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Do you own a retirement/second home?

Discussion in 'TUG Lounge' started by DaveNW, May 5, 2019.

  1. wackymother

    wackymother TUG Member

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    Can you pay off the mortgage on your primary residence? I would do that first.

    To me, there are always deals to be found in real estate, especially in vacation areas and retirement areas. Somebody is always eager to sell that second home that they bought years ago. It's easy to buy (especially if you're paying in cash) and hard to sell.

    Take a really good hard look at the place where you're thinking about getting the second home. Do you need to buy? How are rental prices? How are resale prices? Are they going up?

    We're thinking long-term about selling our house and buying a condo in our town. But there's a glut of new condos here, so while purchase prices are pretty good right now, so are rental prices. Now we're realizing that at this moment--not sure how this will play out in a few years--we can rent for only slightly more than we would pay for maintenance and taxes if we owned a unit. So at the moment, renting is really a better deal, since there's no opportunity cost. We could keep our savings in investments.
     
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  2. OldGuy

    OldGuy Guest

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    Good point.

    The one time I needed healthcare in the last 70 years (knock on simulated woodgrain), in our first retirement home area, it was three months before I could see a GP for a referral, and then however long it would take to get the surgeon.

    So, I went to our second retirement home area, which is also our third retirement home area, saw the surgeon on Monday, had surgery on Tuesday, and had follow-up on Thursday.

    :cool:
     
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  3. mpumilia

    mpumilia TUG Review Crew: Veteran TUG Member

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    Yes- excellent point. One thing in the Northeast is we have some good hospitals- in NYC and also in Boston.

    Something else I think of a lot since we, too, are kind of unsure where to go =

    Usually- not always -People on the West coast tend to retire on the West Coast- just in a more retiree friendly state. Going from California or Washington to somewhere like Colorado or Nevada or Arizona is a draw because more than likely those people have vacationed there and are familiar with those states due to the close proximity.

    People on the East coast tend to retire on the East coast to more retiree friendly states- hence- Florida, Tennessee and the Carolinas. Why? Because most have vacationed in the southern states due to the close proximity and are familiar with those.

    Sure- there are people on the East coast that retire to Arizona and people on the West coast that retire to Florida. But I bet more than not stay on the coast where they had their family home.

    Not sure about the Mid Westerners. Maybe they go either way! LOL! Or straight down south. Ha! Ha!

    I assume people who have always lived in states like Florida or Arizona just stay there or become snowbirds.

    We are a bit odd I guess in that we always vacationed in the Northeast- New England- for the most part (though we have been out West and down south). So we tend to want to retire there. We are familiar with it. We could still drive back to NY. We could see our only child occasionally. Only thing is the Northeast is expensive and limited 55+ communities with one floor updated condos with garages or basements and where the exterior of the home is taken care of by the HOA. Or, if we find one that exists (and not necessarily any openings)- no amenities.

    We are not the only ones who feel this way. Lot's of people I talk to at Smuggs do also. But many still want to be snowbirds. That we could not afford to do or even want to do as I don't like leaving my home in the winter for a long period of time. (again- I know I am strange).

    Our FA advises against going into a CCRC at this stage as that could have been a option for us in New England, so that is out. He says staying in our home or getting a town home/condo paid for cash is the best option for us financially and I know he is right from that perspective. Then again, he is not the one with no family and friends nearby and not the one having to take care of our home wherever it ends up being. I thought he would be for just renting something indefinitely, but he is not even keen on that. Neither is hubby. he feels you are at the mercy of landlords when something goes wrong, like the furnace dying.

    So a lot of thinking to do. And compromising.
     
    Last edited: May 6, 2019
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  4. DaveNW

    DaveNW TUG Review Crew: Expert TUG Member

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    I know a certain Wisconsin Tug family that are retiring to Molokai. ;)

    For me, as a West Coast kid who has lived all over, due to the military, staying west of the Rockies is just easier. All the family and friends we're closest to live in Washington, California, or Arizona. Seeing them without breaking the bank on a vacation is important to us.

    And then there's the whole "The sun rises over land and sets in the water" thing. It's "normal" for West Coasters to just think that's how it works. In Florida, unless you're living on the Gulf Coast side of the state, the opposite is true. I lived in Virginia for six years, and I never got used to the idea that the sun rose from the water and set over the land. It was always backwards to me. :D (OCD much? LOL!)

    Dave
     
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  5. OldGuy

    OldGuy Guest

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    took the wrong right somewhere

    :cool:
     
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  6. mpumilia

    mpumilia TUG Review Crew: Veteran TUG Member

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    Right! Exactly! That is how I feel about the east coast- especially the Northeast coast.

    Funny about the sun. I just love it in the summer when we are in Vermont in our timeshare. The sun comes up earlier there than in NY (the more "east" you go) and being a real morning person I am in heaven.
     
  7. Passepartout

    Passepartout TUG Review Crew: Veteran TUG Member

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    Mary Ann, East Coast folks (generally) retire to Florida, Westerners head to Arizona or S.Cal, And since you asked, Midwesterners go to S. Texas. My FIL joined a group of fellow Minnesotans and Wisconsinites at the southern tip of Texas that it seemed like an extension of 'home' with VFW clubs and fish fries weekly. If 'Dad' wanted to play golf, he just put his clubs out by the mailbox and someone would just stop and pick him up. Alternately, he would drive around the area and pick up other old duffers who'd set their clubs out.

    Jim
     
  8. bizaro86

    bizaro86 TUG Member

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    Its funny how things like that really matter. I can see the sunset over the Canadian Rockies from where I live, and very much miss seeing the mountains when I travel elsewhere. I've only lived somewhere else for college, and found it a strange adjustment not seeing them. It had never occurred to me that I would miss the mountains until I moved somewhere that didn't have them for awhile.
     
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  9. Luanne

    Luanne TUG Review Crew: Veteran TUG Member

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    I was born and raised in California, so I'm definitely a west coast kid. Dh was born in Ohio, raised in Massachusetts, and spent a good part of his life on the east coast before moving to California. We retired to New Mexico.
     
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  10. Passepartout

    Passepartout TUG Review Crew: Veteran TUG Member

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    Out here we were told that the name 'Idaho' was an Anglicization of 'Ee-Dah-How', said to come from Shoshone Indian (the original inhabitants) language meaning 'the place where the Sun rises over the Mountains'. It made some sense as the Continental divide is basically the boundary between Idaho and Montana. It makes perfect sense that the Sun rises over the Eastern Rockies and sets to the West. I get all messed up in flat lands or where the Sum comes out of water! BTW, Native people say the origin of the name didn't come from them, so I really don't know.

    Jim
     
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  11. klpca

    klpca TUG Review Crew: Veteran TUG Member

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    My husband and I were just talking about this yesterday. At some point our house will need to be sold. It's starting to show it's age and our maintenance costs have started to increase. New furnace, water heater, AC, tree removal, roof repairs - it goes on and on - plus we have a large yard and water is really getting expensive. We started talking about just renting - sure there would be rent, but since we still have a mortgage (and are unwilling to pull $$ out of investments to pay it off especially because the interest rate is 3%) our mortgage plus maintenance and repairs is most likely a bit more than renting. It would eliminate the costs of large unexpected expenses in retirement. We probably won't do this but it is interesting to think about.
     
  12. VacationForever

    VacationForever Tug Review Crew: Rookie TUG Member

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    We bought a new single level 2800+ sq ft penthouse condo with breathtaking views, built in 2008 but never lived in until we bought in 2014, to eliminate most maintenance issues. No more yard work is the biggest deal. We are behind double security gates which means that we can lock up and go away on vacation without worrying about break-ins. We develop a close relationship with other owners in the building. We pay high HOA fees but it is worth it. We get 3 full days of janitorial service per week and the building is kept in pristine condition. The landscape is well kept and beautiful. We don't worry about the roof and other common areas. We could not have picked a better place and home to retire.
     
    Last edited: May 6, 2019
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  13. klpca

    klpca TUG Review Crew: Veteran TUG Member

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    A condo is definitely plan B.
     
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  14. vacationhopeful

    vacationhopeful TUG Review Crew: Rookie TUG Member

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    I am in the "downsizing" mode. Been thinking and planning for several years now.

    Sold the 5 bdr on 3.4+ acres last month after 2.5+ years and 4 realtors. Been roosting for over 2 years now in a former rental townhome and am in process of listing to sell it.

    And deciding on the interior paint colors of the next townhouse (about 1/2 mile from my current townhome). Painting will start on Wednesday in 2 days.

    Don't ask me where anything is. And I HOPE my 1929 era warehouse does not burn down ... my oriental rugs, an antique bedroom set, etc are waiting for my upcoming move later THIS month.

    #1 ... I have a post office box, a warehouse, a pickup truck and a fulltime construction guy.

    #2 ... My Texas sister in coming late today for 5 day visit.

    #3 ... Sis and I will be interviewing realtors to list for sale where I have been currently living for 2+ years now.

    #4 ... Have to pick interior wall colors for my new residence ASAP. Painter is waiting.

    #5 ... Have to FIND my wool oriental rugs and figure out their NEW room placement in new townhouse.

    #6 ... Have to buy MORE red wine.
     
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  15. Passepartout

    Passepartout TUG Review Crew: Veteran TUG Member

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    Scheduling advice:

    First- #6
    Next: Pick up Sis.
    Revisit #6

    No Worries.
    Next week will be soon enough for the rest. :)
    Jim
     
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  16. pittle

    pittle Tug Review Crew: Rookie TUG Member

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    We bought a 3-bedroom vacation condo at the Lake of the Ozarks in 1994. We did rent it out some for the first 7 years and I decided to retire early -at the end of 2001 - hubs already was retired. So, we sold our home in Topeka and move to the Lake full-time. We lived there for 5 years and had the opportunity to sell it, so we did. We moved to AZ and rented a lovely home for 15 months and decided that we did like living here and bought a house in 2008 that was a foreclosure that was only 18 months old. We love it. Our younger son an his wife already lived out here and the older son and family liked it so well, that they moved out here and live 3 blocks from us. We love living here and especially in a single story home! We up-sized with this house, but love the space.

    We do not miss the Kansas and Missouri winters! It is hot in AZ in the summer, but we have A/C and a self-cleaning pool..

    We did have 2 mortgages from 1994-2001 and had done a refi with cash out to make a large down payment on our condo. The kids were out of college, so we did not have that to pay for, so we were able to manage it. Once we sold the Topeka house, we rolled the proceeds into the condo. When we sold the condo, we just put the money in a Savings Investment account for when we were ready to purchase a home again. We got a great deal on our house, but installed the pool, tiled the floors and landscaped, so decided to take out a mortgage for part of the new house and keep some of our after-tax money available in savings for just in case.
     
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  17. riverdees05

    riverdees05 TUG Member

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    Remember that the mortgage is only one part, one can escrow taxes and insurance, but in addition, there are utilities - gas and or electric, internet and maybe cable and phone. Another item to consider is maintenance, HOA Fees, mowing, snow removal, etc. These cost can add up in a hurry. I would recommend doing a good cost estimate of income potential, expenses and taxes, before making the move. I have had a second home for two years and the details are the key to a good decision.
     
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  18. SmithOp

    SmithOp TUG Member

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    We are thinking condo for our final home before the dirt nap.

    We used to own 2 homes but sold them both when I took early retirement, used the equity to bridge income until SS instead of taking out of 401k.

    We like renting, found a nice home in a small gated enclave, 25 homes.

    We recommend renting before buying to learn about the area you intend to live in rather than buying first. It takes time to know where all the amenities you require are located.


    Sent from my iPad using Tapatalk Pro
     
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  19. rapmarks

    rapmarks TUG Review Crew: Elite TUG Member

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    Yes, all true. In our case the savings on no state income tax pay for the second home expenses.
     
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  20. Ralph Sir Edward

    Ralph Sir Edward TUG Member

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    But no place for roses . . .:(
     
  21. VacationForever

    VacationForever Tug Review Crew: Rookie TUG Member

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    Ah, but lots of flowers around us, just not maintained by us!
     
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  22. Glynda

    Glynda TUG Member

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    We bought our second home 11 years before hubby retired. Since we had known since 1985 that we wanted to retire in Charleston, it seemed that prices in the Historic District would only get higher over the years. We bought a 1170 sq ft circa 1875 kitchen house. We started out with a mortgage, spent three years remodeling it from top to bottom, used it on weekends, vacations, and for me when hubby was traveling for work. We then sold our 5,000 sq ft. house and bought a 3,600 sq ft house in NC, where hubby worked and paid off our CHS home. Eight years later, with retirement almost upon us, and knowing that we would be moving my mother out of her FL home and bringing her to live with us in Charleston, we bought a 3,000 sq ft house, also in the Historic District, with cash, and began some remodeling of it. Two years later, we sold our NC home and moved to Charleston permanently. We began renting the kitchen house out. We've had a lot of people wanting to buy it but just can't bring ourselves to part with it. When my mother is no longer with us, I see selling our current home, ridding ourselves of much we have and moving back into the little house. It is pretty much a lock and leave house with fewer expenses and very little landscaping to maintain. We would miss our current location closer to restaurants and our great neighbors though. Still, we hope to travel for months at a time, perhaps spend the hot months of the year in New England and the cooler months in our little house. Time will tell.
     
  23. Passepartout

    Passepartout TUG Review Crew: Veteran TUG Member

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    Our second home condo is a good bit like yours except on a bit more modest scale. We don't have a penthouse and it is smaller, but we like the security, and the great walkable area with restaurants, clubs, theaters, a beautiful river. Yes, and lots of flowers.

    It was built in 2008, and foreclosed on the original buyer. we bought it for cash as a short sale. There were some maintenance issues, but that was just cosmetic. Paint, carpet, and some plumbing fixtures to upgrade from 'builder grade' is to be expected.

    DW bought this place as an investment in (iirc) 2015. It has doubled in value since then. Mission accomplished. I don't know that we will ever use it as a sole retirement residence, as it's just 1 BR, 1 BA and 1100 sq ft. but we enjoy it and as an investment it's been a dandy.

    Jim
     
    Last edited: May 6, 2019
  24. moonstone

    moonstone TUG Member

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    We bought a condo in St Augustine Beach Florida (almost walking distance from our timeshare) in 2010 when the Canadian dollar was at par with the US dollar. We love the area (been vacationing there since '76) and thought that's where we'd want to spend our winters after we retired. We were both still working and DH was set to retire in Dec.2012 with me following 3 yrs later. Being Canadian we could not get a mortgage with a US bank so we put a mortgage back on our house (we had paid off the original in '99) and put the money into a US bank account and got a great deal on a condo since we were paying cash. It is a 2 bedroom/2 bathroom facing south, less than 2 blocks from the beach. There are lots of shops and restaurants within walking distance. We decided it would make the best financial sense to rent out the condo full time (not vacation rentals) to cover all our expenses until we retired or could pay off the mortgage. Since we were both working we figured we could only spend 3-4 weeks there each year anyways, and we had lots of timeshare time to cover that. We found a great property manager and she found us wonderful tenants within 20 minutes of the ad being posted! The rent we get (in US dollars) covers our Canadian mortgage payments, the HOA fees, property taxes and insurance, and thanks to our lower Canadian dollar we have a bit of profit left over each month. The value of the condo has increased by about $80,000 in the nearly 9 years we have owned it so we think we made a good deal even if we end up never actually using it.

    Shortly after DH retired I screwed up my knee and was off work waiting for, then having, surgery so I lined up a months worth of timeshare stays in St Augustine & Daytona in March and early April. The first week or so we were down there the temps were quite cool and DH decided the area wasn't going to be warm enough in Jan., Feb., and March. He likes to be in a t-shirt, shorts & sandals all day, every day. I ended up not going back to work after my surgery (long story) so after some research we decided to visit Belize and found we could rent a 1 bedroom furnished apartment by the water in Corozal for $550.US / month (utilities incl.). We just finished our 4th winter there and we left a deposit on the apartment for next winter. Our eventual (after elderly parents have passed) plan is to pay off the mortgage on the condo and not renew the lease for our tenants so we can spend 6-8 weeks in St Augustine in the fall, then return home to spend Christmas with our kids & grandkids before heading down to Belize for 3 months then back home for a week or so. Then we'll head back to St Augustine for the month of April. We cant afford to carry the mortgage on the condo for a year when we are only going to use it for 5-6 months.

    If we eventually happen to come into a lot of money (lottery or inheritance) then we have decided to sell the St Augustine condo and buy one much further south where it stays warmer in the winter and spend all 5-6 months in Florida. That will make it easier (and cheaper) for some of the family to come and visit us over the winter! Once this mortgage is paid off we don't ever want another one!


    ~Diane
     
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  25. DaveNW

    DaveNW TUG Review Crew: Expert TUG Member

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    @moonstone: Diane, that ^^^ is a fantastic situation! Wishing you great luck going forward.

    Dave
     
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