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Retiring in Ten Years |
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Looking to retire in 10 years. Should I buy my retirement home(12 hours away) now with a mortage or wait until I retire and pay cash. Weighing the cost difference between the property appreciation and the mortage interest/taxes/utilites etc |
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What would you do with that retirement home during the ten-year wait? It's not easy to be an absentee landlord, and two hours away does qualify as absentee. It's easy to get into trouble, particularly if you don't have landlording experience. And you certainly wouldn't want a house standing vacant all that time.
In addition, things change. Of course the people who write to me are the ones for whom things didn't work out, but I do hear almost every day from someone whose situation has changed and who is now stuck with an out-of-town property that didn't work out as planned.
I'd say a year or at most two before you want to retire is time enough to buy a retirement home.
As for your question about appreciation -- it can't be predicted or relied upon any more than stock market gains can be counted on.
In short -- I'd say don't do it. |
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Edith
Originally published on January 23, 2008 |
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