SIGforum
It’s time to go to the retirement community. You have 2 choices which do you choose?
October 06, 2022, 08:06 PM
BBMWIt’s time to go to the retirement community. You have 2 choices which do you choose?
Are we missing something here? Is there an ownership interest in #2 that isn't in #1, or something similar. If not, this is a no brainer.
October 06, 2022, 08:18 PM
Black92LXquote:
Originally posted by BBMW:
Are we missing something here? Is there an ownership interest in #2 that isn't in #1, or something similar. If not, this is a no brainer.
Nope just a lower monthly rate.
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The world's not perfect, but it's not that bad.
If we got each other, and that's all we have.
I will be your brother, and I'll hold your hand.
You should know I'll be there for you!
October 06, 2022, 10:05 PM
BassamaticAs mentioned earlier, If it were me I would just go the condo route. If you have ever been around the Lake here you know there are too many condos to count. Many of them are new, with great views. There would be a HOA and maybe maintenance on your AC equipment, but pretty much everything else would be covered.
.....never marry a woman who is mean to your waitress. October 07, 2022, 08:19 AM
pedropcolaYou said they are identical except for the stated costs. You would have to be a brain dead idiot to go with option 2. No math could support that choice with any reasonable set of parameters.
This question almost feels like you are fucking with us it is so easily determined.
Option 1.
Buy rental property or put it in the market and ride the wave. I would buy rental property. simpler choice is those I bonds or some such long term choice. (I don't know as much about those as I should, I have some grandkid money I need to invest for them and that research is on my to do list)
October 07, 2022, 08:25 AM
OttoSigIs option 2 supposed to read $20,000 buy in?
10 years to retirement! Just waiting! October 07, 2022, 08:48 AM
holdemThe question I have is; when is the projected move in date?
If the move in date is 10-15 years down the road, then option one seems to be the much better option.
But if the move in date is sometime next year, then for me, that changes the equation. In that case you save $900 per month, plus the $5,000. Of course there is no return on that $220K for the next year, but the $5,000 saved will offset that. And the $900 per month will make up for it fairly quickly.
October 07, 2022, 09:09 AM
Black92LXquote:
Originally posted by Bassamatic:
As mentioned earlier, If it were me I would just go the condo route. If you have ever been around the Lake here you know there are too many condos to count. Many of them are new, with great views. There would be a HOA and maybe maintenance on your AC equipment, but pretty much everything else would be covered.
Condo is not an option. Due to unplanned circumstances ownership responsibilities are not in the cards and ease of movement to higher levels of care are a must.
quote:
Originally posted by pedropcola:
You said they are identical except for the stated costs. You would have to be a brain dead idiot to go with option 2. No math could support that choice with any reasonable set of parameters.
This question almost feels like you are fucking with us it is so easily determined.
Option 1.
Buy rental property or put it in the market and ride the wave. I would buy rental property. simpler choice is those I bonds or some such long term choice. (I don't know as much about those as I should, I have some grandkid money I need to invest for them and that research is on my to do list)
I am pretty set in Option 1 being a no brainer just want to get the feel if others thought differently.
I like the idea of having the money available if needed even if it is not making a large return.
quote:
Originally posted by OttoSig:
Is option 2 supposed to read $20,000 buy in?
Nope.
quote:
Originally posted by holdem:
The question I have is; when is the projected move in date?
If the move in date is 10-15 years down the road, then option one seems to be the much better option.
But if the move in date is sometime next year, then for me, that changes the equation. In that case you save $900 per month, plus the $5,000. Of course there is no return on that $220K for the next year, but the $5,000 saved will offset that. And the $900 per month will make up for it fairly quickly.
Ready to move in 6 months ago just waiting on an opening.
————————————————
The world's not perfect, but it's not that bad.
If we got each other, and that's all we have.
I will be your brother, and I'll hold your hand.
You should know I'll be there for you!
October 07, 2022, 04:41 PM
ShouldBFishinOption 1 is the way to go.
At 5 years your out of pocket will roughly be (check my math
):
- Option #1 will be $179K (5,000 + ((2,900 * 12) * 5)). You'll also be earning interest on the remaining 215K
- Option #2 will be $120K ((2,000 * 12) * 5) (220,000 is refunded). However, you'd be missing out on about $82K interest for the 220K they held (assuming 5%) so the real cost would be closer to $202K
At 10 years
- Option #1 will be $353K (5,000 + ((2,900 * 12) * 10)). You'll also be earning interest on the remaining 215K
- Option #2 will be $240K ((2,000 * 12) * 10)) (220,000 is refunded). However, you'd be missing out on about $142K interest for the 220K they held (assuming 5%) so the real cost would be closer to $382K
** My interest calculations were on 220K - they should probably be on the remaining 215K, but the results are similar.
October 07, 2022, 05:06 PM
Sigfan RoyOr, you could look at it this way. Putting $215K into a nearly risk free investment and making 10800 (or 5%) on that investment every year.
20 years later you get your principle back and you've saved $216K in rent.