Thinking about buying vacation/retirement property

[andrewg]

Originally Posted By: Win
I have trouble making timely checks on my property and all of it is within a couple of hundred mile radius of my primary residence, so I would not even entertain the thought of owning something 1000-1500 miles away. Nor would I consider a relative in the area to be a viable plan for dealing with the property, and a rental agent who only makes money when the property is occupied is a guarantee that you will have a very low quality of tenant occupying your proeprty.

I have a second residence on a local lake and would never consider renting it out. First, I want to be able to use it when I want to use it - that was the whole point of buyng it. Second, the general public is really hard on property. Commercial property gets beaten up pretty fast, and lightly built residential stuff even faster. If you bought a house 1500 miles away and rented it out for fifteen years, it will be worn out by the time you want to live in it. If you want to own rental property, you want it to be a lot closer than several states away.

Think carefully about your plans in this regard.


As I said before, I will not rent it out. As for the relative? Well, that is just one piece of the whole plan. I've not yet decided who or what I can do about looking over my property when I am not there. I would not completely depend on a monthly visit from a relative, but being that he is in the town every month on a personal matter, he will be happy to check on it. I may even just allow him to stay there for his monthly weekend visits as a way of thanking him. I will need to look into other more contractual options for watching my property as well. Just have not got to that point yet. I may decide that logistically it's too far away. But I do know of some folks that live in Arizona but leave the home for four months every summer. Need to ask them what they do about watching a temporarily vacant home.

 

[Mr Nice]

Andrewg,

Houses with nobody living there full time are a magnet for people looking to break in and steal scrap metal and steal A/C units for the copper.

BTW. do you speak spanish ?

Some areas in SW United States have some of the fastest growing hispanic populations.

 

[mechanicx]

Originally Posted By: Quattro Pete
Not to question your choices, but have you actually lived for extended periods of time in southern AZ to see what it's like? As Schmoe pointed out, most of the time you will have to admire that golf course through the window. Especially as you get older, staying out in the heat may not be advisable.



I was just thinking along this line, aren't there milder places in Arizona at higher altitude that could be an option? I'm thinking Flagstaff along I40, is Sunny and probably not super hot in Summer.

 

[Quattro Pete]

Originally Posted By: mechanicx
I'm thinking Flagstaff along I40, is Sunny and probably not super hot in Summer.

Flagstaff's average winter temps are actually lower than where the OP lives now.

I went skiing there once.

 

[mechanicx]

Yeah the last time I drove through Arizona it was like early March and it was 80 degrees in Bullhead City area (where it probably gets in 110's in summer) and going east through Flagstaff there was snow on the ground at nightfall. At least it is Sunny during the day in Flagstaff though. I'm thinking there are a couple other towns in that area that aren't quite as high elevation as Flagstaff.

 

[andrewg]

Originally Posted By: LT4 Vette
Andrewg,

Houses with nobody living there full time are a magnet for people looking to break in and steal scrap metal and steal A/C units for the copper.

BTW. do you speak spanish ?

Some areas in SW United States have some of the fastest growing hispanic populations.


If thieves down there are drawn to empty houses, then due to the market downturn and huge amount of foreclosures I would imagine they are making a killing, no? I haven't heard of that being an issue but I have not looked into it.
My girlfriend is from Mexico and is bi-lingual. From what I know the area I am interested in has plenty of English speaking citizens.....as a matter of fact the majority are.
It seems from a few of the comments I'm reading from you and others I'm picking up a fair amount of negativity. That's good though. I want to know what others think. Perhaps I should try and at least stick with a more secure gated community?!

 

[Schmoe]

It's not so much negativity as it is experience. You're banking on a long term project from which you have no control. Like, what if you lose your job? You got to take into account the "life happens" scenario. Seems like you'd be willing to tie up a lot of money in your immeadiate future but you still have a lot of open gaps during that time frame. Personally, I wouldn't do it. But then again, I'm married, have kids and other dire financial responsibilities that would forbid me to do such anyway. Take heed to what LT4 said, there is still a lot of money to be made in house metals and house materials. You could well end up spending a lot more than what you're seeing when putting paper to pen. In my opinion, like butts, we all have them, you have too many variables.

 

[andrewg]

Originally Posted By: Schmoe
It's not so much negativity as it is experience. You're banking on a long term project from which you have no control. Like, what if you lose your job? You got to take into account the "life happens" scenario. Seems like you'd be willing to tie up a lot of money in your immeadiate future but you still have a lot of open gaps during that time frame. Personally, I wouldn't do it. But then again, I'm married, have kids and other dire financial responsibilities that would forbid me to do such anyway. Take heed to what LT4 said, there is still a lot of money to be made in house metals and house materials. You could well end up spending a lot more than what you're seeing when putting paper to pen. In my opinion, like butts, we all have them, you have too many variables.

True, many variables could effect this possible purchase in a negative way. I could lose my job (highly unlikely yet not impossible), my property could be vandalized, plus a list of other unpleasant things. That's kind of part of life though isn't it? I mean I could have those things happen to me no matter what I choose to do. I don't have children, not married (yet we are committed), no major financial obligations (just a car payment and rent), and I have a good paying job with excellent stability right now. None of us has complete control over our lives but if we don't take a few risks or reach out and grab a small dream now and then because of what COULD happen....well, that's kind of sad. If I do make this purchase and vandals (scum of the earth) ruin it for me, I'll have to consider getting rid of it eventually. But if I buy in a gated or secure community and have a good plan in place for watching the property, my only worries would be monthly costs and/or losing my job. Purchasing this home would really only cost between five or six hundred a month. Equity would be building on it all the time, especially if the economy turns around. In ten to fifteen years I would have it paid off, have a place to vacation to in WARM weather, and eventually live there in my retirement. I will SERIOUSLY consider all the important concerns many have brought up here though. If in the end I decide not to do it, I would have to buy another home in this area and hope I make enough equity in fifteen years to be able to sell it and purchase a retirement home in Arizona. But I fear that prices will be so high by then (even in southern Arizona) that I won't be able to afford it. Either way, risk and variables come into the picture.

 

[IndyIan]

I think the climate you are after is not all that unique, so maybe waiting and seeing what's cheap when you actually retire is a good option. Also when you are retired you'll have more time to travel and spend some time in places you are interested in.
My parent drag a 28' trailer all over the southern US in winter and like doing that. Its a good way to get a feel for a place before you buy there.

 

[andrewg]

Originally Posted By: IndyIan
I think the climate you are after is not all that unique, so maybe waiting and seeing what's cheap when you actually retire is a good option. Also when you are retired you'll have more time to travel and spend some time in places you are interested in.
My parent drag a 28' trailer all over the southern US in winter and like doing that. Its a good way to get a feel for a place before you buy there.

I realize exactly what you are saying. I suppose I'm just not much of a 'waiting' person when I make a decision. Because of poor choices earlier in my life (including financial losses from a failed marriage) my retirement will not be what it could have been. But my current idea, if carried out to completion, would help me to recover what I have lost and give me more hope in my future. I would hate to be without a paid for place to live when I am in my late sixties and beyond. I will most likely be traveling down to the area of Arizona I am considering this coming December. I will be much better able to make a decision after looking around and talking to some folks down there.

 

[mechanicx]

I think your plan could be workable. I think it just depends on the neighborhood you buy in to. If your house is in a good neighnorhood with watchful neighbors during the day, maybe even retirees, it may be able to sit vacant for months at a time and not get vandalized. Especially if you meet the neighbors and put the word out.

Of course the neighborhood could change over 15 years but as I understand it you are going to visit the property somewhat regularly. And in Arizona you don't have to worry about pipes freezing up if you keep the heater off or worry about flooding or water damage.

 

[andrewg]

Originally Posted By: mechanicx
I think your plan could be workable. I think it just depends on the neighborhood you buy in to. If your house is in a good neighnorhood with watchful neighbors during the day, maybe even retirees, it may be able to sit vacant for months at a time and not get vandalized. Especially if you meet the neighbors and put the word out.

Of course the neighborhood could change over 15 years but as I understand it you are going to visit the property somewhat regularly. And in Arizona you don't have to worry about pipes freezing up if you keep the heater off or worry about flooding or water damage.

Exactly. No pipes to freeze, no landscaping to water or lawn to mow, and as everyone knows things last a long time in that kind of climate.
My thoughts now, after reading the cautions expressed here, is to be VERY sure of the community I purchase in. If possible I will find a gated one and also one that is inhabited by retired folks. I will need to inquire from law enforcement and local homeowners the viability of my plan. I know that I would, at first, only be able to be there five or six times a year. I would have a relative there every month however and have plans on looking into having some sort of security agency or vacation home management service look after it the rest of the time. If I get to know the neighbors and keep in touch with e-mails/phone calls etc. that will also help.

 

[Mr Nice]

How much cash do you have right now saved for your retirment home ?

 

[andrewg]

Originally Posted By: LT4 Vette
How much cash do you have right now saved for your retirment home ?


20% down payment

 

[Mr Nice]

Keep that 20% invested for the next 15 years and avoid the headaches.

 

[TooManyWheels]

Originally Posted By: andrewg
If thieves down there are drawn to empty houses, then due to the market downturn and huge amount of foreclosures I would imagine they are making a killing, no? I haven't heard of that being an issue but I have not looked into it.


He is correct about the proclivity for that. It is a major problem over South Texas, and it has happened to property in rural North Carolina owned by an uncle of mine, so I'm thinking it is pretty universal.

Another thing to consider. What will energy prices and home construction standards be like by the time you retire. With the rate of change I'm seeing, I'm thinking a house you buy anytime soon will be a white elephant by the time you want to use it.

 

[andrewg]

Originally Posted By: LT4 Vette
Keep that 20% invested for the next 15 years and avoid the headaches.


Assuming that my plan will have many headaches, I can see your point. But if the headaches (risks, costs, etc.) are very minimal, I think my money would reap better rewards in an Arizona vacation home.

 

[andrewg]

Originally Posted By: TooManyWheels
Originally Posted By: andrewg
If thieves down there are drawn to empty houses, then due to the market downturn and huge amount of foreclosures I would imagine they are making a killing, no? I haven't heard of that being an issue but I have not looked into it.


He is correct about the proclivity for that. It is a major problem over South Texas, and it has happened to property in rural North Carolina owned by an uncle of mine, so I'm thinking it is pretty universal.

Another thing to consider. What will energy prices and home construction standards be like by the time you retire. With the rate of change I'm seeing, I'm thinking a house you buy anytime soon will be a white elephant by the time you want to use it.

Honestly I don't think any home is going to be completely outdated in 15 years and be termed a 'white elephant'. Houses aren't automobiles or notebook computers. Otherwise literally millions of homes, according to your criteria, would be effected.
As for the crime aspect? I believe a secure, gated community would reduce that chance considerably.

 

[TooManyWheels]

Originally Posted By: andrewg
Honestly I don't think any home is going to be completely outdated in 15 years and be termed a 'white elephant'. Houses aren't automobiles or notebook computers. Otherwise literally millions of homes, according to your criteria, would be effected.


To put things in perspective, I do think much of the U.S. housing landscape will become white elephants, including the one I live in. When any new technology supercedes old, the value of the old plummets, irrespective of how much was originally paid, or whether the owners wish it to be true.

And the technology is changing rapidly, start reading Fine Homebuilding magazine and see. And as a general rule (in regard to anything), in times of rapid change, you want to be as flexible as possible to accomodate the future, not locked in to the past.

 

[D189379]

I'd just sit on my money personally. Unless youre going to recover some rental money you'll be better off just saving and buying when youre ready. Have you been to Arizona? Nice place to visit but....