• Question
  • Want to move to So. CA.

    Asked by a 70 year old woman from North Las Vegas, NV on 1/30/2013

    I live in North Las Vegas, NV and my late husband and I bought a new home in 2006 for $219,000 and now it is underwater at $92,000 and I can't sell it at the moment. I got my loan modified in 2009 and the mortgage is $805 a month. I want to move to So. CA. which I know is not cheap. My income is $40,000 and really have no debt except for the mortgage. My income will increase when I reach FRA in a year and half. I want to rent my home out to pay for the mortgage and I would like to buy a small condo but I know that may be unrealistic thinking with a mortgage already or rent a small condo in CA. My sister said I need to stay in my home and forget moving but I have health problems because of the desert climate in NV and it is getting worse, and I am perfectly fine when in CA. What is your advice?

  • Categories: Your Life in Retirement, Retirement Planning, Downsizing/Relocation, Best Places to Retire, Work and Retirement, Housing


  • Editorial 


    San Francisco, CA

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  • This is an interesting and thoughtful question. Congratulations for thinking through your options carefully!

    For most people, retirement planning -- like life -- requires a lot of trade offs. I personally think that doing the things that make you happy is very important -- the problem is that sometimes we don't really know what will make us happy. And/or, what we think will make us happy does not actually do that.

    And then there are the financial considerations. The Las Vegas real estate market has been among the worst in the United States. And any recovery is likely to be slow -- hopefully steady -- but most likely slow. So your mortgage is unlikely to improve any time soon.
    --> Here is some data about real estate trends in your area: http://www.forecast-chart.com/estate-real-las-vegas.html

    On the plus side, I have read elsewhere that the rental home market in Las Vegas is indeed improving.

    If I were you, I would research the pros and cons of being a landlord and I would investigate the rental market in Las Vegas very very carefully. Armed with this information, I would rent my home and move to San Diego, renting or buying the most modest home possible. Hopefully you will be no worse off financially and better off emotionally and physically!

    On the other side, you could just figure out a way to feel good where you are now.

    However, in addition to the above, I would absolutely continue to work as long as possible. You are in a very precarious financial position. The more you work and save, the better your quality of life -- both now and in the future. You do not have to work long hours or in a stressful environment, but some kind of income that you could save would go a very long way to making you more financially secure.

    Furthermore, work is proven to keep people emotionally and physically younger than their lazing around peers!

    WE wish you all the best!

  • Login to rate this answer:   Answered on 1/30/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.