Quality of life now or security for my future?

[Gaeta]

Hello all.

 

10 years ago I bought a condominium in the suburbs of a big metropolis. I live in waterfront beautiful little city. I love my home and especially now that I have renovated it all in 2014.

 

The problem is my work is downtown. Without traffic it's a 20 minute drive but in the past few years traffic has become unmanageable and it now takes me 1h15 minutes to make it to work in the morning and 1h15 to get back home at night.

 

Lately I have been feeling very strongly this is not the life I want. That's 2h5 hours a day wasted in transport.

 

So decided pretty quickly I am going to sell and move in the city.

 

My condo is up for sale since last Monday.

 

Then anxiety started 'what if I can't find anything I like'

 

Than nightmares started 'I could not find a nice place and I am lost in the city with no home'

 

Then there is the financial aspect of it.

 

My current home is half paid. In 10 years I will be living rent free. I have just turned 50 so it's something I should not overlook. If I buy in the city and I want to keep the same standard of living I will have to purchase something twice the price and amortize it on 25 years. Forget living rent free one day.

 

So I am stuck.

 

Do I sacrifice some quality of life right now so I win big in my later years or I sacrifice living rent free in 10 years so I can obtain a better quality of life now?

 

I am tortured by the decision.

[JustGettingBy]

Have you considered door number 3? Are there places you could work closer to where you currently live that are within your industry/area of work? Not a guarantee you'll get a position by any means, but do you think its worth at least looking into?

[central]

JustGettingBy may be on to something. Compare the long-term financial impact of moving closer to work, for the years you'll be working there (can you expect your job to continue that long?), to the long-term financial result if you stay where you are but change jobs for something close by - even if it pays less.

 

Perhaps staying in a location you love with known expenses has more benefit than keeping your present job. You may be able to save more for the future if your commuting expenses are lower, even if your income is a little less - and be happier at the same time.

[Gaeta]

I love my job and been there for 12 years. I am in a position of authority with no one above me except the owner whom I see not even once a year. I can't see myself at 50 quitting this to start over at some place where I'd have to start from scratch and report to someone.

[NewLeaf512]

Hello all.

 

10 years ago I bought a condominium in the suburbs of a big metropolis. I live in waterfront beautiful little city. I love my home and especially now that I have renovated it all in 2014.

 

The problem is my work is downtown. Without traffic it's a 20 minute drive but in the past few years traffic has become unmanageable and it now takes me 1h15 minutes to make it to work in the morning and 1h15 to get back home at night.

 

Lately I have been feeling very strongly this is not the life I want. That's 2h5 hours a day wasted in transport.

 

So decided pretty quickly I am going to sell and move in the city.

 

My condo is up for sale since last Monday.

 

Then anxiety started 'what if I can't find anything I like'

 

Than nightmares started 'I could not find a nice place and I am lost in the city with no home'

 

Then there is the financial aspect of it.

 

My current home is half paid. In 10 years I will be living rent free. I have just turned 50 so it's something I should not overlook. If I buy in the city and I want to keep the same standard of living I will have to purchase something twice the price and amortize it on 25 years. Forget living rent free one day.

 

So I am stuck.

 

Do I sacrifice some quality of life right now so I win big in my later years or I sacrifice living rent free in 10 years so I can obtain a better quality of life now?

 

I am tortured by the decision.

 

Can I give another option that doesn't tie you into a permanent change right now and might be a good compromise, a trial idea.

 

Would it be possible to rent your home out for a year? It sounds a lovely place and you should be able to achieve a monthly rent at the monthly mortgage and tax payment and hopefully a little more. This would allow you to keep the home you love as well as continue to build equity. You could find a rental accommodation that is in an area that is close to your place of employment, decrease your commute, and keep your options open.

 

NL

[Gaeta]

Can I give another option that doesn't tie you into a permanent change right now and might be a good compromise, a trial idea.

 

Would it be possible to rent your home out for a year? It sounds a lovely place and you should be able to achieve a monthly rent at the monthly mortgage and tax payment and hopefully a little more. This would allow you to keep the home you love as well as continue to build equity. You could find a rental accommodation that is in an area that is close to your place of employment, decrease your commute, and keep your options open.

 

NL

 

It's not a bad idea. I will explore that avenue. Thank you!!

[StBreton]

I like the idea of renting your current place for a year and renting something small in the city that equals what you receive in rent. Perhaps you could then keep your car in the burbs till you decide.

 

Also ...if you eventually sell your suburb house and move permanently to the city you may not need a car and selling it will reduce your monthly fixed expenses over what you'd pay in public transportation and just renting a car when you need it. Car insurance and registration is really expensive where I live. When my kids go off to college I'm selling the big expensive SUV and getting a cheap little knock around car. Save me thousands a year.

 

I think living in the city would be so much fun! Go for it!

[avintagegirl]

I too like the idea of renting out - it would help you pay for a small place in the city.

 

I am all for looking to the future. I work with a woman who is in her 60s and while I don't have obvious proof I think the admin is giving strong signals for her to retire. She is currently renting and has a husband who is unwell. She would love to be in the position you will be in 10 years.

 

The future is always uncertain. I would hang on to the property.

[Gold Pile]

Be very careful on being a landlord, it can go great,....or horrible.

If your cash flow is good now ("rent free" is in your sites),I would endure it for a few more years. When you retire you can live anywhere.

 

Morning commute: can you start work an hour earlier to deal with less traffic? You could use that extra hour to do personal business at work...pay your bills, catch up on email, surf loveshack. This will give you less chores when your home.

Or perhaps your eligible for OT pay?

 

I doubt you can leave an hour early. I doubt you can work 4 ten hour days too. Both would be great options if allowed. The ride home sucks. Can a selection of audio books help? I recommend my favorite..."Gold Pile's Expanded Theories of Metal Fatigue". Somewhat mathematical but classic reading for Engineers.

 

For the sake of a few years, years that will be rent free, consider enduring it.

Is early retirement in your future?

[clia]

There's no way in heck I would spend 2.5 hours a day commuting. Ten plus years is a long time to spend doing that...

 

How long until you can retire?

 

Renting out the condo is an option, but could result in added stress of being a landlord. Do you want to deal with that? It will also mean paying to maintain the condo as things break down over time. Do you see yourself living in that condo when you retire? (Of course, by then and after 10+ years of renters, you will likely need to do some more remodeling.)

 

I personally think selling the condo is the right idea. You don't have to get a place that's equivalent to what you have in the suburbs. Try to find a place in the city that might be a good investment. (A place you can fix up, or a place in a gentrifying area, etc.) And buying a place in the city now doesn't mean you have to stay there forever paying it off. You can always sell it when you retire and buy a cheaper place somewhere else, so you can still live rent free in your golden years.

 

Stop worrying. Everything will work out. You will find a place in the city that you love.

[dichotomy]

I have spent 2.5 hours a day commuting for over 15 years, but I take the train. Even with this, reading, sleeping, watching videos.... its a bit tiring all that time. I can't imagine driving.

 

Is there no mass transit into your big city work place?

 

Like you - in 10 years my home will be paid off, making a wonderful place to retire and lower cost of living. While I will see a dramatic drop off with the mortgage principal and interest, there is still taxes and up keep after the home is paid off. So its kind of going to be equal to a cheap apartment to stay in my home - except the substantially equity of the home is mine, and its a wonderful home and town.

 

How is your retirement savings ? or is your home the big thing?

Edited December 8, 2015 by dichotomy

[d0nnivain]

Hold out hope for finding a reasonably priced place in the city. Even if it's more then you pay now but will appreciate, you may come out ahead.

 

Working yourself into an early grave through commuter stress is no answer either.