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One of the biggest expenses for retired and semi-retired people is housing. This makes housing a prime candidate when looking for big savings. We have touched on this topic in previous posts, and this post will continue that exploration.

Along with expense savings there are several reasons why someone might want to look at alternative housing arrangements. By alternative we mean something different than just buying or renting, which could certainly use their own discussion. Here are some reasons to consider alternative housing:

Budget reasons

This is probably the most thought of reason. Housing is one major area of your retirement budget where you have some control.

Simply to do something different

Maybe you have always had traditional housing arrangements are just looking to try something different. Retirement is a time in life where you get to try new things so why not?

Just plain better

Sometimes an alternative housing arrangement is just plain better. Best example I can think of for this is two single retired people to share housing. Often this might be a much better situation for social interaction and simply to help each other with daily activities.

Considering these good reasons let’s look at some alternatives:

Geo-arbitrage

This term first came into use as it related to sending jobs overseas where salaries were cheaper. As it relates to housing it simply means moving somewhere where living costs are less. During our full time working lives many of us had to work and live near big cities where housing costs are usually higher. Now that we are retired we have more choices. Sometimes this means moving across the country and sometimes a move only 50 miles away can make a huge difference.

Living Overseas

Here is one that you see mentioned often on the Internet. I would say it certainly is possible and could provide quite an adventure. However I would approach it carefully with a lot of research. I have seen articles that claim you can live quite well on Social Security alone. If nothing else I would suggest a “try it first” approach and make sure you have a plan in place to come back if things don’t work out as expected.

Shared Housing

This one is pretty common and makes sense for many single retirees. I would think the main thing is to have lots of discussions with the person you are planning to share with and again to think about the plan if it doesn’t work as expected. It can also work for couples although it gets even a little more complicated and you may want to formalize some agreements on how things will work.

RV Living

Retirees make up the majority of those enjoying the full time RVing lifestyle. There is quite a bit of information on the Internet and lots of variation in costs. Again I would suggest a “try it first” attitude and have a plan for what you will do it you decide you want to go back to a more “conventional” housing arrangement.

Homesteading

Homesteading is another option that isn’t for everybody and can take many forms. The basic idea is a more “do it yourself” lifestyle. It usually includes a more rural lifestyle, growing much of your own food, sometimes using alternative energy, and greater environmental awareness. Check out back issues of “Mother Earth News,” similar magazines and on line sources.

After reviewing some of these alternative housing arrangements they don’t seem so crazy after all! But there are some things to consider. Does the budget work? Does the arrangement make social sense to you? Do you have the physical and mental stamina for your choice?

Retirement is about doing things a little differently. It is important to remember that the choices you make do not have to be forever. We will certainly be talking about more housing alternatives in future posts.

Until next time…