Author Topic: FIRE and 2nd house  (Read 1140 times)

jamesbond007

  • Bristles
  • ***
  • Posts: 466
  • Location: USA
  • One penny at a time.
    • I'm raising $3500 for the Arthritis Foundation.
FIRE and 2nd house
« on: February 14, 2017, 03:37:47 PM »
I am having some trouble on planning a 2nd house where we'd retire. We currently live in a Very HCOL area. We are very keen on retiring in South Lake Tahoe as we love the place. But that's not really the point. The point is, I don't see myself living in this HCOL area after I FIRE. We are both nature lovers and prefer to stay in/near the mountains. Preferably, CA Sierra Nevada.


Coming to the nuts and bolts, how do people buy 2 houses while working? Do they retire where they have a primary residence? I bought my house last year and expect to pay it off right at the time when I FIRE, in 15 more years. Do I buy a retirement property after I FIRE? Or start investing now in a retirement property but rent it out till I actually use it? How do I manage that? One option is to sell my current house and buy one wherever I want to retire. But I want to leave this house to my daughter. Any suggestions? Am I overthinking this?

SnackDog

  • Handlebar Stache
  • *****
  • Posts: 1284
  • Location: Latin America
Re: FIRE and 2nd house
« Reply #1 on: February 14, 2017, 03:57:50 PM »
You can do it however works best for you. My advice is to wait until you retire. Then rent in a new location to ensure it is as hoped. When ready, you can buy if you need to. If you insist on leaving primary home to daughter, new home will cost you. If you buy the second home early, you will need to run numbers to ensure it will rent to your saitsiafctiOn until you occupy it.

I've known several friends  who bought or built dream retirement homes then changed their mind after a few years.

We have a possible retirement home and currently rent  it as a vacation rental. We love it but use it only about four weeks per year because it is far from our current residence (but near to primary home). Cost wise it is a freaking alligator (as in it eats nearly 10% of my income). If I stop working soon then one house or other might need to go. Both have appreciated about 30% in the last several years but if I could do over I'm not sure I would want to own ether one. I would be quite happy with all that money invested really now, no property taxes,no maintenance,etc.

soccerluvof4

  • Walrus Stache
  • *******
  • Posts: 5174
  • Location: Artic Midwest
  • Retired at 50
    • My Journal
Re: FIRE and 2nd house
« Reply #2 on: February 15, 2017, 09:59:45 AM »
Wait till you retire and see how that all plays out.

If you want to leave your daughter the current house or not comes down to dollars and sense , maybe she wont want it since we don't know how old she is or if you discussed it with her so to me that's mute.

Definitely rent first in the area you think you want to retire and search for what you want to buy once you have determined where it is you want to stay.

I agree for the most part with Snackdog

jamesbond007

  • Bristles
  • ***
  • Posts: 466
  • Location: USA
  • One penny at a time.
    • I'm raising $3500 for the Arthritis Foundation.
Re: FIRE and 2nd house
« Reply #3 on: February 15, 2017, 02:10:50 PM »
Thank you. My daughter is still 2.5 yrs and I am 33. I plan to be FIRE by the time I am 50. I guess I will invest all that money instead.