Vacation Home Options...inexpensive retirement?

There was a time when owning a vacation home was a right of passage...at least for us. We viewed it as a way of investing our money and enjoying it as the money grew. Times have changed a lot since that day but a vacation home is still a very good idea but for a different reason. The trick is finding a way to fit the expense into your budget and making a good financial decision. I am not the guru to give you financial information nor am I a real estate agent...I am a retired educator that has been around the block...lots of times!

BUY NOW...USE LATER

What I would like to talk about today is the choices that are available to younger people looking toward making choices about where and how to invest in property for their retirement use. If you are making a very good income and are in a stable job it is a no brainer right now. Real estate in places like Arizona is going at rock bottom prices. You can get what you want now for rock bottom prices and may even be able to rent out the condo or a home to snow birds in the winter when you are not using it. Eventually that property will be worth a lot more...like investing mutual funds, it is a matter of making a good choice and waiting it out!

LIKE-MINDED PEOPLE

Making the choice for location or community type is simply up to you. For example, you can invest in property designed for like-minded people. Communities like Green Valley, Arizona and Palm Springs, CA are home to a growing group from the gay community. Green Valley is a retirement community. This group of people have brought Palm Springs back to life and restored mid-century homes into beautiful pieces of art. Thrift stores and antique stores of the very best quality have emerged as a result of the renewed interest in the city by the gay community. Their influence has been a very positive part of old Palm Spring's resurgence. Finding a place like this in your part of the country will be your job.

Just east of Tucson, AZ there is a development called Academic Village. It is linked to the University of Arizona. This housing development actually has some very reasonable condos for sale. The village is home to the Arizona Senior Academic which was founded by Dr. Henry Koffler, President Emeritus of the University of Arizona and claims an elite membership founded to encourage lifelong learning. It is:

"An organization that brings together professional retirees (architects, artists, attorneys, dentists, engineers, librarians, musicians, physicians, professors, scientists, teachers, and others) in an intellectual setting to stimulate and foster their continued productivity an creativity."

College Linked Academic Communities even hosts a website with information on 24 colleges or universities across the United States and their associate villages of people. I might add that generally these types of places are aimed at adult’s aged 50+.

If you are interesting in luxury vacation home, the market is your playground right now. In Tucson the Catalina Mountain foothill has luxury homes without equal. Golf courses like Arizona National, Lowe's Ventana Canyon Resort and The Westin La Paloma are close at hand and all have settings that will take your breath away. On the north side of town Del Web has developed another Sun City and some of those homes go for around $400,000. The temperature on the northwest side of Tucson can be cooler in the summer because of its proximity to the Catalina Mountains. I can't imagine that every sunbelt community doesn't have the same real estate choices.

FINDING WHAT IS FINANCIALLY FEASIBLE

But for the average person, finding an affordable vacation home in the location that works before and after retirement is not going to be a bed of roses. Money is tight and lots of people do not want to spend all of their saving on a vacation home. What they need is a way to travel to warmer climes and live on a budget. I have a few suggestions that are not a deal breaker.

1. SMALL MOTOR HOME LIVING IS FLEXIBLE AND YOU CAN BUY YOUNG FOR USE LATER There is a community in Arizona called Quartzite. It is really just a wide place in the road most of the year but every winter it comes alive with snow birds seeking sunshine, community and shopping! Yup...you hear me right. This is a very large gathering of people every winter built originally on the rock-hound's love for anything involving, well, rocks. It has since evolved into a huge gathering of "flea market" finds with gems stones and arts/crafts thrown in. Stalls cover the desert floor and traffic/parking is an adventure. People come in huge motor homes or very small motor homes. There are very big RV facilities but the hardier snowbirds simply pull into the desert, find a flat spot and camp. As I understand it, you can have someone bring you water and (maybe) even dump your holding tanks. If you are very careful, you can keep the holding tanks for several days and drive to a dumpsite two time a week (maybe). Every time we drive through this community, the gathering has grown. It is amazing. If you love to RV and are looking for a spot to visit, this may be for you. We started with a small motor home (Class C) and now own a vacation home in Arizona. We travel to many different locations before deciding on Arizona.

2. VACATION HOME RENTAL...FINDING THE COMMUNITY YOU LIKE I have friends that came to Tucson and rented an apartment or condo...unfurnished. They lived with rental furniture or bought what they needed at a thrift store. What they saved was spent on discount golf and movies. They read by the pool and made friends at church. I believe they even slept on an air mattress for one year. When they traveled to Arizona they packed their car as thought they were camping...kitchen, bedroom, bathroom essentials. Lawn chairs were set up in the living room and a very small TV helped fill their time. They were from Washington so all they needed was a few weeks of warmth and sunshine.

I think they only stayed a month the first year. I have always thought that they had a lot of courage and followed their dream. After they had done this for several winters, they felt they were ready to invest in a small park model. They had finally fully retired. Now they own a junker car and fly back and forth. They are not rich but they are both well-educated and very interesting people.

RV Resorts are filled with people just like them from around Europe, Canada and the United States. (NOTE: In Arizona snowbird rentals are available all the time on a month-to-month basis. I would advise you to check on neighborhoods and proximity to Davis Monthan Air Force Base. Quality and the noise factor always need to be addressed. If you are willing to be adventurous you can simply arrive in town and find an apartment. It is very doable!) More information here: Living on a Budget

3. RV RESORT PERMANENT HOME CHOICES have become the snowbird destinations for middle-income people all across the United States. We know several younger people that have bought park models in the RV Resort so they will have a snowbird home when they retire. You can own your very own version of a little rustic cabin in the woods. A park model is defines as: "Park Model trailers although considered a recreational vehicle and are transportable are primarily designed for placement at a destination. When set up, park models are connected to the utilities necessary to operate home style fixtures and appliances. They do not have holding tanks or water tanks so must be connected to utilities."

If you buy an older park model you can have one for less than $5000. They can be remodeled for minimal cash and you can live a very comfortable life style without breaking the bank. Even if you were to spend $60,000+ for a luxury model, you are spending a lot less than you would on a house or condo and you get all the resort amenities (pool, dancing, social activities, hobby rooms, bocce ball, tennis, pickle ball, etc). This is affordable because you are only going to use as much of your savings as you can afford. Then the expense of renting the space (around $400 per month) should come out of your monthly income.

I rented out one we owned for $1500 a month during high season and I think people are getting more than that now. Our park owner charges us $300 per month up to $900 per year in addition to our monthly space rent to do this. The rent could conceivably help pay the rent! Different areas even in the state of Arizona have different rates. You will need to learn about the area you find interesting. (Age restriction are based on the law...a certain number of these can be occupied by people under the are of 50+. Ask about this at the park of your choice.) Incidentally we are in one of Rincon Country RV Resorts in Tucson.

THERE YOU HAVE IT!

I can only get you started, the rest is up to you. Be creative and fearless. You do not need to be rich to enjoy the vacation home of your dreams. You just need a plan. Then when that day comes that you are thinking about making a more permanent decision you will know what you are doing. Have fun!