egg either way, it's just a measure of how close I am to not having to work. I'm not terribly thrilled with working any more as the job has required tons of travel and stress, tho i imagine I could find a lower paying one that would still easily support my lifestyle, but would put off RE even longer.

You guys are the best, thanks !

-Pan-

[Nords]

Quote:

Originally Posted by panhead Then this nice little lakehouse pops up.* It needs some work, and costs about $129k more than my house is worth.* *With my current investments, I am sitting on the fringe edge of FIRE, I could quit working and pay all of my expenses now, but no safety net.* In about 2 years, it would be much more comfortable.* If I buy the lakehouse, I'll be where I want to live (nice town, on a lake, bigger garage, nice wood stove to heat with wood, etc) but will put out my target fire date 4 to 5 years.* If I stay where I am (not a great town but nice neighbors, smaller garage, completely finished house) I could quit now, or quit nicely in about 2 years.* *

Well, here's a couple thought experiments:
- Will you spend the rest of your life wondering if you should have bought the lake house?
- Is there only one lake house in that community or will others come on the market?
- Is this a binary situation with only two answers? *Our kid is perpetually educating us that there are never just two solutions to every problem.
- What is that lake house going to do to your current lifestyle? Will the repairs take more time & effort than you can provide with your work schedule?
- How much research have you been able to get at, and how good is your estimate of the repairs needed? *Are you sticking your head in a money pit?

Here are some other possible solutions:
- Let the lake house go but give the new owner your contact info. *You may be pleasantly surprised a few years down the road.
- Let the lake house go but give the realtors your contact info and a timeline. *They'll be able to keep an eye out for new opportunities.
- Figure out how to duplicate that lake house in some other neighborhood/location.

When we found our first "dream house" as DINKs we went crazy. *We lost $5000 on the attempt and in retrospect (raising a family!) that was still cheap tuition at the School of Experience. *When we found our second (and final) dream house we were much better prepared and much less emotional about it. *We don't spend the rest of our life wondering about that first house any more because the second one is so much better.

[wabmester]

We currently live in a waterfront house.* * We absolutely love the lifestyle, ever-changing view, etc.* *And waterfront/view properties have been good investments since I've been interested in real estate (20 years?).

The "good investment" aspect can be a two-edged sword, depending on where you live.* * If your property value goes up and up, but you plan to continue living there, the only effect you feel is the increase in property tax.* *And that sucks.

[gtmeouttahere]

Quote:

Originally Posted by wab We currently live in a waterfront house.* * We absolutely love the lifestyle, ever-changing view, etc.* *And waterfront/view properties have been good investments since I've been interested in real estate (20 years?).

I agree, God doesn't make any more waterfront and it will always be a good investment.* At your age, I would not hesitate in buying the lakehouse, only I would sell/or rent your other house.* If you own your home free and clear, rental income would more than make your payment for your waterfront home.* Also having that rent coming in every month may even HELP you reach your FIRE goals sooner.*

Not to mention the value of your lakefront most likely will go up faster than the value of your current home leaving you access to more cash in case of emergency in the future.* Also, you're young and may decide to move somewhere else later in life.* You may then be able to sell your lakefront home for way more than your current home, leaving you with enough cash to pay for your next home, wherever that may be....Or you'll have the home you always wanted and can retire happy, sounds like you like boating, that property sounds like it is right up your alley.

[panhead]

Thanks again for all of the replies, I've read em all a few times ! I (think) I've decided what to do, as I pretty much have to make up my mind today as to whether or not I am going to buy the house on the lake in order to get my deposit back. I think I am going to compromise. I found a very cool A-Frame which has deeded beach rights shared with a few other homes. It's water view, not waterfront, but it's only a few steps to the shared beach. The house is dirt cheap as it is a foreclosure, with which I am intimately familiar. It needs work like most foreclosures, but it is primarily cosmetic. I'm a hell of a do-it-yourselfer, so this is not an issue. Plus, the best part, it's about 1/3rd the price ! I already looked at it and will put a bid on it today. This will let me sleep better at night, as I REALLY have a problem paying full price for anything !

Thanks again for all the responses, It helped me work this thru logically. Funny thing is, I'm going to walk away with MORE money in my pocked after I buy the A frame (assuming my bid is accepted) when I sell my other house ! Can't beat that with a stick, it's actually helping me get to FIRE !

Keep the faith all !

-Pan-

[Indexter]

Sounds good -- I'll bet you'll really enjoy the fixing up.

[SLC Tortfeasor]

Quote:

Originally Posted by panhead Thanks again for all of the replies, I've read em all a few times !* I (think) I've decided what to do, as I pretty much have to make up my mind today as to whether or not I am going to buy the house on the lake in order to get my deposit back.* I think I am going to compromise.* I found a very cool A-Frame which has deeded beach rights shared with a few other homes.* It's water view, not waterfront, but it's only a few steps to the shared beach.* The house is dirt cheap as it is a foreclosure, with which I am intimately familiar. It needs work like most foreclosures, but it is primarily cosmetic.* I'm a hell of a do-it-yourselfer, so this is not an issue.* Plus, the best part, it's about 1/3rd the price !* *I already looked at it and will put a bid on it today.* This will let me sleep better at night, as I REALLY have a problem paying full price for anything !* Thanks again for all the responses, It helped me work this thru logically.* Funny thing is, I'm going to walk away with MORE money in my pocked after I buy the A frame* (assuming my bid is accepted) when I sell my other house !* Can't beat that with a stick, it's actually helping me get to FIRE ! Keep the faith all ! -Pan-

Way to go! This is the perfect decision!

[KB]

Sounds like a good decision.

[virginia]

I say buy the house. You're going to have a lot more time on your hands when you FIRE. Better be somewhere that you are very happy with.
Michelle