Moving for Financial Reasons on Retirement (55, supplement, weather, community)

[old_grouch]

Has anyone here moved to a new location on retirement solely for financial reasons? How did it work out?

We have been planning for several years to move to a low-property tax area (10 hrs away) from a high-property tax area on retirement next year. We love our property of 20+ years, our house we built, our friends and family, but we have a choice of spending $6000 vs. $60,000 per decade (or more) on property tax. With our limited retirement savings we have to look for every possible savings, and the lower cost area is a lovely place we enjoy. But as it comes close to reality, my husband is having real grief and depression about the prospect. I worry that it will be too hard for him to adjust -- he is a little bit of a loner. Now I am feeling very stressed between the financial and emotional conflict.

[earthlyfather]

You have my sympathy. We are facing a similar decision in a couple of years. Our situation is we like the neighborhood, have friends we enjoy, but do not want to stay in this big house and bigger (3+acres) yard. Though we do like it. If we were to move further south in the same state like we have talked about, our property taxes will probably be somewhat higher. A few hundred, so nothing dramatic like what you are facing. The other thing is we are somewhat rural and the lack of conveniences and even advanced medical care is limited. It is a tough choice and mixes financial, aging realities, and emotions. New phases in life! What a challenge they can be.

[MrRational]

Originally Posted by old_grouch

...but we have a choice of spending $6000 vs. $60,000 per decade (or more) on property tax.

Are you truly limited to ONLY those two options?

I get that the big family house may be too much even without the tax and other expense aspects...
but surely there is a middle ground to be found.

No specific suggestions... but my hackles tend to go up when I see an either/or.
Good luck.

[arwenmark]

THis is exactly what we are going to do. We own a house on Cape Cod where we are both from, long family history there and most of my kids still live in that area, one in NH.
but we know because of job situations and deleting of savings that we will not be able to live there when husband retires, if he ever can. So right before his last job before current one was shipped to China we bought a house I had seen online in Weirton WV. Weirton is a trying to recover steel town and everything is very inexpensive here, bought a 5 bedroom 2550 st house with 2 car garage for 36K taxes are 285 a year. THere is good medical care close, can walk to bank, post office, grocery store community center, senior center, library, all about 2 blocks away. and PIT airport is 25 min. drive so is Pittsburgh if you want city stuff.

I am sitting here in said house right now, we are trying to come down when we can and do some work to the place so we won't have too in retirement.

I am at

[old_grouch]

Originally Posted by MrRational

Are you truly limited to ONLY those two options?

I get that the big family house may be too much even without the tax and other expense aspects...
but surely there is a middle ground to be found.
.

Actually we have a small house, but on 3 acres, and my husband wants to have at least this size property if not more. We also have a workshop which he definitely wants in a new place. The acreage and workshop do impact the taxes here. But having recently helped my in-laws move here, we don't see how we could have what we want here and pay significantly less taxes. But maybe such a place exists, where we could pay $30,000 over the decade, rather than $60,000. We had given up on that several years ago, because prices and taxes are so high here, and researched other areas, as a way to keep the type of property we have now. But you make a good point.

I am interested in hearing from anyone who moved reluctantly, and how it worked out -- for good or bad, and why.

[Countrysue]

Our property tax is $2500; our homeowner's insurance is $4,000 with a 5% wind deductible.

We can move elsewhere and live much cheaper. All of our relatives have left the area for Texas, Alabama and Tennessee and the northern part of Louisiana.

There is no way we can stay in our present home once I retire. Property taxes are cruel. Property taxes are based on what you have managed to accumulate during your lifetime, not on ability to pay. I would much rather pay an income tax at the local level.

After Katrina property values in our area went sky high. I know of people who lost their homes because they could not longer afford the taxes.

By the way, we refer to this as 'voting with our feet'.

[MrRational]

Originally Posted by old_grouch

Actually we have a small house, but on 3 acres, and my husband wants to have at least this size property if not more. We also have a workshop which he definitely wants in a new place.

I get that completely.
My new home is on close to an acre and includes lots of garage and shop space.
But my taxes won't be anywhere near $6000; closer to $1000.

Considering the emotional aspect of actually enjoying your lives and focusing on that will almost always be more important than the money... maybe you should look to find that incremental amount ($4500-$5000?) each year by adjustments in other categories of your budget.

F'rinstance, if you were to move so far from home and family and friends you have likely allocated for travel expenses to visit them, or to have them (grands?) come visit you somewhere else. Crunch the numbers?

good luck.

[old_grouch]

Originally Posted by Countrysue

Our property tax is $2500; our homeowner's insurance is $4,000 with a 5% wind deductible.
......
There is no way we can stay in our present home once I retire. Property taxes are cruel.

CountrySue, I agree with you 100%, property taxes are cruel. You work for years to set up what you want, and then you can't afford to keep it. Moving away seems drastic, but finances keep pointing that way.

[rjm1cc]

Originally Posted by old_grouch

Has anyone here moved to a new location on retirement solely for financial reasons? How did it work out?

We have been planning for several years to move to a low-property tax area (10 hrs away) from a high-property tax area on retirement next year. We love our property of 20+ years, our house we built, our friends and family, but we have a choice of spending $6000 vs. $60,000 per decade (or more) on property tax. With our limited retirement savings we have to look for every possible savings, and the lower cost area is a lovely place we enjoy. But as it comes close to reality, my husband is having real grief and depression about the prospect. I worry that it will be too hard for him to adjust -- he is a little bit of a loner. Now I am feeling very stressed between the financial and emotional conflict.

You can move to a lower cost area. That is true. But make sure you do a detail budget of what you are currently spending and what you think you will spend (or really save). I would call my insurance company and find out what my auto and home owners insurance would be. How much it costs to register my car. How sales tax differences. Check with the new locations government and make sure you know what your property taxes will be. Could go up a lot due to a new purchase price or maybe discounts the seller got that you can not. Also calculate your state income tax. SS (retirement income) can be taxable in the new area and not in your current state.

My feeling is to stay put at least for a few years. You can always move latter but you won't be able to move back.

Is it possible to sell an acre or so and use that money and the reduced taxes to stay put? Can you lease some of the land to a farmer?

I know some governments give property tax deductions for different reasons. Go to your local government and discuss your problem and see if you can work something out. In my area if you are 65 and under x dollars in income you can have your taxes frozen so you do not have future increases. Also if you get $500 gross income from farming you can get a lower assessment on the land.

Can you donate part of your land to a church or other non profit that will agree to keep the land as it is and let you use maintain it until you die?

[yellowsnow]

I wanted to live someplace with a low COL, good weather, and a lot to do. I moved from rural MN to urban Las Vegas and I'm glad. It's relatively inexpensive to live here in comparison to MN so I made a good decision in that regard.

Another thing that makes this a good area for seniors is the abundance of jobs that don't pay a living wage. Even though the economy is horrible, it's possible to pick up low pay part time work to supplement your income.