Retiring

[earthdome]

On 3/23/2019 at 10:36 AM, Heeb said:

December 31st is my last day, retiring on 50% of income but we will be paying less taxes, no more money going to 401k's and all the bills will be payed except for the mortgage, our disposable income will be about the same in the end. The dilemma is what to do with the house here since we still owe on it. Do we rent it out, leave it empty or sell? The home prices in my neighborhood are going up on average 15% per year and that's almost triple what my mortgage payment is per year, if I sell and decide to come back after a few years I would probably be priced out of the area. Everyday I think about the different scenarios in my head and it's driving me nuts.

If you are sitting on a nice chunk of equity  perhaps you can sell then downsize to a condo. Perhaps you have enough equity to pay off a condo. The condo will be safer to leave empty and ready for you when you return. Another option to consider if you want some additional income is if your condo is in the right location it may work well as an AirBnB which you could leave in the hands of a professional AirBnB manager. Just block out the dates when you would be home so you can use it instead of guests.

[Jack Peterson]

14 minutes ago, earthdome said:

if your condo is in the right location it may work well as an AirBnB which you could leave in the hands of a professional AirBnB manager.

@Heeb

 If it is in Cebu then contact our own Specialist to manage it @Jollygoodfellow is the man to contact 

[Heeb]

3 hours ago, earthdome said:

If you are sitting on a nice chunk of equity  perhaps you can sell then downsize to a condo. Perhaps you have enough equity to pay off a condo. The condo will be safer to leave empty and ready for you when you return. Another option to consider if you want some additional income is if your condo is in the right location it may work well as an AirBnB which you could leave in the hands of a professional AirBnB manager. Just block out the dates when you would be home so you can use it instead of guests. 

We are across the street from a nice residential park with walking paths, including a Japanese garden, it's surrounded by old craftsman homes and bungalows, restaurants are within walking distance. I thought about AirBnB, I just remember the last couple times I rented an AirBnB in Portland, it was like interviewing for a job, so there must be some risk if owners are so selective.

[Jack Peterson]

10 minutes ago, Heeb said:

there must be some risk if owners are so selective.

 I have a feeling you will be also if you go down that road I know, I would be, after all you would I am sure, like to have it respected as you will respect it yourself 

 JMHO but.................. 

[hk blues]

On 3/24/2019 at 8:52 AM, graham59 said:

DON'T sell the house in your home country.  I have made that mistake  before... and have very much regretted having done so. 

I don't think this is necessarily the case - house prices increase over time without question BUT at what rate and at some point you will want to realise your asset - the market suffers blips and you may wish/need to sell during one of those downturns.  I sold my house when I left when the market was hot in my area - looking at prices since then, the increase is only at 3-5% per annum - I could make that by investing the capital elsewhere and not have the hassle/expense of maintaining a property abroad.  I used the capital to buy a property in Hong Kong which provided a much higher return.  Yes, you can rent out your property but that brings its own challenges and you may then have to offset rental income against the rent you may then have to pay in the new destination. 

I'm not sure there is a clear yes/no on this decision, all down to individual situation. 

[boyee]

6 minutes ago, hk blues said:

On 3/23/2019 at 5:52 PM, graham59 said:

DON'T sell the house in your home country.  I have made that mistake  before... and have very much regretted having done so. 

I don't think this is necessarily the case - house prices increase over time without question BUT at what rate and at some point you will want to realise your asset - the market suffers blips and you may wish/need to sell during one of those downturns.  I sold my house when I left when the market was hot in my area - looking at prices since then, the increase is only at 3-5% per annum - I could make that by investing the capital elsewhere and not have the hassle/expense of maintaining a property abroad.  I used the capital to buy a property in Hong Kong which provided a much higher return.  Yes, you can rent out your property but that brings its own challenges and you may then have to offset rental income against the rent you may then have to pay in the new destination. 

I'm not sure there is a clear yes/no on this decision, all down to individual situation. 

ya I tend to agree with HK blues.  Leaving an empty house back home may provide a sense of security but financially speaking it seems like a wasted source of equity.  Why not just sell it and save the money in the bank.  You may not get the 3 - 5 % return but at least the money is there if you do decide to return back home.  With the money liquid you could downsize or move to a lower cost area if you do go back home.  

[Heeb]

Personally I think I can do just fine with the expense of two home fronts, it's my wife that worries me, she watches the YouTube channel "foreigner farming in the Philippines" and she's ready to start a piggery, which her brother would take care of, where in lays the problem, my opinion is that a business like that will not be successful unless you personally manage it which I'm not willing to do, when I retire I don't want to do anything but relax, travel and pursue hobbies. I understand her motives, it's all about setting up her family but we've already given more than enough over the years, it's time to take care of ourselves.

Edited March 26, 2019 by Heeb
Spelling

[Gary D]

We will definitely be keeping our UK bungalow in the short-term.

[hk blues]

44 minutes ago, Gary D said:

We will definitely be keeping our UK bungalow in the short-term.

Sell now and buy back for half the price after Brexit!  

[graham59]

Yes... OF COURSE circumstances may differ, as will advice from those who've 'been there, done that'. 

'If the cap fits' , etc.