Sell current home, down size and purchase a vacation condo?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
Agon
Posts: 34
Joined: Mon Feb 01, 2016 7:01 am

Sell current home, down size and purchase a vacation condo?

Post by Agon » Sun Dec 08, 2019 8:18 am

I'm hoping to run into a few fellow bogleheads that have some life experience in what we are considering and can offer advice.

Our family (me, wife, 14 year old, 12 year old) currently lives on the outskirts of a LCOL mid-western college town. Great town, fits our lifestyle, but we are not crazy about the winter. We own a home valued at $400k with more than enough square footage, on 5 acres, with a barn. The house is paid off and we are on a glide path to retirement. My wife and I are currently working and plan to for the next 10 years. We save for retirement aggressively and if the plan comes to fruition, we should end up with 2 million plus in retirement savings. (excluding our home)

In approximately 2-3 years we are considering downsizing our current house to a 150k-200k house in our current town and purchasing a condo in a warmer climate for roughly the same amount. We are somewhat tied to our current city with the kids finishing up school. The kids also have an opportunity to go to the local college for free. It is a perk of my job, working at the university. Our plan would be to spend roughly 2/3rds of the year in the midwest and 1/3rd of the year in the warmer climate until retirement and then move permanently to a warmer climate.

The condo would be roughly 12 hours by car or 2 hours by airplane away from our mid-western town.

We are still in the extremely early stages of planning this transition. Obviously, there are additional costs to moving as well as owning two properties. Any advice would be welcome. Thank you for your help.

Also, thinking about Gainesville, Florida. We have enjoyed living in a college town. Any other cities we should consider??

Let us know what you think.

gtd98765
Posts: 618
Joined: Sun Jan 08, 2017 4:15 am

Re: Sell current home, down size and purchase a vacation condo?

Post by gtd98765 » Sun Dec 08, 2019 8:40 am

I have not done this, but know people who have. I would recommend renting the warm weather vacation condo for a year before buying and see whether the lifestyle works for you. Snowbirding does not work for everybody.

HomeStretch
Posts: 4608
Joined: Thu Dec 27, 2018 3:06 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by HomeStretch » Sun Dec 08, 2019 8:43 am

I think your plan to downsize a $400k property into two properties of equal or lower cost now and eventually move permanently into one is reasonable financially. My parents did the same and were very happy.

Consider not buying in FL right away. Rather rent for a few years while you scout out the right property/town. Also keep in mind that where your kids settle may influence you to make yet another move to be near kids/grandkids and later to be near family for support while you age.

mgensler
Posts: 130
Joined: Sun Aug 20, 2017 9:17 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by mgensler » Sun Dec 08, 2019 8:44 am

I'd recommend renting in the new place to try it out. Where we are at in FL, landlords would love to have a 3-4 month renter. We're also seeing zero appreciation in purchase price from when the units were new 15 years ago. You might want to check some recent sales in buildings you like to see if that is the case.

Hockey10
Posts: 790
Joined: Wed Aug 24, 2016 12:20 pm
Location: Philadelphia suburbs

Re: Sell current home, down size and purchase a vacation condo?

Post by Hockey10 » Sun Dec 08, 2019 9:18 am

In 3 years, your kids will be 17 and 15. Will they want to make the 12 hour drive to FL, or will they want to stay back in the midwest where all of their friends are located? They won't know anyone in FL and may have trouble making friends there. Teenagers can be difficult to deal with. Ask me how I know. :annoyed

User avatar
RickBoglehead
Posts: 5608
Joined: Wed Feb 14, 2018 9:10 am
Location: In a house

Re: Sell current home, down size and purchase a vacation condo?

Post by RickBoglehead » Sun Dec 08, 2019 9:21 am

Agree on the renting first.

As to downsizing before the kids are out of school, think about whether that's ideal.

Also, we found that when we briefly considered downsizing, a smaller place in town would cost nearly what our almost 4,000 square foot house cost, in other words, we would not save much. And we don't want to live in town.

In addition, think carefully about having two homes. We inherited a cottage on a lake, and it's a big time eater, plus weighs on you. Is it ok? Did a pipe burst (we had one burst)? Not to mention property taxes as a non-resident.
Last edited by RickBoglehead on Sun Dec 08, 2019 10:06 am, edited 1 time in total.
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.

bikesandbeers
Posts: 143
Joined: Thu Jun 13, 2019 2:08 am

Re: Sell current home, down size and purchase a vacation condo?

Post by bikesandbeers » Sun Dec 08, 2019 9:59 am

My in-laws are very happy with having downsized to coastal condo and mountain cabin, although I think it took some adjusting.

They waited until the kids were done with college, and various siblings moved back in and out a few times before they got established. Give some good thought about your kids and how they will visit or possibly stay in the smaller space.

stan1
Posts: 8512
Joined: Mon Oct 08, 2007 4:35 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by stan1 » Sun Dec 08, 2019 10:08 am

Seems like you are a little ahead of need given your kids ages and uncertainties that life can bring. For example if neither of your kids goes to the local college (despite free tuition) would you stay there? If not why would you buy the smaller house in that community?

smitcat
Posts: 5811
Joined: Mon Nov 07, 2016 10:51 am

Re: Sell current home, down size and purchase a vacation condo?

Post by smitcat » Sun Dec 08, 2019 10:15 am

Agon wrote:
Sun Dec 08, 2019 8:18 am
I'm hoping to run into a few fellow bogleheads that have some life experience in what we are considering and can offer advice.

Our family (me, wife, 14 year old, 12 year old) currently lives on the outskirts of a LCOL mid-western college town. Great town, fits our lifestyle, but we are not crazy about the winter. We own a home valued at $400k with more than enough square footage, on 5 acres, with a barn. The house is paid off and we are on a glide path to retirement. My wife and I are currently working and plan to for the next 10 years. We save for retirement aggressively and if the plan comes to fruition, we should end up with 2 million plus in retirement savings. (excluding our home)

In approximately 2-3 years we are considering downsizing our current house to a 150k-200k house in our current town and purchasing a condo in a warmer climate for roughly the same amount. We are somewhat tied to our current city with the kids finishing up school. The kids also have an opportunity to go to the local college for free. It is a perk of my job, working at the university. Our plan would be to spend roughly 2/3rds of the year in the midwest and 1/3rd of the year in the warmer climate until retirement and then move permanently to a warmer climate.

The condo would be roughly 12 hours by car or 2 hours by airplane away from our mid-western town.

We are still in the extremely early stages of planning this transition. Obviously, there are additional costs to moving as well as owning two properties. Any advice would be welcome. Thank you for your help.

Also, thinking about Gainesville, Florida. We have enjoyed living in a college town. Any other cities we should consider??

Let us know what you think.
We went through this comparison as well and I will share with you what we came up with.
- if downsizing is good for you then do it ASAP and do not wait
- renting at the new destination will be more economical
- renting at the new destination will leave you with great flexibility in future locations
- renting will remove issues such as insurance, maintenance and utilities
- renting will eliminate emergency calls 12 hours away when you cannot get away

User avatar
Watty
Posts: 19646
Joined: Wed Oct 10, 2007 3:55 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by Watty » Sun Dec 08, 2019 10:33 am

Agon wrote:
Sun Dec 08, 2019 8:18 am
Our plan would be to spend roughly 2/3rds of the year in the midwest and 1/3rd of the year in the warmer climate until retirement and then move permanently to a warmer climate.
How does that work with the school year?

If you are talking about spending summers in Florida then that would not be all that pleasant since in the summer in Florida could be better described as hot and muggy than "warmer".

One advantage though would be instead of buying a place you could likely get a good deal on a summer rental from snowbirds that have enough sense to leave Florida in the summer. Likewise there might also be good summer rentals in Gainesville when the University of Florida is mostly shut down during their summer term. I don't know about Gainesville specifically but some college towns are pretty dead in the summer.
Last edited by Watty on Sun Dec 08, 2019 10:49 am, edited 1 time in total.

btenny
Posts: 5381
Joined: Sun Oct 07, 2007 6:47 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by btenny » Sun Dec 08, 2019 10:35 am

I retired in 1999 and then downsized in 2001. My youngest kid was a senior in HS when I retired. Both kids were out of the house and working and in college when we downsized. We bought a smaller house near our big home for less money and rented a summer place in another town 14 hours away. We travel back and forth between both houses for parts of the year. We have been doing this for 20 years.

Back when we downsized you could buy good home for $250K in Phoenix. Now it would be closer to $450K so I am not sure your selling the big home and land will give you enough money to buy a nice retirement place. I also let both kids finish HS before we bought the new home. We bought a 3 bedroom and we did not plan for them to live there. But as life evolves the youngest come back home to our retirement place for a few months twice. So getting the extra bedroom worked out.

Good Luck.

mathwhiz
Posts: 854
Joined: Tue Jul 01, 2008 7:58 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by mathwhiz » Sun Dec 08, 2019 11:43 am

Gainesville is in the middle of the state in a literal "swamp" so to speak filled with gators. It's the last place you want to be in the summer. At least the coastal areas in FL have the beach and ocean breeze but the interior of the state is in the 90's with extremely high humidity from about May through September. It's not known as a retiree or vacation hotspot. That's further south in the Ocala/The Villages area which have large retirement communities. You'd find a lot more rental options about 45 minutes south of Gainesville in the retirement communities but close enough to attend events, lectures, sports at UF.

User avatar
JoeRetire
Posts: 5263
Joined: Tue Jan 16, 2018 2:44 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by JoeRetire » Sun Dec 08, 2019 12:04 pm

Agon wrote:
Sun Dec 08, 2019 8:18 am
Our family (me, wife, 14 year old, 12 year old) currently lives on the outskirts of a LCOL mid-western college town. Great town, fits our lifestyle, but we are not crazy about the winter. We own a home valued at $400k with more than enough square footage, on 5 acres, with a barn.

In approximately 2-3 years we are considering downsizing our current house to a 150k-200k house in our current town and purchasing a condo in a warmer climate for roughly the same amount.
So in 2 years or so you would be in a smaller house with a wife, 16 year old and 14 year old. Is your current home too big? If not, what changes in 2-3 years so that downsizing makes sense?

With my family, my teenage kids wouldn't have wanted to be 1 12 hour drive away from their friends for 1/3 of the year. Your mileage may vary.
It's the end of the world as we know it. | It's the end of the world as we know it. | It's the end of the world as we know it. | And I feel fine.

IMO
Posts: 913
Joined: Fri May 05, 2017 6:01 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by IMO » Sun Dec 08, 2019 11:23 pm

Hockey10 wrote:
Sun Dec 08, 2019 9:18 am
In 3 years, your kids will be 17 and 15. Will they want to make the 12 hour drive to FL, or will they want to stay back in the midwest where all of their friends are located? They won't know anyone in FL and may have trouble making friends there. Teenagers can be difficult to deal with. Ask me how I know. :annoyed
I'd agree with this thought. You really need to think about if it is the best time to move with their current ages. If you had moved sooner I think that would have been better, and now at the age of the kids, I'd make the downsize move once they complete high school. There are lots of great/cool plans I know we'd like to do now, but you really need to consider it from your teenagers perspective which in sense can trump your personal plans or at least put them on hold.

Topic Author
Agon
Posts: 34
Joined: Mon Feb 01, 2016 7:01 am

Re: Sell current home, down size and purchase a vacation condo?

Post by Agon » Mon Dec 09, 2019 3:28 pm

Thank you everyone for the help. We have a lot to think about. Does anyone have any first hand knowledge and experiences in Gainesville, FL? We will be visiting multiple times before we would purchase or even rent more than an Airbnb. Thanks again.

researcher
Posts: 1294
Joined: Thu Mar 12, 2015 7:05 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by researcher » Mon Dec 09, 2019 3:45 pm

Agon wrote:
Sun Dec 08, 2019 8:18 am
In approximately 2-3 years we are considering downsizing our current house ...
Our plan would be to spend roughly 2/3rds of the year in the midwest and 1/3rd of the year in the warmer climate until retirement...
You never clarified how you plan to spend 1/3 of your time in another location while your two kids are still in school.
Are they going to stay by themselves at your primary residence when you are in Florida?

michaeljc70
Posts: 6699
Joined: Thu Oct 15, 2015 3:53 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by michaeljc70 » Mon Dec 09, 2019 4:02 pm

I plan on doing something similar but I am retired. I plan on renting VRBOs or Airbnbs to 1) get an idea if I will like being there for months at a time and 2) get an idea what area I want to be in in that city. I am also wondering if spending 3 or so months somewhere different each year might be interesting until I find a warm weather city that I love.

lifeisinmirrors
Posts: 112
Joined: Fri Jul 06, 2018 6:15 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by lifeisinmirrors » Mon Dec 09, 2019 5:42 pm

I've only been to Gainesville once, but it seemed like there were a lot of bad areas and there wasn't much there apart from the university. You might consider Tallahassee which is definitely a college town, but also more of a real city and has more cultural institutions separate from the university.

Topic Author
Agon
Posts: 34
Joined: Mon Feb 01, 2016 7:01 am

Re: Sell current home, down size and purchase a vacation condo?

Post by Agon » Tue Dec 10, 2019 11:09 am

I work a job where I can work a lot of overtime and can turn it into paid vacation time. Resulting in 12-16 weeks of vacation time. My wife has the same set up. We may go alone or together at times. When the kids are in college they would stay behind at our local home.

Point
Posts: 209
Joined: Mon Jul 10, 2017 9:33 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by Point » Tue Dec 10, 2019 11:31 am

We toy with the idea of a second home somewhere else, but keep falling back on the idea that we live in a HCOL area, yet own our home. Our only expenses are operating costs, insurance and taxes. We also have a rental home here. We're retired, in our mid 60's, by the ocean and have a sailboat. We like traveling with our truck and airstream, and love the mountains. But, we pull back from the idea of buying elsewhere as we can visit for as long as we want, and change locations as often as we want, with no permanent commitments to cost or locatiopn. This lets us enjoy other locations, people, sights, experiences, food and culture. Yet we have the ability to leave when we please and return if we want. The idea of having land in another location is dated. We have National Parks everywhere, and there are great places to stay on the beach, reservation lands, state and local parks, and RV parks. We have talked about downsizing, but for now, the financial hit from capital gains just is not worth it.

ARoseByAnyOtherName
Posts: 1000
Joined: Wed Apr 26, 2017 12:03 am

Re: Sell current home, down size and purchase a vacation condo?

Post by ARoseByAnyOtherName » Wed Dec 11, 2019 5:08 am

Agon wrote:
Mon Dec 09, 2019 3:28 pm
Does anyone have any first hand knowledge and experiences in Gainesville, FL?
What draws you to Gainesville?

It’s a landlocked town in Florida, in the middle of a swamp, that’s super hot in the summer. It’s also (personal opinion!) a total dump.

Remind me again why you want to spend any time there?

Topic Author
Agon
Posts: 34
Joined: Mon Feb 01, 2016 7:01 am

Re: Sell current home, down size and purchase a vacation condo?

Post by Agon » Wed Dec 11, 2019 7:14 am

ARoseByAnyOtherName wrote:
Wed Dec 11, 2019 5:08 am
Agon wrote:
Mon Dec 09, 2019 3:28 pm
Does anyone have any first hand knowledge and experiences in Gainesville, FL?
What draws you to Gainesville?

It’s a landlocked town in Florida, in the middle of a swamp, that’s super hot in the summer. It’s also (personal opinion!) a total dump.

Remind me again why you want to spend any time there?
Ahhhh thank you for your opinion. This is exactly why I posted this question. I like a few big things about Gainesville. I like that it is 150 feet above sea level. I can tolerate heat. In fact, I really like it. We currently live in a college town and really love the amenities and the overall vibe. I also like the thought of not being overly touristy. I'm definitely still in the learning and discovery stage.of this plan. We will visit Gainesville (or anywhere else we decide to purchase) multiple times before purchase of a condo. Any other information about Gainesville that I couldn't find reading on the internet that you can convey from personal experience would be greatly appreciated.

ARoseByAnyOtherName
Posts: 1000
Joined: Wed Apr 26, 2017 12:03 am

Re: Sell current home, down size and purchase a vacation condo?

Post by ARoseByAnyOtherName » Wed Dec 11, 2019 8:02 am

Agon wrote:
Wed Dec 11, 2019 7:14 am
ARoseByAnyOtherName wrote:
Wed Dec 11, 2019 5:08 am
Agon wrote:
Mon Dec 09, 2019 3:28 pm
Does anyone have any first hand knowledge and experiences in Gainesville, FL?
What draws you to Gainesville?

It’s a landlocked town in Florida, in the middle of a swamp, that’s super hot in the summer. It’s also (personal opinion!) a total dump.

Remind me again why you want to spend any time there?
Ahhhh thank you for your opinion. This is exactly why I posted this question. I like a few big things about Gainesville. I like that it is 150 feet above sea level. I can tolerate heat. In fact, I really like it. We currently live in a college town and really love the amenities and the overall vibe. I also like the thought of not being overly touristy. I'm definitely still in the learning and discovery stage.of this plan. We will visit Gainesville (or anywhere else we decide to purchase) multiple times before purchase of a condo. Any other information about Gainesville that I couldn't find reading on the internet that you can convey from personal experience would be greatly appreciated.
If being near the ocean isn't a factor for you I'd take Athens, GA over Gainesville any day of the week. It checks all your boxes and closeness to Atlanta is a plus.

User avatar
lthenderson
Posts: 4901
Joined: Tue Feb 21, 2012 12:43 pm
Location: Iowa

Re: Sell current home, down size and purchase a vacation condo?

Post by lthenderson » Wed Dec 11, 2019 9:15 am

Agon wrote:
Sun Dec 08, 2019 8:18 am
Our family (me, wife, 14 year old, 12 year old)

Our plan would be to spend roughly 2/3rds of the year in the midwest and 1/3rd of the year in the warmer climate until retirement and then move permanently to a warmer climate.

Let us know what you think.
With our kids, they have less than a fourth of the year off in summer. Various extra curricular activities spill over at the end of the school year or start up before the school year starts reducing their time off to about 2 months a year. Even those two months become busier as they got older as they wanted to hang out with friends, attend special week-long activities like a science camp at the local college, etc. Sometimes I find it hard just to string together two weeks in the summer now to go somewhere.

User avatar
Sandtrap
Posts: 10962
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: Sell current home, down size and purchase a vacation condo?

Post by Sandtrap » Wed Dec 11, 2019 9:29 am

Thoughts:

1. Consider downsizing after the children move out. Stability. Stability.
2. Consider waiting to purchase the vacation condo and/or secondary residence after the children move out and/or when you retire. And, at that consider renting first.
3. Consider, for now, renting for a month in the warmer climate location to try it out. It may not be what you think. Interesting at first but perhaps not so after several tries. But, at least not risking $$$$ beyond renting for a month or more.
4. Try before you buy. Try before you sell.

j
Wiki Bogleheads Wiki: Everything You Need to Know

LFS1234
Posts: 167
Joined: Fri Feb 08, 2019 4:13 am

Re: Sell current home, down size and purchase a vacation condo?

Post by LFS1234 » Wed Dec 11, 2019 5:42 pm

Agon wrote:
Sun Dec 08, 2019 8:18 am
We are still in the extremely early stages of planning this transition. Obviously, there are additional costs to moving as well as owning two properties. Any advice would be welcome. Thank you for your help.

Also, thinking about Gainesville, Florida. We have enjoyed living in a college town. Any other cities we should consider??
As others have said, be in no rush to buy a place. I'd suggest renting at least until you know the area very well and know for sure exactly where, and in which neighborhood, you want to live. Homeownership is expensive and absentee homeownership even more so, so tread carefully.

Gainesville is a city of 134,000 people, which is dominated by the University of Florida with 52,000 students on campus. It is a perfectly fine university town. It is neither a dump nor a swamp. The terrain east of the city center tends to be flat, while the terrain west of the city center is hillier and sandier. The east, after heavy rains may be slower to absorb water due to a layer of clay (which farmers prefer).

Gainesville has some very nice residential areas, particularly in its Northwest quadrant, which is where most of the growth is. For a city its size, it has a lot to offer, including very good medical facilities. Best times of the year weather-wise are spring and fall; summer is hot and humid and winter may get chilly for a few weeks at a time, in which case the cold may be bone-chilling (due to the high relative humidity); but there are lots of other places to visit during suboptimal weather. With the money you can save living in a LCOL area, you should be easily able to afford multiple annual trips to those VHCOL cultural capitals.

mathwhiz
Posts: 854
Joined: Tue Jul 01, 2008 7:58 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by mathwhiz » Wed Dec 11, 2019 6:56 pm

Gainesville isn't on a lot of people's radars because they've never been there, only vaguely know it is where UF is. Parts are swampy. Parts are like living in a forest. And the outskirts and rural counties surrounding it have springs and other state parks as well as agriculture. For a lot of people, if it isn't near the water or beach, that part of Florida doesn't exist. Others think this is the real Florida and a best kept secret for locals. That's up to you to judge.

The people that like Gainesville do so primarily because:

1) It is smaller than many of the other major metros in Florida (less traffic, congestion, cheaper real estate especially compared to South Florida), yet has many big city amenities because of the University of Florida and great medical thanks to Shands UF Hospital.

2) It is a college town and people who are politically active and want to be around like minded people of their political tribe seek places like Gainesville out. I won't discuss this further since we aren't supposed to discuss politics here but look at an election map of Florida and you'll see the appeal for a place like Gainesville for certain people

3) It is convenient for day trips, getting the best fares on airports, theme parks, beaches. Jacksonville, Tampa, Orlando are all within 2 hours or so.

4) People who don't care for the beach and want to live in a hurricane protected area tend to like inland Florida. Cheaper insurance, no evacuations, etc. You may still get hit but usually indirectly with tropical storm winds after the hurricane has weakened over land.

User avatar
LilyFleur
Posts: 1259
Joined: Fri Mar 02, 2018 10:36 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by LilyFleur » Wed Dec 11, 2019 11:19 pm

With a crime rate of 46 per one thousand residents, Gainesville has one of the highest crime rates in America compared to all communities of all sizes - from the smallest towns to the very largest cities. One's chance of becoming a victim of either violent or property crime here is one in 22.
from:
https://www.neighborhoodscout.com/fl/gainesville/crime

If you look at houses to buy on realtor.com, go into the individual listing and scroll down to "Neighborhood." Then, on the left, click on "crime."

There actually are some very reasonably priced homes in very safe neighborhoods.

LittleMaggieMae
Posts: 214
Joined: Mon Aug 12, 2019 9:06 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by LittleMaggieMae » Thu Dec 12, 2019 12:31 am

The only "complication" I see with the plan to downsize main home and buy a vacation/second home - is the expense/hassle of having a house that's empty many months out of the year. Who looks after it when you aren't there? And when you do visit the 2nd home - are you prepared to do cleaning and maintenance stuff every time you arrive for a "vacation"? Even a condo or a townhouse (hoa that takes care of the grounds) will have something you will need to do when you visit.

Also, keep in mind that property taxes and insurance (and sometimes mortgage rates) are HIGHER for 2nd homes/Vacation homes. You won't have any "homestead" exemption and insurance is higher for houses that are empty for long periods of time.

I do agree with the suggestion to try out various places to get a feel for the area/neighborhoods/housing stock and prices before buying.

I'd almost suggest keeping your current home but finding and buying (mortgaging) a property, maybe spending a year of "vacations" prepping it for a rental - and then renting it out on a yearly basis. When you are ready to take it over again - don't renew the lease, and then go in and do whatever remodels you want and move in. :)

3504PIR
Posts: 972
Joined: Mon Jul 26, 2010 2:46 am

Re: Sell current home, down size and purchase a vacation condo?

Post by 3504PIR » Thu Dec 12, 2019 1:12 am

Agon wrote:
Mon Dec 09, 2019 3:28 pm
Thank you everyone for the help. We have a lot to think about. Does anyone have any first hand knowledge and experiences in Gainesville, FL? We will be visiting multiple times before we would purchase or even rent more than an Airbnb. Thanks again.
We lived in Gainesville for several years while I taught at UF. We really enjoyed our time there and seriously considered staying permanently. Lots of things going on as you are familiar with living in a college town, culture, events,etc. Some great restaurants and other activities along those lines. Gainesville has a very good mix of housing, but be aware of a couple things. Carefully select where you buy a condo to avoid student neighbors, it is not unusual for parents to buy or rent even the higher end condos for their kids, but you should find something away from the University such as in Haile Plantation, among others.

The second consideration is property taxes, which are high in general in Florida, but really high in Gainesville. You can google the rates and ranking in the state. It’s high, ours was around $1,100 per month 10 years ago which has gone up I’m sure. Outside of Gainesville it is a third to a half of the rate in the city. The weather wasn’t an issue for us as I recall in the summer, hot and humid but not crazy to us. Mild in the winter with occasional freezing like now. We had snow twice in our 4 years. Hurricanes on the other hand were really bad. We had 3 come through Gainesville in our 4 years. Our neighborhood had underground utilities so we were in decent shape, but many lost power for up to a month.

Goal33
Posts: 1255
Joined: Sun Apr 12, 2015 12:30 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by Goal33 » Thu Dec 12, 2019 1:17 am

50% cost downsize seems like a big downsize. Can you not downsize and buy the vacation condo?
A man with one watch always knows what time it is; a man with two watches is never sure.

ohai
Posts: 1327
Joined: Wed Dec 27, 2017 2:10 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by ohai » Thu Dec 12, 2019 1:35 am

I don't see how this will really improve your life overall. Instead of living in a double size house all year (with a few months of bad weather), you will live for 100% of the time in one of two half sized houses. Furnishing both houses will add cost and travel time will become a chore over the years. What if you spent these commuting costs on things that would improve your life in the Midwest?

Maybe you are not like me and you will like this lifestyle, but as others have said, it seems like something most people would want to try as a rental before committing to.

User avatar
peterinjapan
Posts: 550
Joined: Fri May 15, 2015 8:41 am
Location: Japan!

Re: Sell current home, down size and purchase a vacation condo?

Post by peterinjapan » Thu Dec 12, 2019 1:55 am

I can say it is nice having a second home, so that over the year you can "tick, tock" between the two places. I live in Japan but spend the summer in my condo in San Diego. I get about $20k of vacation rental income out of the condo when I'm not in it, and my manager handles all the work related to renting it out.

Topic Author
Agon
Posts: 34
Joined: Mon Feb 01, 2016 7:01 am

Re: Sell current home, down size and purchase a vacation condo?

Post by Agon » Thu Dec 12, 2019 8:24 am

Goal33 wrote:
Thu Dec 12, 2019 1:17 am
50% cost downsize seems like a big downsize. Can you not downsize and buy the vacation condo?
Just when I'm about to let this post die off, I get a handful of really helpful posts. Thank you all so much. Downsizing would be for a couple reasons. We currently live on 5 acres. There is a lot of work that goes along with that. So to keep our current house and vacation a lot would leave a lot of work undone or expensive to have done. Our house is 2500 sq ft. Not a lot but some standards, I'm sure but 1500 sq ft would be plenty for our family. I'm done with debt, so I don't want to take out another mortgage.

Goal33
Posts: 1255
Joined: Sun Apr 12, 2015 12:30 pm

Re: Sell current home, down size and purchase a vacation condo?

Post by Goal33 » Thu Dec 12, 2019 10:08 am

Agon wrote:
Thu Dec 12, 2019 8:24 am
Goal33 wrote:
Thu Dec 12, 2019 1:17 am
50% cost downsize seems like a big downsize. Can you not downsize and buy the vacation condo?
Just when I'm about to let this post die off, I get a handful of really helpful posts. Thank you all so much. Downsizing would be for a couple reasons. We currently live on 5 acres. There is a lot of work that goes along with that. So to keep our current house and vacation a lot would leave a lot of work undone or expensive to have done. Our house is 2500 sq ft. Not a lot but some standards, I'm sure but 1500 sq ft would be plenty for our family. I'm done with debt, so I don't want to take out another mortgage.
Thanks for the context that makes a lot more sense now. It was a bit hard to relate because 400k would not be able to enter the market (not sure you can even get a studio here for that price). Your plan sounds reasonable! Good luck.
A man with one watch always knows what time it is; a man with two watches is never sure.

Post Reply