5 year plan and contingencies (55, move, Canada, community)

[Mikala43]

We are currently retired in Hawaii and plan to stay at least another year and a half.

We have plans to settle in Carson Valley, Nevada and have visited a few times. We know we want South West Carson City / Genoa area.

We would like to buy a 5th wheel and travel the US for a year or two, or until murder is a viable option.

There are few subdivisions we would be currently interested in, but there is land we like, and we could build.

My concern is what happens with the equity for the year or two we spend traveling? Money markets have low interest when compared to housing prices going up.

Without giving too much details, it would look like this:

We move to CONUS, and buy a 5th wheel and truck and travel.

That leaves a few hundred thousand. We could buy land in the area we want, or, buy a rental unit. A rental unit would give us $800 per month net, very conservative, or, we could just purchase the land. Any purchase of property forecasts a 7% increase in value/

We have about $7800 per month income at that time, going up to about 10K per month in a couple years, so we could afford a construction loan.

Living in the RV would cost about 3k per month.

I'm really confused on what the best option would be, and a lot of that has to do with uncertainty with the economy.

[StealthRabbit]

Non-conventional thought (Beware).

I like to stay 'engaged / invested' in the RE valuations where I plan to be LT, so...
IF you can find the bargains... (RE in the 'west' is pretty RICHLY valued at the moment, shop / buy diligently )
1) Buy some type of RE near Carson City / Valley. Best cash flowing / equity gain preferred, OR the perfect spot for future home (less likely).
2) Personally... I would consider buying the building (RE ONLY) of a Tire shop or Brake / auto repair business (non-internet erosion with 10% cap rate). IDEALLY you could find a trashed primary residence in the route of commercial progress / needing rezone... put your tee-pee and mailbox up (= Permanent residence)... travel / RV for 24 months while zoning / change of use gets approved, SELL to developer for $500k Tax Free Gain! Repeat as necessary!
3) Find a rural spot that has a shop, + RV hook-ups, and home you can rent out while gone (I do this in (3) places across USA)
a) someone to take care and watch the place
b) good rents / additional cash flows / GREAT depreciation offsets!
c) deductible travel 'home' to maintain
d) FREE place for you when you happen to be nearby (RV spot, or shop with apartment)
e) FREE storage for your 'stuff' while you travel in RV
f) A FREE place to repair / work on / store RV
g) A FREE place to call home (in case you need one for medical / other reasons)
h) a FREE place for guests (now and later)
i) a FREE place for future caregiver.
j) ability to retain / grow equity
k) a temporary (or permanent) future place for transition.

Lots of options.

a lot of that has to do with uncertainty with the economy

Unfortunately.. THAT is a given so... stay flexible and don't fret over what MIGHT happen. *(likely NOT)

[fluffythewondercat]

Originally Posted by Mikala43

We would like to buy a 5th wheel and travel the US for a year or two, or until murder is a viable option.

Have you done full-time RVing before?

What happens if one or both of you turns out to hate it? No matter where I roam, at least I know I have a home to return to.

[engineman]

We lived in a 55+ community in Arizona, 29,000 residents. There was an RV club with 400 members (they were never all in one place at the same time.) Through the club we made many good friends, and enjoyed many trips with them. Most of the homes were private residences. We had a condo townhouse. We could and did go away for several months at a time. The association took care of exterior maintenance, so that was never a concern. There was an excellent RV storage facility at very reasonable rates.

RV club trips took us to Cabo San Lucas, Alberta, Mazatlan, the Copper Canyon and many National Parks. We didn't go on the trip that went to Newfoundland Canada.

Our income was direct deposit and our utilities were on autopay, which kept our finances very simple.

[rjm1cc]

Originally Posted by Mikala43

We are currently retired in Hawaii and plan to stay at least another year and a half.

We have plans to settle in Carson Valley, Nevada and have visited a few times. We know we want South West Carson City / Genoa area.

We would like to buy a 5th wheel and travel the US for a year or two, or until murder is a viable option.

There are few subdivisions we would be currently interested in, but there is land we like, and we could build.

My concern is what happens with the equity for the year or two we spend traveling? Money markets have low interest when compared to housing prices going up.

Without giving too much details, it would look like this:

We move to CONUS, and buy a 5th wheel and truck and travel.

That leaves a few hundred thousand. We could buy land in the area we want, or, buy a rental unit. A rental unit would give us $800 per month net, very conservative, or, we could just purchase the land. Any purchase of property forecasts a 7% increase in value/

We have about $7800 per month income at that time, going up to about 10K per month in a couple years, so we could afford a construction loan.

Living in the RV would cost about 3k per month.

I'm really confused on what the best option would be, and a lot of that has to do with uncertainty with the economy.

I would move to a state that has no income tax and establish residence. Could probably due this by renting a motel room for a week or two and registering to vote. Your will need a mail address in the area and they will have to forward mail to you.

Then buy your RV in that state and license it in the state and insure it. The dealer maybe able to help you with advice on a local address while traveling.

Travel

When done traveling make up your mind where you want to live. Not before.

Put money needed for the permanate home in short term bonds (not funds) or CD's. Not the stock market.


Invest longer term retirement money in equities etc.

[ohio_peasant]

American readers may not have heard the infamous joke about 5-year plans: "We are going to fulfill the 5-year plan in 4 years, working 3 shifts, twice as hard, but for only one paycheck".

Originally Posted by Mikala43

... Any purchase of property forecasts a 7% increase in value...

Is this your steadfast belief, or are you merely examining worst-case scenarios (from the viewpoint of a person who is going to buy in the future)? I would be shocked if 7%/annually could be sustainable, even in central London, Shanghai or San Francisco. What would happen to your calculations, if instead we assumed 0%? Or negative?

[charlygal]

RVing costs $3k a month?????

[Mikala43]

Originally Posted by fluffythewondercat

Have you done full-time RVing before?

What happens if one or both of you turns out to hate it? No matter where I roam, at least I know I have a home to return to.

It's always possible, and I would be the one with the tendency to have stronger opinions about stuff.

But I'm a super good planner, and able to find most hiccups in something and counter it.

Not saying it CAN'T happen.

Thanks Stealth, you raise some very good points!

[Mikala43]

Originally Posted by rjm1cc

I would move to a state that has no income tax and establish residence. Could probably due this by renting a motel room for a week or two and registering to vote. Your will need a mail address in the area and they will have to forward mail to you.

Then buy your RV in that state and license it in the state and insure it. The dealer maybe able to help you with advice on a local address while traveling.

Travel

When done traveling make up your mind where you want to live. Not before.

Put money needed for the permanate home in short term bonds (not funds) or CD's. Not the stock market.


Invest longer term retirement money in equities etc.

Yeah, we'll set-up in Carson City and do all that, and putting the money in a money market it an alternate plan.

[Mikala43]

Originally Posted by ohio_peasant

American readers may not have heard the infamous joke about 5-year plans: "We are going to fulfill the 5-year plan in 4 years, working 3 shifts, twice as hard, but for only one paycheck".



Is this your steadfast belief, or are you merely examining worst-case scenarios (from the viewpoint of a person who is going to buy in the future)? I would be shocked if 7%/annually could be sustainable, even in central London, Shanghai or San Francisco. What would happen to your calculations, if instead we assumed 0%? Or negative?

Growth projections for the area, for the next couple years. Smaller growth would be okay (bigger than a money market account). Some loss would be painful (just because it is a loss), and whether or not it is a NET loss after taxes/deductions and all that....