Anyone pondering moving to a cheaper place and downsizing?

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rob in cal
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Joined: Mon Jan 08, 2018 5:36 pm

Anyone pondering moving to a cheaper place and downsizing?

Post by rob in cal » Tue Jan 16, 2018 6:21 pm

Wondering if there are people here who have a lot of home equity, say 500 or 600k and could be retired if they moved to a cheaper part of the US (or out of the US for that matter), and bought an equivalent size, or smaller house for much much less, and the freed up home equity would end up pushing them over the top to their retirement financial target.
In our case the tradeoffs would be too much (we don't have significant amount of personal connections to any low cost part of the country) and our home equity isn't quite that large, so we wouldn't be getting the bang for the buck necessary to do something so drastic, but even in our case I like to joke that basically I'm still working just so I can live in California, and would be retired or very close if we moved to a much cheaper part of the country or world.
I think I would be retirement ready in parts of the south and mid-west, and many parts of southern, and much of eastern Europe.

runner540
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by runner540 » Tue Jan 16, 2018 6:29 pm

Pretty common sentiment on this board among CA folks. Don't all do it at the same time and flood the market :oops:

That's a lot of concentrated risk in one asset.

adamthesmythe
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by adamthesmythe » Tue Jan 16, 2018 6:48 pm

I bought the retirement house early, paid off the mortgage, and sold my northeast US house upon retirement. It provided a nice addition to my retirement funds but wouldn't have been necessary.

In addition to being cheaper I have a wide range of all-year outdoor activities.

snarlyjack
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Location: Montana

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by snarlyjack » Tue Jan 16, 2018 7:00 pm

Rob in cal,

Welcome to Bogleheads.

What a interesting thought...

This article has your name written all over it.

Enjoy...

http://www.mrfreeat33.com/can-you-retir ... th-200000/

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tennisplyr
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Location: Sarasota, FL

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by tennisplyr » Tue Jan 16, 2018 7:12 pm

Just did this over the past year. Sold in NY and moved to FL. Bigger house, taxes 1/6 of NY property taxes, no heating bill, no state income tax, low utility bills, low insurance costs, etc etc. one of the best decisions eva!!
Those who move forward with a happy spirit will find that things always work out.

Scooter57
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Scooter57 » Tue Jan 16, 2018 7:15 pm

Many years ago, when I decided to give up my high paying corporate job for lifestyle reasons, I did just that. Our house price had doubled in 3 years. We sold it and moved to a much cheaper condo rental. The invested proceeds from the sale of the house paid our rent for the next few years. I was able to build a much more satisfying independent career and eventually move to a rural location I'd always loved but had not been able to live in due to the lack of jobs.

Even now my 14 year old, 2100 sq ft house on 3+ acres backed by hundreds of acres of forest, with Comcast cable, just a 5 minute drive to shopping and restaurants would only sell for $300K. You could get a reasonable house in this area for a lot less. This is one of the nicer houses in our town. I can drive to a major university, and lots of restaurants in half an hour. I can get to a very major city in 2 hours but fortunately rarely need to.

Cheap housing can also bring with it a complete lack of traffic, constant contact with nature, very low noise levels, and a much healthier lifestyle. People are always telling me how they never could give up all the wonderful benefits of living in high density, extremely expensive places. But especially as you get older, there is something to be said for decreasing stress. Moving to a rural environment not only brings down your cost of living but it can add those intangibles.

And, not so coincidentally, by making it possible to do something I really love as a career, I'm still earning a steady living from my own efforts at almost 70 years old. I'd probably have died of boredom at my old corporate job by age 60--if I hadn't been laid off, which most of my peers were.

renue74
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by renue74 » Tue Jan 16, 2018 7:25 pm

Yes! Actually.

We don't have that much equity, but maybe $300K. I just bought a 1600 sq/ft bungalow last year and have been renovating it by myself for about a year now. We've made it too nice for the rental market and we've considered downsizing from 3000 sq/ft house to this smaller house.

At some point last year I looked at my house and got really disgusted. We don't need 3000 sq/ft. There are people in Europe who live in 500 sq/ft dwellings and are happier.

Did you ever hear anybody say, "I wished we didn't downsize, I hate it so much."

DriveMyPrius
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by DriveMyPrius » Tue Jan 16, 2018 7:37 pm

Yes, it is part of our plan. We have already taken the 500K exclusion twice, progressively downsizing, the appreciation is ridiculous. (We are in coastal California). We have family in other states and countries, and it is tempting to move to a cheap area NOW. We are very late to Boglehead style investing and have made some truly regrettable investment choices (we focused on saving for big downpayments for said real estate during the last 20 years, instead of maximizing retirement accounts, among other things).

So the answer to your question is yes x 100000

flyingaway
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by flyingaway » Tue Jan 16, 2018 7:38 pm

This is a difficult decision. We want to downsize, but don't want to do many times. The cost and hassle involved are just too much. Our final decision will probably be based on where my children will be and whether or not our friends will stay after retirement.

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AnalogKid22
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by AnalogKid22 » Tue Jan 16, 2018 7:52 pm

snarlyjack wrote:
Tue Jan 16, 2018 7:00 pm
Rob in cal,

Welcome to Bogleheads.

What a interesting thought...

This article has your name written all over it.

Enjoy...

http://www.mrfreeat33.com/can-you-retir ... th-200000/
Great article. I''ve been seriously considering living abroad for some time. I'm single, no kids, and with my savings I could live unbelievably well in other countries. The US is what I know and where I'm the most comfortable, but there are such beautiful countries where you can have an amazing life. Even renting, ideally furnished homes, and moving to a new country every few years would be fantastic.

UpperNwGuy
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by UpperNwGuy » Tue Jan 16, 2018 7:56 pm

I've been retired for almost five years, and I ponder this from time to time. I'm a city boy at heart, and I can't imagine living in a small town or out in the country. I have three children, and only one has put down deep roots where she is currently living. I suspect the other two will keep moving. I don't want to move to a place to be near children and grandchildren only to have them move someplace else.

I've also thought about living in Spain, but with a 96 year old father and two young grandchildren, I don't want to be across an ocean from them.
Last edited by UpperNwGuy on Tue Jan 16, 2018 8:00 pm, edited 1 time in total.

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willthrill81
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by willthrill81 » Tue Jan 16, 2018 7:58 pm

It's called geographic arbitrage, and it's been practiced by hundreds of thousands of people in the U.S. alone. The benefits of doing so can be enhanced by moving to another country with lower cost of living, as noted in the OP.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

flyingaway
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by flyingaway » Tue Jan 16, 2018 7:59 pm

AnalogKid22 wrote:
Tue Jan 16, 2018 7:52 pm
snarlyjack wrote:
Tue Jan 16, 2018 7:00 pm
Rob in cal,

Welcome to Bogleheads.

What a interesting thought...

This article has your name written all over it.

Enjoy...

http://www.mrfreeat33.com/can-you-retir ... th-200000/
Great article. I''ve been seriously considering living abroad for some time. I'm single, no kids, and with my savings I could live unbelievably well in other countries. The US is what I know and where I'm the most comfortable, but there are such beautiful countries where you can have an amazing life. Even renting, ideally furnished homes, and moving to a new country every few years would be fantastic.
What is the fun to live in a foreign country, not speaking their language, knowing nobody, appearing differently from anyone around you?

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willthrill81
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Location: USA

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by willthrill81 » Tue Jan 16, 2018 8:00 pm

flyingaway wrote:
Tue Jan 16, 2018 7:59 pm
AnalogKid22 wrote:
Tue Jan 16, 2018 7:52 pm
snarlyjack wrote:
Tue Jan 16, 2018 7:00 pm
Rob in cal,

Welcome to Bogleheads.

What a interesting thought...

This article has your name written all over it.

Enjoy...

http://www.mrfreeat33.com/can-you-retir ... th-200000/
Great article. I''ve been seriously considering living abroad for some time. I'm single, no kids, and with my savings I could live unbelievably well in other countries. The US is what I know and where I'm the most comfortable, but there are such beautiful countries where you can have an amazing life. Even renting, ideally furnished homes, and moving to a new country every few years would be fantastic.
What is the fun to live in a foreign country, not speaking their language, knowing nobody, appearing differently from anyone around you?
Thousands of people apparently enjoy it. I've heard that the ex-pat community in Southeast Asia is surprisingly large.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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AnalogKid22
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Location: Babylon, but I'd love to spend a night in Zion

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by AnalogKid22 » Tue Jan 16, 2018 8:00 pm

flyingaway wrote:
Tue Jan 16, 2018 7:59 pm
AnalogKid22 wrote:
Tue Jan 16, 2018 7:52 pm
snarlyjack wrote:
Tue Jan 16, 2018 7:00 pm
Rob in cal,

Welcome to Bogleheads.

What a interesting thought...

This article has your name written all over it.

Enjoy...

http://www.mrfreeat33.com/can-you-retir ... th-200000/
Great article. I''ve been seriously considering living abroad for some time. I'm single, no kids, and with my savings I could live unbelievably well in other countries. The US is what I know and where I'm the most comfortable, but there are such beautiful countries where you can have an amazing life. Even renting, ideally furnished homes, and moving to a new country every few years would be fantastic.
What is the fun to live in a foreign country, not speaking their language, knowing nobody, appearing differently from anyone around you?
You must enjoy traveling.

anonsdca
Posts: 186
Joined: Mon Jun 01, 2015 11:47 pm

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by anonsdca » Tue Jan 16, 2018 8:02 pm

AnalogKid22 wrote:
Tue Jan 16, 2018 8:00 pm
flyingaway wrote:
Tue Jan 16, 2018 7:59 pm
AnalogKid22 wrote:
Tue Jan 16, 2018 7:52 pm
snarlyjack wrote:
Tue Jan 16, 2018 7:00 pm
Rob in cal,

Welcome to Bogleheads.

What a interesting thought...

This article has your name written all over it.

Enjoy...

http://www.mrfreeat33.com/can-you-retir ... th-200000/
Great article. I''ve been seriously considering living abroad for some time. I'm single, no kids, and with my savings I could live unbelievably well in other countries. The US is what I know and where I'm the most comfortable, but there are such beautiful countries where you can have an amazing life. Even renting, ideally furnished homes, and moving to a new country every few years would be fantastic.
What is the fun to live in a foreign country, not speaking their language, knowing nobody, appearing differently from anyone around you?
You must enjoy traveling.
And be adventurous

User avatar
AnalogKid22
Posts: 118
Joined: Wed May 18, 2016 8:26 pm
Location: Babylon, but I'd love to spend a night in Zion

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by AnalogKid22 » Tue Jan 16, 2018 8:08 pm

anonsdca wrote:
Tue Jan 16, 2018 8:02 pm
AnalogKid22 wrote:
Tue Jan 16, 2018 8:00 pm
flyingaway wrote:
Tue Jan 16, 2018 7:59 pm
AnalogKid22 wrote:
Tue Jan 16, 2018 7:52 pm
snarlyjack wrote:
Tue Jan 16, 2018 7:00 pm
Rob in cal,

Welcome to Bogleheads.

What a interesting thought...

This article has your name written all over it.

Enjoy...

http://www.mrfreeat33.com/can-you-retir ... th-200000/
Great article. I''ve been seriously considering living abroad for some time. I'm single, no kids, and with my savings I could live unbelievably well in other countries. The US is what I know and where I'm the most comfortable, but there are such beautiful countries where you can have an amazing life. Even renting, ideally furnished homes, and moving to a new country every few years would be fantastic.
What is the fun to live in a foreign country, not speaking their language, knowing nobody, appearing differently from anyone around you?
You must enjoy traveling.
And be adventurous
You don't have to go to a third world country for LCOL, but you'll certainly have some unique experiences. I think you just need to be curious about the world and interested in learning. You find a town, visit the touristy spots, then do some research on the more historic and cultural areas and visit those, while taking a few language lessons to at least be able to communicate. You're not working, so you have nothing but time to experience the present. Enjoying yourself? Stay longer.

Lynette
Posts: 1749
Joined: Sun Jul 27, 2014 9:47 am

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Lynette » Tue Jan 16, 2018 8:13 pm

anonsdca wrote:
Tue Jan 16, 2018 8:02 pm
AnalogKid22 wrote:
Tue Jan 16, 2018 8:00 pm
flyingaway wrote:
Tue Jan 16, 2018 7:59 pm
AnalogKid22 wrote:
Tue Jan 16, 2018 7:52 pm
snarlyjack wrote:
Tue Jan 16, 2018 7:00 pm
Rob in cal,

Welcome to Bogleheads.

What a interesting thought...

This article has your name written all over it.

Enjoy...

http://www.mrfreeat33.com/can-you-retir ... th-200000/
Great article. I''ve been seriously considering living abroad for some time. I'm single, no kids, and with my savings I could live unbelievably well in other countries. The US is what I know and where I'm the most comfortable, but there are such beautiful countries where you can have an amazing life. Even renting, ideally furnished homes, and moving to a new country every few years would be fantastic.
What is the fun to live in a foreign country, not speaking their language, knowing nobody, appearing differently from anyone around you?
You must enjoy traveling.
And be adventurous
And the future? What happens when you are fifty? Do you then want to return "home" to be with family and have minimal assets. Do you plan to stay indefinitely? Are you going to take out citizenship in the new country?
Do they want you? I visited a town in Mexico. Many of the local expats wanted to connect with us as it reminded them of "home".

If you are planning to stay indefinitely, are you going to marry a local? What happens if/when you have children and grandma wants them to be part of the family. Are you going to learn the language and integrate with the locals or join a colony of Americans?

What happens if the country of choice and the USA no longer like one another 50 years from now?

I emigrated from another country to the US nearly 40 years ago. English is my first language and my mother was born in the US. I did not find it easy and still miss family overseas.

I don't think that these rosy articles are telling the complete story....

flyingaway
Posts: 1765
Joined: Fri Jan 17, 2014 10:19 am

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by flyingaway » Tue Jan 16, 2018 8:17 pm

Lynette wrote:
Tue Jan 16, 2018 8:13 pm
anonsdca wrote:
Tue Jan 16, 2018 8:02 pm
AnalogKid22 wrote:
Tue Jan 16, 2018 8:00 pm
flyingaway wrote:
Tue Jan 16, 2018 7:59 pm
AnalogKid22 wrote:
Tue Jan 16, 2018 7:52 pm


Great article. I''ve been seriously considering living abroad for some time. I'm single, no kids, and with my savings I could live unbelievably well in other countries. The US is what I know and where I'm the most comfortable, but there are such beautiful countries where you can have an amazing life. Even renting, ideally furnished homes, and moving to a new country every few years would be fantastic.
What is the fun to live in a foreign country, not speaking their language, knowing nobody, appearing differently from anyone around you?
You must enjoy traveling.
And be adventurous
And the future? What happens when you are fifty? Do you then want to return "home" to be with family and have minimal assets. Do you plan to stay indefinitely? Are you going to take out citizenship in the new country?
Do they want you? I visited a town in Mexico. Many of the local expats wanted to connect with us as it reminded them of "home".

If you are planning to stay indefinitely, are you going to marry a local? What happens if/when you have children and grandma wants them to be part of the family. Are you going to learn the language and integrate with the locals or join a colony of Americans?

What happens if the country of choice and the USA no longer like one another 50 years from now?

I emigrated from another country to the US nearly 40 years ago. English is my first language and my mother was born in the US. I did not find it easy and still miss family overseas.

I don't think that these rosy articles are telling the complete story....
Good points. Considering many more people are risking their lives to get into the US.

ssquared87
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Joined: Tue Apr 02, 2013 9:54 am

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by ssquared87 » Tue Jan 16, 2018 8:18 pm

I live in SoCal and understand the sentiment. I don't own, but I often think of moving to a cheaper apartment even though I can afford my current unit. I'm living in a seriously expensive part of LA, and could get the same apartment for $500-700/month less in another area that is decent and offers most of what I'm looking for.

It comes down to deciding if there is anything holding you where you are, or if you can find somewhere you will enjoy as much or almost as much but for less cost. I like the scenery where I live, but the novelty will wear off eventually and I'll go somewhere cheaper when I reach that point. I know what qualities about a location I appreciate, and am sure that I can find those in cheaper areas. If you can say the same, then absolutely go

flyingaway
Posts: 1765
Joined: Fri Jan 17, 2014 10:19 am

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by flyingaway » Tue Jan 16, 2018 8:20 pm

willthrill81 wrote:
Tue Jan 16, 2018 8:00 pm
flyingaway wrote:
Tue Jan 16, 2018 7:59 pm
AnalogKid22 wrote:
Tue Jan 16, 2018 7:52 pm
snarlyjack wrote:
Tue Jan 16, 2018 7:00 pm
Rob in cal,

Welcome to Bogleheads.

What a interesting thought...

This article has your name written all over it.

Enjoy...

http://www.mrfreeat33.com/can-you-retir ... th-200000/
Great article. I''ve been seriously considering living abroad for some time. I'm single, no kids, and with my savings I could live unbelievably well in other countries. The US is what I know and where I'm the most comfortable, but there are such beautiful countries where you can have an amazing life. Even renting, ideally furnished homes, and moving to a new country every few years would be fantastic.
What is the fun to live in a foreign country, not speaking their language, knowing nobody, appearing differently from anyone around you?
Thousands of people apparently enjoy it. I've heard that the ex-pat community in Southeast Asia is surprisingly large.
I know what they are looking for there.

quantAndHold
Posts: 1701
Joined: Thu Sep 17, 2015 10:39 pm

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by quantAndHold » Tue Jan 16, 2018 8:33 pm

No.

Family. Friends. Weather. Neighborhood. Home we love.

Pinotage
Posts: 232
Joined: Sat Nov 12, 2011 6:02 am

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Pinotage » Tue Jan 16, 2018 8:36 pm

flyingaway wrote:
Tue Jan 16, 2018 8:20 pm
willthrill81 wrote:
Tue Jan 16, 2018 8:00 pm

Thousands of people apparently enjoy it. I've heard that the ex-pat community in Southeast Asia is surprisingly large.
I know what they are looking for there.
:?:

freckles01
Posts: 90
Joined: Sun Aug 10, 2008 4:43 pm

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by freckles01 » Tue Jan 16, 2018 8:41 pm

YES! i think about this all-the-time, especially after a stressful day at work.... i'm in los angeles, selling my property would easily double net worth and would be able to retire right now!

currently, income property adds additional 1/3 income and will help fund my retirement if i end up staying.

adamthesmythe
Posts: 2130
Joined: Mon Sep 22, 2014 4:47 pm

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by adamthesmythe » Tue Jan 16, 2018 9:13 pm

Pinotage wrote:
Tue Jan 16, 2018 8:36 pm
flyingaway wrote:
Tue Jan 16, 2018 8:20 pm
willthrill81 wrote:
Tue Jan 16, 2018 8:00 pm

Thousands of people apparently enjoy it. I've heard that the ex-pat community in Southeast Asia is surprisingly large.
I know what they are looking for there.
:?:
There are inexpensive options for...entertainment...of retired....men...even if some of those opportunities are not quite what they seem to be.

To find out more read some of the novels by John Burdett.

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Toons
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Location: Hills of Tennessee

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Toons » Tue Jan 16, 2018 9:23 pm

We did it 6 years ago.
To Tn.
1400sq feet.
Minimalist.
As I slowly age and walk from one room to the next....
A sigh of relief..
Less truly is more.


:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

flyingaway
Posts: 1765
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by flyingaway » Tue Jan 16, 2018 9:30 pm

adamthesmythe wrote:
Tue Jan 16, 2018 9:13 pm
Pinotage wrote:
Tue Jan 16, 2018 8:36 pm
flyingaway wrote:
Tue Jan 16, 2018 8:20 pm
willthrill81 wrote:
Tue Jan 16, 2018 8:00 pm

Thousands of people apparently enjoy it. I've heard that the ex-pat community in Southeast Asia is surprisingly large.
I know what they are looking for there.
:?:
There are inexpensive options for...entertainment...of retired....men...even if some of those opportunities are not quite what they seem to be.

To find out more read some of the novels by John Burdett.
The author of the article cited above:
http://www.mrfreeat33.com/can-you-retir ... th-200000/
has some other blog articles talking about (his) two most important reasons moving to Thailand, one of them is inexpensive relationship.

2015
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by 2015 » Tue Jan 16, 2018 9:36 pm

More to get out of Lost Angeles than for the money, although I will make a killing when I sell as this is one of the most expensive real estate markets in LA County. Last week I came across statistics for my city within Lost Angeles at large and those statistics are downright obscene in terms of population density, traffic, COL, opportunistic crime, and entertainment wannabes.

Just finished my Gantt chart for tasks necessary to complete the transition out of here in the very near future. Can't wait!

anonsdca
Posts: 186
Joined: Mon Jun 01, 2015 11:47 pm

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by anonsdca » Tue Jan 16, 2018 9:50 pm

flyingaway wrote:
Tue Jan 16, 2018 9:30 pm
adamthesmythe wrote:
Tue Jan 16, 2018 9:13 pm
Pinotage wrote:
Tue Jan 16, 2018 8:36 pm
flyingaway wrote:
Tue Jan 16, 2018 8:20 pm
willthrill81 wrote:
Tue Jan 16, 2018 8:00 pm

Thousands of people apparently enjoy it. I've heard that the ex-pat community in Southeast Asia is surprisingly large.
I know what they are looking for there.
:?:
There are inexpensive options for...entertainment...of retired....men...even if some of those opportunities are not quite what they seem to be.

To find out more read some of the novels by John Burdett.

The author of the article cited above:
http://www.mrfreeat33.com/can-you-retir ... th-200000/
has some other blog articles talking about (his) two most important reasons moving to Thailand, one of them is inexpensive relationship.
That doesn't surprise me - what was the other reason?

I haven't kept up with "Mr Free" but his older blog was all about living extremely cheap. Probably the mere fact he can live extremely cheap in Thailand is a big turn-on for him. However, the novelty of the lower cost would wear out on normal folks after a while. I do plan to live abroad (have studied it for a long time) but I will have my family with me, also will have extended family near, I have been to the country many times already and know what it is like (good/bad/ugly). I believe there has to be more reasons than money to move abroad (some mentioned up thread). I think if it is done just for money there will be disappointment.

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Sandtrap
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Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Sandtrap » Tue Jan 16, 2018 9:54 pm

6 years ago. Left our main residence in UHCOL Hawaii and moved to a mini ranch in LCOL Prescott AZ. (northern AZ), about 2 hours north of hot Phoenix.

Prescott, A small retirement town of 50,000 residents nestled a mile high in the Bradshaw Mountains, surrounded by 4 National forests.

Where all the men are aged but strong, all the women elegant and ride horses, and all the children are. . .above average.

j :D
Last edited by Sandtrap on Tue Jan 16, 2018 9:54 pm, edited 1 time in total.

Lynette
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Lynette » Tue Jan 16, 2018 9:54 pm

flyingaway wrote:
Tue Jan 16, 2018 9:30 pm
adamthesmythe wrote:
Tue Jan 16, 2018 9:13 pm
Pinotage wrote:
Tue Jan 16, 2018 8:36 pm
flyingaway wrote:
Tue Jan 16, 2018 8:20 pm
willthrill81 wrote:
Tue Jan 16, 2018 8:00 pm

Thousands of people apparently enjoy it. I've heard that the ex-pat community in Southeast Asia is surprisingly large.
I know what they are looking for there.
:?:
There are inexpensive options for...entertainment...of retired....men...even if some of those opportunities are not quite what they seem to be.

To find out more read some of the novels by John Burdett.
The author of the article cited above:
http://www.mrfreeat33.com/can-you-retir ... th-200000/
has some other blog articles talking about (his) two most important reasons moving to Thailand, one of them is inexpensive relationship.
I was on a tour in that part of the world and a guy on the tour had made arrangements to meet a lady he had met on the internet. She did not show up. :D :D

About 15 years ago I went on a tour of Thailand. The tour was guaranteed so I found out that I was the only person on the tour with my own driver and tour guide. I really enjoyed the historical aspects of it. But I was very upset by their description of poor families in the north "giving" up their daughters because of their extreme poverty. Two years ago at my work a save-the-world type lady led a mission to "save" the ladies of Thailand from ...

I'm sure there are other reasons people go to Thailand - great beaches in the South, developed infrastructure, great cultural and historical background, relatively inexpensive etc. etc.

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Johnnie
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Johnnie » Tue Jan 16, 2018 9:54 pm

I plan to move to a cheaper place, but I'm already in a pretty cheap place so it's more about getting a better quality of life than saving serious money. For example, I'll be in a semi-rural waterfront home in the same state that's worth exactly the same amount as my similar sized home in a medium-sized city.

I've had property in the area for a long time and lived there on and off at various times so it's not that big of a leap.

I'll still save about 15 percent on core expenses though. Lower taxes will be the biggest part of it. The savings will contribute to being a snowbird for part of the winter.
Last edited by Johnnie on Tue Jan 16, 2018 9:59 pm, edited 1 time in total.
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Watty
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Watty » Tue Jan 16, 2018 9:56 pm

I have been accused of sounding like a broken record in suggesting that people in HCOL areas should consider moving to less expensive areas.

I was in a much different situation when I was living in the Bay Area which has always been expensive and when I was in my early 30's and looking at buying my first home. The only house I could have afforded there was a dump so I moved to a much less expensive area where house was maybe a fifth the cost of the Bay Area. I was able to find a job up there with the same salary so I made out very well. It was one of the best decisions that I ever made.

Not only was the housing less expensive but most everything else was less expensive too.

I'm moved for work since then and ended up retiring in Atlanta where you can get a decent modest home for the low 200's(or less) and $400K will get you a McMansion in most areas.

We did not have any family ties to Atlanta so we planned on moving when I retired but my son got married and they have a kid now so leaving them is not going to happen. If you do want to relocate you might want to do it before any kids grow up.

In the US one place you might want to look at is college towns. Many of them are very affordable and they have a lot going on.
Last edited by Watty on Tue Jan 16, 2018 9:59 pm, edited 1 time in total.

Bungo
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Bungo » Tue Jan 16, 2018 9:57 pm

This is a key component of my retirement plan - selling my overpriced Silicon Valley house and moving to a cheaper state. If all goes according to plan (health insurance being the main wildcard), this will allow me to retire about 3-4 years from now, versus 10+ if I stayed here.

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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by flyingaway » Tue Jan 16, 2018 10:13 pm

anonsdca wrote:
Tue Jan 16, 2018 9:50 pm
flyingaway wrote:
Tue Jan 16, 2018 9:30 pm
adamthesmythe wrote:
Tue Jan 16, 2018 9:13 pm
Pinotage wrote:
Tue Jan 16, 2018 8:36 pm
flyingaway wrote:
Tue Jan 16, 2018 8:20 pm


I know what they are looking for there.
:?:
There are inexpensive options for...entertainment...of retired....men...even if some of those opportunities are not quite what they seem to be.

To find out more read some of the novels by John Burdett.

The author of the article cited above:
http://www.mrfreeat33.com/can-you-retir ... th-200000/
has some other blog articles talking about (his) two most important reasons moving to Thailand, one of them is inexpensive relationship.
That doesn't surprise me - what was the other reason?

I haven't kept up with "Mr Free" but his older blog was all about living extremely cheap. Probably the mere fact he can live extremely cheap in Thailand is a big turn-on for him. However, the novelty of the lower cost would wear out on normal folks after a while. I do plan to live abroad (have studied it for a long time) but I will have my family with me, also will have extended family near, I have been to the country many times already and know what it is like (good/bad/ugly). I believe there has to be more reasons than money to move abroad (some mentioned up thread). I think if it is done just for money there will be disappointment.
Another is the lower cost of living. Both are lower cost.

I do not agree with him on many things he is promoting (dividend investing, no health insurance, etc.), but I do respect his choices of life style.

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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by marcopolo » Tue Jan 16, 2018 11:46 pm

I think it is a very good idea, if there is a lower cost area in which you want to spend the rest of your life, or at least a good chunk of it.

Against all of my frugal instincts, we are doing the exact opposite. We are planning to move to an area with a significantly higher cost of living in retirement relative to where we are now. We are doing this for a desired lifestyle/quality of life. But, we have been planning and financially and mentally preparing ourselves for it for a number of years now. Hopefully it will all work out.
Once in a while you get shown the light, in the strangest of places if you look at it right.

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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by HongKonger » Wed Jan 17, 2018 3:55 am

I did it nearly 5 years ago from SE Asia to Eastern Europe. Appreciation on my 296 sq ft apartment was about 10 years living expenses so I looked for cheaper places to live and found where I am now.
I encounter many expats who moved here just because of the low cost of living and they seem to just drink there days away watching tv or going shopping. I think you need a reason to have chosen the place that is not just that it's cheap. For me it was being able to own an 800sq ft house with land enough to grow food, keep animals, enjoy gardening.
I don't feel a pull of 'home' because home is wherever I currently reside (this is the 4th country in 25 years). Nowhere in the world is more than a days flying time away so the family thing is no issue.
Not everyone is cut out to live in a country other than their own but you find out pretty quickly if it's for you or not. FWIW I don't enjoy travelling and have never had 'itchy feet' or the desire to explore the world. I just don't see other countries as anything but geography. People are just people and life all over the world is essentially the same for everyone.

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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Jack FFR1846 » Wed Jan 17, 2018 7:29 am

After my dad passed, my mom took a few years to sell the business and then moved to Florida as a snowbird, coming back to the northeast in the summer. She'll be selling her Florida place after this winter and moving permanently back "home". Why? Crime. Her place has been broken into while she's in the northeast and there have been shootings just down the street. Sometimes cheaper is that for a reason. As she's been thinking, if there's a raging snowstorm outside, she can simply not go outside. Same as when the hurricanes pass over her in Florida.
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Top99% » Wed Jan 17, 2018 7:56 am

We moved to a slightly more expensive area but lowered costs overall by downsizing our house. By being more efficient with the space (wall bed in one room to double purpose it, Elfa shelving in closets, taking advantage of walls and ceilings in garage for storage etc.) and getting rid of a lot of stuff we didn't value we feel like it was all gain and no pain. Houses have a lot of size dependent costs beyond just those tied to the higher price: increased painting, roof repair costs, HVAC costs etc.
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by A-Commoner » Wed Jan 17, 2018 8:43 am

We did the opposite: moved fron very LCOL rural Midwest to Los Angeles. I’m a physician, practiced for 20 years in a LCOL college town. Saved a ton of money, enough to buy a $1 million house in LA this summer for cash (but took advantage of the 3.6% 30 yr fixed mortgage I was given. But that’s another story).

I witnessed first hand the deprivation that rural dwellers experience. Most glaring is the lack of access to health care. I recall 15 years ago during a bad snowstorm, we had a patient having a heart attack in our ER. She could not be transferred to a larger hospital with cardiac cath lab 2 hours away since no ambulance or helicopter would make the trip. She waited 12 hours for the weather to clear. She deteriorated and later died despite all our best efforts given the facilities we had available. Time is myocardium!

Then there are the elderly patients I had whose kids all moved away to HCOL for schools and jobs. I was literally the only “family” they had who would spend time with them in my office and later visit them regularly in the nursing home. Many would live their last days sad and alone, far from family.

Yes you can retire early if you moved from HCOL to LCOL areas. Just be aware that LCOL areas are low cost for a reason, and you won’t be able to spend your saved money on vital services anyway due to lack of access to them.

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AtlasShrugged?
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by AtlasShrugged? » Wed Jan 17, 2018 8:53 am

rob in cal....I am on the East Coast, in the Superfund Capital of the world: New Jersey. When my wife and I consulted with a financial planner a couple of years ago, he had this to say, "You cannot retire in NJ". So in about 12-15 years, we will leave for a LCOL that is hot and dry. Nevada, Utah and Arizona are on my tentative list. Sedona, in particular, is something I would like to check out.

The chief question we are asking ourselves is whether to pay off the house and rent it out for an alternate income stream. Note: We are very seriously considering purchasing a few rental units over the next decade to create a new income stream. Having that alternate income stream would lower my projected withdrawal rate to well under 4% annually.

But like so many things in life, the best laid plans can go awry. I will not be sorry to leave NJ.
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Arabesque » Wed Jan 17, 2018 9:09 am

I was fussing about whether I had enough money to retire and maintain my life style when it occurred to me that I could move to my condo in a HCOL city in a HCOL state. If I sold the LCOL suburban 3BR house and moved to my old, investment 1 BR condo (not fancy, but well located with reasonable fees and taxes), I would be rolling in money. I would get rid of the car and use public transportation (senior pass $30/month) or walk. Expenses for lawn, roofs, snow removal, heating, etc would decline or disappear. And the health care, social services, and amenities are much better in a city.

I would be free to travel without concern for the building; my time spent on maintaing or cleaning would be tiny. Any guest who couldn't sleep on a blowup mattress could get put up in a hotel. I wish there was more room for family visiting, but I am not anticipating having my children move in with me, given the circumstances.

HCOL doesn't always mean more expensive.

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Watty
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Watty » Wed Jan 17, 2018 9:16 am

One thing that has not been mentioned is the the possibility of staying in the same city but moving farther out when you retire and your commute does not matter. In many areas housing that is 30 or 45 minutes farther out can be dramatically less expensive.

Someone mentioned the availability of good medical care in some low cost areas as being a concern which is important. I mentioned college towns and many of them have above average medical care available if they have a teaching hospital at the university.
Last edited by Watty on Wed Jan 17, 2018 9:19 am, edited 1 time in total.

732002
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by 732002 » Wed Jan 17, 2018 9:18 am

We plan on a short move from NW Oregon - SW Washington.

Slight downsize to single level, and slightly lower real estate values.
The most significant motivation is no income tax.

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Pajamas
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Pajamas » Wed Jan 17, 2018 9:22 am

732002 wrote:
Wed Jan 17, 2018 9:18 am
The most significant motivation is no income tax.
Does Washington choose to provide fewer services to its residents than Oregon does or does Washington raise funds in some other way than through an income tax? There's no free lunch!

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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by 732002 » Wed Jan 17, 2018 9:24 am

Pajamas wrote:
Wed Jan 17, 2018 9:22 am
732002 wrote:
Wed Jan 17, 2018 9:18 am
The most significant motivation is no income tax.
Does Washington choose to provide fewer services to its residents than Oregon does or does Washington raise funds in some other way than through an income tax? There's no free lunch!

Income tax vs sales tax

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Garco
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Garco » Wed Jan 17, 2018 9:39 am

-delete
Last edited by Garco on Wed Jan 17, 2018 9:41 am, edited 1 time in total.

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Garco
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by Garco » Wed Jan 17, 2018 9:40 am

We're in process of moving to a more expensive place and downsizing.

That is, we've bought a condo in a nice community, for an amount that exceeds the value of our previous home. But with no external or yard upkeep headaches and costs, though of course condo fees and property taxes.

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DaftInvestor
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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by DaftInvestor » Wed Jan 17, 2018 9:53 am

I'm considering doing that someday (although wouldn't necessarily downsize - just move to a lower-cost area with similar size house/property).
Now that my kids are all out of school (negating my need to be concerned about which school district I live in) I could simply move two towns over and save thousands on property taxes per year bumping up my savings rate until I retire. We have been running that math on that trying to decided if the tax savings outweigh the transaction costs, etc.

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Re: Anyone pondering moving to a cheaper place and downsizing?

Post by JoeRetire » Wed Jan 17, 2018 9:59 am

rob in cal wrote:
Tue Jan 16, 2018 6:21 pm
I think I would be retirement ready in parts of the south and mid-west, and many parts of southern, and much of eastern Europe.
But the relevant question is would you want to live in the south, mid-west or southern/eastern Europe?

Should you choose to go down that path, make sure you explore the target area thoroughly before committing, as it is very hard to undo the move. Check it out in each season, and learn what it is really like to live there, not just vacation there.

I've had several relatives move from the northeast to Florida, only to discover that living in Florida is not like a year-round vacation for them. They moved back and lost a lot in the process.

I had one neighbor move from a middle-class home in the northeast to a McMansion in the south. He hated it but could never afford to move back.

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