Quote:
Originally Posted by Craig T
Good point JavaBrewer, but it's more than just the quality of house I can retire in. It's about what can I do with the equity I have now. Don't underestimate the power of home prices.
I agree, home prices aside, the cost of living reduction may only be 10%, with higher summer and winter utility cost, maybe not even 10%. But...The current equity in my house is enough to pay cash for a very nice house in a golf community in Beaufort SC, pay cap-gains on the remainder, and still have a couple years of retirement income left over. That's huge.
If I stay here what does that equity get me? Although mortgage free yes...Just a smaller house. Do I want to go from what I have to a $700K one bedroom condo in Marina Del Rey, or a four bedroom tract house in Vista or Rancho Bernardo? No.
Your living in from San Diego, my mortgage in the Santa Rosa Valley probably wouldn't surprise you JavaBrewer, but how about when your income comes to a dead stop? Neither my wife nor I have a pension. We need to do it on 401K's, personal saving and investments...and the equity in our house.
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Oh I totally understand what you're saying. Wife and I have a similar retirement financial picture. So it comes down to home prices. You sell your current home for say $1 USD. If you stay in SoCal you buy your retirement home for .75 cents leaving you .25 cents living money or buy your retirement home elsewhere for .25 cents and have .75 to live with.
Unless you are really familiar with the immediate area in SC you are looking at I would tread carefully. Ventura/Oxnard/Carpinteria/Santa Barbara set a pretty high bar when it comes to overall appeal. I would rather go into a cheaper home (condo) and stay local then move into a fancy community and home in SC.
Nothing against SC - I have been to Charleston before and really liked what I saw. Just not on the same level IMO. YMMV.