Thinking about buying vacation/retirement property

[andrewg]

I live up north in the states and recently realized that when I retire (15 years or so), I DO NOT want to live in a cold, damp, climate. I'm also very tired of the winters where I live (rainy from Nov. thru most of May) and would like a place to vacation to during the Christmas season as well as three or four other times during the year. My thoughts have led toward buying a vacation property in Arizona while, at the same time, preparing to have it paid off in time for retirement. The real estate I am considering is only around 50 to 90k dollars. My questions about this are as follows.....please give me some ideas if you have any.
1. Should I get pre-approved where I live (1500 miles away) or in Arizona?
2. Should I contact a Realtor where I live, one down there, or both?
3. If all works out and I purchase a home, who would be able to keep an eye on the property when I am away most of the year...(and no, I do not want to rent the property), and what would something like that cost?

Thanks in advance.

 

[eljefino]

Do you want something in a retirement community or just on your own? Do you want to be in a gated resort, comes with security, landscapers, etc? Do you like golfing or boating?

Real estate is cheaper where they don't have big lot sizes or tons of insulation in the walls. Easy to snooker someone from a city up North with a fancy presentation. There are surely realtors down there that specialize in selling to those from away.

Can probably get a good property at fire sale price from someone's estate, not new construction. Las Vegas has lots of vacancy now too.

 

[andrewg]

I do like the idea and security of a retirement community, but the cost would likely be higher than a regular residential area. No resort for sure....a gated community would be nice though. I would like to be near golf courses for the beauty and peace they provide, but I do not partake. The town I am considering is not a high tourist area and that suits me just fine. It would be between Phoenix and Tuscon.

 

[powayroger]

Originally Posted By: andrewg
(and no, I do not want to rent the property), and what would something like that cost?

Thanks in advance.



Why not? If you have a good piece of property, rent it out the part of the year you aren't around. Hire a good property manager and make the deal as such he only gets a percentage if it is rented out.

 

[andrewg]

Where I live now I witness daily the abuse a rental property can sustain from it's tenants. While a prospective renter may look good on paper, these days many of them treat a rental home like they would a rental car. No thanks. I will be easily able to afford the payments when/if I decide to do this. I also want the freedom to show up and utilize my property at will. There are times I will feel the need to get way from the 'Great North' and don't want to schedule that around a renter.

 

[Mr Nice]

Why not just retire in 15 years, sell your current home, move to Arizona and then look for a neighborhood to retire at ?

I would never buy a property in another state that I could not live in and keep an eye on. If a renter stops paying the rent, you will have to go to court to get them evicted and they will destroy your property before they leave. You are asking for trouble if you buy a house and have to rent it out for the next 15 years. In 15 years will you still want to go to Arizona ?

I would rather have that cash invested for the next 15 years and not have any headaches to deal with while you are in WA. Just my opinion.

 

[andrewg]

Originally Posted By: LT4 Vette
Why not just retire in 15 years, sell your current home, move to Arizona and then look for a neighborhood to retire at ?

I would never buy a property in another state that I could not live in and keep an eye on. If a renter stops paying the rent, you will have to go to court to get them evicted and they will destroy your property before they leave. You are asking for trouble if you buy a house and have to rent it out for the next 15 years. In 15 years will you still want to go to Arizona ?

I would rather have that cash invested for the next 15 years and not have any headaches to deal with while you are in WA. Just my opinion.

Appreciate the opinion. No way I will rent out a property if I buy one. That will just not happen. The current home I live in is not mine, it is my girlfriends. At this time I do not want to buy a home in Washington. While prices are indeed down in this area, I believe buying a home here would complicate things financially for me. I've owned several homes here in the past but really prefer to rent until I retire. Homes in the area I am planning on purchasing are extremely affordable while still very nice. The bonus being I would have a vacation place to go to and be paying off a home easily by the time I retire. If for some reason I decide in 15 years to sell my Arizona home, then I will not lose a thing and certainly have gained equity as well. So in essence, my cash will be invested. Sort of a no lose deal from what I can see.
I will be spending some time down there soon and make some more firm decisions based on what I see.

 

[Shannow]

Couple of thoughts.

From time to time, we get a holiday house for a week. It's a proper holiday house, leased through an agent, and while fully furnished, DVD player, DVDs and games, the family had one of the bedrooms converted to a lockup for THEIR particular items, linen, towels (who knows what else).

$1600-$1800/week....they have their bookings through the peak, and most of the non peak (too cold where they regularly live in winter).

It's not a share, they own it and lease it out...prolly deduct a heap, which helps them buy it.

A lot of people I have known have bought "properties" in their late 40s to retire to...and found that the distance to services etc. Works in their 50s/early 60s, then fails as they can't maintain it, can't/don't want to drive, then end up selling a weed overgrown Ponderosa to buy a retirement house.

 

[Schmoe]

Hmmmmm, can't blame you for leaving that neck of the woods, climate can be pretty harsh. But, so can Arizona's. You pretty much are going to live indoors when that thermometer hovers around 100 plus. There are good places here in Oklahoma that are sprouting up like crazy. Texas as well. I got an acre out by lake Texhoma that I've been sitting on thinking the same as you. Renting out your place can be a pain, especially if your miles away. Don't laugh, but have you done the math on just living at a retirement center versus the cost of building/buying/paying taxes, etc. etc.? I've seen some pretty nice retirement centers that are opening up around my town. Seperate entrances, private units, includes meals, etc. etc. Wouldn't seem like a bad place to live from what all I've observed.

 

[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.

 

[andrewg]

Great info. Yes, I have considered the heat in the summer. I do like heat and as I've gotten older the damp cold is much more difficult for me to deal with....not to mention the depressing clouds. I'm thinking that during the harshest of summers in Arizona, a trip back up north to visit friends and family could be an idea. I also hope to own a small RV by the time I retire so trips to more mild climates would occasionally be on order.
As for a buying a home in a retirement community? It's possible IF the price is right. But I'm not sure that buying something in a place like that will work out while I'm in my late forties. Do they allow those that are younger than retirement buy and live in a community like that?
Also....my original questions I really need addressed if anybody has some answers.
Thanks everybody....keep 'em coming.

 

[Schmoe]

55 is the minimum at retirement centers around here. Didn't realize you were that much younger. Trust me, you may not like that blazing dry heat down there when you start getting older.

 

[TooManyWheels]

Originally Posted By: Schmoe
Trust me, you may not like that blazing dry heat down there when you start getting older.


I'll second that. I noticed at about 50 that from mid-July to mid-September I have little inclination to go outside if not absolutely necessary.

 

[andrewg]

Originally Posted By: TooManyWheels
Originally Posted By: Schmoe
Trust me, you may not like that blazing dry heat down there when you start getting older.


I'll second that. I noticed at about 50 that from mid-July to mid-September I have little inclination to go outside if not absolutely necessary.

That might very well be the case. I'll have the option (if things go as planned) to head north during the very hottest months in an RV. Family and friends will allow for that. I know that where I live now, I spend a large amount of the winter inside because of the cold and wet. Reading, TV, web surfing, and indoor hobbies can keep me busy. Plenty of retired folks stay in Arizona in the summer as well so it must be manageable. The bonus to being there is the dry, mild fall through late spring weather. All it is here during that time is terrible dampness. I'm done with that.

 

[msparks]

I would guess you would want to contact the people down there, they would have the best understanding of the market, as well as the loan officer would be able to help. I'm sure different states have different criteria for qualifying and purchasing a home.

If you are looking in Arizona, don't forget to look a little farther east in New Mexico as well. There is some pretty country and it's much different than AZ.

Depending on the where you want to live, the heat isn't so bad in Arizona as long as you stay out of phoenix. Phoenix is in a bowl and that is why it gets so hot there. Plus it's very humid in the summer probably from all the vegetation and swimming pools and such.

You could find something with some elevation like 4-5,000 feet it will be a little cooler in the summer (and a little cooler in the winter) but tolarable.

Most places in Southern Arizona will at least be in the 60's during the winter. (mid-day temps) It will get cold during the night due to radiational cooling (no clouds to keep the temps up) this is why you wide swings in temp.

When I lived in El Paso, even in the summer the evenings were pretty nice to sit out and go do stuff, or the very early mornings (before 10am) otherwise find some shade and preferably some AC.

I love the southwest. Plenty of cool places to live.

 

[andrewg]

msparks, thank you for addressing my original question. Yes, I think what I will do is contact a qualified realtor down there and ask them what the best way to go about this is (as far as qualifying, locating, and purchasing).
I have thought about New Mexico. As a matter of fact it's one of the states I've never been to but have always wanted to visit. One of the reasons I picked Arizona is that the property will be in a town that a relative travels to monthly and as such, can check on my property while they are there. I did think about the nearby mountains as you suggested. That may be a possibility to lesson the seasons harshness.
Thanks.

 

[Quattro Pete]

Originally Posted By: andrewg
I did think about the nearby mountains as you suggested. That may be a possibility to lesson the seasons harshness.
Thanks.

Speaking of getting closer to the mountains, Sedona area is really nice and should have somewhat cooler temps, alas, the real estate is probably significantly more expensive.

 

[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.

 

[Quattro Pete]

Originally Posted By: Win
Think carefully about your plans in this regard.

He already explained several times that he does not want to rent it out...

 

[andrewg]

Originally Posted By: Quattro Pete
Originally Posted By: andrewg
I did think about the nearby mountains as you suggested. That may be a possibility to lesson the seasons harshness.
Thanks.

Speaking of getting closer to the mountains, Sedona area is really nice and should have somewhat cooler temps, alas, the real estate is probably significantly more expensive.

Beautiful scenery...but too many goofy types. And yes, the real estate prices there are far too high.