yakers
Thinks s/he gets paid by the post
DW & I are thinking of selling the house and either renting or possibly buying a condo if we found one we really liked. Youngest son is away at college and I retired last year. From a non fiscal perspective we want the freedom to travel without worrying and maintaining a house. For a big trip last year we found a house sitter. There are real pluses and minuses. We are in California and our property taxes are low, if we were to buy in California again just the property taxes would go up from $2K to $5k for anything we are likely to find. And that tax money is 'lost' every year with nothing to show for it, unlike, say, a home improvement. On the plus side the property tax is deductible for us. And I assume rentals factor in current property taxes. We like our house, DW has an award winning cactus garden. But the house is old and has many years of deferred maintenance. I don't like sinking a lot of money in it. I have now started some repairs but I did not plan my retirement around 'This Old House' activities. The condo I once lived in was really great but I know finding a similar set up is difficult.
I am trying to sort out the financial and non financial issues. On the financial side if we sold the house for $450k how would we invest it so that the investment produces enough to cover our housing cost and enough gain to try to match the gain in owning a house (over time, I know the real estate cycle here can be 10 years). I am not sure if the investment should be in REITs to match home ownership or some other type to generate income. I expect to live long enough that I want to have housing costs covered. We have a trailer that we would have to pay to store some where.
On the non financial side, If we were to rent we would have to get rid of a lot of stuff, a good thing but a serious undertaking. We would be more free to travel and change neighborhoods but would be subject to more neighbors and probably regular increases in rent. Actually the non financial side is pretty compelling but I am trying to seriously figure out if there is a way to gain financially or at least mitigate the costs of this move. It does look like there is nothing cheaper we can do than stay where we are but I would like to know the cost of staying or going if our emotions push us toward moving.
I am trying to sort out the financial and non financial issues. On the financial side if we sold the house for $450k how would we invest it so that the investment produces enough to cover our housing cost and enough gain to try to match the gain in owning a house (over time, I know the real estate cycle here can be 10 years). I am not sure if the investment should be in REITs to match home ownership or some other type to generate income. I expect to live long enough that I want to have housing costs covered. We have a trailer that we would have to pay to store some where.
On the non financial side, If we were to rent we would have to get rid of a lot of stuff, a good thing but a serious undertaking. We would be more free to travel and change neighborhoods but would be subject to more neighbors and probably regular increases in rent. Actually the non financial side is pretty compelling but I am trying to seriously figure out if there is a way to gain financially or at least mitigate the costs of this move. It does look like there is nothing cheaper we can do than stay where we are but I would like to know the cost of staying or going if our emotions push us toward moving.