Author Topic: Lakefront home, sell or just stay...its not very mustacian  (Read 2199 times)

ol1970

  • Stubble
  • **
  • Posts: 122
Ok, let me first state that the math clearly...overwhelmingly says to sell, but here is my dilemma.  I love living on the water, I searched and searched for years to find the perfect spot in the area I live in that is filled with awesome lakes.  Along comes the housing crash and then the financial crash, I timed things perfectly and bought a home with cash at the absolute bottom out of foreclosure.  It is in the perfect spot, 1 acre on a peninsula, postcard perfect sunsets, close to all my friends, centrally located to bike trails, and local fun activities.  The rub is I love the location, and the house is spectacular, but its WAY too big for just me.  It is a relatively HCOLA, now if I would want to "downsize" the stuff available that is smaller, is not in the nice areas I'd want to be, and in my opinion way overpriced (which maybe my place is now too). 

I can totally afford the home and its ongoing expenses.  They are included in my budget and I've been FIRE'd for a couple of years at less than 2% withdraw rate with my paid for home not included in my net worth calculation for that.  Like a lot of places around the country there has been significant appreciation from 2011 and now with $900k to $1M appreciation on the place I sort of feel irresponsible not taking the chips off the table and having a more appropriate sized place to call home (like 1/4 the size).  The struggle is I don't need more chips and there really isn't another place I am desiring to go, but when I walk through my overall picture I think damn, I could cut bat pay the cap gains tax, add the already "enough" stache and go rent someplace for a while and wait for the next inevitable cycle to repeat.  Hell, the proceeds from the house sale would make my withdraw rate well under 1%.  I realize this is a first world issue, but just curious if any of you sage real estate investors would like to chime in. 

Bruinguy

  • Stubble
  • **
  • Posts: 141
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #1 on: May 01, 2017, 09:18:48 AM »
You are living the dream, why give it up?  You are FIRE'd, you don't have to worry about accumulating wealth--you have what you need.  So you might pass up a chance to make a few hundred thousand, but you would have to leave for x years to do so. Life is short don't worry about things you don't have to. 

I can't imagine that having a couple hundred thousand more dollars is going to bring you more
Happiness than staying put from what you said.

Finallyunderstand

  • Stubble
  • **
  • Posts: 153
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #2 on: May 01, 2017, 10:01:23 AM »
Keep it. 

You seem to love it.  You are in a great place financially.  Don't feel guilty that it's bigger than you need.  You bought it right and it's not your fault it appreciated so much that you feel it is leaving money on the table.  You have a low withdrawal rate and you're able to be on "vacation" every day in that home.  That is was FIRE is all about. 

Scortius

  • Bristles
  • ***
  • Posts: 463
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #3 on: May 01, 2017, 10:15:57 AM »
You're missing the forest for the trees.  The whole point of frugality and financial planning is to get to where you are now.  Now that you're there, you're thinking of leaving?  You don't need our permission to live your life!  Congrats on living your dream!

ol1970

  • Stubble
  • **
  • Posts: 122
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #4 on: May 01, 2017, 10:29:16 AM »
LOL, thank you guys for the slap in the face I needed!  This should be another amazing summer : )

Malum Prohibitum

  • Pencil Stache
  • ****
  • Posts: 699
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #5 on: May 01, 2017, 10:33:52 AM »
LOL, thank you guys for the slap in the face I needed!  This should be another amazing summer : )
  No slap in the face - the point of FIRE is to be happy, and live at less than your means.  You are doing both!

Roots&Wings

  • Handlebar Stache
  • *****
  • Posts: 1123
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #6 on: May 01, 2017, 11:03:51 AM »
And hey, if you ever feel like it's financially unproductive to have this amazing lake house with lots of space, you could always rent out a room or something ;)

sequoia

  • Pencil Stache
  • ****
  • Posts: 607
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #7 on: May 01, 2017, 03:35:17 PM »
If you can afford it (which sounds like you can afford it) then keep it. Life is too short!

And if you feeling guilty to have all of that space to yourself, you can invite some of us for a visit to enjoy the sunset!

OthalaFehu

  • 5 O'Clock Shadow
  • *
  • Posts: 72
    • OthalaFehu
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #8 on: May 01, 2017, 03:55:43 PM »
I think you answered your own question by having to ask it, keep the house. You don't need the money and you don't know what the future holds. It really sounds like the crown jewel of your little empire. Does that really have a dollar figure attached?

nouveauRiche

  • Bristles
  • ***
  • Posts: 376
  • Location: HCOL - USA
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #9 on: May 04, 2017, 11:26:21 AM »
Agree with everyone here.  Definitely keep it. 

Yes, you could pull your money out and wait for the next crash - but would you be guaranteed to find another home as perfect as this one is?  And would you definitely time it perfectly a second time?




paddedhat

  • Handlebar Stache
  • *****
  • Posts: 2229
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #10 on: May 04, 2017, 03:51:43 PM »
The wife and I FIREd three years ago. After a through search of the eastern 2/3rd of the lower 48, we found our dream location, and bought a home, a few months back. Home prices are at least 50% higher than the area we left. I had to pull $90K out of ETFs to bridge the difference as we "upgraded" to an older, more modest place, in need of a new kitchen and baths. We could of easily have stayed in our old location, and the lower quality of life it offered, in order to save a $1K a month, or so,  in additional expenses and lost opportunity cost of our diminished retirement funds. The flip side is that we are in a beautiful area now, with everything we could possibly want or need within a few miles, and we are thrilled to be here.  As others have made so clear on this thread, you can afford your lifestyle easily, it makes you happy, and that's what matters.

MayDay

  • Magnum Stache
  • ******
  • Posts: 4029
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #11 on: May 05, 2017, 10:08:33 AM »
The price aspect wouldn't bother me, as you can clearly afford it.

But I wouldn't want to live in a huge house as I age. I'd contact a realtor and let them know that if they can find you a house that meets your needs (similar great location, just smaller) you'll buy it, and they can have the commission to sell your huge house too.  Maybe that happens this summer, maybe in three years. No rush.

Guesl982374

  • Pencil Stache
  • ****
  • Posts: 501
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #12 on: May 05, 2017, 11:38:35 AM »
I'll just leave this here: http://www.mrmoneymustache.com/2014/06/19/j-d-roth-how-i-learned-to-stop-worrying-and-love-mustachianism/

I suggest reading the section "Make Decisions as If Money Didnít Matter"

Ebrat

  • Stubble
  • **
  • Posts: 239
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #13 on: May 06, 2017, 07:43:05 AM »
LOL, thank you guys for the slap in the face I needed!  This should be another amazing summer : )
  No slap in the face - the point of FIRE is to be happy, and live at less than your means.  You are doing both!

Yeah, the goal is not to spend the least amount of money, but to spend money in ways that make you happy (truly happy). You can afford it, and it makes you happy. Congrats on living the dream!

human

  • Pencil Stache
  • ****
  • Posts: 791
Re: Lakefront home, sell or just stay...its not very mustacian
« Reply #14 on: May 06, 2017, 07:59:20 AM »
I can totally afford the home and its ongoing expenses.  They are included in my budget and I've been FIRE'd for a couple of years at less than 2% withdraw rate with my paid for home not included in my net worth calculation for that.

Why are you even posting this??? 2% withdrawal rate srsly???? pfffffffffffffffffffffffft, that's me spitting my coffee!

ENJOY THE SHIT OUT OF THE PLACE!!

That said if it's in a good location and you ever need the money for an emergency (paying a ransom maybe? medical or long term care when you are older and assuming you are in the US which means you will be dumped in a ditch if you don't have good health care insurance - then you sell the place).

Oh and I'm jealous, even though my goal is to retire early I would love a small cabin in an area for canoeing or the mountains. So as Ben Afleck says it Good Will Hunting, "You owe it to us".