Lost everything in a fire, Part II

October 23, 2017 3:18 PM

We lost everything, down to paper clips in a fire. I asked this question previously. Now for a bigger question. To rebuild, buy, or rent?

Here are the details:
Mr. Gusaroo is 77, and in good health, retired
I am 59 and have a degenerative nerve disease with no cure. On permanent disability (Charcot-Marie-Tooth)
We are, or were, financially comfortable. Nothing crazy but enough to have nice things, and a pretty good vacation every 18 months or so.

We had what we considered our permanent house in a good neighborhood, great neighbors, and had lived there for twenty years (we were also the only owners ever.) My husband is an outdoor guy, loves hiking and talking maps and trails. I don’t hike anymore, but am an artist and worked as a graphic designer until my hands gave out.

The progression of my disease in the last 7-8 years has diminished my options and horizons enough that I spent the last few years in our house really making it as comfy a nest as I could. I thought of it as “gilding my cage.” I’m not in a wheelchair but that might be coming. There’s no way to know. Otherwise, I’m in good health.

So my question for the hive mind is, does it make sense at this point in our lives to be home owners again? I’m leaning to no, husband is not leaning at all. He wants to rebuild or rebuy.

What say you oh wise mefites? I know it’ll be good...

posted by Gusaroo to Work & Money (13 answers total)

I think there's not enough information here. In particular, it sounds like you had homeowner's insurance? What are they providing you, and is it conditional on a rebuild?
What is your preferred alternative? Do you want to go rent in a more urban setting, e.g. SF?
Where are you staying now, and how long can you stay there?

I'll suggest an answer based on what you've provided. It sounds like your illness is weighing on you, and you view the fire as an opportunity to leave the cage that you've been building for yourself. No matter what, the insurance will take some time to work out, so I would imagine it would make the most sense to sign a year's lease while you rebuild or go house hunting. That said, I would imagine that for your long-term comfort it might be easiest to own somewhere.
posted by crazy with stars at 3:32 PM on October 23, 2017 [2 favorites]

It's not clear how much you currently rely on your spouse as a caregiver or if you might be doing so in the future, but if so you need to be considering what you would do if they were unable to fill that role, or needed care themselves that you were not physically able to do.

There do exist housing options for people facing the prospect of declining health where there are houses and apartments in the development you can live in when you are well or transfer to a nearby care facility if needed. Lots of variation in which steps along the way are available/encouraged, such as home care options. Of course these things vary wildly in pricing structure, quality of care, and other things, so you'd want to do a lot of checking in to their practices and reputation.

Couldn't hurt to look into what options are available in the area you want to live.

Aside from that, there's a lot that goes in to whether to rebuild, rebuy, or rent that isn't in your question. Keep in mind you'll have different neighbors than you did before if you rebuild -- also, it's not really rebuild OR rent, it's going to take time to rebuild and you'll need to live somewhere.

It's also possible your situation could change during the rebuild process, of course you could always sell the house once it's rebuilt but sales prices could well be lower than you hoped. Some of the scenery and nature that contributed to your home's value might not be there anymore, and neighborhoods change a lot in disasters.

My husband is an outdoor guy, loves hiking and talking maps and trails.

If the desire is to rebuild to be near the same familiar hiking trails, keep in mind they might not be there anymore.

Keep in mind that renting or buying are both options available near hiking trails.

Wherever you go, you'll want to consider future services either of you might need and accessibility of your housing.

(Edit: this is all based on the assumption that your health is a major factor in regards to your housing situation, since you didn't mention anything else that has much bearing on it)
posted by yohko at 3:41 PM on October 23, 2017 [8 favorites]

Hmmm...given your ages and health, the unsaid statement seems to be that your husband probably only has a decade or less of an active lifestyle left to him, and over the same period of time your life will also see increasing restrictions.

How much debt would you go into if you opted to rebuild? Could you afford it?
How much cash would you get if you could/would take an insurance cashout? How many years of rent would you get for the money?
What are your housing options for renting? Are there affordable accessible housing units for rent in your area?

If you are looking out for more than ten years, the appreciation on a home would give you a little more money once you decided to sell. You could also implement accessible design into the new home to make easier for you in the future.

If you realistically expect your ability to live independently will end in about ten years or less, it would probably be simpler and easier to just find accessible housing now, and settle.

I can see where your husband may not want to plan for having less ability in the future - at least, not yet. But especially if rebuilding means taking on additional costs in the form of a mortgage covering whatever the insurance settlement doesn't, you'd only be adding to your future burden. A clean start may be best.
posted by Lunaloon at 4:14 PM on October 23, 2017 [3 favorites]

Owning a home will give you more stability so you won't be at the whim of some landlord & you can put in accessibility features.

On the other hand it might make sense to look at senior living - not nursing homes but apartment communities for active seniors. That sense of community that you had probably built over 20 years is going to be a lot harder to grow up again from scratch. In a senior community you would have that plus some support for your condition when you need it.
posted by bleep at 4:21 PM on October 23, 2017 [12 favorites]

The social connections in your neighborhood could be very valuable. I wouldn't discount those.

Also, if you love the area, and you know you love the area, then at least you can be fairly sure there won't be another fire for years.

Finally, if you rebuild, you could rebuild in a way that suits you perfectly. One story, wide hallways, wide doorways, accessible garden, accessible showers -- maybe you had most of this set up already, but you can do more, at a more structural level, than you did before. All that AND you get to keep your neighbors. It sounds great to me, and when you want to move, I bet there will be people who would love to have a house like that.
posted by amtho at 4:37 PM on October 23, 2017 [4 favorites]

I'm in between you and your husband age-wise, so I think about these things. I cannot imagine what it's like to lose your home. That said, my inclination, especially if I lived in a community with established great neighbors , friends, support network, medical care, etc., would be to rebuild, and to rebuild something very simple, one floor, and all the wheelchair accessible features. However, it's gonna be crazy getting anything built anytime soon. So, is it possible the city will let you put a temporary trailer on your lot? In my mind, as much as trailers are not my style, it would be better than having to live in a hotel or with family or friends for several months or more.
posted by mareli at 5:20 PM on October 23, 2017 [1 favorite]

I think paying rent and dealing with insecure housing after 65 is a really bad idea. You have an opportunity to re-build a house with the ramps, wide doorways, walk-in shower room and lowered surfaces that will see you through as far as any home can take you. That is incredibly lucky and is what I would do.
posted by DarlingBri at 5:41 PM on October 23, 2017 [6 favorites]

Response by poster: Thanks for answers so far...a few clarifications. This was the recent Tubbs Fire, so our entire neighborhood, called Fountaingrove, is gone. I guess I mentioned it as an intangible thing that made us happy and perhaps is easier to re-establish in an “owners” neighborhood where people stay longer? Don’t know. Our insurance does cover rebuilding on the same lot, and some neighbors are already talking with builders / lawyers / contractors to see if we can put some sort of deal together as a group. REALLY love the thought of making a more accessible home. Our neighborhood demographics were older households of two, so that would support the idea further. We had one of the best layouts with master on first floor, and two bedrooms and huge bathroom upstairs. One option would be to rebuild (probably two year process) and then sell. We think we’d be more whole financially in that case

I guess liquidity, or lack thereof, is on my mind as well as well...
posted by Gusaroo at 6:01 PM on October 23, 2017

One consideration: do you want to spend the next two years dealing with architects, permits, plans, contractors, inspectors, etc.? Some people would enjoy that (I would). Some people want to spend their retirement doing other things.
posted by slidell at 6:08 PM on October 23, 2017 [15 favorites]

I would rebuild. Here is an opportunity to rebuild what you liked and correct what you didn't while also planning for your future needs. Renting or buying existing will come with a large measure of settling. Rebuilding will only be constrained by cost and zoning.
posted by AugustWest at 6:17 PM on October 23, 2017

Apologies upfront for a depressing thought. I'm from Australia so I don't know anything about where you live but there may be something to consider; the likelihood of this happening again. I only say this because Queensland has gone through natural disasters in the form of floodings.

There have been cases where families have rebuilt just to have it happen again and parts of the state are newly considered flood zones and insurance won't cover you these days as it's a known risk if you choose to build there again. What are the chances of this occuring again, if any, do you think?
posted by Jubey at 7:14 PM on October 23, 2017 [3 favorites]

Would an accessible condo feel like a good middle ground?
posted by pseudostrabismus at 7:14 PM on October 23, 2017 [1 favorite]

I guess liquidity, or lack thereof, is on my mind as well as well...

Then you need to take your entire financial picture, with social security, savings, income, insurance costs, property tax etc into account. This is probably not a decision you should therefore make with Ask Metafilter, but rather with a financial planner.
posted by DarlingBri at 9:12 PM on October 23, 2017 [8 favorites]