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There's nothing keeping you from doing it right now except your own choices. You complain about not being able to afford something that doesn't even exist where you live. You may as well complain about no ocean front property in Kansas. Don't forget that DC was a malarial swamp before the developers moved in. The only reason to live there is to suck up to the money and the power. Don't pretend that's not your choice.
Whoa! Getting a little testy there, Larry!
To your point: work is a forced extraction of time for cash. Unless you have your own business, in which case, work is all you do and you do it willingly. That is not my choice of how to spend my time. Therefore, I choose to work in "career" positions, in prospering corporations, in positions for which there is a high barrier to entry.
I have a full and rich life outside of work. Since 40 hours (or 50, once you are in more senior positions) is the expectation vis-Ã -vis time extracted, I make sure that my payback is worth the time lost to the job. Since really, I'm working to maintain my full and rich life outside of work.
That equation works well for me. It is profitable to the corporations in which I work. Interestingly, the better the corporation, the fewer jerks there are at the C-level.
Do not presume to parse my objectives, about which you know nothing. I like freedom in which to be scholarly. If I give up a portion of my freedom, it will be at my price.
Housing is becoming one of the biggest issues today for people of every age. Someone could run for president on this issue alone, but none of them want to touch it.
I have been retired for 9 months now and the place where I rent is raising rents around $600-700 a month (I'm in shock) and now we also have to pay for water, sewer and trash (which is becoming the norm), new tenants also have to have at least an income 3x the rent ...so if anyone out there is thinking about renting in one of the very popular, good weather locations, think twice my friends. There's no advantage to renting anymore.
Yea, why is it that the banks got bailed out but the people, not so much.
Every market is different, even though there are similarities in specific regions/cities throughout many states in this country.
I don't think it is fair or accurate to apply blanket statements in criticism of how any of us bought and sold property, what we chose, how we financed it, when we cashed out, how we managed it, etc. Big differences in insurance in some regions where there have been hurricanes, for example . . . and astronomical property taxes in some enclaves.
There are so many variables, including LIFE - Life happens. All sorts of things have doubtless happened in most people's lives in the past 30 years - that no one could have truly foreseen.
We are still paying off the last $3000 of hubby's student loans (doctorate). Just about finished! Hope to make a lump sum payment and close that account out by 12/2015.
We have had job loss, tremendously expensive healthcare issues/surgery . . . 20% co-pay on hundreds of thousands of dollars depletes funds quickly and since 2009, we have had 3 such surgeries, the cheapest being around $22,000 co-pay, not to even count the cost of hotel stays, going back and forth to medical centers, job loss for me as caretaker, etc.
Stuff happens.
Our property taxes have almost exactly doubled since 2002.
Dental work, hearing aids, home maintenance (yes, you do end up replacing roofs, HVACs, fencing, septic, etc if you own a property long enough).
We were fortunate to enjoy a second home for the last 23 years, but at the same time, there are real costs that go along with that privilege.
We made the best decisions we knew how to make at the time, including investing in a doctorate for hubby at 50, putting 5 kids through school, and so forth. I would daresay most of us feel we have done the best we could do, been responsible citizens, and lived decent lives.
It is easy to stand in judgment.
Who could have seen the housing collapse in 2007-10? I had noted that there were some wacky loans being made . . . and wondered how folks were qualifying for them (they weren't, lololol - they were getting loans they couldn't pay back in many cases!).
When we bought our home, they tagged on an LOC without our permission! Had to stop the closing! Give me a break! I didn't ask for a mortgage plus an LOC of $45K. Have mercy. Banking was the Wild Wild West for a while . . . but I won't get into that discussion.
Not everyone has been in the same house for 20 years! Some folks lost jobs in their 50s, relocated, or were transferred. It happens.
Rather than standing in judgment, perhaps some alternatives, choices and innovative thinking is in order. (And congrats if your life has gone smoothly and you have your $1M tucked safely in funds, your house paid off, and a fat pension. Most of us don't have that, even if we came close at some point).
Some of us are just happy our spouses are still alive to share a few more years together, and we would give up all our material possessions (and credit rating) to have those years. We all have different situations.
The article is about Americans who have few choices b/c of housing debt.
We always have choices.
One of those choices is to dump the house and break even and then rent. Hard to get a mortgage when on social security and a pension, so it may be the only option is to take $$$ out of retirement funds, despite the tax hit, and pay cash for a modest home or put down a very large downpayment on a modest mortgage.
But there are definitely choices - just not always the most desirable options. Buy a duplex, rent out one half - revenue generating property. Buy a home/townhome with basement apartment - rent that out.
It all comes down to what we are willing to consider, if we are able to relocate, what funds we have or can acquire, what our health situation might be, and what type of lifestyle we want as we age.
In any case, don't let yourself be put on the defensive about how your life has unfolded. And dont stand in judgment of others. Have a helpful suggestion? Offer it.
Few of us are experts on "retirement." For most of us, simply handling our own circumstances without a lot of missteps is quite the achievement.
To your point: work is a forced extraction of time for cash. Unless you have your own business, in which case, work is all you do and you do it willingly. That is not my choice of how to spend my time. Therefore, I choose to work in "career" positions, in prospering corporations, in positions for which there is a high barrier to entry.
I have a full and rich life outside of work. Since 40 hours (or 50, once you are in more senior positions) is the expectation vis-Ã -vis time extracted, I make sure that my payback is worth the time lost to the job. Since really, I'm working to maintain my full and rich life outside of work.
That equation works well for me. It is profitable to the corporations in which I work. Interestingly, the better the corporation, the fewer jerks there are at the C-level.
Do not presume to parse my objectives, about which you know nothing. I like freedom in which to be scholarly. If I give up a portion of my freedom, it will be at my price.
Methinks thou dost protest too much. Hope you didn't dislocate your shoulder patting yourself on the back.
To your point: work is a forced extraction of time for cash. Unless you have your own business, in which case, work is all you do and you do it willingly. That is not my choice of how to spend my time. Therefore, I choose to work in "career" positions, in prospering corporations, in positions for which there is a high barrier to entry.
I have a full and rich life outside of work. Since 40 hours (or 50, once you are in more senior positions) is the expectation vis-Ã -vis time extracted, I make sure that my payback is worth the time lost to the job. Since really, I'm working to maintain my full and rich life outside of work.
That equation works well for me. It is profitable to the corporations in which I work. Interestingly, the better the corporation, the fewer jerks there are at the C-level.
Do not presume to parse my objectives, about which you know nothing. I like freedom in which to be scholarly. If I give up a portion of my freedom, it will be at my price.
I understood your original point and what you are saying now. I guess it helps to know the turf and all the various ramifications of it. Many have adapted your view point in the area and it is probably becoming more common with milenials and can be reflected in soaring rental costs in many parts of the region. Lots of folks here in the forum would find their jaws dropping at some of the things happening in areas with wealth and low income migrants in the same close proximity. The advantage of living there is being close in.
To your point: work is a forced extraction of time for cash. Unless you have your own business, in which case, work is all you do and you do it willingly. That is not my choice of how to spend my time. Therefore, I choose to work in "career" positions, in prospering corporations, in positions for which there is a high barrier to entry.
I have a full and rich life outside of work. Since 40 hours (or 50, once you are in more senior positions) is the expectation vis-Ã -vis time extracted, I make sure that my payback is worth the time lost to the job. Since really, I'm working to maintain my full and rich life outside of work.
That equation works well for me. It is profitable to the corporations in which I work. Interestingly, the better the corporation, the fewer jerks there are at the C-level.
Do not presume to parse my objectives, about which you know nothing. I like freedom in which to be scholarly. If I give up a portion of my freedom, it will be at my price.
Yes, I get you, living in the same area and finding exactly what you are talking about. I can't be bothered by others judgements about my choices.
Yes, I get you, living in the same area and finding exactly what you are talking about. I can't be bothered by others judgements about my choices.
What many of us realize is that just because you live and WORK in the region doesn't mean you embrace it. The tradeoffs and advantages financially, educationally for you and your children are immense. As she noted in her post her SS benefits are the maximum and that is result of the regions high salaries and very competitive PRIVATE sector non manufacturing industry. Those higher salaries translate into greater opportunity for retirement investment savings etc. The percentage of PRIVATE sector pensions there is greater and that plays into retirement. I posted a link some time ago of PRIVATE pensions by region and it is reflecting of how we in the forum often have regional beliefs about how many do and don't have private sector pensions. National averages can at the regional level be misleading. However all of the working/retirement benefits can be and is a great motivator for people to live and work there even if holding their nose in the process. How you feel about housing is often a reflection of age and when you entered the DC area job market. Entering in the last ten years or so with a high paying job can give you one read on the market as you have 30 or so years worth of equity to be impacted on. Wanting to enter at 50 might be a maybe not I should rent instead. Many of the Millennials are in to the whole sharing scene and until they have families and wanting roots their interest will probably be very rental oriented probably later in life if they delay families. This drives rental rates up and anything located near a Metro line carries with it a really major premium etc. All of this has created a high growth rate sector when continuing rising housing cost and return on investments for those who buy. If you want in on the new game in the country the areas you have the best professional opportunities are often near urban areas and often tend to be more moderate in their politics and social values. If that bothers you then you either need to hold your nose or become less focused on a job processing and developing information and other forms of data and find one more directed at the manufacturing sector. My sons and their spouses are very much in the information and data manipulation side of the equation as are their friends. That has directed their housing and location decisions. Sorta like San Francisco which come to think of it the youngest and spouse lived and worked there for a couple of years for career reasons. As we all know once you do the time you can sell your house ( with a ton of recent history equity), surrender your lease and take your career financial results and find a nice cottage on a lake away from it all. Wait I think we have posters here who have done that. On the other hand there are those in the region who took out all of their equity over the years( per the OP link) and now still have housing debt that doesn't enable them to retire. Although they may still have enough equity leftover to get out of Dodge.
One of those choices is to dump the house and break even and then rent. Hard to get a mortgage when on social security and a pension, so it may be the only option is to take $$$ out of retirement funds, despite the tax hit, and pay cash for a modest home or put down a very large downpayment on a modest mortgage.
But there are definitely choices - just not always the most desirable options. Buy a duplex, rent out one half - revenue generating property. Buy a home/townhome with basement apartment - rent that out.
It all comes down to what we are willing to consider, if we are able to relocate, what funds we have or can acquire, what our health situation might be, and what type of lifestyle we want as we age.
In any case, don't let yourself be put on the defensive about how your life has unfolded. And dont stand in judgment of others. Have a helpful suggestion? Offer it.
Few of us are experts on "retirement." For most of us, simply handling our own circumstances without a lot of missteps is quite the achievement.
With a fixed rate mortgage, you at least have a static principal + interest amount. That amount won't change. With renting, you don't have that luxury. My rent went up 7% ($50/month) this year alone, in an older suburban complex in a market that isn't red-hot like Austin, SF, etc. In hotter markets, it will probably go up more. If I stay in this complex five more years, the rent will be $250/month more than what I was paying initially - that's a car payment. Your property taxes can go up, but I don't live in a high property ax state (Indiana). The homes I'm looking at home are generally under $1000/yr in property taxes.
With a fixed rate mortgage, you at least have a static principal + interest amount. That amount won't change. With renting, you don't have that luxury. My rent went up 7% ($50/month) this year alone, in an older suburban complex in a market that isn't red-hot like Austin, SF, etc. In hotter markets, it will probably go up more. If I stay in this complex five more years, the rent will be $250/month more than what I was paying initially - that's a car payment. Your property taxes can go up, but I don't live in a high property ax state (Indiana). The homes I'm looking at home are generally under $1000/yr in property taxes.
That is, if the percentage rate of hike stays the same. With property tax and also many rents, the % hike often does not.
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