What is the value of paid off properties once retired? (friend, years)
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Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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What is the value of paid off properties once retired?
Cash flows. Either you have them, or you don't. If you DON"T, then figure out why. If necessary, (or desired) pay off your mortgage. But don't become "House Rich, and Cash Poor" to do so. Either way, it can work out if you plan correctly.
For some, a trivial mortgage payment is a 'cost-of-living'.
For others, a house payment means that $100k > $500k+ is actually working for them (much greater returns than mortgage interest)
For many... they feel SECURE with a paid off house. But... my taxes are far more / month than any mortgage I have ever had. Taxes can and do FORCE seniors from their homes especially if they have poor cash flows.
I have known many retirees who've had to sell their houses to pay off personal medical expenses, or frequent treatments for a wayward (or ill) adult or grand child, or any number of other things.
Houses are VERY temporary. (Have a plan B and C)
Mortgage (if you have one or not) should be the least of your worries.
Many retiree friends boast of their paid off $1m homes. Ok, fine...
$1m means $10,000/ month income to me (if I needed or desired it).
I could rent some pretty swell places in Tokyo AND Tahiti for $10k / month.
No RIGHT answer.
Do what suits your fancy. (and financial plan)
What is the value of paid off properties once retired?
Cash flows. Either you have them, or you don't. If you DON"T, then figure out why. If necessary, (or desired) pay off your mortgage. But don't become "House Rich, and Cash Poor" to do so. Either way, it can work out if you plan correctly.
For some, a trivial mortgage payment is a 'cost-of-living'.
For others, a house payment means that $100k > $500k+ is actually working for them (much greater returns than mortgage interest)
For many... they feel SECURE with a paid off house. But... my taxes are far more / month than any mortgage I have ever had. Taxes can and do FORCE seniors from their homes especially if they have poor cash flows.
I have known many retirees who've had to sell their houses to pay off personal medical expenses, or frequent treatments for a wayward (or ill) adult or grand child, or any number of other things.
Houses are VERY temporary. (Have a plan B and C)
Mortgage (if you have one or not) should be the least of your worries.
Many retiree friends boast of their paid off $1m homes. Ok, fine...
$1m means $10,000/ month income to me (if I needed or desired it).
I could rent some pretty swell places in Tokyo AND Tahiti for $10k / month.
No RIGHT answer.
Do what suits your fancy. (and financial plan)
Dumb question - how does 1 million equate to 10k per month income?
Income? Investment income?
Since RE is illiquid, how do you intend on 'breaking into that piggy bank"?
Just curious.
Sell it. When we're too old to live here any longer, we'll sell it and use the money to support ourselves otherwise.
We do have a HELOC, but it's for emergencies only.
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