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Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by Pilgrim21784
... My personal view is that having one's paid off residence is a good starting point. JMHO.
It's one of many steps on the road to preservation. I wasn't quite ready to have my property taxes go from $800 / yr to $12,000 / yr on existing home, nor for health insurance to do the same. I still have 12 yrs of retirement before I can get a senior reduction on property taxes. They will be in excess of $100k / yr by then, so looks like I BETTER sell, even tho we had built a nice 'retreat' home from scratch for under $100k. I no longer like it nearly as much as the tax assessor does. (tho the view is stunning...)
None of us knows what next week brings, much less twenty years down the road. I recall people loading up on gold in 1980 at over $800. HyperInflation could destroy any money you've saved. I still have to say Real Estate or something that accumulates faster than inflation
None of us knows what next week brings, much less twenty years down the road. I recall people loading up on gold in 1980 at over $800. HyperInflation could destroy any money you've saved. I still have to say Real Estate or something that accumulates faster than inflation
I don't disagree, but maintain that owning one's home outright minimizes one's costs in retirement. RE taxes can be a significant issue but should be much less than the alternative costs. JMO.
owning a home will minimize costs yes, but it could also cut retirement income on investments too ..... cutting costs is one aspect of paying bills in retirement, maximizing income to pay bills has the same effect....
getting a higher return else where and paying rent can be a means to the same end as having less investment income and less expenses..
no way is better, or worse..its just a different road to the same place meaning pay our housing costs.
no different than running a company... higher revenue can support higher costs of doing business. lower costs, lower revenue leaves your profits at the exact same level.
our investments we made with the money from the sale of our house years ago generate enough extra income to far outstrip rent and the 3% or so increases if we decided to go that route.
Last edited by mathjak107; 10-27-2009 at 03:24 AM..
owning a home will minimize costs yes, but it could also cut retirement income on investments too ..... cutting costs is one aspect of paying bills in retirement, maximizing income to pay bills has the same effect....
getting a higher return else where and paying rent can be a means to the same end as having less investment income and less expenses..
no way is better, or worse..its just a different road to the same place meaning pay our housing costs.
no different than running a company... higher revenue can support higher costs of doing business. lower costs, lower revenue leaves your profits at the exact same level.
our investments we made with the money from the sale of our house years ago generate enough extra income to far outstrip rent and the 3% or so increases if we decided to go that route.
So you are a good example of having used the equity in your home to help fund your retirement?
pretty much the money from that house i sold was used to buy our new house in pa so the house went back into the house ..only this time we had enough left over to include furnishing too so that was good . ... since we will also rent during the winter months in other areas of the country every year the rent as well as all our living expenses will be paid for with our investments, rental property income and a tiny pension marilyn gets . it will be years before i get social security.
i guess we did all off the above... got the house and got the investments to give us income...
Last edited by mathjak107; 10-27-2009 at 01:52 PM..
pretty much the money from that house i sold was used to buy our new house in pa so the house went back into the house ..only this time we had enough left over to include furnishing too so that was good . ... since we will also rent during the winter months in other areas of the country every year the rent as well as all our living expenses will be paid for with our investments, rental property income and a tiny pension marilyn gets . it will be years before i get social security.
i guess we did all off the above... got the house and got the investments to give us income...
Right you did use it but you did so in a prudent way. I think the trick is to do it in a way that is sound and prudent if at all. I think the problem becomes when a salesman tries to sell you a way that isn't.
basically it just got traded for another house... thats not to say we couldnt have faired better long term not buying another house but investing the money elsewhere and renting... we just didnt care financially which would have given us the bigger pile of money, we wanted a house to live in and for the non- monetary enjoyment a house brings.
Last edited by mathjak107; 10-27-2009 at 04:50 PM..
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. I wasn't quite ready to have my property taxes go from $800 / yr to $12,000 / yr on existing home, nor for health insurance to do the same. I still have 12 yrs of retirement before I can get a senior reduction on property taxes. They will be in excess of $100k / yr by then, so looks like I BETTER sell, even tho we had built a nice 'retreat' home from scratch for under $100k. I no longer like it nearly as much as the tax assessor does. (tho the view is stunning...)
