You're welcome.Thanks. Have a nice day.
You're welcome.Thanks. Have a nice day.
Why do you want to get new debt when retired? If you cannot afford to own it outright, buying seems to be a bad idea.
Agree. modern people are not really comfortable with idleness, no matter what we say. So retirement may bring small business purchases, second (or third home) purchases, volunteering campaigns, regular remodeling projects whether DIY or contracted, ad infinitum. Any of these things, and any boat beyond an aluminum rowboat or canoe are fine for truly wealthy people-$25+ million. Otherwise, it is just a continuation of slavery only under a different name, and with the cash flow often going in the wrong direction.Neither, homes are demanding of my time and money.
Our home up north has less than $20k mortgage left. Market value of approx $300,000. I'm planning on FIREing before the end of 2015. We want to get a second home in Florida, at least to snowbird for the next few winters. After that, may rent/sell the home up north. We will very likely get a mortgage to buy the house/condo in Fla.
My salary is in the very, very low six figures and I'm sure I'd qualify for a mortgage. I could take a HELOC to fund the new place as well.
Question: besides the obvious improved qualification (based on salary) to get a mortgage, what are the pros and cons of buying real estate before or after retirement? Has anyone gone through a mortgage process while in retirement?
PS: BiggerPockets has a lot of real estate info, but the wisdom from this forum seems more appropriate and valuable to me��
.... The area is one of the leading areas for sink holes, which affected a rental property we had purchased nearby. We've learned there are sink hole maps online that anyone thinking of purchasing a home in Florida should review...
Rent out condo.
I could pay cash, but prefer to keep my cash more liquid. Also,
1). I will have a decent pension
2) my DP (darling partner) will continue working for several more years until an annuity and my SS kicks in.
3) eventual sale of primary home in near future would payoff the debt
4) real estate in south Fla is significantly undervalued (I believe)
Believe me, I'm debt adverse, but with property values and mortgage rates this low, I think we have a perhaps once in a lifetime opportunity.
There are non-financial aspects of this decision as well.
Many of us find that our desires and point of view changes in retired life, as compared with what they were when we were working.
Some people find that the drive to get away on vacations or to move miles away, diminishes once they have retired. There is no longer anything to get away from, no need to physically remove oneself from the source of stress because it is no longer an issue.
So, my suggestion is to consider waiting for at least a year after retirement before buying the second home.
I too have toyed with this idea. Tired of the winter here in Colorado and really want to get out and ride the HOG. Too much gravel on the roads still. However I rented a condo in Scottsdale for Spring training and AZ bike week. Spouse is there now with one of the baseball moms from son's team. I leave this week with the kids and two motorcycles. Buddy will fly in once wife and kids come home and we will ride for another week. For years we have toyed with the idea of having a second home to escape the weather. Life schedule has got in the way. However, I am getting to start a new position that will allow me to work from anywhere, kids more active in baseball with more trips to AZ, and the desire to get more riding in may be a catalyst to add a second place. However I go back and forth on the perceived lost opportunity cost of having another place plus I must admit if I am going to do it I want a nice place in a gated community where everything is done. Maybe I will just do a longer rental as its probably cheaper in the long run.
JDARNELL
But then I get over it.... property tax, HOAs, utilities, yard maintenance, exterminator, repairs, routine maintenance, large periodic maintenance, someone to keep an eye on the place, etc.
I get together for lunch two or three times a year with three retired former co-workers, all who have second homes - heck one has two second homes, a lake house nearby and a condo on a golf course in FL. I sometimes feel a bit left out when the conversation inevitably gets around to complaints about homeowners insurance, condo association assessments,
But then I get over it.
OK, you got me - but my list of complaints/costs is far smaller (and so is the 'mortgage'):But you have a second home. Yours happens to be on wheels.
Second home or RV, both are [-]money pits[/-] expensive pastimes. ........
Time for thinking and woolgathering can cause trouble in those years between work and the grave. So best that this time be filled up tight with busywork.Here in SE Michigan it seems like every other person has a place "up north". And why are they going up to the cottage this weekend? To mow the grass, to fix the roof, to paint, to winterize the water system, to open the place for guests..........