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Old 01-09-2011, 09:25 AM
 
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My wife and I are 54 and 57 and our daughter is married. I am in IT and my wife teaches. We have a very beautiful home that will not be paid off for at least 8 years and the mortgage is killing us. We are approaching the retirement age and do not have much saved up currently. I have just came off of a major surgery but can work from home but it dawned on me that maybe its a good time right now to consider selling this house even though the market is'nt that and hopefully have enough to move into a smaller home or condo with less utilies and responsibilities and a mortgage that if one of us loss our job could handle. Is this something that we should strongly consider at our current ages?
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Old 01-09-2011, 10:06 AM
 
Location: Pennsylvania
16,349 posts, read 10,337,852 times
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Quote:
Originally Posted by LittleDolphin View Post
If you could design a perfect life for yourself, what would it look like?

Would it involve staying in your home of 40 years or making a change?

What gives you joy? What are your hobbies? Do you want to travel? Be closer to family? Do you enjoy working on your current home and land--or has it become burdensome?

Once you know what makes you happiest right now in your life, then the road will become clear. Change is healthy when you enter it with an open heart and mind. Change forced upon you can be less so. What does your heart want?? Then full speed ahead.

Much joy to you.
exactly!
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Old 01-09-2011, 11:11 AM
 
6,389 posts, read 5,461,802 times
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My DH and I are 57 and 51. We bought a 100-plus-year-old house inexpensively years ago, a fixer upper (which we are still fixing up) and purchased adjoining property at tax sale. The mortgage payments were low, and we were since able to pay it off. We were lucky in that respect. We loved the location, because the house was on a dead end road, there was a field on one side, and woods on the other, meaning few neighbors. Buying the adjoining lot guaranteed that. We could never stand being "hemmed in" by neighbors.

I was laid off a year ago, and DH 3 years ago, but he had a nice severance. The job opportunies here are bleak. Rather than relocate to "where the jobs are", and live an urban lifestyle in an apartment or townhouse, we decided to use our property to make money doing things we enjoy. I expanded my garden to nearly a quarter acre and made money last summer selling the vegetables at our daughter's health food store. DH became a "picker" - cruising the country side for estate sales, barn sales, etc., bringing his finds back and using our large unused carport to sort and prep his treasures for sale at his stand at the local year-round flea market. He's making consistent money, not a huge amount yet, but enough to be very optimistic. I found a job at our local high school, only a few miles from our home. I'll have steady income during the school year, and summers to devote to growing produce for sale and helping my husband "pick". Going on picking excursions with him is fun, and he appreciates my input. Like the previous poster stated, you have to find what makes you happiest.
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Old 01-09-2011, 06:12 PM
 
Location: Lakewood OH
21,699 posts, read 23,661,739 times
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If you think you can find a place that suits you better, by all means do so. But don't feel you have to move just because you are retiring. Sometimes I think people relocate just for that reason.

I am planning from Portland OR where I have lived for over 30 years (originally from Chicago) to Clevleand because right now Cleveland will suit my needs much better than Portland. It all depends upon your circumstances.
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Old 01-09-2011, 07:16 PM
 
Location: Perpetuality On Wheels
424 posts, read 409,628 times
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To move, or not to move, this is the question
So it's serious. Consider you still have heavy burden of mortgage, to move really appears a better idea. Though current housing market is buyer's market, not seller's one, but you are both seller and buyer, i.e, just do an exchange which doesn't matter too much with market condition. But even it is move, then local one or remote one isn't the same.
There are many other factors to consider as well. In the forum you may find many nice hints. Good luck.
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Old 01-15-2011, 06:52 PM
 
Location: Grove City, Ohio
10,133 posts, read 12,383,606 times
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Quote:
Originally Posted by azloafer View Post
We are in our mid 60's and feel that we would like to stay in our area when we retire. However, we will downsize by buying a condo so there will be no outside maintenance. The condo's that we have checked out have a monthly fee that covers pest control, all outside yard maintenance, exterior walls and roof, garbage, basic cable TV, etc.
There's as many right answers to these sorts of questions as there are people asking.

We want to snow bird spending November 1st to May 1st in southern Georgia then spend the summer months in Ohio. In Ohio I want a condo with a community swimming pool that would be welcoming to families and grandchildren. Grand kids can come over to grandmas and grandpas in the summer to go swimming while school is out. But as much as we love our family medical conditions make staying during the dead of winter an impossibility. Anything colder than 50 and grandma develops some very real physical problems and I get terribly depressed.

So we snowbird but for how long can we make the twice or more yearly 800 mile trips?
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Old 01-16-2011, 12:03 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,558 posts, read 39,944,045 times
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Quote:
Originally Posted by Bricks48 View Post
My wife and I are 54 and 57 ... We have a very beautiful home ... the mortgage is killing us. We are approaching the retirement age and do not have much saved up currently. ...maybe its a good time right now to consider selling this house... hopefully have enough to move into a smaller home or condo with less utilies and responsibilities and a mortgage that if one of us loss our job could handle. Is this something that we should strongly consider at our current ages?
Summary - best to downsize if possible (even in existing house), get your debt load manageable, ALWAYS buy a home 30% UNDER current market price, and with special features / area allowing an ez resell.

It is always a good idea to have ONLY a debt load that can be covered by one spouse / income (I never had the benefit of double income, so high mortgage was not a temptation for me). Selling your place at this time is a very complex choice, only you can make.
How bad is your market? At same age as you, I CAN"T afford to take the current market price for my nice home. I have a home that is very desirable (View, design, in a National scenic area, 20 minutes to metro / international airport, great neighbors, peaceful...) But I realize the market will take YEARS to recover and high inventory will remain. (I keep enough cash reserves to pay off the 3.1% Mortgage if needed)

Quote:
Originally Posted by Mrs. Skeffington View Post
My DH and I are 57 and 51. We bought a 100-plus-year-old house inexpensively years ago, a fixer upper (which we are still fixing up) and purchased adjoining property at tax sale. ... Rather than relocate to "where the jobs are", and live an urban lifestyle ...we decided to use our property to make money doing things we enjoy. ... I found a job at our local high school, .. Like the previous poster stated, you have to find what makes you happiest.
Very good points, and indicative of ability to adapt. I too am a commercial Grower & Master Gardener, and currently doing volunteer and contract jobs vastly different than my career. (downsized @ age 49 w 32 yrs service, no pension, no healthcare)

Quote:
Originally Posted by seagull84 View Post
To move, or not to move, this is the question
So it's serious. Consider you still have heavy burden of mortgage, to move really appears a better idea. ... just do an exchange which doesn't matter too much with market condition. But even it is move, then local one or remote one isn't the same.
There are many other factors to consider as well. In the forum you may find many nice hints. Good luck.
Solid advice and well thought out for exchange. As mentioned, if you are 'downsizing' or changing locations in different markets (ex. from Rust Belt to Austin or SA TX (little market decline)... then you will stand to lose significant equity.)

Quote:
Originally Posted by nicet4 View Post
There's as many right answers to these sorts of questions as there are people asking.

We want to snow bird ...how long can we make the twice or more yearly 800 mile trips?
Mine is a 'modified' Move & downsize & stay & Snowbird.
Due to risk of losing significant equity in a beautiful home by selling now... I will:

Keep existing home, modify for rental income from 2 levels with full living space separate entrances and garages + a couple RV sites in the woods.

Use some HELOC's to buy 2-3 smaller places w/ self supporting rental and RV sites attached and in desirable locations (tax free, senior friendly, college and airport towns w/ health care)
TX (Hill Country), TN,(mtns) NH,(Lakes) SD(Black Hills), WY (Bighorns), WA (Mtns or beach)... Each destination requires you to be very careful of the type of asset, due to property / use taxes, but each are income tax free and destinations of choice. Each will be fully self supporting and positive cash flow investments that will eventually pay me earnings from sale or carrying the paper (when I am age 75+, in 20+ yrs). My snowbird transportation consists of $89 SWA flights and a $35 StealthRabbit at each location... 50 mpg on free fryer grease. OR while I'm young and keep my CDL, I offer to relocated cars / trucks / equipment (I'm on a 1600 mile truck delivery at the moment.... remind me to NEVER use Greyhound again,,, Today I needed to get from a small town to airport, YUK Hitch-hike is MUCH better, even tho I'm near a risky US Border)

If current tax status continues of allowing TAX FREE 24 month roles of Primary residence equity, I will be careful what I buy, and target places that can both have rental income + equity appreciation / commercial potential; and be split from primary residence to sell parcels off of every two yrs. Multiple properties can be done in less than 24 months, and each spouse can do their own as long as equity earnings don't exceed $500k (if married) in a 24 month period. You can move, have health or employment / financial issues, or have multiple births. to qualify for exemptions that shorten 24 mo 'holding' rules.

In the future... TAX FREE earnings will be very useful.

For your situation I would do some risk analysis and FVM / ROI calculations AND temper the decision with a significant dose of 'practicality' while in full agreement with spouse and a friend that knows you both as well as being financial savvy and sharing your value set.

Last edited by StealthRabbit; 01-16-2011 at 12:11 AM..
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Old 01-16-2011, 08:26 AM
 
Location: Southport, NC
3,802 posts, read 9,729,481 times
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So many of us are in the same boat. DH is almost 60, I'm 57, we're both working full time and will continue to do so for about 9 more yrs. We both went back to grad school as adults, around the same time our kids were finishing college. We still have some students loans outstanding but will be debt free (except for our mortgage) in 2 years. We moved from New England to NC almost 3 yrs ago as sort of pre-retirement move. While we really love it here, it is not as inexpensive as we had thought, in terms of taxes. When we moved here, we bought a new 2300sf townhome which is essentially maintenance free. We love our home but as we continue to grow older (and wiser), we wish we had, instead, purchased a home we would retire in. Our townhome is 3 stories, all bedrooms on the second floor. We really want a one level home (1500-1800sf). Recently, we been re-thinking cost of living in retirement, taxes, increasing our monthly savings as well as exactly where we will finally settle. Maybe FL (The Villages, maybe here in NC but in a smaller, somewhat less expensive area close by). We are seriously considering selling our home this year, going into an apartment while we make our decisions. By eliminating our mortgage, we would be able to increase our annual savings by another 15-20K/yr. Decisions, decisions! I truly enjoy reading posts from others going through similar situations.
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Old 01-16-2011, 10:03 AM
 
Location: Great State of Texas
86,093 posts, read 72,498,448 times
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Eliminating a mortgage (say $1500/month) that's an easy $18K/year you DO NOT NEED.
Eliminating a car payment (say $500/month) that's an easy $6K/year you DO NOT NEED

That's $24K folks per year YOU DO NOT NEED in your budget.

To me it's a no brainer...yes to downsize and no to debt.
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Old 01-16-2011, 12:08 PM
 
Location: Grove City, Ohio
10,133 posts, read 12,383,606 times
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Quote:
Originally Posted by HappyTexan View Post
Eliminating a mortgage (say $1500/month) that's an easy $18K/year you DO NOT NEED.
Eliminating a car payment (say $500/month) that's an easy $6K/year you DO NOT NEED

That's $24K folks per year YOU DO NOT NEED in your budget.

To me it's a no brainer...yes to downsize and no to debt.
Move if need be taking in cost of property taxes. Owning a house with an annual property tax of $6,000 is almost exactly like owing $500/mo mortgage except the mortgage will eventually go away while the property tax goes on forever.

My wife and I are actively getting ready with retirement for both possible as early as 1 years 10 months or maybe as long as 6 years 10 months.

We do not have a lot saved up for retirement. We got some but it isn't enough to cover a couple decades of meaningful retirement.

Getting ready for us means preparing the house we will retire in. Within the 5 years preceding retirement we want the house to have a) a new 30 year roof b) all new plumbing all the way to the street c) new completely remodeled kitchen and bathroom which will have a jacuzzi for two. I am enlarging the bathroom by 30 sq. ft. in order to make a monument to what a retirees bathroom should be like. All these things we are paying cash for and while it is digging into savings I don't want to face repairs, like a new roof, 8 years into retirement.

We will also be getting a brand new car the same week we retire. We will pay cash, cash is already set aside, and that will be our last car.

When we retire the only monthly bills we want are property taxes (very low), home and auto insurance, medicare part B or whatever it is, our monthly cell phones and utilities which would include internet. Truthfully, if the monthly bills total $800/month how much more do two people really need to retire comfortably?
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