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Old 08-16-2017, 07:33 PM   #41
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Good. Now, you can use the money for a lesser home AND an RV to travel.
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Old 08-17-2017, 07:07 AM   #42
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If those are your only options:

Quote:
1) Forget about buying waterfront property and just get a nice regular house and have plenty of cushion during retirement
2) Buy my dream house but be more careful about spending and know there is always a chance I would have to go back to work if things don't go as planned
3) Work another year or so to get some more cushion and buy the dream house
I think that I would pick #3 if owning that dream house would really improve my quality of life. But personally, I chose #1 for myself. I like walking around nicer neighborhoods and looking at "dream houses", but I am also happy to let others carry the burden of maintaining those properties.

I think that option #2 is probably the least desirable. Not only would purchasing your dream home deplete part of your portfolio (hence reduce the amount available for spending), but it might also add additional strain on your budget (in the form of higher carrying costs perhaps), which might give you less flexibility to cut expenses during a downturn.
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Old 08-19-2017, 09:33 AM   #43
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[QUOTE=trirod;1923088]Just looking for feedback from people who have been there and whether you ever regretted the decision? I am FI now and plan to retire within the next 18 months. I will move on retirement to an area that is a little bit more expensive than where I am now but not horrendously more. The problem is I am really getting pretty interested in some waterfront property which is way more expensive than my current house (like 3 times the price). In theory the numbers still work with such a purchase but I will have a lot less slack in my budget.

So my options are:

1) Forget about buying waterfront property and just get a nice regular house and have plenty of cushion during retirement
2) Buy my dream house but be more careful about spending and know there is always a chance I would have to go back to work if things don't go as planned
3) Work another year or so to get some more cushion and buy the dream house

Nope, not there yet but would have to eliminate #2. Stressing about money after retirement for me would be a nightmare not a dream. So, I would would probably choose #1, but if I "had to have it" I would go with #3. The time before retirement are peak earning years, at least for me. I would probably have to work three years down the road to make what I make in one year now. Plus the money I put aside now is growing . . .
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Old 08-19-2017, 11:19 AM   #44
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As far as the money part goes, gotta figure the dollars, but we have another alternative that's a low cost waterfront 2nd place to go.
While we still have our mfg home in Lake Griffin Harbor in FL, typical cost for a similar home about $25-30K, plus rent. That community is in an over 55 community. To far to go now, so we're selling it.

But... we'll keep our lakefront Park Model on Bass Lake in Woodhaven Lakes in Sublette Il, 25 miles from our home in Peru IL. Max cost for properties like mine is about 80K, but lakefront still available w/home for about $35K or less. 35 minute drive. Annual WH membership... all facilities $1200 including 7 lake access, 2 olympic size pools and about 20 playgrounds plus almost every normal "city" facility of a small town. Taxes $500, Insurance $500. Total annual cost to maintain, about $2500.

Places like this in many states.
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Old 08-19-2017, 05:11 PM   #45
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We bought a fair amount of new furniture. We were due prior to retirement so it was not worth storing a great deal of it when we downsized and traveled. DW liked this part.
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Old 08-19-2017, 07:37 PM   #46
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I'm going to be downsizing and moving to a state that is more friendly to retirees, I've narrowed it down to FL, GA and NV. The state I'm in now tax's pensions and SS
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Old 08-20-2017, 07:05 PM   #47
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Hard to beat the economics of NV. Low RE prices, no income tax, low property taxes. Climate is very different than GA or FL. The gaming industry is everywhere in the Vegas metro area.
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Old 08-20-2017, 07:36 PM   #48
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Hard to beat the economics of NV. Low RE prices, no income tax, low property taxes. Climate is very different than GA or FL. The gaming industry is everywhere in the Vegas metro area.
NV, would be a good choice as I don't like to gamble and I do like the climate.
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Old 08-20-2017, 08:58 PM   #49
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Quote:
Originally Posted by trirod View Post
Just looking for feedback from people who have been there and whether you ever regretted the decision? I am FI now and plan to retire within the next 18 months. I will move on retirement to an area that is a little bit more expensive than where I am now but not horrendously more. The problem is I am really getting pretty interested in some waterfront property which is way more expensive than my current house (like 3 times the price). In theory the numbers still work with such a purchase but I will have a lot less slack in my budget.

So my options are:

1) Forget about buying waterfront property and just get a nice regular house and have plenty of cushion during retirement
2) Buy my dream house but be more careful about spending and know there is always a chance I would have to go back to work if things don't go as planned
3) Work another year or so to get some more cushion and buy the dream house

Obviously this is only a decision I can make, but I was just curious if anybody out there had made a trade-off between buying a house they really loved and having more day-to-day spending available, and how that decision had worked out?
I bought my dream house in retirement, but I didn't stretch my budget to do it. During my first 7 years of retirement for some reason I wasn't spending as much as I had thought I would when I was planning retirement. First I was withdrawing 2%, and then I started getting SS and was withdrawing 1% which is pretty silly. You can't take it with you.

Anyway, after years of that, I had accumulated enough unspent money to more than provide the extra cash needed to buy my dream house and move. A few years after that, there it was... the perfect house came on the market, I jumped on it and now I am living in my dream home, without having to cut back.

So, I guess that might be another option for some (not all) people, depending on your situation.

4) Retire, and adjust to retirement for a few years while saving up the extra money needed for that cushion to buy your dream home.
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Old 08-21-2017, 02:58 AM   #50
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Originally Posted by imoldernu View Post
As far as the money part goes, gotta figure the dollars, but we have another alternative that's a low cost waterfront 2nd place to go.
While we still have our mfg home in Lake Griffin Harbor in FL, typical cost for a similar home about $25-30K, plus rent. That community is in an over 55 community. To far to go now, so we're selling it.

But... we'll keep our lakefront Park Model on Bass Lake in Woodhaven Lakes in Sublette Il, 25 miles from our home in Peru IL. Max cost for properties like mine is about 80K, but lakefront still available w/home for about $35K or less. 35 minute drive. Annual WH membership... all facilities $1200 including 7 lake access, 2 olympic size pools and about 20 playgrounds plus almost every normal "city" facility of a small town. Taxes $500, Insurance $500. Total annual cost to maintain, about $2500.

Places like this in many states.
This looks like an amazing bargain for all you get!
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Old 08-21-2017, 04:27 AM   #51
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Interesting thread and common topic with DW.

We like to travel but I'm always aware that a home is "enjoy it every day" or "don't like it every day" kind of thing. If one can keep from going over board (granite everything) then I tend to be personally OK with home spending. I don't kid myself into thinking that the money spent is an investment...its consumption that may be blunted a bit by some appreciation in the house.

We're still a ways out from FIRE so who knows what we'll actually do, but I'm inclined to own a house we're happy to wake up to each day.
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Old 08-30-2017, 03:37 PM   #52
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We bought a new to us Airstream 25 foot travel trailer two years before I retired. One year before retiring, we bought our retirement house. Cash for both and for the new TT tow vehicle. I much prefer the TT to a vacation property since it's a lot easier to relocate if we don't like the site for any reason such as weather, neighbors, or need a change of scenery. Plus, TT is key to our zombie apocalypse bug out plan for housing. We had a cement pad and electrical connection added to retirement home so TT also serves as overflow housing for family gatherings. Like Closet_Garner, I don't consider any of these investments.
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Old 08-30-2017, 05:39 PM   #53
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We bought a new to us Airstream 25 foot travel trailer two years before I retired. One year before retiring, we bought our retirement house. Cash for both and for the new TT tow vehicle. I much prefer the TT to a vacation property since it's a lot easier to relocate if we don't like the site for any reason such as weather, neighbors, or need a change of scenery. Plus, TT is key to our zombie apocalypse bug out plan for housing. We had a cement pad and electrical connection added to retirement home so TT also serves as overflow housing for family gatherings. Like Closet_Garner, I don't consider any of these investments.
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Old 08-31-2017, 09:41 PM   #54
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NV, would be a good choice as I don't like to gamble and I do like the climate.

I would shoot myself if I were in Las Vegas, but I love Reno--we hike the Sierras and I like to fly-fish and ski. Gambling, not so much. I grew up going to the Western slopes of Colorado as a yewt in summers at my granddad's cabin, and Reno is not too far from that experience, just lower down and hotter in summer. (This summer has set records for heat--but not like Las Vegas. But it's a dry heat--not anything compared to Houston.) To each his/her own.
We might consider a cabin in the future in the upper elevations in Oregon or Washington for us and the yewts--sold the Colorado cabin as it was too far away when we moved to Reno from Houston. Amazingly most of our friends in Houston have weathered the storm fine, although one got an inch or two of water in her house (to be off-topic). Glad I'm not in Houston anymore.
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Old 08-31-2017, 09:50 PM   #55
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Did you stretch your budget to buy your dream home in retirement?. Yes. I went for my lungs.
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Old 09-01-2017, 10:30 PM   #56
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We bought our dream house almost 2 years ago. All in all (after we finished some things and completely furnished it) it cost us more than 3 times the value of our current house (which we paid off this year). Finding a way to make that dream come true (no more winter and live where we always travel to anyway) was what has really pushed us to get on to FIRE. We are retiring to a lifestyle that just doesn't exist where we live now (midwest); we can walk to the beach, bike to the grocery store, and lounge at our own lake view pool every day of the year. Other than a cruise the year our DD graduated from college, we've spent every vacation there for the last 17 years.

Buying the place was a lucky break, we got an unsolicited offer on a rental condo that we owned there (also worth more than 3 times our current house) and after counter-counter-counter-counter offers we made out like bandits! We put all the take from that into the dream house (finding it was also a lucky break). While the purchase of the house wasn't a stretch, the mortgage is not huge and it is fixed; the property taxes and the insurance will be a sizable chunk of our budget and will obviously grow over time.

We estimated when we were buying it that it could take us 3 or 4 years to actually retire and get to live there. It motivated us to do the actual planning and we'll probably be retiring early next year.

We could have bought a very nice larger house for less money more inland, but then we would not have gotten the lifestyle...it would have been just a house in a subdivision. If we ever get tired of walking on the beach, biking to the grocery store, and swimming next to the lake, we can always sell the house and move to just a house in a subdivision or a condo or whatever.
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Old 09-02-2017, 04:28 AM   #57
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We went the other way. We sold the lake house (our primary residence) and moved to a much smaller, lower maintenance house the same month I retired. But our plan was to travel. We may consider a more expensive, higher maintenance property when we tire of travel. But, that hasn't happened. Unless you are certain about what you will want to do in retirement, you might want to wait on the dream home and see what your lifestyle is like. It may change what you want.

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Old 09-10-2017, 03:45 PM   #58
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Originally Posted by trirod View Post

1) Forget about buying waterfront property and just get a nice regular house and have plenty of cushion during retirement
2) Buy my dream house but be more careful about spending and know there is always a chance I would have to go back to work if things don't go as planned
3) Work another year or so to get some more cushion and buy the dream house
Only one person's opinion, but having recently purchased our dream home at a price point of 150% of our prior home, we are still pinching ourselves daily that we actually went through with it, and that we now live in what we consider paradise.

So having said that, personally I would go with Option 3). It would have been extremely unfortunate (sad?) had we not had the chance to proceed and purchase our dream home (Option 1) ), and I would not have been comfortable with Option 2 in that we would not have slept as well as night(!).

I would caution you, however, to make sure you understand how buying your dream home will affect your bottom line run rate. In our case, after three months of living in our new home we have had no surprises in that we did detailed research and analysis ahead of time. We ran and reran the numbers, including impact on upkeep costs, insurance, utilities and property tax, and knew we were comfortable with the 'after' effect to our budget.
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Old 09-11-2017, 02:35 PM   #59
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OP here with an update. We did buy our retirement home. It has a good view of the lake and shared waterfront with the other houses in the development. Quite a bit cheaper than our own private waterfront, but I can still see us using the beach and the lake a lot this way (we are keen swimmers and kayakers).

It was still about twice the price of our current home but I think it will be well worth it. We close tomorrow!
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Old 09-11-2017, 02:40 PM   #60
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We bought our dream home in retirement but actually went from 2 homes to 1 so the net effect was to put about $500k in equity into our pockets!
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