How much to budget for retirement home

[corn18]

I hope to get some insight to solve one of my last known unknowns for planning purposes. We know we won't retire in our current home. We have no clue where we are going to retire. But I would like to put a plug in for buying a new home so I can see how much is left over to SWR (will pay cash).

Right now, we have $500k plugged in. Actually, it's $590k to cover selling current home, moving and buying new home.

We currently live in a 4,600 sq ft spec home in Southlake, TX ($750k). Probably mid range price for this area and a mcmansion type home. Definitely do NOT want something this big in retirement but a recent job change required quick action. I'm thinking $500k should get us a nice house almost anywhere.

Is this good for planning purposes until we figure out where we want to retire? What should I be thinking about?

I know there are way too many variables to give a specific answer, but looking to get a WAG for now.

 

[ExFlyBoy5]

This is just so very, VERY dependent on a variety of factors. Location, amenities, taxes...there is just too many things to consider without at least know when/where.

If you are looking at a number "for the future" (that isn't more than 10 years down the road) then 500K would probably be a good goal for many areas.

 

[corn18]

This is just so very, VERY dependent on a variety of factors. Location, amenities, taxes...there is just too many things to consider without at least know when/where.

If you are looking at a number "for the future" (that isn't more than 10 years down the road) then 500K would probably be a good goal for many areas.

When is 2-3 years from now.

Where is what we are working on.

If I need $750k, I have to work a while longer. $500k is doable. $250k, I could retire today (almost(

 

[HillCountry]

This is really a personal choice. You might want to budget for 500 as that’s the number working for you.

 

[aja8888]

For about $125/sq ft you can get a nice 10 - 15 year old brick and Hardiplank home in The Woodlands, TX. Ours is 1,976 square feet in size and for us, it's perfect.

Buy one on one of the 6 golf courses here and you can spend a bit more.

 

[Vacation4us]

I would think this is totally dependent on the where.

No way 500k would get you a nice home in much of California. Or many other places. But 550k might be a great budget in tons of other areas of the US.

 

[COcheesehead]

I am on the verge of closing on our "retirement" home. I used 10% of our net worth as a guide when we were shopping. Our actual purchase price will come in at 11% of NW.
We are moving to a LCOL area, but that is relative. RE where we live has appreciated a lot so even though it less expensive than other parts of the state, it is still high compared to say the Midwest. New builds run about $300+ per square foot. Resales are about $215 psf.
That would get you a house with nice finishes and some upgrades, all one level or if 2, it would include an elevator.

 

[Clone]

This is a question which has no universal answer. We built a new home 2000 sq ft in 2015. $379K. Major upgrades over typical spec built, but not as tricked out as some. The house next door is about the same size, 2 car garage instead of 4 car, spec cabinets and flooring, and it was $279K. Very livable.

 

[Walt34]

No way 500k would get you a nice home in much of California. Or many other places. But 550k might be a great budget in tons of other areas of the US.

Absolutely. In almost every place in WV 550k bought you a new custom mcmansion. In parts of CA take a drive out to see if the place is still standing.

 

[Jerry1]

One way to look at is how much are you willing to spend. If $500K works for you, then when the time comes, hold firm at $500K. Certainly there is good living for $500K in many desirable areas of the US. If you want a condo on the ocean, then you need to bump up your number. The point is to pick a number. Do you want to work longer to increase your options or, do you want to retire? Your call.

 

[COcheesehead]

I don't think you can just pick a number. I think you need to consider the lifestyle you want in retirement. I could have paid less if I didn't want a view or to be able to walk to things. You have to look at the total picture and decide "how do I want my last years on this earth to be lived" or another way "what did I work almost my entire life for?" Then go out and seek where you can find the place that answers that question and make the budget work. It might require a move to a LCOL which is what we did in our case, but I think we are going to be pretty happy.

 

[W2R]

I hope to get some insight to solve one of my last known unknowns for planning purposes. We know we won't retire in our current home. We have no clue where we are going to retire. But I would like to put a plug in for buying a new home so I can see how much is left over to SWR (will pay cash).

Right now, we have $500k plugged in. Actually, it's $590k to cover selling current home, moving and buying new home.

We currently live in a 4,600 sq ft spec home in Southlake, TX ($750k). Probably mid range price for this area and a mcmansion type home. Definitely do NOT want something this big in retirement but a recent job change required quick action. I'm thinking $500k should get us a nice house almost anywhere.

Is this good for planning purposes until we figure out where we want to retire? What should I be thinking about?

I know there are way too many variables to give a specific answer, but looking to get a WAG for now.

I didn't budget for anything, because my accumulation phase home did not cost much and I paid it off within 4 years. Even though it was far from perfect, I was figuring I could stay in it during retirement if necessary.

But then, after my 2009 retirement my financial situation improved, as it did for many of us during the past decade. I had extra money and wanted a nicer home so I looked for about 4-5 years.

When it came on the market, much to my surprise my "Dream Home" was not as expensive as I thought it would be, although it was still more than my previous home. During my search I had looked at several very nice homes but turned them down because they were overpriced. I felt really bad about that and thought I had screwed up by turning them down. But when I found my Dream Home all that sadness vanished.

I'd say, think about how much time you are willing and able to devote to looking for your retirement home, and how much you are willing to bend on your "must haves". And don't forget about luck.

 

[HI Bill]

Here's a lovely $500K home in leeward Oahu.

 

[Bamaman]

When most people talk of selling their expensive homes and downsizing to a lower cost of living place, I automatically think they should move south. But you are already in the south. Texas homes are relatively inexpensive per square ft., but where they get you is on enormous property taxes.

Your thinking is sound. But you must first decide where you're going to be living. Your city's high line neighborhoods are so nice that moving to Joe Q. Public's neighborhood in most towns would be a big let down in your standard of living.

Wikipedia has a great writeup on your town, with $900K being the average home. And the list of people from there and living there is equally impressive. The pictures of the homes shown are absolutely incredible, and they'd cost twice as much $ in most locations.

Many retirees go to places like Florida, however $500K there will just get you into a 2 bedroom 2 bath high rise condo in Ft. Myers. Many will return to where they grew up, or where they previously lived. (My previous cities have real estate prices out of sight.)

What's nice is that real estate shopping and scoping out cities is so easy online. Good luck to you.

 

[Moemg]

You want a budget for a house that you have no idea where it will be . Does this sound a little crazy to you ?

 

[corn18]

You want a budget for a house that you have no idea where it will be . Does this sound a little crazy to you ?

Affirmative. I’ll plug in $500k until we figure out where we want to retire.

 

[daylatedollarshort]

The aging tract house I live in in California has a market value just a tad less than a 5 building apartment complex in the city where I grew up in the Midwest. I think you need to decide where you want to live first and then the average home prices are easy enough to lookup on Zillow.

 

[imoldernu]

Here's the most expensive home in my county. $575K Nearly 6000 SF. It's about double the next highest price available. You can probably get it for $500K

https://www.zillow.com/discovery/peru-il/most-expensive/?bv=sb

 

[MarieIG]

Well I think setting a budget for a retirement home is a good idea.

I may not know exactly where I want to move, but I have eliminated a lot of places that I don't want to move, including the high cost of living locations mentioned in this thread, i.e. California and Hawaii.

 

[Sunset]

When is 2-3 years from now.

Where is what we are working on.

If I need $750k, I have to work a while longer. $500k is doable. $250k, I could retire today (almost(

You can buy my house for $250K

We like our small 1,000 sq ft home, utilities are low, and taxes are lower than the McMansions.

 

[Col. Klink]

You may not need as much home as you might anticipate now. One thing the DW and I have found is that kids and friends don't visit as much as one would expect because they still w*rk. We have the free time to go to them... but only in the summer because I don't do snow. Anyway, we found our 3 bdrm 1800 sq. ft. ample for 2 people. Fine for the occasional guests. Easy to clean so we can be outdoors doing stuff we enjoy.

 

[f35phixer]

You can buy my house back in your old stomping grounds for 249K boat slip included sorry Sunset!!! And I'll get you a J.O.B too. Your MIL is back here in MD, correct, weren't you going to come back here to help, as you know Houses in this aren't CHEAP....

 

[corn18]

You can buy my house back in your old stomping grounds for 249K boat slip included sorry Sunset!!! And I'll get you a J.O.B too. Your MIL is back here in MD, correct, weren't you going to come back here to help, as you know Houses in this aren't CHEAP....

Thinking about moving back to that area. It's 1+45 from her mom, so not bad. And I could get a job at NAVAIR as a govy.

 

[COcheesehead]

One thing that was helpful for us when we were looking is we toured model homes at different square footage levels to see what a 1500 vs. 2000 vs 2500 vs 3000 square foot house really lives like. It was an eye opener is all I can say. Make sure you don't under buy.

 

[f35phixer]

Thinking about moving back to that area. It's 1+45 from her mom, so not bad. And I could get a job at NAVAIR as a govy.

YUP, we area ramping up MS testing here !!!!!!!!