Wisdom of owning house after retirement

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beyou
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Re: Wisdom of owning house after retirement

Post by beyou »

I hate maintenance of my home, but remember being a renter when young and do not care to experience that again. Quality and control is worth the extra cost and hassle.

I will move out of my home of almost 3 decades only when either I want to be in a different geography (near certain people) or due to stairs ! I did see a ranch for sale a few blocks away and almost went to look (there aren’t many around here). Was thinking plan ahead vs wait until moving was harder yet necessary. But it was buy now or buy later, not a rent consideration.
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White Coat Investor
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Re: Wisdom of owning house after retirement

Post by White Coat Investor »

Ichthyo20023saurs wrote: Fri Dec 01, 2023 5:43 pm I retired a couple of years ago and I live off SS and savings. I live in a house that is all paid off but needs a lot of TLCs. Home improvements keep me busy but I do not necessarily enjoy it. So I started wondering about the wisdom of owning the house after retirement even if it is paid off. In my case, there is no question that stocks have been much better investment than the house. How can I compare two possibilities: 1) sell the house, invest the proceeds in stocks, and rent a nice apartment located in a city I like vs. 2) keep the house, pay property tax, and spend money on home improvements. What else do I have to consider other than return yields of stocks vs house. How do I do the math? Is there anyone who has done selling and renting?
Why not pay someone to do the imaintenance and repairs That's what you'd be doing indirectly if you were renting.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
Wash.Invest
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Re: Wisdom of owning house after retirement

Post by Wash.Invest »

the plan... Live as long as possible in our home, but... I certainly have no problem renting the right place if needed. (including overseas). I do not NEED to OWN a home. BTDT way too many times. Of my current tenants, all but ONE are retirees (on pensions). Very happy to be renting our rural view homes on acreage. They are great renters... give them a $1000 Home Depot card and let them handle the places. (2500 miles away from our home)

next steps;
1) Have a SNF all picked out and application ready should some unfortunate medical / accident happen (done before age 50, as per my experience with parents)
2) Always keep extra living qtrs in home or on-site for potential caregiver. (check, found that mandatory after doing 30+ yrs of eldercare)
3) Have options determined if can't drive or fix home (it's rural and in a violent (but pretty) Mtn Climate. Only 6 minutes to Safeway / services, 20 min to international airport and all the medical possible - NO Stoplights (in my entire county) :beer
4) What is best for you? Spouse / partner?
5) We have everything from SNF to Independent living options defined... just in case. (Preference is to be in a rural cottage senior housing co-op ~age 75+). but... have not found one of those, altho have a lot of alternatives defined. (such as Mennonite Village / Uplands / Presbyterian or Lutheran homes type places)(I'm neither) NZ and Australia have many nice places like this. But they don't want old folks, especially Americans (our poor health, due to our expensive and ineffective HC system throughout life). They are serious about an HMO type lifestyle. Many screenings and services throughout communities.
6) Skilled care overseas (Probably Thailand or Philippines (have lived in each))

Have your options determined and WRITTEN out, in case you have a medical event and can't communicate.

Cleaning out the house?
Find and engage an estate sale / auction house. (We have (3) farms - (12) homes, so it will be a BIG estate sale, probably 3-5 days)
nostresshere
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Re: Wisdom of owning house after retirement

Post by nostresshere »

this is really more about renting vs owning.

Retirement is really not the focus at all.. other than finances possibly.

Where do you want to live and can afford?
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AnnetteLouisan
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Re: Wisdom of owning house after retirement

Post by AnnetteLouisan »

I’m not in retirement yet but I think there is some wisdom for most people in owning a paid off home, even if you live partly elsewhere. Many doors that may be open during the working years can slam shut in retirement. It can be hard or impossible in some cases to get a mortgage without a guarantor. It can be hard to rent without a job. And market prices and rents can be prohibitive. So it’s an access issue. Sometimes even with a good net worth folks can run across this problem, as mentioned in prior threads.
Harmanic
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Re: Wisdom of owning house after retirement

Post by Harmanic »

pasadena wrote: Tue Jan 16, 2024 9:12 pm
adamthesmythe wrote: Fri Dec 01, 2023 5:44 pm The problem is not owning a house after retirement. The problem is owning the wrong house.
This. To me, it's more of a peace of mind thing, than a financial one.

I do not want to have a monthly rent in my later years. I do not want to have the uncertainty of rent increases or non-renewed leases. I do not want to have to deal with a landlord. And I certainly do not want to be forced to move at 85 years old.

Now, I do think it requires a recent home, or one that has been recently renovated (not just remodeled). Because I also do not want to have to go through heavy renovations at 85. Nor do I want to baby an older house for the next 30 years.

Does that mean I'll buy one right away when I retire? Maybe not. Maybe I'll wait a few years. But I *will* buy one, and when I do, I'll make sure all of the above is true (or I can do all the renovation right away), and that there is no stairs :)

You can always sell this house, rent for a while, until you find a new house that fits you better for the future.
From a non-financial perspective, owning a house creates responsibilities that prevent one from leaving it unoccupied for long periods of time. Even for short vacations, we often return to some problem that was worse because we were away and could not solve it immediately, such as a water leak. If travel is a priority, renting might be a better option. On the other hand, home ownership keeps one busy, so it is hard to get bored. Owning a house is kind of like owning a pet. It limits your freedom, but can provide some joys. I am still undecided on the issue.
The question isn't at what age I want to retire, it's at what income. | - George Foreman
hiduplex
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Re: Wisdom of owning house after retirement

Post by hiduplex »

I've always been a big duplex fan. Meant to reply to this thread earlier today. I think being retired and having a house paid off plus a small amount of rental income is good for supplemental revenue tax breaks and equity buildup. Below is what I said originally.
...If you can buy a small duplex. I think that's ideal. I bought a duplex in a small town that is a low cost of living area in my twenties had it paid off by my thirties.
Now I have a paid off house that payout money every month. The rent from the other unit covers my property taxes, property insurance, utilities, and then some. Anything above my cost. I just put in a high-yield savings account so I can use that money for any repairs or maintenance etc.
I reinvested money into the place when a storm hit and I upgraded the roof to class 4 shingles I upgraded the insulation from r11 to r49 that drastically cut my utility bills. I had a home energy audit and my property loses less than $50 a year to energy loss.
I feel like if there were more options like this it would help reduce housing costs and overall cost of living
Darwin
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Re: Wisdom of owning house after retirement

Post by Darwin »

Harmanic wrote: Mon Jul 08, 2024 8:55 am
pasadena wrote: Tue Jan 16, 2024 9:12 pm
adamthesmythe wrote: Fri Dec 01, 2023 5:44 pm The problem is not owning a house after retirement. The problem is owning the wrong house.
This. To me, it's more of a peace of mind thing, than a financial one.

I do not want to have a monthly rent in my later years. I do not want to have the uncertainty of rent increases or non-renewed leases. I do not want to have to deal with a landlord. And I certainly do not want to be forced to move at 85 years old.

Now, I do think it requires a recent home, or one that has been recently renovated (not just remodeled). Because I also do not want to have to go through heavy renovations at 85. Nor do I want to baby an older house for the next 30 years.

Does that mean I'll buy one right away when I retire? Maybe not. Maybe I'll wait a few years. But I *will* buy one, and when I do, I'll make sure all of the above is true (or I can do all the renovation right away), and that there is no stairs :)

You can always sell this house, rent for a while, until you find a new house that fits you better for the future.
From a non-financial perspective, owning a house creates responsibilities that prevent one from leaving it unoccupied for long periods of time. Even for short vacations, we often return to some problem that was worse because we were away and could not solve it immediately, such as a water leak. If travel is a priority, renting might be a better option. On the other hand, home ownership keeps one busy, so it is hard to get bored. Owning a house is kind of like owning a pet. It limits your freedom, but can provide some joys. I am still undecided on the issue.
I like the pet analogy... The best we can do is keep fish, since we like to travel and HAVE to travel (for work) all the time.
I LOVE my home, meaning the house (yes) but equally the land. Ours is the fourth and best place I've lived that involved a lot of DIY work. In the first two cases, that meant raw land with no house, power, water, septic, etc. And unfortunately, no help but what I could pull off. Would I do it again today? NO!!! There's a time for everything, and my fourth one is the last one as I'm preparing to retire. My wife and I are doing what we think of as the BIG PUSH, meaning everything is upgraded sufficiently so that when we're 20 years into our retirement we could either 1)stay in place even longer, without upgrading or 2)sell while everything is still mostly in good condition. This is the plan for an experienced DIY couple.
If the idea is to become a homeowner later in life, then the earlier quote is imperative: "The problem is not owning a house after retirement. The problem is owning the wrong house."
This can drag you down into the financial abyss if never-ending repairs aren't accounted for.
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Broken Man 1999
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Re: Wisdom of owning house after retirement

Post by Broken Man 1999 »

Hebell wrote: Sun Dec 03, 2023 9:12 am It amazes me to see wide swing in feelings on owning a home in retirement. There are those like me who want nothing to do with it (after a lifetime of home ownership), and prefer to rent or live in independent living. Then there are others who view the final retirement home as the reward for a life of hard work.

No reconciling that! Go with your heart and physical care and mobility needs.
Our home is set up for my wheelchair with ramps, bedroom downstairs, full bath downstairs, wide galley kitchen (no more scratched cabinets and appliances) and 99% of the time I hope to be rolled out of this home on a gurney and a tag on my toe.

But sometimes I yearn for the ability to just let someone else "do it", that meaning the jobs DW and I can no longer do. Like today. The rub is that although I can always get someone else to do it, the ability to get the type of attention I would give the job were I able to do it myself is finding people to do quality work on your projects. Jobs too small to use a GC, but too large to just get a couple of people with a pickup truck to do it.

This week I have workers busting up a waterfall and pond, leveling it to the height of the adjacent lawn, removing a 30' boardwalk leading to the pond and a 8' X10' deck. It was great to roll out to the deck and just sit quietly and listen to the waterfall, read, or enjoy a nice adult beverage. Who knew some areas of the pond had 1' thick concrete! Ka Ching! $2,800.

Friday BIL, SIL, DW, DDs and grandchildren will begin a demo job to remove the main 25' X 35' deck. Already had gas head to grill capped ($200). When BIL arrives we will kill the electric feed for the deck and actually start tearing the deck apart. I have rented a 30 yard dumpster ($300 + ? disposal fees), bought a reciprocating saw and blades ($155) and a pallet buster ($62), gloves and safety glasses ($85).

I envision a replacement of crushed white rock or gravel over landscape fabric over all back yard with perhaps a small gazebo. Scattered plants and paver path to gazebo, a bench or two in the shade, or perhaps to a circular bench around an oak tree that currently is surrounded by the large deck. DW wants to have some type shelter with an outdoor kitchen so she can grill if it is raining. I suggested a golf umbrella and a rain suit but she seemed uninterested. Some people you just can't please! :D

It is sad to see the deck go, we have hosted so many large gatherings over the 20+ years we have had it. Glad we had it all built. Be just as glad when it is all gone.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
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