retirement move to Washington (Seattle, Spokane: homes, car, retiree)

[ScottStielow]

Originally Posted by tpatrick

I am officially retiring at the end of March and am planning to fly to Seattle mid May. Hopefully the Covid Vaccines will be available by then. I will be looking first at new build houses in the Ridgefield area and then look mostly in the Kitsap Peninsula. Bremerton, Port Orchard, Poulsbo, Silverdale and maybe Gig Harbor. My budget is around $550,000. I know the market is crazy but such is life. any suggestions on where I should look. Any areas I should avoid. Also any recommendations on a Real Estate agent who knows the area. Lastly would it be best to look mid-week or the weekend. My wife needs a good internet connection because she works from home so that is really important. I appreciate any advice or feedback you can offer.

Good area in the Kitsap Peninsula. Bremerton, Port Orchard and the rest on your list is a good choice.
Also unless Washington Changed the law the yearly, if I remember correctly, State Emission testing for your car Registration is Waved if you live in the County.
Be sure to visit all the area's to would like to live. Get a good feel how you would like living where is rains and gray for months on end in winter.
Good luck on your move.

[Diana Holbrook]

Originally Posted by ScottStielow

Also unless Washington Changed the law the yearly, if I remember correctly, State Emission testing for your car Registration is Waved if you live in the County.

There isn't car emissions testing required any more in WA... but even when it was required I think it was only required in King and Pierce counties.

[StealthRabbit]

Originally Posted by Diana Holbrook

There isn't car emissions testing required any more in WA... ...

This is a good thing, since I have over 40 vehicles. Most use Bio-diesel, so it was always a pain to be tested, since there were no discernable emissions. Each test would take 40 - 60 min while they recalibrated their machine and called the supervisors who had to sign-off (after recalibrating the machine and restarting the computer each time). My worst offender had 550,000 miles and once registered as much as 1/10th the allowable limits.

[diver110]

You might consider a reverse mortgage. It would allow you to buy much more house for the same amount of cash invested. We are considering it if we want to go pretty high end. FWIW, we have been talking with Nathan Johnson at Reverse Mortgage Funding, LLC. There is a risk if you cannot die in the home, but likely less of one in a city like Seattle with strong economic fundamentals.

[tpatrick]

I thought about a reverse mortgage purchase but my wife doesnt share my interest. We would have to wait 2 years though. I will be selling a small home to my sister who is renting it and using a 1031 transfer to buy my new home in Washington to avoid capital gains taxes. It has to be a like property so i will have to rent it out for 1 year I believe.

[rkcarguy]

Make sure you financially plan for high and rising property taxes throughout your retirement. We do not have California's Prop-13, and we know many family and friends who have been priced out of their "forever home" by Washington's property taxes. In reality, our total tax load is not all that different compared to California, we just have higher property taxes and sales taxes to make up for no income tax. My grandmother, for example, owns her home outright yet it's now almost $500/month in property taxes and another $190/month in "imperviable surface area fees" which are added to the water and sewer bill. She says "I'm lucky enough I'll be dead before I run out of money", but the cost has put a huge damper on the last 5 years of her life. Having your taxes triple turns a "wine and tenderloin" retirement into a cup-o-noodles and a diet coke pretty quick.

[oregonwoodsmoke]

Veering a bit off topic, but houses with septic systems often sell for premium prices. Not because they have a septic tank, but because they are located on large lots, or even come with small acreage.

[StealthRabbit]

Originally Posted by tpatrick

I thought about a reverse mortgage purchase but my wife doesnt share my interest. We would have to wait 2 years though. I will be selling a small home to my sister who is renting it and using a 1031 transfer to buy my new home in Washington to avoid capital gains taxes. It has to be a like property so i will have to rent it out for 1 year I believe.

You need to rent it for at least 2 yrs, followed by the 2yrs of your occupancy in the 2 or 5 rule, to meet the Section 121 requirements (Primary residence exclusion).

https://www.1031.us/library/articles/converting/
https://www.irs.gov/faqs/capital-gai...-of-home-etc-5
https://www.kitces.com/blog/limits-t...ins-exclusion/
https://www.firstexchange.com/pages/...imaryresidence

If capital constrained, I would look into an "equity share" position before seeking a reverse mortgage (usually in USA it is an equity share with family, but does not need to be family). IIRC, it is not possible to do a formal Reverse Mortgage from a private party or family (That is too bad, as it could be very beneficial tool for seniors (and personal lenders / property acquisition), if not for the 'bank robbers' (banks robbing you via federal reverse mortgage plan) They seldom pencil out. Similar to using a RE agent to 'find' your desired property. If you are stooping that low, you are paying a premium. You need to beat them at their own game. I.E. find (and secure) the property BEFORE it is listed FS. This is VERY EZ to do now with all the info you need on-line, vs spending many (many) days sequestered in the court house recording dept, as we did 20-50 yrs ago.

Good luck, this is actually more fun and much easier than imagined (researching and finding your gem of a place for retirement).

[tpatrick]

The information I read regarding occupancy was not very specific and 1 year was the best I could come up with. Reverse Mortgage is temping but not in our future plans. I really am looking forward to finding the perfect house to retire in. I have had nightmare neighbor situations in the past 7 years so that is a bit scary. Right now it is great but my last house that i was forced to move from, not so great. We like our privacy and really are great quiet neighbors. Thanks for all of your valuable feedback. I will be heading out to Washington in May sometime and hopefully we will find that special place.

[StealthRabbit]

Do you prefer rural or urban properties?
If noise is a consideration, there are benefits and problems with either.

Definitely visit your candidate neighborhood all times of the week and day. One of my Texas properties is very quiet weekdays, but each weekend several neighbors shoot / sight in their artillery (all waking hours, thousands of rounds fired). In WA it has usually been dirt bikes or neighbors with really loud cars (who go to work at 3 AM, or run a 'midnight auto' theft ring). Dogs have become a huge problem now that they replace children for affection. No one can hear their own dogs barking 24x7. Stray HP long range bullets whisking by have concerned me a few times in PNW.

Fortunately all our neighbors are retired and their dogs have died. (17 of nearest neighbors are retired, they own 5 -300 acres each, so we have pretty good separation. One thing about PNW is that it is typically very cool during summer evenings and we open the home up for whole house ventilation (No AC required). Barking dogs and loud cars / trains / trucks can really be disruptive. One very peaceful home was 2 miles from a freeway and the truckers used Jake Brakes on downhill sections all night of course. Many retirees seem to be very noise sensitive to commercial flight paths, so just be aware of all potential disruptions.

Hiking? You might want to try several varieties of trails / terrain in the areas you consider.
https://www.wta.org/go-outside/hikes
https://www.alltrails.com/us/washington
https://www.oregonlive.com/travel/20...ashington.html

This is quite near my 'no-noise' retirement location. (walking distance) Really tough to beat for hiking access.
https://www.oregonhikers.org/field_g...Horn_Loop_Hike

By the way... earlier I had recommended Cascade Locks (OR) as a potential spot, Sorry ... old age... I meant North Bonneville, WA (Relocated community due to Dam), Great hiking and bike trails and scenery + 9 hole golf, bit far from services (~30 min to big box / medical). Do visit Skamania Lodge and spend time relaxing in lobby or library (above the lobby).