Calculating Your Retire Overseas Budget

“Kathleen, I’m a new 52 Day course student. In doing my financial worksheet, my largest asset will be my home, which I’ve had on the market over six months. I’ve already reduced the selling price twice and am now below what the last (2009) appraisal showed for the value. If I take less than the amount I’m asking, which I understand will be necessary to sell in this market, I will not be working with the ‘true value’ of the house, but I assume this is the figure I should use as its value. I may have to take US$10,000 less. Original asking price was US$279,000; current asking price is US$260,000; expected amount the house will sell for is US$250,000. When I subtract 6% for the realtor’s fee and what I owe on the mortgage I’ll be looking at clearing only US$13,000. Does that calculation sound right for this exercise? Obviously, the lower I cut the price, the sooner the house will sell and I’ll be able to begin to plan to move.”

–Sherri L., United States

Yes, you’re understanding this exercise correctly. You should plug the net value of your assets (including your home) into the spreadsheet.

And, yes, use real values in each case, not theoretical values, including for your house. Your house is worth what someone will pay you for it. Go with that figure. If you want to wait until someone might be willing to pay more (because the market has changed, etc.), then you’d have to defer your move overseas plans. That’s the trade-off.

My recommendation? If you can swing it, I’d sell now and move on. I wouldn’t put my life on hold for the sale of a house.

Continue Reading: The Importance Of Ghosts When Buying Asian Property

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