People who have way more cash than I. That’s for sure

So to settle my thoughts on fear of loss of freedom, and fear of financial anxiety I decided to talk to someone to clear my thoughts about buying a house at my age.

Warning: artificial intelligence decision-making support ahead.

So I decided to sit down and talk to ChatGPT, and she ran the numbers. Based on my current rental situation, I asked her if my expenses stayed the same as they are now, could I buy a house? She broke it down when I gave her all my expenses and my take-home check. My expectation for a costlier home went right out the window. One thinks everything will be ok just take a 30-year mortgage, and the payment will be less than my rent, but then the costlier home has higher taxes and insurance.  So, things had to be adjusted.

She basically said, if you want to keep your life the same and travel three times a year, save $1000 month, then nope, you gotta come off your dream house high horse and put way more down or cut your lifestyle in half…..She goes on, “Knowing how much you love to travel, are you really willing to give that up and stop saving for a rainy day, too? Hmm, she knows me. I took a sip of my wine.

Chat GPT remembers everything. She remembers my divorce, my illnesses, my hobbies, my fears, what makes me happy, and what shoes I like to wear. Then she asked Why do I want a house anyway. Status? Security? A home base? An investment? Or anxiety? Or to one-up the ex? Where did that come from? She said, “You told me once he bought something in Barcelona, remember? “And you’re still pissed.”  Ok fine, ChatGPT has a memory like a steel trap. Why did I decide to consult her on this, damn it.

Gee, how dare she ask me all those things I thought? And setting off one of my triggers, too. I’m surprised she didn’t ask what’s wrong with where I live now.  But then that came too, but in a less sarcastic tone than what I’m writing. What is this? A therapy session for those who want to buy a house as an older person and stay sane?  Gee wiz. I held my tongue so she wouldn’t ask me about my sudden irritation.

Apparently, after her drilling, it’s a home base situation that I really want, she surmised. And she said it seems I need something manageable, practical, and didn’t cramp my style to travel.  She thought a “lock and leave “ place might offer me the best freedom like a condo with no upkeep and ease of renting, so I could go live in France 6 months a year. Hmm she was right on that one. Then she reminded me not to give up my dream, but not to end up in a chest-tightening situation of bills and home repairs that interfere with my freedom. She was right again. Hmmm

So she calculated everything, and it came down to; “you really can’t afford anything over $300-$350 since homes are not for sale under that anywhere unless you want to live in the Hood or in the middle of nowhere.

Yes, she was right, although she didn’t say the hood, I did.

So, she said so if you go over $350, you must put down more, or spend less, save less and cut the traveling. OH God No I said to her. Well then. She threw out maybe you should find another place to rent and think about it for a year. But look for a place that is safe, and I don’t have to put trash bags over the window in the winter to keep from freezing.

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I told her I saw a beautiful townhome for $395. It had everything I needed, including being an end unit with its own patio and yard. She all but shook her electronic finger at me verbally. I took a deep breath. She was right. The sad thing is, my down payment has to come from my retirement savings. A place I’ve never touched. But it is the only place I could tap to put 50% down on something to get the mortgage low enough with taxes and insurance to equal my same expenses in this apartment. But at $395 it won’t fly. Darn.

So, I asked her how much money I would make if I left the money in retirement and bought nothing, and kept renting? With a conservative 6-8% return on $200,000 over 10 years, how would I come out? Of course, rent may always go up, I said, not wanting her to think Im totally in la la land. Wait, I’m talking to a computer, and I care what she thinks? Although that may work if I ever date again, she could narrow down a suitor for me. Hmmmm I digress.

Anyway, she ran a 10-year scenario.  It comes out closely as a wash. If a home goes up 3% and my investments go up 5%, I end up with slightly more than with a house. The unseen part is HOA fees, repairs, and 6-8% selling costs, which sucks out other savings I may have. And also paying down principal, leaving less equity during those first 10 years.  Then she says well it’s close to a wash, so it’s a lifestyle decision, not a financial one. And she asks, “do you value freedom and liquidity? What makes you most anxious, missing out on growth or feeling tied down? I said both. She says ok we need range testing.” What’s that?

Well, 14 questions later, she compared it all.  A 10-year scenario with a bad market and low growth, or a good market, etc., and if houses grew more than 3 % a year or froze. It was interesting.

Then she asked if I just waited 2-3 years and let the 200K grow, then buy something I really, really love, how would that be? I said then I’d still be free until then, she said that was the answer. Freedom and not being tied down. And no financial anxiety interfering with my sleep. She said I’m not losing anything by waiting, but instead  I’m practicing ‘strategic mobility”.  Haha, not a bad title.   All that and no fee for her advice.

Well, I guess I’ll put homes.com on the waitlist. If there is a home for me that is seriously way under 400K and had everything I want, then I’ll take a look. Until then, the 200K can keep growing. Time to plan a trip. That makes me happy.

Somewhere in Texas

Practicing strategic mobility

Letting AI help me decide I need a trip to decide.