Doesn’t there have to be a segment of baby boomers who are looking for adventure, and want to head out on the highway? If so, will the warmer-climate San Diego be a net gainer, or loser? If there is a senior exodus to free up money and lifestyle, it would make sense that the more-expensive areas like Southern California would see more seniors leaving.
From the nytimes.com:
When is a house your safe haven and when is it standing in the way of richer life experiences? That’s the question more and more retirees are asking these days.
Take Barbara and Mike West and Joseph and Phyllis Applebaum, retirees and longtime Maryland residents.
After years of analyzing their financial situation, the Wests decided to put the mortgage-free suburban house they had owned for 26 years on the market. They wanted to avoid the mid-Atlantic winters and considered moving to Hawaii, where they had lived while Mr. West was in the U.S. Navy.
But they decided it was too remote. They also ruled out San Diego, Savannah, Ga., and Charleston, S.C. Florida, they decided, was a possibility.
They considered renting their Maryland house out for part of the year, yet the idea of storing some of their household goods and someone else sleeping in their bed changed their minds.
Of the decision to sell a mortgage-free home, Barbara West, 63, said it would give them a chance to dream and to explore. Besides, “It’s a lot of money locked up in the house,” said Ms. West, who retired from her job as a lobbyist two years ago. “It’s a nice side benefit. It will free up money. We’ll have more flexibility. We’re kind of looking at it as an adventure.”
Read full article here:
That sounds wonderful for those folks. One advantage we have here is a vibrant rental market for single family homes you dont see in much of the country. Rents for a 3,000 sq ft home now exceed $4,000. In 15 years (when I expect to slow down my business) rents should be well over $5,000 if not $6,000. Even those with no savings could live off of that plus social security while traveling the world.
Longtime owners in this area have the option of holding onto their homes for the next generation. What a wonderful gift to be able to pass down a nice paid off home, in a great area with the benefit of a low tax basis. They can live in it or simply milk it for the cash cow it will be.
In the previous thread we were treated to bio-disco and now we get to hear those timeless words;”dead equity.”
What next Jim? The return of SuperRealtors™?
No Super Realtors – that would imply a single operator.
The desperation among realtors will further the already polarizing movement – either join a Mega-Team and be one of the minions, or join a discount brokerage and pray you can generate a few deals a year and not have to cut the broker half of the check.
Isn’t it all relative. If rents go up 50% in 15 years why wouldn’t traveling the world go up 50% in 15 years. Can you travel the world now with Social security plus $4K a month or does it only work if you have $6K plus social security and prices for travel don’t inflate as fast as rents for houses in SoCal. Actually social security inflation would likely be depressed so you’d probably be better off now with $4K plus social security than $6K plus social security 15 years from now assuming things inflate close to the same rate.
My wife and I are holding on to our dream of retiring into a large RV and being one of those adventurous old couples. We are going to give our house to our kids, if we ever buy again.
if your going to travel, do it when you are young.
Waiting until retirement is kind of overrated.
Driving around the country in a motor home gets old after 6 months from the few retiree’s I have talked to who have done it (and it’s very expensive).
Me I will stay here in SD and take a walk on the beach a few times a week and I will be happy I think.
To each their own.
I wish that article in the NY Times would have included some actual numbers.
“Me I will stay here in SD and take a walk on the beach a few times a week and I will be happy I think.
To each their own.”
Exactly. Some of us will be content with walking on the same beach day after day and some of us would prefer mixing it up with beach-walks in Spain, Italy, Hawaii, Tahiti, Alaska, Australia, etc.
You gotta pay to play.
Name Said:
“Exactly. Some of us will be content with walking on the same beach day after day and some of us would prefer mixing it up with beach-walks in Spain, Italy, Hawaii, Tahiti, Alaska, Australia, etc.”
Ahhh… traipsing the beaches of Alaska.
The sun… the surf… the aggressive walruses…