Dream Retirement Property - but can we afford it?

MalMonroe

Don't you both have insurance so when one dies the other gets pots of money?

Also, the romantic in me says go for it, we're only here once, and all that kind of thing. But then the sensible in me (very rarely seen) thinks you don't want all that work, all that space to be heated, all that draining of your money. It's big, that'd put me off straightaway because of all the cleaning. Or I'd have to employ a cleaner. Grade II listed, that means it's never really your own.

I'd love to live by the sea. We currently live in a lovely spot with open countryside right outside our back door and lovely, thoughtful neighbours (who NEVER EVER have barbecues!!)(my worst nightmare, as a vegetarian, is having barbecuing neighbours) at the moment but I would still love to live by the sea before I go. 

Basically what I'm trying to say I think is : don't do it!  Dream homes can quickly turn into nightmares.

cfw1994

AnotherJoe said:

DairyQueen said:

AnotherJoe said:

DairyQueen said:

The property is listed (Grade II) and it’s large.

Strike One.

Madness to buy as a retirement home but this is our dream home.

The cost of maintenance and insurance is likely to add at least £10kp.a. to our non-discretionary expenses.

Strike Two.

Our planned starting ‘number’ was around £45kp.a. from 2021 to include a generous holiday allowance and a lot of fat. This property would eat all of the fat and (I suspect) the holiday allowance if I was widowed

Three strikes.

I entirely fail to see why this is a dream home, sounds like a nightmare  to me, but then again I also fail to see why you both are continuing to work when you have limited life expectancy (genuinely sorry to hear that  )

Wake up before you sleepwalk into a nightmare house.

Retire now, into a house that isn't a whacking big boat anchor on your truncated retirement plans

Yep, the common-sense thing would be to buy a new 4-bed bungie (UPVC, triple-glazed, heat pump, solar panels). The dream definitely isn't this kind of financial commitment. Problem is that 'sensible' has always been my middle-name and I am in danger of being sensible once too often. That's why I seek a range of well-informed opinions.

The dream is space, peace, privacy, character, fields and trees. These are highly sought-after and only the building's antiquity and listed status prevents an extra £100k on the price. If this was a new barn conversion or of conventional construction the London escapees would be in a bidding war. I can't overestimate the extent to which lockdown has impacted our local market. We are smack-bang in the price range, and seeking the property type, most requested by Londoners. The market was crazy before the SDLT reduction was announced, now it's a bloodbath.

Mr DQ continues to work because he enjoys it and he would be hard-pressed to keep himself occupied in tiny home otherwise. He earns well and is able to pick his clients and that's a great position for him. As a former weekend visitor he has yet to establish a life here and will likely take some time to do so. Incentive to stop working will increase when we are settled in a home that gives us pleasure and roots. Yes, it could be a financial nightmare but isn't the potential pleasure worth the risk?

I just don't see much pleasure in a house that needs constant maintenance and cleaning, nor whose cost sucked away the pleasure you were planning with trips etc. 

Sometimes one has to go with the heart!
If we went with the head every time, we spend far too long being logical, and missing the beauty in other things.
If your next viewing makes you go "YES, this is what we want!".....go for it! 

DairyQueen

TBC15 said:

We went to look at a place built in 1860’s. Had a small graveyard adjacent with the just the  walls of a very old church on site. 

My favourite kind of neighbours.

TBC15

DairyQueen said:

TBC15 said:

We went to look at a place built in 1860’s. Had a small graveyard adjacent with the just the  walls of a very old church on site. 

My favourite kind of neighbours.

You have to admire their rigorous social distancing if nothing else.

GunJack

Interesting thread

DQ, you mentioned earlier about how to take account of the effect on DB pensions....how about this:-
if you have £50k pa in DBs minus tax, that's around £45k pa...
...but the house will take £15k pa to maintain & insure, that cuts you down to £30k.
if the utilities cost, say another £2k pa as it's old and takes a lot to heat, that cuts your DB down to £28k pa
suddenly your £50k pa. is almost halved...

What would you plan to do with the visitor's annex when you have no visitors? Would it just be "there" but hardly, if at all, used? If not, what's the point?

We've got 8-10 years before we look for our last house move, and that'll definitely be to a bungalow, as Mrs.G-J's back is likely to only get worse, and I already need a second knee replacement. Our current is 3-storey 4-bed (and yes, our bedroom with en-suite is on the top floor ) is only 13 years old but running costs are minimal (under £300 pa for gas heating, hot water and hob cooking) and I know already the bungalow when we get it is likely to be substantially more.

Only you and Mr. DQ can decide, just go into it all with your eyes wide open and no rose-tinted specs

MallyGirl

Our bills are more than £2k pa for a house where rooms we don't use often have the radiators down to frost protection - it is easily done.
It is easy for random strangers on a forum to favour the logical as it is not our hearts that are aflutter. I viewed our current house, looked at OH with 'that look' and we got on the bus into town and offered the asking price. Sadly so did several others so it went to sealed bids - I have no idea how much over the top we went but it was already my house in my head and I haven't regretted it.

Mrs_Z

Just a thought... and apologies if this has already been said.  Would there be any way of making money from the property itself in case of worst case scenario?  I'm thinking in the lines or renting out rooms, b&b type of thing?  I appreciate this is not what you intend to do, but in case of say, your OH's earnings took a dive.  
Second question I'd ask myself - what's the exit strategy?  You say you realistically would have the property for the next 10-15 years ... so I'm guessing at that point, you would sell it to downsize.  How easy would it be to sell?  Location is one thing, grade II properties are of course beautiful, but given all the constraints that come with them, you would be limiting your potential market as many would turn away just because the property is listed.  What about if you had to sell in a sluggish market sooner than you intended to?
We bought our current home 6 years ago... and it was substantially more expensive that what we set out to spend when we started looking.  At that point, we had lost out on couple of properties that went to sealed bids, etc and once this one came along, we just went for it, truly pushed the boat out.  The worst case scenarios never happened, I took comfort from the fact that the property was in a desirable location, and that we'd be able to sell it reasonably quickly if we had to. Luckily it hasn't come to that, and we love the house just as much as we did when we first walked in on the first viewing.
Best of luck with whatever you decide.  

Bravepants

I'm going to have a massive declutter when I retire, then the missus and I will find a little cottage in the country somewhere. If I could transport our house into a more rural location then that would be ideal! But it's a terraced and the neighbours might complain. 

Audaxer

DairyQueen said: 

Should we go for it or I am off with the fairies as the figures don’t stack-up? 

As you have nearly £30k in DB income now, which will increase to £45k in 5 years with 2 SPs, and £900k in SIPPs and cash, I would say the figures seem to definitely stack-up, even if there is a delay in selling one of the properties.  

You are right to be cautious and consider all scenarios, but if it is the dream home that you both really want, then maybe you should go for it.

cfw1994

Well?
C’mon DQ: How did the viewing go?  Have you said “YES!” ??
Enquiring minds need to know!