I recently got a phone call from a woman I used to know. She was in a local knitting group that I attended. She had sent me an email saying that she was leaving California because she could no longer afford it. She is having a home built in an over 55 retirement community in North Carolina, where her brother lives.
I remember visiting her house. She invited me for a delicious homemade meal of chicken salad and fresh bread, and we sat on the couch and knit. The home seemed very large for one person, and it was in an area where all of the houses were brand new. I asked her what she meant about the costs, and she told me that her property taxes are now $16,000. a year! They will continue to rise. She is 75 years old, and has been there for seven years.
My little cottage is far smaller than those homes, but it suits my needs. The neighborhood is working class, and we used to be on the outskirts of town. That has changed. The area is more developed now, with newer housing. I love having a spacious backyard, and the fruit trees that I planted save me money on groceries. I pay $1,600. in property taxes each year. I have been here since 1998, and plan to make this my retirement home. (unless a developer buys us out, and they decide to tear all of these houses down, which I hope they don't!)
She plans to sell her home, invest a chunk of the money, and buy a smaller home outright. This will give her a large cash cushion as well. For those of us who have lived in California for decades, it is much less expensive than the people who bought in the higher end areas.
She pointed out that the price of gas elsewhere is far cheaper, as well as many other costs. It was very eye opening to talk to her. People used to make fun of me because I would take the bus, ride my bike from the bus stop to the cafe, and just order bread and water, That's all I could afford at the time. It has all paid off in the long run, though.
Where do you see yourself in twenty years?
Thank you for your comments. They add so much talent and energy to the blog. Please comment in English. I'm sorry, but comments with links will not be published. If you enjoy the posts here, please share them. Posts may take a few days to appear; they are moderated.
A very interesting post, Stephenie. :) Planning ahead for retirement and old age is so important, isn't it? I will be 66 next month! Not sure if I'd even be alive in 20 years! LOL. I live in a working class neighborhood, myself, in an older house. It is probably too big for me, when I am by myself, but, it is just right when my daughter is home. My property taxes are higher than yours, but, not nearly as high of your friend's. I plan to live in my house for as long as I am able to do so. There might have to be some modifications made to accommodate physical handicaps as they occur with old age - a ramp for the front, perhaps, if I am unable to negotiate the 3 steps, maybe a bathroom remodel to make it easier to access the shower. These are things that will have to be dealt with as the need arises. :)
ReplyDeleteThat sounds very workable, Bless. I had some practice here after my hips were replaced. The modifications really helped. It's wise to think ahead and plan for the future.
DeleteVery thought provoking. Our house is far too big for us both and if we could find a tiny bungalow with a decent sized garden I'd move in a blink. Unfortunately they all have tiny little plots so for the time being we'll keep on looking. Our house is split level with far too many stairs. I found it a real struggle when my hip op went wrong. It highlighted what a problem it could be if one of us should become infirm in later life
ReplyDeleteYes, having land and growing food makes such a difference. You spend so much time in your garden, too. It's such a rewarding hobby, on so many levels.
DeleteTwenty years? Goodness, I should be so lucky! Although both Mum and Dad lived into their nineties as did my nanna so you never know.
ReplyDeleteGood question though. I would like so say still here with some adaptations, but one never knows what the future holds.
xx
It sounds like your relatives beat the odds, Joy. My dad lived to be 88, and my grandma lived into her nineties.
DeleteLike Bless I don't think I'll be here in 20 years time as I'm almost 72 now but, as you know, we've just moved to a new build bungalow to make our lives a bit easier. We have been accepted by a GP whose surgery is just down the road and have easy access to a lovely little village with a good variety of shops. Our costs will not be minimal because we now have to pay rent on the proportion of the bungalow we don't actually own ( we have bought 60% of it) but the bungalow is warm and will, hopefully, not cost much to maintain as it's new.
ReplyDeleteI think it's only sensible to plan ahead for life in later years and I'm sure your friend is doing the right thing. Fingers crossed that you can stay in your lovely home as long as you want!
Congratulations on your move, PP. There are so many different pieces to the retirement puzzle. An affordable place to live is key.
ReplyDeletePlanning for retirement was something my parents and Steve's parents did very successfully so we had good role models in our younger days. Like you, we have been in our California house for a very long time so our property taxes are very reasonable. I just cannot fathom how people buy homes these days with the high prices we are seeing in Southern California.
ReplyDeleteI know...or the rents! Buy and hold has worked for me, as far as houses. We are fortunate to be able to stay here. I had excellent role models for retirement, too.
Delete$16,000 wow that is huge I completely understand why that would be difficult. Moving closer to her brother for family when you are aging [or any age that is] is important to have that network of family close by.
ReplyDeleteYes, that's true, Kathy. Thanks for reading and for commenting.
DeleteThese days, I never like to plan too far ahead but I will probably downsize in the future. Although I do like to 'threaten' my children to move in with them :)
ReplyDeleteYou're funny, Jules. Downsizing seems to really help people in retirement.
Delete