Longtime home to highrise condo, comments

[FUEGO]

I'm kinda excited to give it a try. Not exactly too frugal or vagabondish but free of daily duties.

I think freeing up a few million in home equity, and reducing your existing taxes/insurance/maintenance expenses is a significant way to be frugal.

No one has asked, but what are you getting from the home in terms of rent? Barely enough to pay your taxes/insurance/maintenance?

 

[CuppaJoe]

....

Edit to add: There was a poster here years ago (OldAgePensioner) that basically did what you are talking about (well, except for selling the mult-million dollar house). After coming back to the states after a career as an expat, he lived in a nice high rise apartment for 6 months to a year at a time in a number of different large US cities (Seattle was one I think). Very little possessions, more of a vagabonding lifestyle.

You may not be able to find his posts because he "disappeared." Ah, yes, I remember it well, he would come back under multiple usernames and some old timer would shout out, "we are being OAPed."

 

[audreyh1]

I'll supply some second thoughts here.

1. If you sell your house, that pretty much means you are going to have to sell (or otherwise get rid of) lots of household goods too. They are gone forever. Even if you have no sentimental attachments to the stuff, you have realized a big loss. If and when you decide to settle down into a home again, you will have to replace all that stuff.

If you keep your oversized house because you know you will "take a loss" when you get rid of your stuff - well, that stuff will own you forever!

We were glad to get rid of most of our stuff. It was a huge relief. Now that we are building a new place, our old furniture would not have fit anyway! So it's just as well we are buying new stuff.

I've heard other people say that when they bought a new place, they bought new stuff anyway. So I don't think it's just limited to us downsizers.

When people downsize, they have to get rid of a lot of stuff. That is a good thing!

If you really like high-rise living, then renting condos in various places sounds like a fun approach. And quite economical compared to owning such an expensive home.

Maybe 10 years from now when the real estate market finally truly recovers you'll need to worry about "pricing yourself out of a market" - but by then either you will have found a more permanent spot, or you will have settled on a completely different type of housing entirely. You never know what the future will hold!

Audrey

 

[Zero]

I think freeing up a few million in home equity, and reducing your existing taxes/insurance/maintenance expenses is a significant way to be frugal.

No one has asked, but what are you getting from the home in terms of rent? Barely enough to pay your taxes/insurance/maintenance?

FUEGO, the current rent covers all costs associated with owning the house and then some. But I think we are currently looking at this simply as whether we care to continue owning a home that neither of us really want to go back to.

So it's time to decide whether luxury condos in downtown highrises, are our future.

Our small sample so far, says yes.

 

[FUEGO]

FUEGO, the current rent covers all costs associated with owning the house and then some. But I think we are currently looking at this simply as whether we care to continue owning a home that neither of us really want to go back to.

So it's time to decide whether luxury condos in downtown highrises, are our future.

Our small sample so far, says yes.

It sounds like from a financial perspective, you would probably make more money investing the proceeds from sale of the house in some financial assets like stocks/bonds. And those are much easier to maintain and deal with vs. a rental house.

If it were me, I would not have a problem with a mid- or high-rise apartment or condo. I may have to drag DW kicking and screaming at first, but I think she would like it too. But for now since our kids are still relatively young it is probably a no-go for her. The kids do a lots of playing in the backyard and on the swing set while us parents sip frosty or steamy beverages on the deck and watch the wildlife swim in or fly over the lake. And we live in the city so lots of shopping and amenities are walking distance away, or a short relatively congestion free drive away.

 

[Texas Proud]

Many people seem concerned about what you will do with your things, let me tell you they are just things. When we left Sydney we put our things into storage as we were only going to be gone for a year. 15 years later, thousands of dollars paid in fees, we can barely remember what those things are and why we kept them. That said, we will be dealing with these things on our return next month.

Hope it was climate controlled....

 

[Zero]

It sounds like from a financial perspective, you would probably make more money investing the proceeds from sale of the house in some financial assets like stocks/bonds. And those are much easier to maintain and deal with vs. a rental house.

If it were me, I would not have a problem with a mid- or high-rise apartment or condo. I may have to drag DW kicking and screaming at first, but I think she would like it too. But for now since our kids are still relatively young it is probably a no-go for her. The kids do a lots of playing in the backyard and on the swing set while us parents sip frosty or steamy beverages on the deck and watch the wildlife swim in or fly over the lake. And we live in the city so lots of shopping and amenities are walking distance away, or a short relatively congestion free drive away.

This adventure should happen and yet it did start out the same way with both of us wary of what "highrise living" would bring. But after a month or two of seeing the night lights, from the beverage sipping area, then deciding to wander out at 9PM and finding every type of food and beverage that we could imagine, we were already thinking we are ready to do this full time.

Last week, took the 11 bus to Broadway, then the 992 to Lindbergh, flew to Seattle, caught the Light Rail downtown, stayed at the Sheraton for a few days, back the reverse route. No yard work, no getting neighbor to watch the place, no nothing, just a nice free feeling.

 

[Brat]

We just sold our home on Bainbridge Island and purchased in a co-op in Portland. The location is great, the building & its finances are rock solid, the cost of living there very reasonable. A number of owners have homes elsewhere. The kind of place people buy into after the kids are launched, then leave the move out to their heirs.

We considered stick framed condos, conversions, and even recently constructed high-rises. The co-op met our lifestyle needs the best.

In the Pacific NW many buildings recently constructed as condos are now entirely rentals. That may be the way to go if you are new to a community, however, almost all the developers assert that status as a rental building is temporary. Buying in a building constructed during the bubble has construction defect risk, a building that is 'seasoned' has fewer unknowns. I would not buy a condo in a building that did not severely restrict rentals because mortgages are difficult for a buyer to obtain when you go to sell.

I don't like moving household goods. It is a LOT OF WORK and hiring professional movers expensive. If I had the $$$$ there is nothing wrong with having a 'home base' then renting seasonally in places I want to experiance at a leasurly pace.

 

[MasterBlaster]

based on what you have posted. I wonder if a Manhattan lifestyle would be of interest to you.They have everything that you posted and then quite a bit more like art and museums, Fine Arts and the Theater, and that New York intellectualism.

The costs would be more than the other cities you have listed but then perhaps the lifestyle would be also.

 

[Texas Proud]

This adventure should happen and yet it did start out the same way with both of us wary of what "highrise living" would bring. But after a month or two of seeing the night lights, from the beverage sipping area, then deciding to wander out at 9PM and finding every type of food and beverage that we could imagine, we were already thinking we are ready to do this full time.

Last week, took the 11 bus to Broadway, then the 992 to Lindbergh, flew to Seattle, caught the Light Rail downtown, stayed at the Sheraton for a few days, back the reverse route. No yard work, no getting neighbor to watch the place, no nothing, just a nice free feeling.

Yes... one of the big items to get IMO is a view... and also a balcony...

The views I had were the World Trade Center... nice for awhile... then moved to a place where I could see the Hudson... this was GREAT... heck I would stand at the window and look out... then up to the upper west side... a number of blocks from it, but could look at Central Park...

The bad... you get used to the sight and stop looking... because it was an effort if you did not have a place to sit and enjoy a beverage... to me, standing at a window looking out has its fun, but it does get old....

 

[Zero]

I don't like moving household goods. It is a LOT OF WORK and hiring professional movers expensive. If I had the $$$$ there is nothing wrong with having a 'home base' then renting seasonally in places I want to experiance at a leasurly pace.

This is pretty much how we are thinking. A small (and cheap) homebase, and 6 month or even a year rentals in places we would like to explore.

For instance, Miami. We imagine sampling lots of Cuban and Central American restaurants, learning about Cubans, and their culture. Watching a hurricane season pass by and sampling all the concerts, art exhibits and such that we desire.

We figure, 30 years left. So question is:
a) Spend it very similar to the past or
b) Spend it experiencing a whole new lifestyle

 

[Zero]

Texas Proud and MasterBlaster,

funny you should mention Manhattan, that seems like the dream city to me. But may be toooo big a step for the initial transition. I've visited several times and Manhattan was alive 24/7+.

Part of my thinking is say a place in Seattle or Austin or Denver or Miami, all pretty much sounding like $1,500. Then just lock it up and go travel. Some of the places we've looked at are too expensive, and I think NYC might be one of those.

 

[CuppaJoe]

based on what you have posted. I wonder if a Manhattan lifestyle would be of interest to you.They have everything that you posted and then quite a bit more like art and museums, Fine Arts and the Theater, and that New York intellectualism.

The costs would be more than the other cities you have listed but then perhaps the lifestyle would be also.

Or perhaps you would be interested in Boston, like this guy:

TDawg in Boston

 

[Zero]

Or perhaps you would be interested in Boston, like this guy:

TDawg in Boston

I'm not too interested in cold places, although Manhattan could tempt me. I think Seattle is about as cold as I care for.

 

[RunningBum]

For tax reasons, consider living (at least two weeks a year) in a no-income tax state like Texas or Nevada. The advantages could be big depending on your situation. A good CPA could enlighten you on these benefits. Along those lines, I know that the 1st ex-pres George H W Bush resides most of the year in kennebunkport Maine but spends 2 weeks a year in a Houston hotel to avoid Maine state income taxes.

Two weeks is all it takes? When I was splitting time between TX and VA I was under the impression I had to spend at least 183 days in TX. Like most tax things, it doesn't matter unless you get tagged and they examine it. Now I don't remember for sure if I found that I really needed the 183 days or if that's just what made me feel safe, and I planned on living there around 1/2 the time anyway.

I actually did get an income tax bill from VA one year, probably based on property taxes on my house and car tax/license on the car I kept garaged there. Since Texas requires a state inspection for car licensing, it would've been difficult to license it there. Anyway, I returned the bill with a note that I was a Texas resident and this was a vacation home. Had they persisted, I was ready to show the dates I was in residence there, and could've backed it up with credit card charges to grocery stores, gas stations, etc, there.

 

[RunningBum]

Texas Proud and MasterBlaster,

funny you should mention Manhattan, that seems like the dream city to me. But may be toooo big a step for the initial transition. I've visited several times and Manhattan was alive 24/7+.

Part of my thinking is say a place in Seattle or Austin or Denver or Miami, all pretty much sounding like $1,500. Then just lock it up and go travel. Some of the places we've looked at are too expensive, and I think NYC might be one of those.

Brooklyn could be an option to Manhattan, an easy subway ride in for a lot less, plus Brooklyn has it's own charm. Or so I gathered from all of 5 days I spent there this fall staying with a friend in his apt near Prospect Park.

 

[Zoocat]

For those thinking of buying a condo, especially now in this deflationary housing economy, you might be interested in my thread posted below.
http://www.early-retirement.org/forums/f27/my-hoa-situation-41000.html

When you buy a condo or townhome with a HOA you are intermingling your financial well being with all the other homeowners in your complex. And, in my experience, you are also at the mercy of their bad decisions. Some people get lucky and their HOAs are great. But also, IMHO, you can't tell what's going to happen in a new complex by just looking at the financials. Things can go terribly wrong. Buyer beware.

Also, like Dangermouse, I've decided at age 60 to do all the traveling around that I want to do and I don't want to be responsible for a home at this time. I'm going to rent for the next 10 years and then probably buy or rent into a over 55 complex somewhere in a sunny warm climate. I can't express how FREEING it feels to have unloaded my townhome and all its responsibilities!

 

[RunningBum]

If I were more entrepreneurial, I would start a business and advertise all of the services that an HOA at a condo or townhouse complex provides, at a competitive cost. It amazes me how many people say they are tired or yardwork yet instead of hiring a yard service they want to move to a townhouse and pay a lot more in HOA fees. Throw in snow shoveling (if needed in the area), cleaning gutters, power washing the house, decks and windows once a year, and a cut rate for extra repairs. Add in optional indoor services like house cleaning and basic maintenance (which wouldn't be included in a condo unless it was a more expensive retirement community), and I bet you'd do well and the home owners would be happy too.

The other danger is as Oldbabe says, and if some of the other condos are being defaulted on, they might be taking in even less money and have to raise the dues even more on the remaining owners. I don't think foreclosing banks are too good about paying dues that are in arrears, or even the current dues.

If you travel a lot an apartment on condo might be a safer way to go, since a house usually looks more obviously vacant, but I don't think it applies to that many people.

 

[Texas Proud]

Texas Proud and MasterBlaster,

funny you should mention Manhattan, that seems like the dream city to me. But may be toooo big a step for the initial transition. I've visited several times and Manhattan was alive 24/7+.

Part of my thinking is say a place in Seattle or Austin or Denver or Miami, all pretty much sounding like $1,500. Then just lock it up and go travel. Some of the places we've looked at are too expensive, and I think NYC might be one of those.

Since I was in a company paid apartment, it was easy for me....

But, you can rent a one bedroom place over in Jersey that is right next to a PATH train that will take you to 'the city'.... I would stay there instead of Brooklyn...

Not sure of the costs, but downtown NY seemed cheaper... but they roll up the streets at around 8PM... it is even hard to find a mugger at that time...

 

[Rich_by_the_Bay]

We just sold our home on Bainbridge Island and purchased in a co-op in Portland.

Congratulations, Brat. I hope you didn't get stung too badly by the housing market. Then again, you sell low but hopefully buy low and it washes.

Anyhow, best wishes on the new digs.

 

[Zero]

I think I agree with the folks who suggest that renting an apartment or an owner-rented condo is the way to go. I too would be leary in this market of a huge highrise and the HOA fees, which seem to be in the $600-800 per month range.

Would be nice to avoid the responsibilities of ownership. Just free to show up during times I want to be in my rental skybox or lock it and go flying for long vacations.

Thanks for sharing the thoughts.

 

[Brat]

Humm, I looked at the co-ops in Seattle and didn't find anything to recommend. The Hadley House has been around for years but the apartments don't have decks and the building looked like a box.

Residents in my place invest in their home and the building.

 

[Bestwifeever]

.... I know that the 1st ex-pres George H W Bush resides most of the year in kennebunkport Maine but spends 2 weeks a year in a Houston hotel to avoid Maine state income taxes.

I'm pretty sure the former 41st president owns a home in the Tanglewood neighborhood of Houston and spends summers in Kennebunkport--no?

 

[kcowan]

I think I agree with the folks who suggest that renting an apartment or an owner-rented condo is the way to go. I too would be leary in this market of a huge highrise and the HOA fees, which seem to be in the $600-800 per month range...

Check out the HOA restrictions before renting one. Often they are more restrictive than a rental apartment.

 

[Texas Proud]

I'm pretty sure the former 41st president owns a home in the Tanglewood neighborhood of Houston and spends summers in Kennebunkport--no?

He does.... I think the poster was thinking about when he WAS president... he did not own a home and did have a room at the hotel as his 'residence'... I remember seeing something in the paper back then about 'sleep in the Presidents home'..... as you could rent the room when he was not here...