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We want to sell and move in a year . We would like to
relocate and rent at first until we find the small farm we are looking for.
If we get about 200 K out of our current house , it seems we could pay most our rent expense with interest earned off the cash from our home sell.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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It can also take awhile to find a small farm. Having the cash will be an advantage.
I've had to make multiple house payments on places 'out-of-state' that didn't sell.
No fun, wish I was currently fully in cash with NO farm, home, or vacant investment properties.
Advice on the 'small farm'. Attend activities with 'retirees' (Like Master Gardeners, senior luncheons, activities) hopefully you can find someone trying to get rid of a farm. (It's much better to get one BEFORE it gets to the market, I was able to get tractors, garden supplies, tools, antique furniture,,, by 'pre-locating' a For Sale By Owner.
Get good soil, and plenty of water, tho not a site at risk of flooding. Be careful of low lying areas that may be foggy or cold and rough for growing season.
Keep the 'improvements' (house / shop ) to a minimum to protect your taxes.
$200k in VFIIX will throw off $750/month in dividends
Good luck selling
these funds may take a beating...if rates rise you will be hit in principal like anyother bond fund, if rates drop then people tend to refinance and the mortgages are paid off early and your interest drops.... theres only a small window where gnma funds shine...the falling rates over the last years coupled with the low amount of refinancing because most homes were under water in value gave gnma funds a big boost but that may be ending if rates rise from here... becarefull, as we all learned there is no such thing as a free lunch... investment asset classes are only good until they arent
Last edited by mathjak107; 06-21-2009 at 03:30 AM..
I would like to know if is is a good idea to sell our current home as we are planning to retire in 3 years. We plan to rent and then decide if we want to buy a home. We know we cannot afford to live in our current home on our retirement inome an figure that if we rent we will be able to save money even if we have to pay more in taxes with having the mortgage interest when we file our taxes. Is this a good idea?
You need to factor in the cost of moving twice. I think there is a big stress cost in addition to the financial cost. Also watch the housing costs carefully. If prices rebound, you might find that waiting and then buying a house later is expensive. If prices keep dropping you win.
vfiix is now down to about 468.00 a month on 200,000;; it pays .30 per share a year... a share being around 10.75 , if you look at my warning up above last june about gnma funds that guess was right on the mark.
Last edited by mathjak107; 02-15-2010 at 02:46 PM..
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