Author Topic: FIRE - Relocation planning and real estate  (Read 1919 times)

Wadiman

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FIRE - Relocation planning and real estate
« on: August 30, 2016, 05:22:07 AM »
Hi all -

With any luck and a fair wind I hope to FIRE in 2021.

What I know for sure is that I do not want to stay in the major capital city I am currently live in due to work and want to move to a regional area that offers a far better quality of life. 

Luckily, a regional move also means that I would be able to make a fair few extra dollars on the changeover and bring forward the FIRE date by a few more years.

The question for you lovely mustachers - particularly those that have FIREd and relocated - is - how did you go about this process?  Did you rent/buy in your targeted FIRE location before selling out of your pre-FIRE location or did you sell first and then buy/rent?  There are pros and cons each way I'm sure but it does seem like an interesting idea to buy first, rent out while planning the relocation  - secure in the knowledge that you have a great place to go to and you have locked in the purchase price.  Right now prices in my target FIRE location seem very reasonable, rental demand is high, and the cost of holding the property would be very close to being covered by rent.

Thoughts appreciated!

LiveLean

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Re: FIRE - Relocation planning and real estate
« Reply #1 on: August 30, 2016, 07:33:36 AM »
We've lived in Florida for 18 years and wish to have our primary residence here for tax and weather purposes for life.

But we also enjoy our native Virginia, where we purchased (in VA Beach) a 1,200-square foot weekly beach rental/second home in 2014. We plan to live there more -- but less than six months annually for said tax purposes -- when the kids start college (2021 and 2023, which should also be post-FIRE for us). By then, we will have sold big Florida home and moved into a FL condo. Actually, we'll probably be in the condo before the kids are out.

The key is to find an area(s) you want to live that matches your lifestyle and financial goals. I know the VA Beach very well from growing up and my family once owned a second home/rental two blocks from the one we purchased. So I'm able to manage it (with the help of the same management company my folks once used) from 900 miles away.

We love being on or near the water and we are in both places. We hate cold weather, traffic, and state income taxes and have designed our lives to avoid all three.
« Last Edit: August 30, 2016, 07:36:06 AM by LiveLean »

NoNonsenseLandlord

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Re: FIRE - Relocation planning and real estate
« Reply #2 on: August 30, 2016, 08:29:30 AM »
I have FIRE'd, but not relocated.  There are many states with a warmer climate than MN, and lower taxes...  I may even be a snowbird.

I am going to try out a bunch.  Probably in a fifth wheel.  Take 2-3 weeks, every 2-3 months, if not more, to explore.  TX is good, SC, TN, and MN cannot be beat in the summer.

A state has to pay it's bills.  If state has a lower income tax, they get you on other taxes.

CowboyAndIndian

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Re: FIRE - Relocation planning and real estate
« Reply #3 on: August 30, 2016, 09:32:09 AM »
We have not yet FIREd, plan to in 2018 July.

I live currently in Central NJ a very HCOL area. Also, the winters are awful, cold and dreary.

So, I plan to move when DS completes High School and move to a low tax Florida location.

I ended up buying a condo in St. Pete in advance of the move.  I will  rent it out after the closing until we can move there permanently.

Ensign1999

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Re: FIRE - Relocation planning and real estate
« Reply #4 on: August 31, 2016, 01:47:49 PM »
Have not FIREd but would recommend to keep a watchful eye on the area you plan on moving to.  Figure out what neighborhood you want to be in, and what you want in your house and look for it.  If a good enough deal comes up, then you can buy before moving and rent it out.  If nothing comes up the peaks your interest, then you at least know you didn't miss out on anything while you are at your current location.  A good real estate agent might be able to help you once you know what you want.

Wadiman

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Re: FIRE - Relocation planning and real estate
« Reply #5 on: September 02, 2016, 07:52:56 PM »
Thanks everyone - some good perspectives there.

I will start checking out the target area more thoroughly and get finances in order to allow for a purchase if the right property comes up at the right price.


Sammiecakes

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Re: FIRE - Relocation planning and real estate
« Reply #6 on: September 02, 2016, 10:28:46 PM »
TX is good, SC, TN, and MN cannot be beat in the summer.

Only true if you don't mind humidity!

happy

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Re: FIRE - Relocation planning and real estate
« Reply #7 on: September 03, 2016, 03:37:55 AM »
It might be worth while considering whether the two markets you are looking at are rising or falling. If your market in your capital city is rising, I would hold onto that property until you have found the other in the regional centre.

Wadiman

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Re: FIRE - Relocation planning and real estate
« Reply #8 on: September 09, 2016, 03:08:57 AM »
It might be worth while considering whether the two markets you are looking at are rising or falling. If your market in your capital city is rising, I would hold onto that property until you have found the other in the regional centre.

Good point Happy!  Shall maintain a watching brief.

bpleshek

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Re: FIRE - Relocation planning and real estate
« Reply #9 on: September 12, 2016, 02:07:54 PM »
I would probably rent for a year in the place that you think is where you want to live.  You might find out that you are completely wrong.  Taking a 5% hit on RE commissions for a mistake can be costly, perhaps much more so than the cost of rent.

Brian