As retirement approaches, many individuals consider relocating to new communities that offer appealing amenities and a fresh start. Brian, a resident of the East Coast, is contemplating a significant move with his wife Kelly. They are particularly interested in a community in Pennsylvania but are seeking advice on the implications of such a transition.
Brian reached out for insights based on my own experience relocating from Ohio to New Hampshire in 2008. He expressed enthusiasm for the amenities offered by the prospective Pennsylvania community, which includes a homeowners’ association (HOA). While the idea of an HOA can be tempting—particularly for those looking to simplify maintenance tasks—I advised him to weigh the potential long-term financial implications.
Living in an HOA for 17 years has provided me with valuable perspectives. Initially, my monthly dues were set at $60, but they have escalated to $200 per month. This increase, significantly above the inflation rate, now costs nearly $5,000 annually. As Brian and Kelly plan for their future, such expenses could become burdensome, especially if their budget tightens in retirement.
In addition to financial considerations, the nature of HOAs can be challenging. Many associations have residents who take it upon themselves to enforce community rules, which can sometimes lead to conflicts. Brian should be aware of this before committing to an HOA.
When moving long distances, it is crucial to conduct thorough research to alleviate stress. Property taxes are an important aspect to consider. Certain states, like New Hampshire, have no sales tax or income tax, while others may impose significantly higher property taxes. For instance, my property tax is currently 0.6% of my home’s fair market value, whereas Brian’s tax rate is 1.6%, nearly 300% higher.
I recommend creating a list of things you dislike about your current living situation. After spending 55 years in Cincinnati, I became accustomed to its traffic, noise, and pollution. I mistakenly thought these issues were universal. Identifying what you want in a new home is equally important. For Brian and Kelly, this could involve proximity to outdoor activities or vibrant city life.
As we discussed potential locations, I advised Brian to avoid houses on Class 5 roads, which can become difficult to navigate during mud season in spring. Additionally, he should consider climate factors. We wanted to escape the humidity prevalent in Cincinnati, but New Hampshire summers bring their own challenges, like an influx of biting black flies and mosquitoes.
Understanding crime statistics is another essential part of the moving process. Websites tracking crime rates can provide valuable insights into the safety of a new area. Researching whether crime is increasing or decreasing can inform their decision-making.
My guidance to Brian is to narrow down their options to two or three locations. Then, they should research the best and worst times to visit each area. Renting a house for a week in each prospective city or town allows them to experience local weather conditions and amenities first-hand. They should assess the proximity of essential services, dining options, and community atmosphere.
Moreover, it is worthwhile to explore areas that may not be as well-known. Visiting local places of worship can help determine if they would feel comfortable in their new community. Just as one test drives a car before purchase, spending time in a potential new home can clarify whether it’s the right fit.
In summary, as Brian and Kelly prepare for their final big move, a thoughtful approach will serve them well. By researching thoroughly and experiencing potential new communities, they can make informed decisions that will enhance their retirement years.
