While we are stationary at Mt Olive Shores North and there’s not much new going on, We are posting the content of the seminars we presented.
When we were at the Newmar Kountry Klub International Rally in Sedalia, Missouri, we presented 3 different topics as part of the Fulltimers Chapter Life on the Road Seminars. This is the first of 3 posts outlining the information we shared.
As part of our introduction – our prom picture 1972
Life on the Road – 2017 International Rally Presentation – Sell the House or Not?
Our home in Cincinnati. Too big and we had to deal with that white, cold stuff.
One of the decisions RV’ers face when making the move to fulltiming is whether to keep the house or sell it. In making this decision one must confront emotional, financial and family considerations. A big part of this decision involves looking ahead to what your wants and needs will be when you are no longer fulltiming. Will your current house match your lifestyle? Will the location be where you will want to live? You must also assess how certain you are that the fulltiming lifestyle is right for you. If you sell your house and shortly thereafter decide fulltiming is not your thing, you will no longer have a house to come back to. Perhaps a family member wants the house. You can either sell it to them or have them rent it for a while as you try things out. Another consideration you need to deliberate is whether you will have the funds to buy another house when you come off the road, and if this is best market in which to sell. Renting may make more sense. But then you must ask yourself if you are comfortable being a long-distance landlord?
We recommend if it doesn’t feel right, don’t do it. It’s a big emotional and financial decision. You can always sell later.
Of course, if you keep the house there are fixed expenses you need to look at. Mortgage payments, property taxes, HOA or neighborhood fees to mention a few. Look closely at your homeowners and liability Insurance. Many times your rate will be higher if the house is empty. Upkeep and renovations will continue to be an expense and an empty house ages quickly.
Another issue that will need to be addressed is what about keeping “the stuff”. Will you still want it? Will it be what you need when you set up a house again? What about your peace of mind – will you worry about theft, or damage? What will insurance cost? Does a storage facility make sense and how will storage effect your possessions? Is it worth the ongoing storage fees? Does someone, perhaps a family member, want or need it?
Our advice is to research the financial aspects. Don’t use all the proceeds from the sale of an appreciating asset (house) to buy a depreciating asset (RV). Talk with a financial advisor. Timing may be critical. Buy the RV before selling the house, especially if you need to finance the RV. Banks are reluctant to make loans to ‘homeless people’. And talk with family members, consult realtors, and run the numbers.