On our recent time away I meet 2 couples at a caravan park who had been on the road one for 2 years and the other for 18 months both had had enough of the grey nomads life , One had brought a home and waiting for it to settle , The other has brought a block of land and looking for a builder to build there new home , Both were happy they still had funds to find a home , So before you sell up your home you must have a plan B .
rockylizard said
08:12 PM May 24, 2016
brickies wrote:
On our recent time away I meet 2 couples at a caravan park who had been on the road one for 2 years and the other for 18 months both had had enough of the grey nomads life , One had brought a home and waiting for it to settle , The other has brought a block of land and looking for a builder to build there new home , Both were happy they still had funds to find a home , So before you sell up your home you must have a plan B .
Gday...
That is the secret. If one is going to sell everything and hit the road then one MUST invest the proceeds of those assets sold so the funds are available (and secure) to ensure the ability to meet the "unforeseen" circumstances - or "unforeseen" changes of plans ... through necessity, health or choice.
To sell up one's abode and the use that money to fund the purchase of a van/motorhome/tow vehicle which are DEPRECIATING assets is not a sensible or prudent decision.
It is not always easy to tuck the proceeds of the sale away - but it is the only sensible thing to do.
Cheers - John
[edit: rocky can't spell]
-- Edited by rockylizard on Tuesday 24th of May 2016 08:14:49 PM
OwenK said
08:18 PM May 24, 2016
Hi Brickies, I agree with you whole heartedly. Plan "B" is a must, selling your home is a massive move and you really need to think about the future. You don't know what could happen. It's something I could never do (sell the house ), I need some sort of security for my family. The family home is that.
Cheers Owen.
gumpybsc said
09:51 PM May 24, 2016
It is wise to be aware that as a general rule the cost of a house can double over each property cycle, which in Australia has been around 8 to 10 years. For example, a house bought today for say $800,000 might have been worth $400,000 10 years ago, and would sell for $1.6 million in 10 years time. Of course this varies from place to place, and time to time, but the general pattern has held true for many hundreds of years around the world, and not just in Aus. So the point to be very aware of is: If you decide to sell your home for good and hit the road, if due to unforeseen circumstances you want to buy a house again after a few years, it could in all probability be very difficult due to the higher purchase prices. The decision to sell your home should not be taken lightly. In many cases it would be better, if financial or personal circumstances allow, to rent your home for the duration of your time on the road. The income will help finance your travels, and you'd always have a home to return to if the need arose.
Bruce and Bev said
10:49 PM May 24, 2016
having rented our own, and an investment house, through Real Estate Property Managers over about 5 years, I would NEVER do that again.
All our renters would have fallen into the "middle to high income bracket", but not one left the houses in good order and the bonds were not sufficient to cover the repairs.
We have had to re-paint rooms where their kids have drawn on the walls, replaced the whole of house carpets, replaced dishwashers, swimming pool pumps and ovens and had to have lawn re-laid because the tenants have turned off the reticulation (we're in Perth and lawns will not survive in summer without regular watering). We even had one tenant dig up all the spring bulbs and shrubs presumably for their new house they moved to.
Nope - would never rent. If you sell your house, then put money aside to buy again. Remember you don't need a 4 x 2 house if theres only two of you, so the family home you sell hopefully will bring in a lot more money than the small place you buy when your kids move out (and if you have visitors - let them sleep in your RV). And the Reserve Bank Governor said in an interview today that he thinks house prices will continue to drop and in the next 10 years or so prices will not go up. Even the Real Estate Institute say its better now to rent than buy in terms of return on your investment.
Bobt said
12:05 AM May 25, 2016
Folks. I would have to agree for me the only way to go is to rent it out. I would never sell up.
I have 2 places that are rented out never had a problem with the tenants. I have had trouble with the agent. Sometimes people have no choice but to sell to fund a traveling life style just means when they want or need to stop if their investments worked well they may be able to by another property alternatively they can rent like so many others.
cheers
Desert Dweller said
06:04 AM May 25, 2016
We've lived very close to a Port Phillip Bay beach for over 40 years. We modernized our home, bringing it up to 2000's standard 10 years ago. Our area has become incredibly trendy with older places being demolished & ''sea changers'' who drive Mercedes, BMW's & Audi's moving into new 2 story townhouses. Every time we go away we come back to phone messages & letters from real estate agents & developers offering to buy our house. We'd be CRAZY to sell it as a year ago we qualified for a part age pension to supplement our super. The family home is not counted as an asset but a huge amount of money is so if we sold we'd lose our part pension & benefits. A bit like shooting ourselves in the foot we reckon. We live close to our 4 young grandchildren, love boating on the bay & spend 6 months in total away every year. Living on the road permanently sounds like hell to us. Judging from many of the bored nomads we've seen while we're away, it's over rated.
DMaxer said
08:01 AM May 25, 2016
Perhaps the bored nomads you met were just as bored when they were living in their home. Some people are bored no matter what their surrounds are. Perhaps it was the people or company they were experiencing right at that particular time.
Bryan said
09:01 AM May 25, 2016
OwenK wrote:
Hi Brickies, I agree with you whole heartedly. Plan "B" is a must, selling your home is a massive move and you really need to think about the future. You don't know what could happen. It's something I could never do (sell the house ), I need some sort of security for my family. The family home is that.
Cheers Owen.
Likewise.
We sold our home and built a much smaller house on a cottage block and moved in last December in preparation for my retirement at the end of next month. The garden areas were covered with liquid limestone so there's no grass to mow etc. To overcome the rather boring look we had a number of pot plants put in and these are drip irrigated. The plan is we can go away for up to 3 months at a time and the house will look after itself. No tenants to wreck the place and the neighbours will keep on eye on the place anyway.
Initially we thought of investing the money but we felt a property would appreciate more than any investment return we could get plus the costs of building would have increased substantially as well when we were ready to build in the future. Furthermore, we found we are more attuned to a couple of months away at a time and coming back to home base for a month or so than full time on the road. Things may change and we'll plan and adjust to it when the time comes.
Desert Dweller said
01:53 PM May 25, 2016
DMaxer wrote:
Perhaps the bored nomads you met were just as bored when they were living in their home. Some people are bored no matter what their surrounds are. Perhaps it was the people or company they were experiencing right at that particular time.
Dunno, didn't speak to them, they just looked bored like many others we've seen & heard.
On our recent time away I meet 2 couples at a caravan park who had been on the road one for 2 years and the other for 18 months both had had enough of the grey nomads life , One had brought a home and waiting for it to settle , The other has brought a block of land and looking for a builder to build there new home , Both were happy they still had funds to find a home , So before you sell up your home you must have a plan B .
Gday...
That is the secret. If one is going to sell everything and hit the road then one MUST invest the proceeds of those assets sold so the funds are available (and secure) to ensure the ability to meet the "unforeseen" circumstances - or "unforeseen" changes of plans ... through necessity, health or choice.
To sell up one's abode and the use that money to fund the purchase of a van/motorhome/tow vehicle which are DEPRECIATING assets is not a sensible or prudent decision.
It is not always easy to tuck the proceeds of the sale away - but it is the only sensible thing to do.
Cheers - John
[edit:
rocky can't spell]
-- Edited by rockylizard on Tuesday 24th of May 2016 08:14:49 PM
Hi Brickies, I agree with you whole heartedly. Plan "B" is a must, selling your home is a massive move and you really need to think about the future. You don't know what could happen. It's something I could never do (sell the house ), I need some sort of security for my family. The family home is that.
Cheers Owen.
It is wise to be aware that as a general rule the cost of a house can double over each property cycle, which in Australia has been around 8 to 10 years. For example, a house bought today for say $800,000 might have been worth $400,000 10 years ago, and would sell for $1.6 million in 10 years time. Of course this varies from place to place, and time to time, but the general pattern has held true for many hundreds of years around the world, and not just in Aus. So the point to be very aware of is: If you decide to sell your home for good and hit the road, if due to unforeseen circumstances you want to buy a house again after a few years, it could in all probability be very difficult due to the higher purchase prices. The decision to sell your home should not be taken lightly. In many cases it would be better, if financial or personal circumstances allow, to rent your home for the duration of your time on the road. The income will help finance your travels, and you'd always have a home to return to if the need arose.
All our renters would have fallen into the "middle to high income bracket", but not one left the houses in good order and the bonds were not sufficient to cover the repairs.
We have had to re-paint rooms where their kids have drawn on the walls, replaced the whole of house carpets, replaced dishwashers, swimming pool pumps and ovens and had to have lawn re-laid because the tenants have turned off the reticulation (we're in Perth and lawns will not survive in summer without regular watering). We even had one tenant dig up all the spring bulbs and shrubs presumably for their new house they moved to.
Nope - would never rent. If you sell your house, then put money aside to buy again. Remember you don't need a 4 x 2 house if theres only two of you, so the family home you sell hopefully will bring in a lot more money than the small place you buy when your kids move out (and if you have visitors - let them sleep in your RV). And the Reserve Bank Governor said in an interview today that he thinks house prices will continue to drop and in the next 10 years or so prices will not go up. Even the Real Estate Institute say its better now to rent than buy in terms of return on your investment.
Folks. I would have to agree for me the only way to go is to rent it out. I would never sell up.
I have 2 places that are rented out never had a problem with the tenants. I have had trouble with the agent. Sometimes people have no choice but to sell to fund a traveling life style just means when they want or need to stop if their investments worked well they may be able to by another property alternatively they can rent like so many others.
cheers
Perhaps the bored nomads you met were just as bored when they were living in their home. Some people are bored no matter what their surrounds are. Perhaps it was the people or company they were experiencing right at that particular time.
Likewise.
We sold our home and built a much smaller house on a cottage block and moved in last December in preparation for my retirement at the end of next month. The garden areas were covered with liquid limestone so there's no grass to mow etc. To overcome the rather boring look we had a number of pot plants put in and these are drip irrigated. The plan is we can go away for up to 3 months at a time and the house will look after itself. No tenants to wreck the place and the neighbours will keep on eye on the place anyway.
Initially we thought of investing the money but we felt a property would appreciate more than any investment return we could get plus the costs of building would have increased substantially as well when we were ready to build in the future. Furthermore, we found we are more attuned to a couple of months away at a time and coming back to home base for a month or so than full time on the road. Things may change and we'll plan and adjust to it when the time comes.
Dunno, didn't speak to them, they just looked bored like many others we've seen & heard.