I need some advice. My parents are snow birds who have owned a house in Florida for 26 years. They announced that they are too old to make the migration trip anymore, so they are ready to give me their Florida house. I’m three years away from ER.
Originally, I had intended to allow Dad to sell the house and give me the money. It does not make sense financially to own a place a thousand miles away that you can only use five weeks per year. It would cost me $9,000 per year in rent, utilities, insurance, etc. to own the house. Plus, my DW isn’t keen to the idea of owning a place so far away with no one to take care of it. Financially, it does not make sense.
But emotionally, it is a different story. I’ve dreamed about owning the house in Florida for years. It is a good house in a nice park. And it has a nice palm tree in the front yard!
The interest we’d get by investing the $40,000 would be $1200 per year (at 3% interest). That would be offset by approximately $1500 per year we’d spend on cheap motels going on vacation. So that cancels out each other.
I’ve been looking on-line at houses and condos in the area in the $40,000 - $60,000 range and I’m not impressed. I think we would be getting (in my parent’s house) far more than what we could buy. Plus, very few of the mobile home parks are pet friendly—and we have two dogs.
DW would like to rent for a few years after we retire, but the vacation rentals aren’t cheap either. I could take possession of the house and if it doesn’t work out, I could sell it in a year or two and my parents wouldn’t object.
HELP! Am I crazy for wanting something even if it doesn’t make sense financially. I’m normally a very frugal person who is trying my best to get my family to de-clutter. But now I’m wanting to add a major element to my life. Any advice?
Originally, I had intended to allow Dad to sell the house and give me the money. It does not make sense financially to own a place a thousand miles away that you can only use five weeks per year. It would cost me $9,000 per year in rent, utilities, insurance, etc. to own the house. Plus, my DW isn’t keen to the idea of owning a place so far away with no one to take care of it. Financially, it does not make sense.
But emotionally, it is a different story. I’ve dreamed about owning the house in Florida for years. It is a good house in a nice park. And it has a nice palm tree in the front yard!
The interest we’d get by investing the $40,000 would be $1200 per year (at 3% interest). That would be offset by approximately $1500 per year we’d spend on cheap motels going on vacation. So that cancels out each other.
I’ve been looking on-line at houses and condos in the area in the $40,000 - $60,000 range and I’m not impressed. I think we would be getting (in my parent’s house) far more than what we could buy. Plus, very few of the mobile home parks are pet friendly—and we have two dogs.
DW would like to rent for a few years after we retire, but the vacation rentals aren’t cheap either. I could take possession of the house and if it doesn’t work out, I could sell it in a year or two and my parents wouldn’t object.
HELP! Am I crazy for wanting something even if it doesn’t make sense financially. I’m normally a very frugal person who is trying my best to get my family to de-clutter. But now I’m wanting to add a major element to my life. Any advice?