General advice needed on buying vacation/retirement home (insurance, standard, fees)

[touro1979]

If this is the wrong section to post in I apologize. Looking for some general advice on buying a vacation/retirement home well in advance of retirement.

I own a home in NY which I intend to keep. I am 20 years from retirment. I will own home free and clear in NY in 5 years. Once my house is paid off, I am thinking of buying a condo down south (North Carolina probably) to use as a vaction home while I am working and 2nd home home when I retire where I will split my time 50/50 between home in NY and home down south. My thinking was that I would like to buy a condo with a 15 year mortgage so it is entirely paid off before I retire. Does this idea make sense? Is it better to spend more money and buy on the water and be able to rent it out and deal with higher insurance rates/hurricane damage or buy inland cheaper but probably not be able to rent it out. I noticed that the HOA fees for beach properties are almost dble that of 15-20 minutes from the beach properties. Would spend about 4 weeks a year at property until I retire then 50/50. I dont really want to have a mortgate in retirement, dont want to spend a bunch of my 401k to buy once I retire nor will i have proceeds from sale of home in NY since I am keeping it. If I rented out condo I prob could afford 155-165k for condo, no renting I will be able to afford 110 to 125k.

Any advice would be greatly apprecited. I know it is 5 years out but If this is a reasoanble plan, id like to start scouting locations soon so I have time to decide where I would like to own a retirement home.

[Electrician4you]

I would buy where you want to retire. The only problem is 15 years is a long time. What happens when you are ready to retire but no longer want t to be in the area you thought you wanted to retire in.
I would say pay off your current house and then make a mortgage payment to yourself in a high yeld account or something. In 15 years you'll be buying that house cash. And you may want a completely different area that may have a lower price or better whatever in 15 years

[Ted Bear]

Originally Posted by Electrician4you

I would buy where you want to retire. The only problem is 15 years is a long time. What happens when you are ready to retire but no longer want t to be in the area you thought you wanted to retire in.
I would say pay off your current house and then make a mortgage payment to yourself in a high yeld account or something. In 15 years you'll be buying that house cash. And you may want a completely different area that may have a lower price or better whatever in 15 years

This ^^^.

North Carolina, especially the coast, is very cold and raw in the wintertime. There is nothing friendly about it, although by NY standards, there is no snow. In the summertime the NC Coast is littered with families and kids. It is complete chaos until you get south of Nags Head and into the preserved part of the island. Just some things to consider. Yuu may enjoy both...just beware.

You may find in 15 years that you want something warmer, or different. Of course you can always sell, but I agree, get where you want to retire now.

It's a toss up whether to save and buy later, or go into debt now to purchase (and use) a property before you retire. Keep in mind that the property you buy today will be ready for a little 'updating' in 15 years--kitchen, bath, etc. It has been forever since there was a devastating hurricane on the outer banks. Are they due? Might wish to ensure that you are comfortable with the risk.

I am a firm believer that you live life now. You get on with the things which you want to do now. Get a place. Enjoy it. Experience life. If you are not happy with it, sell the darned thing and move along. It's not something you have to be wed to forever.