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Old 07-18-2017, 02:36 PM   #121
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It's our home today but in the foreseeable future, months to years, will be part of our net worth so the idea of separating home and net worth for any purpose, is not meaningful to us.



Comes from the belief that neither one of us will live our remaining years in this house. Being in a full CCRC...(Homes, Apartments, Assisted Living, Nursing Home and Memory Care) we've come to believe that living in isolation is less desireable than becoming integrated into a close knit social community... no matter the age. We already have dozens of friends who live in the part of the community where all concerns... food, utilities, transportation, and social life are provided for, or offered. The social structure of daily activities is already a part of our lives.



Even five or six years ago (at age 75), I'm not sure that I would have had this kind of outlook. As the obligations of living independently become more time consuming and onerous... the idea of living happy and worry-free is much more attractive. One bill per year covers everything.



No more paying bills for utilities, home maintenance and upkeep, taxes, entertainment and the dozens of other recurring or unexpected charges that now dot our lives.



So for purposes of the thread, about 25%, but not important to us.


As always your witness is instructive. Reading your comments, you have me wanting to identify and move into a CCRC early with DW.

Without meaning to reroute this thread, what do you think is the optimal age range for moving into a CCRC? And how far in advance should one be identified and arranged? And which location has CCRCs to suit you better -- northcentral Florida or downstate Illinois? Feel free to answer privately if that suits you better.
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Old 07-18-2017, 02:40 PM   #122
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So at what point are you "house rich"? I do not think anyone on this forum is house rich, but when I see +30% that for me would be getting close to being house rich. My guess the people that responded +30% are not retired yet and/or live in a HCOL area. Likewise the people that responded with <10% have already downsized and/or have significant investment assets.... Very interesting tread, but there seems too many variables to understand where "one's" situation compares to others...
My homes make up about 28% of my total net worth. I am retired, my wife still works. I live in a relatively high cost of living area.

Does that make me house rich? House poor? Does it matter if the other 72% of my net worth makes me financially independent?

Am I better off than folks who report 12%? Am I worse off than folks who report 30%?

If home values in my area crashed suddenly, would I be better off or worse off (assuming I'm not relying on the value of my homes for retirement)? What if home values suddenly skyrocketed?

I can't see how the ratio of home value to net worth means much if anything out of context. It's just a number. Better to ponder the ratio of televisions-to-net-worth.
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Old 07-18-2017, 02:52 PM   #123
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$800k house with $200k left on mortgage.
We are downsizing in next 12 months so mortgage will be gone.
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Old 07-18-2017, 02:59 PM   #124
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Having 2 homes will make your life busier, if not more interesting. When you are not traveling or RV'ing, you can spend time maintaining and doing repairs.

My 2 homes are only 2-1/2 hours apart. I do not know how one can have two homes thousands of mile apart, or on different continents.

I used to dream of having a vacation home in Provence. Then, I changed my mind to the Puget Sound to be closer. Glad I did not do that either.
To each their own. I pay people to maintain and manage our homes. Certainly not for everyone, but not difficult to figure out if you have the means.
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Old 07-18-2017, 03:03 PM   #125
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Yes. It is certainly not a problem that more money cannot fix.
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Old 07-18-2017, 04:41 PM   #126
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~5%. LCOH area & never wanted a big house. 3BR ranch, 3BA.
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Old 07-18-2017, 05:11 PM   #127
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Old 07-18-2017, 05:54 PM   #128
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Originally Posted by 1-31-18 View Post
Reading your comments, you have me wanting to identify and move into a CCRC early with DW.

Without meaning to reroute this thread, what do you think is the optimal age range for moving into a CCRC? And how far in advance should one be identified and arranged? And which location has CCRCs to suit you better -- northcentral Florida or downstate Illinois? Feel free to answer privately if that suits you better.
An interesting question, best answered because of the way we retired... from 1989 to 2004 (when we both turned 68), we had lived 6 months in Florida and 6 months in Woodhaven Lakes Campground in Illinois. Cost of living in both places was minimal, but we decided to buy a regular home in 2004 to protect a substantial value through medicaid if it became necessary. The Villa (separate full size 1600sf individual home) is part of the CCRC, here in Liberty Village. We were the youngsters @68. From 2004 to 2014, we were still spending 6 months in Florida.

We really like our CRC here in IL... We did look at Florida, not so much as a CCRC, but as older Over 55 Communities... We didn't find any CCRC's in Florida in our price range... (most did not have separate full size homes, but condo's or apartments) and we wanted our separate home. The Villages were a little steep for us, and we could see the time when we wouldn't want that much traffic or activity.

Over 55 communities do not as a rule have direct connections with CCRC's.

One other major factor for us, was the fact that we do not have a "buy in" endowment fee. Some CCRC's have up front (refundable) fees of $100K to $300K...

Aside... There seems to be a little misconception of CCRC, as we know it... In most cases it doesn't include separate homes. Since we DO live in a separate house, we are not in daily 24/7 contact with the full mix of ages.... ie. up to age 102.
As of now, our interaction is by choice. I don't think that at age 68, living in a condo or apartment CCRC would have been a first choice. We were still too active.

I wouldn't pretend to give advice. We did what worked for us, both socially and financially. Also... being northerners, afters spending years in Florida, we learned to appreciate the four seasons.
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Old 07-18-2017, 07:29 PM   #129
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Curious about where the average person is in terms the value of your house relative to your net worth. Our house represents 21% of our net worth. As we prepare for retirement, I am calibrating financial assets needed to support retirement and am interested in the general house to net worth ratio. Thanks
13 percent
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Old 07-18-2017, 08:53 PM   #130
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House value to NW = 16%. Don't expect to ever see single digits now that we're living partially off portfolio while hoping that house continues to appreciate to some degree.
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Old 07-18-2017, 10:55 PM   #131
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7%, more or less, and the needle doesn't move much when its value is added to the denominator. Deliberately staying small in order to LBMM and because real estate (and other) taxes are outrageous and will get worse in Illinois. Much as I love my home and neighborhood, I'm beginning to look for a Plan B.
6% and ditto.
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Old 07-18-2017, 11:34 PM   #132
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Wow! Loaded question! Lots of factors...but...56% for us! We live in NorCal and our house is worth $850k. We owe $190k but have a 5 year plan to pay it off early (currently we have 9 years left on 2.75% 10 year fixed rate mortgage but are dropping extra $20k a year on it ). We want zero debt and our mortgage is all we owe on. We have good pensions and about $800k in retirement money. We want to fund awesome vacations for our kids and grandkids! We are simplifying our financial life!
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Old 07-19-2017, 09:03 AM   #133
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Yes. It is certainly not a problem that more money cannot fix.
I think the problem is when people try to save money by NOT hiring a property manager. Then it becomes an issue. We have PMs for both residences when we are away.
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Old 07-25-2017, 01:55 PM   #134
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Probably around 25%. Seems like an odd metric however without factoring in equity of the the home, since the equity portion IS part of the networth number.

Mortgage(s) against networth, or equity in home(s)/Real estate would also be interesting.....
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Old 07-25-2017, 05:13 PM   #135
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Circa 16% of net worth. Primary residence only, mortgage free.

Unlike many/most here, I despise home ownership and would be a happy renter for the rest of my life. DW however likes it. And I like being happily married so...
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Old 07-25-2017, 06:13 PM   #136
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Currently 21%.
Getting ready to FIRE and it will probably double to 42%.
And we'll have a mortgage again.
Four government pensions aren't included in NET WORTH.
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Old 07-25-2017, 06:17 PM   #137
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Old 07-25-2017, 06:37 PM   #138
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I use the property tax man's "true cash value" for our properties in Quicken, and I do include our two homes in our net worth. The two personal use houses are 7.5% of our net worth, and all real estate holdings including our houses is 43% of our NW.
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Old 07-28-2017, 03:58 PM   #139
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Old 07-28-2017, 04:41 PM   #140
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