Quote:
Originally Posted by jimhoward
I have a theory that the housing economics for moderately affluent retirees is different from young working people. When you are coming up you buy the home that you can afford based on your savings and your income. The house is mortgaged and the maximum you can pay for the house is limited by how much mortgage you can afford.
But when you are retired it is different. If you have money you can buy any house you want. So then the question is not how much can you afford, its how much of your money do you want tied up in real estate. Your estate is going your heirs. Whether you leave them a million dollar house and some money or a 500K house and 500K more money its not all that different. So you might as well live in the nicer house.
My theory is that this is one factor holding up house prices for nicer homes in the Villages and that buying a view lot is a good idea.
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Totally agree, home equity is a solid asset that increases with cost of living. It’s a conservative part of your portfolio that you get to enjoy daily. Spending wisely on upgrades increases the value of the asset. Key is to always make choices with the mindset of resale.