Quote:
Originally Posted by ellenwelsh
Moving to The Villages as a retiree in 2005 it became my job to enjoy life and income (from pension and annuity) which is guaranteed. Further, making income/profit is not the priority, spending it and enjoying it is now the goal. The home is a place to hang your hat, so to speak. The home is a quiet place, the personal sanctuary. Money is only made on the house when it is sold; and selling and moving are such a pain in the a** I plan on never doing it again.
|
I agree, I am not in it to make money any longer. I want to enjoy my comfortable life. I am not trying to build family generational wealth - that is neither my goal nor my responsibility. If the houses make a profit when I die and my heirs get them, then yay for them.
As long as they hold some measure of value, then I am happy with the choices. I am enjoying summers on the lake and winters in the sun. I can always sell one home or the other (or both) and fund nursing home or in-home health care if I need to do so with out tapping income (pensions, ss) or investment funds.
Quote:
Originally Posted by bowlingal
real estate will ALWAYS increase. May take a few years , like 2008, but will ALWAYS increase
|
Over time, yes. I have NEVER lost money on a house, and have usually made a lot of money on them (and lived rent-free). My experiences:
Bought $227,000, sold four years later for $369,000
Took that equity as a down payment and remodel fund and bought the next:
Bought $560,000, sold six years later for $1,015,000.
Took that equity as a down payment and remodel fund and bought the next:
$920,000, sold 10 years later for $1,375,000.
Took that equity as a down payment and remodel fund and bought the next:
$705,000, currently valued based on comps 5 years later at $1,250,000, 90% equity.
This may not be what others would do, or make enough money to satisfy some finance types, but it funds my pleasant and comfortable (and early!) retirement while allowing plenty of cushion if I need to liquidate or tap investments to survive dire straights or depression-economies.
As a last thought - Even if you bought at the highest outrageous peak of 2006 / 2007 and you were underwater and lost tons of money (on paper) for a decade, those prices at 2006 /2007 would be absolute bargains today that any of us would jump at. After a certain age, it's all about long-term holding and enjoyment. Even if I never recouped the cost and my heirs only made $250,000 instead of $500,000, who cares. That's a quarter-million they wouldn't otherwise see or get.
YMMV