Probably more appropriate for one of the dormant climate catastrophe threads, but I really don’t want to be holding any real estate in the sunbelt. I think that fresh water access, sea level rise, and heat will make the whole region a disaster area, possibly much sooner than people think. At that point all of the real estate will be worthless (excluding the predicted government bailout).
This is a coop, so it is similar to a condo, but with some fundamental differences. The buy in gets a share of the not for profit coop corporation, not a specific property. This avoids many of the expenses related to property transfer. Instead of you owning your condo, the coop owns the condo (which you have exclusive rights to live in). That means the coop is responsible for all maintenance and repairs (excluding willful damage, etc).
The monthly upkeep bill is about half of the cost of renting an equivalent apartment. When it is time to leave, you sell your coop share, which has appreciated at 3% yearly simple interest. As long as there continues to be a waiting list of people wanting to buy, that won’t be a problem.
Expenses at the coop works out to about $20,000/year less than rent at the equivalent apartment. The downside financially of the coop is the opportunity cost of tying up $220,000 at 3% simple interest. I didn’t do the calculation, but I was told the break even is at 5 years assuming the $220,000 was at 6% compound interest.
The other big advantage of the coop is that the monthly cost is just expenses as determined by the coop board. Nobody is taking profit directly out of the monthly payment. The apartments are owned by a for profit company, that can raise rent as high as the market will tolerate.
The downside of the coop is dealing with a super HOA that would be a nightmare if it gets infested with petty tyrants. Fortunately the day to day operations are run by a professional management company.
It is in demand, but he has passed up good offers for his boat and some of the large tools because he wasn’t ready to sell them for emotional, not practical, reasons. I’m really hoping that having a next step will get him over these hang ups. All of this is stuff he insists he won’t use in the future (and hasn’t used in the recent past), so I don’t know exactly what the problem is.
I do, and in some ways she understands that, but she runs herself ragged trying to solve the problem. We get along well in that I, too, am a solver, but I’ve also learned when to just step back. I absolutely love (no sarcasm) when I’m talking through my problems and venting different scenarios, and someone gives me the solution (not just some random half-solution I’ve already thought of, but, you know, the actual solution).
That’s what I keep saying. He probably has enough in the shop alone to justify a sale. There aren’t any collectibles, art, or jewelry to bother hosting a sale. He and my mom seem to think the furniture is the big draw. A quick search on used sites suggests his giant leather couch is worth $500.
He signed a contract with a realtor who will help him with these things. We should get someone from the estate company out to do a walk through, as that will really help me and my brother figure out what to help him get rid of.
Thank you all for helping me as I talk out my problem (which is mostly using too many parentheticals, and radiating the stress energy I have to absorb from those around me).