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Hubbie and I will be retiring, and trying to get all our ducks in a row and will ask the age old question that has been asked many times before.
Anyway, we are considering Florida, selling our home in NY. WE both will have a pension (mine is small) and Soc. Security.
The question is this: should we have a mortgage?
After selling our home here, we would be able to buy a small home in the $170,000 range. But sometimes the cheaper homes are in not so nice areas (occasionally they are) and possibly needing some TLC (again, not always).
Or should we take out a mortgage (approx. $100,000), buy a nicer home and have the tax deduction?
I've heard the stories that at least with no mortgage the house is yours, and the story about if you are a senior who cares if you ever pay it off (we are in our 60's), and the one that why should you tie up your money in a house, use someone else's money.
I'd like some thoughts. This should be our last home- next stop would probably be a nursing home somewhere down the line. Thanks.
More info: the $150,000- $170,000 would be from the sale of current home. There is some, but little savings. Just SS and pensions, plus Hubbie has some $ in a deferred compensation plan. Since we have time to think about it yet, we are considering the Tarpon Spgs/ Dunedin/ Clearwater areas-esp. Dunedin and maybe Venice/ Punta Gorda areas. Or, on the other side- Ormond Beach and St Augustine. But we are leaning towards Dunedin.
Put half down and take a mortgage. Put the rest away In a safe place. If you don't have the discipline to leave savings alone then pay cash for the house.
I'm retired, and I like not having a mortgage. Some retirees prefer to have a mortgage, and some don't. Often tax deductions aren't as big a deal for retirees as they are for the employed, because taxes for retirees are often much lower. What feels right to you? Really, it's your choice.
As for the $170K home vs the $270K home, again, it's up to you. Remember that those monthly payments could be used to buy a lot of other things.
Nola2SGF- that's the way I feel right now at this stage in our life. We have a big house and farm with 103 acres. I don't want that anymore. I'd rather have a closet with money in the bank to do things with. It's just that some ppl would rather have a mortgage even with a cheap house. Just wanted to hear what others think or done.
Location: Stuck on the East Coast, hoping to head West
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The only reason I can think of for putting all of my cash in a house in Florida is if a creditor was coming for me. Florida's asset protection laws for a personal home are amazing.
Realistically, by the time I retire, I suspect medical expenses will threaten my financial security. I plan to park my money in a house.
Interest rates are so low right now, it's worth it to take the mortgage. You'd likely get a better return in other investment vehicles.
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