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Old 07-24-2019, 02:44 PM
 
Location: Washington State
18,770 posts, read 9,675,098 times
Reputation: 15982

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Quote:
Originally Posted by marino760 View Post
I have an opportunity to buy my retirement home a little early and would like some honest opinions because there's a twist.
There's a house located in the town I'm going to move to which is on the market. It's in the historic district, easy walking distance to things including the bus stop, food market, church, opera house, museum and restaurants. It's located almost exactly where I was hoping I'd find a house for sale.
The house was recently renovated and turned into 2 apartments, one upstairs and one down. The upstairs is already rented to a single person. The rent would almost cover all of the small mortgage including taxes and insurance for the house.
My dilemma is that I still have a couple of years before I was planning to fully retire and move. I could buy the house now, let the upstairs rent pay for it and then in a couple of years pay the mortgage off if I wish to and then decide if I want to rent out the upstairs or use it myself and keep it for when friends or family come to visit. If the tenant moves out for any reason before I move there the mortgage would not be a hardship for me to pay without it being rented. In the meantime, I would hire a property management company to collect the rent and do basic maintenance.
Being a small town, there's not a lot of houses that come on the market located where I would find ideal, maybe 2-3 a year if that.
My concern is that the house is located in another state and I really did not intend to buy one quite yet, but this one has most things I want, and will pay for itself for the most part before I move there.
Should I let this house go and wait, or buy it since it's an opportunity that probably won't happen again? I would just like to get some opinions.
The key is buying it at a deal price. If you can get what you want at the price you want, then I would do it. Otherwise, just wait, there will always be something good for sale.
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Old 07-24-2019, 04:21 PM
 
Location: NC Piedmont
3,934 posts, read 2,892,754 times
Reputation: 6318
Quote:
Originally Posted by ohio_peasant View Post
This may be obvious, but doesn't the whole matter devolve to whether the local market is appreciating? If it is, then benefiting from the extra 2-3 years of price-appreciation seems like a... benefit. But if the market is declining, it would appear to be preferable to wait, would it not?
It's not that simple. If it has been declining, it may be at or near the bottom and the best possible time to buy. If it's been appreciating, it may be near the peak and the worst time to buy. You can't be sure. If there is something to base the trend on you may have a better idea of what seems likely to happen in the next few years, but you still can't be sure.
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Old 07-24-2019, 04:27 PM
 
6,766 posts, read 1,414,614 times
Reputation: 16941
Quote:
Originally Posted by elnrgby View Post

Sorry, my posts might not be entirely clear (although they are if you read them carefully, and bear with my English as a second language :-). .
Wow -- I just want to say how VERY impressed I am with the fact that English is your second language!! I would say that you write better than 75% of those for whom English is their first language!!
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Old 07-24-2019, 04:46 PM
 
72,085 posts, read 72,068,214 times
Reputation: 49621
Sometimes I think English is my second language too. I am fluent though in pig Latin ....

I mean I used to think English was important but today I am not so sure ..

Today I think playing my drums is much more importantor ....
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Old 07-24-2019, 05:13 PM
 
Location: Rust'n in Tustin
2,257 posts, read 2,427,289 times
Reputation: 4143
I say wait. Homes are getting cheaper, right? Look at how much they were 20 years ago compared to today.

I say wait.
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Old 07-24-2019, 08:13 PM
 
5,722 posts, read 8,793,124 times
Reputation: 4939
All this talk about appreciation/depreciation we seem to be forgetting this is the OPs retirement home. If he does wind up in a ALF eventually the property can be used for cash flow.

OP, do you own a home in California? So you have already won the housing lottery. No need to worry about the pittance a house may gain or lose in KY. If you feel housing is due for a correction you have the option of moving most of your belongings to KY, sell the house in CA and finish out your job while living in a small apartment.

Normally I'd say avoid being an absentee landlord - but in this case it seems like it could work out well.
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Old 07-24-2019, 08:56 PM
 
12,109 posts, read 5,189,763 times
Reputation: 19146
Quote:
Originally Posted by creeksitter View Post
All this talk about appreciation/depreciation we seem to be forgetting this is the OPs retirement home. If he does wind up in a ALF eventually the property can be used for cash flow.

OP, do you own a home in California? So you have already won the housing lottery. No need to worry about the pittance a house may gain or lose in KY. If you feel housing is due for a correction you have the option of moving most of your belongings to KY, sell the house in CA and finish out your job while living in a small apartment.

Normally I'd say avoid being an absentee landlord - but in this case it seems like it could work out well.
I do indeed plan to sell my CA home in a couple of years and purchase the retirement home with cash and still have ample left over, or perhaps I'll keep the small mortgage on it since the rental upstairs will pay for the house if I go that route.
This will be my last home so I'm not concerned about it appreciating or depreciating in value. I can't think of any circumstance where I will sell it to buy another house somewhere else. I hate moving with a passion and I have a long history of buying a house and staying put in it, LOL.

Thank you all for your input. You all have been extremely helpful.
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Old 07-25-2019, 01:27 AM
 
4,792 posts, read 4,064,959 times
Reputation: 10104
What a sweet deal. Just buy it. You'd just kick yourself later, if you don't.
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Old 07-25-2019, 01:33 AM
 
72,085 posts, read 72,068,214 times
Reputation: 49621
Quote:
Originally Posted by creeksitter View Post
All this talk about appreciation/depreciation we seem to be forgetting this is the OPs retirement home. If he does wind up in a ALF eventually the property can be used for cash flow.

OP, do you own a home in California? So you have already won the housing lottery. No need to worry about the pittance a house may gain or lose in KY. If you feel housing is due for a correction you have the option of moving most of your belongings to KY, sell the house in CA and finish out your job while living in a small apartment.

Normally I'd say avoid being an absentee landlord - but in this case it seems like it could work out well.
many who buy retirement homes ,. self included end up changing homes .. areas change , needs change and likes and dislikes change so it is always best to keep in mind nothing may ever be permanent .

so tax ramifications may end up pretty important. especially because in retirement so many things are linked to retirement income like aca subsidies , medicare premiums and getting your ss taxed
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Old 07-25-2019, 07:33 AM
 
Location: NC Piedmont
3,934 posts, read 2,892,754 times
Reputation: 6318
Quote:
Originally Posted by ysr_racer View Post
I say wait. Homes are getting cheaper, right? Look at how much they were 20 years ago compared to today.

I say wait.
My home's value has doubled in 20 years. Pretty sure that isn't just inflation.
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