Anonymous wrote:

Anonymous wrote:

Anonymous wrote:But surely, a $1.25 mil house will be worth a lot more by the time you are ready to retire, then you will most likely not even have a mortgage.
Then you can rent it out and live on the rent, or go for a reverse mortgage
or sell it and get a small place and invest the rest then

Hope is not a plan.

how is that hope?
A house always sells for more than what its price was 30 years ago

They only need to work until they are in their 80s, or worst case, if the housing market is poor then, maybe their 90s. Seems foolproof. Cant think of a reason why that isn't the best idea in this thread.

Immediate PP, you must have missed that OP and her husband are in their early 50s already. Please read the whole thread and stop wasting everyone's time.

Anonymous wrote:

Anonymous wrote:But surely, a $1.25 mil house will be worth a lot more by the time you are ready to retire, then you will most likely not even have a mortgage.
Then you can rent it out and live on the rent, or go for a reverse mortgage
or sell it and get a small place and invest the rest then

Hope is not a plan.

how is that hope?
A house always sells for more than what its price was 30 years ago

Anonymous wrote:why would you send kids to private school if you are in the BCC district?

OP, please answer this. Why did you piss away money on private school?

I think you need to sell and live on the cheap for a while and focus on saving.

Anonymous wrote:But surely, a $1.25 mil house will be worth a lot more by the time you are ready to retire, then you will most likely not even have a mortgage.
Then you can rent it out and live on the rent, or go for a reverse mortgage
or sell it and get a small place and invest the rest then

Hope is not a plan.

housing prices will continue to rise and are back on track to historical trends. The issues that caused the one in a lifetime downfall have been fixed and won't't happen again. The next bubble will be somewhere else, probably the stock market or commodities.

Anonymous wrote:

Anonymous wrote:No one really retires anymore

Smart people who plan do.

You mean people who bought before the bubble and were able to save.

Get off your high horse

Anonymous wrote:I like the option of renting the basement, if possible. Many others including me have done this successfully. It depends on the layout of the house. You may need to spend some money to add a kitchenette, update the bathroom, change locks, etc. We have a walkout basement so it is really like a separate apartment.

This isn't going to come close to solving their financial issues.

I like the option of renting the basement, if possible. Many others including me have done this successfully. It depends on the layout of the house. You may need to spend some money to add a kitchenette, update the bathroom, change locks, etc. We have a walkout basement so it is really like a separate apartment.

Anonymous wrote:No one really retires anymore

Smart people who plan do.

What if you had the kids transfer to public school now, the college bound kid must take out loans with the understanding you'll help repay down the road if possible, and rent out your basement.

Then tell the whole family it is time for a major financial diet. No cable, no eating out, but with the understanding that this is the way you can avoid moving. With discipline I bet you could shave $1k from your monthly budget.

I think the financial advice on this thread has been very good, but there is a psychological cost here as well. Especially with four kids in their formative years. It matters.

I am far from a financial analyst, but it seems to me you could save 40k a year by using public schools, and maybe pick up an extra amount through renting your basement that would cover that high cost second mortgage. You would free up a total of 50k a year that could go into retirement. (Or, for the first three years, could be used to pay off the 2nd mortgage).

Anonymous wrote:But surely, a $1.25 mil house will be worth a lot more by the time you are ready to retire, then you will most likely not even have a mortgage.
Then you can rent it out and live on the rent, or go for a reverse mortgage
or sell it and get a small place and invest the rest then

You need to read the whole thread.

Anonymous wrote:But surely, a $1.25 mil house will be worth a lot more by the time you are ready to retire, then you will most likely not even have a mortgage.
Then you can rent it out and live on the rent, or go for a reverse mortgage
or sell it and get a small place and invest the rest then

:facepalm:

Unless, it's not worth more. Unless, the rental market sucks. Unless the rental market is so high that whatever you rent it for you yourself spend on renting another place. Unless there are fewer renters for a $1.5 or $2m than you expect.... Unless you can't sell it for a good profit... Your strategy is to literally put all your eggs in one basket... Bad idea dude.