Tuesday, March 10, 2009

Oops! & Downsizing

The bad news is I made some calculation mistakes on the newest spreadsheet. The good news is that the main house doesn't cost as much as I thought.

Since I've been on the relative cost bandwagon, my mind has been weighing our biggest expense decisions (houses) against the life value we glean from them. I'm still learning a lot --about myself and D and our priorities.

So, to correct my earlier post:
  • the ski condo running costs is 70% of the main house

  • our yearly trip to France costs the same as 1 yr of the ski condo

  • the cottage costs 50% of the ski condo

  • the mythical Nfld home would cost 55% of the main house and would get used the least

With our current retirement savings plan, D would work another 14 yrs until he was 55. I would work for another 10 yrs until I was 47, with the last 5 yrs dropping my Fridays if nothing happens with Nfld -- will continue with Fridays if purchase happens.

We would be able to afford to both stop work at that time should we wish and have enough money til I was 99 yrs old, assuming a 3% growth and 36% left over yearly for tax and savings considerations (27% if Nfld home existed).

We've been playing around with another scenario. What if we downsize?

Downsizing for us would mean selling our main house and cottage and moving to BC full time. We would live in the ski condo for 4 months of the year.

Now, things get really interesting. The area we would be living in for the other seasons would be cheaper to buy and can be bought outright without a mortgage. I am not talking about Vancouver here!

There are many other areas in BC that are beautiful and affordable. Heating costs would not be a major issue then as the house would be "closed down" for the winter.

The money left over from the sale of the cottage and main house would be a really nice supplement to our retirement accounts, such that D and I would be able to completely retire in 9 years.

There would be 49% and 38% left over each year for tax and savings considerations. That would allow for another journey abroad each year --perhaps a volunteer abroad vacation.

If we sell the cottage in the next few years, I would be open to buying in BC then -- perhaps even a rental property so that it can serve as long term supplemental income.

I've looked into getting licenced to work in BC. It will be more expensive than in my home province and I do not feel the pay off will be there as I am not planning to stay in one location for the entire year.

I'll stick to the idea of a seasonal fun job. Right now D is thinking he may want to continue working remote for a few years.


  1. hmmm what part of BC are you talking about??!!! I live in ski central BC and our real estate costs aren't that great!!!! They're second only to Vancouver, sure, but they're still way too much! They've softened a bit in recent months, but my condo went up 600% in the three years I had it! Fortunately I sold at the right time to profit on it (last spring), but I'd be cautious about what condo you're looking at. There's some real crap out there built during the land rush and alot of ski condos don't allow for owners during rental season. Of course you know that, sorry if I'm sounding rude, thats not what I meant, but that one comment made me start. Just be extra careful on your research!! Good luck, I love your method of planning! I hope it all works out for you guys.

  2. Wow! It sounds exciting and relaxing at the same time. A new adventure and you get to meet your financial goals sooner.

  3. I keep the main house as the children want to live here, and its a good place to live at the beginning of a career. I also like to be close to my family. If it wasn't for them then I would live where I want to live and not bother with the expense of keeping this place. Rememeber you are free to do whatever actually suits you best.

  4. Hi flirty*almost*30!

    Good for you for selling at the right time and making such an awesome profit!

    Thanks for the great advice! I don't know anyone else who owns there so I really appreciate it.

    I just used Vancouver as most people I know think that that's all there is to BC!

    We are interested in finding something withing a 3 - 3 1/2 hr driving radius to Kelowna.

    When we bought the ski condo last yr, we had to learn quickly about what you said -- the not allowing owners during rental season, gst etc. so we steered away from those developments and bought one from owners who had paid the gst out, never rented and had a really good reserve fund.

    If we buy again, we'd be looking for a house with a large enough shed/garage to house the kayaks, bikes etc.

    Hi Money Minder and Lizzie!

    Yes, exciting times! We're considering going out this summer to scout out the areas, do some research.