Airbnb Collapse & The Lakes Region?

[Descant]

Originally Posted by John Mercier

I'm sure the data is correct.
I think it is more the way that each generation places value on things.

Homes over time have gotten bigger... but we don't know if that trend will continue. They may also be willing to put a greater percentage of their income into a home and forego other expenditures.

So will they be willing to part with more to buy the homes around the lake that in general are now larger than the past? What value will they give that? It will take time for the trend line to expose itself.

Yes, times change. My father always told me to pay off the mortgage, so that no matter what happened (e.g. Great Depression) I'd always have a roof over my head. A few years ago, the norm was to buy a bigger house every time you got a raise or promotion. Now, people rent or buy a condo instead of a bigger house. Without equity to downsize for retirement, it will be interesting to see how Millennials retire. I priced a local (Nashua) retirement community a few weeks ago--$650K to buy in, and $7500 a month for a couple. I'm not worried. In a few years, my boat slip will be worth that much, and will appreciate faster than inflation.

[tis]

Originally Posted by Descant

Yes, times change. My father always told me to pay off the mortgage, so that no matter what happened (e.g. Great Depression) I'd always have a roof over my head. A few years ago, the norm was to buy a bigger house every time you got a raise or promotion. Now, people rent or buy a condo instead of a bigger house. Without equity to downsize for retirement, it will be interesting to see how Millennials retire. I priced a local (Nashua) retirement community a few weeks ago--$650K to buy in, and $7500 a month for a couple. I'm not worried. In a few years, my boat slip will be worth that much, and will appreciate faster than inflation.

In those days, they didn't know taxes were going to be as much as a house payment.

[John Mercier]

Your taxes and insurance will always be less than with the addition of a mortgage.

A younger buyer without inheriting will always pay more than you currently do... and will do so willingly.

Investment in a smaller home allows for higher quality, investment in other assets, and in relation that should bring with it lower taxes and insurance comparatively to the larger homes around it. Also savings in energy costs comparatively. The problem in when the investment in other assets are depreciating assets.

[gillygirl]

Originally Posted by Descant

Yes, times change. My father always told me to pay off the mortgage, so that no matter what happened (e.g. Great Depression) I'd always have a roof over my head. A few years ago, the norm was to buy a bigger house every time you got a raise or promotion. Now, people rent or buy a condo instead of a bigger house. Without equity to downsize for retirement, it will be interesting to see how Millennials retire. I priced a local (Nashua) retirement community a few weeks ago--$650K to buy in, and $7500 a month for a couple. I'm not worried. In a few years, my boat slip will be worth that much, and will appreciate faster than inflation.

Can I ask what’s included for that $7500/month fee?


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[Descant]

Originally Posted by gillygirl

Can I ask what’s included for that $7500/month fee?

All the usual building services, landscaping, shovel, plow, paint, insure, etc. Heat, some places include internet. Some sort of meal program. The big, to me, cost is continuing care--if you run out of money, they won't evict you, if need be, you can progress to assisted living, full nursing care, etc. I don't know current law, but in the not so distant past, companies were limited to the number of full nursing beds they could have. If they were full, you were taken to another facility, hopefully nearby.

[gillygirl]

Originally Posted by Descant

All the usual building services, landscaping, shovel, plow, paint, insure, etc. Heat, some places include internet. Some sort of meal program. The big, to me, cost is continuing care--if you run out of money, they won't evict you, if need be, you can progress to assisted living, full nursing care, etc. I don't know current law, but in the not so distant past, companies were limited to the number of full nursing beds they could have. If they were full, you were taken to another facility, hopefully nearby.

Thanks. Sounds similar to the Taylor Community, which we checked out for our mother. But at 95, she’s still refusing to leave her home.


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[Biggd]

In my area in Mass, I've noticed a lot more single family homes with for rent signs lately. Many people that bought homes before the Covid spike and refinanced to sub 3% mortgages are realizing they can rent their home for more than double their monthly mortgage payment.