Jim,
I read your blog nearly every day and benefit from it greatly. I am sending by “snail mail” my Ten Cent Challenge. Thanks for a great site.
My wife and I both are 55 years old and have been “survivalists” for about 10 years. We have been able to create a preparedness larder of 8-to-12 months of food, water and other necessary supplies. For self-defense, we have several shotguns, two AR-15s, two SKSes, a .22 [rimfire] rifle and one handgun – plus several thousand rounds of ammo for each. We hope to take some of the Front Sight courses this fall. Our home is now paid for and we are completely out of debt. We have our business in our home and have the freedom and modest income to do more in preparedness as needed. By God’s grace, we have numerous skills and the mindset to tackle whatever situation God’s providence allows.
The one major thing we don’t have is a retreat property. Our brick rancher, 1,800 sq. ft. with full basement, is in a golf course subdivision about 20 min. from a city of about 200,000 people. Over the years, I have always thought that we could “bug-in” during any kind of crisis; therefore, we concentrated on stocking up and paying down our debt. But now, partly through reading SurvivalBlog and partly through thinking through more thoroughly the ramifications of the present mindset of the masses, my thoughts are changing on staying put during any “Schumer” scenario, and I want to get away to a retreat.
However, my wife is against going into debt again – with good reason, since debt usually is bad in most crises. Also, we need to remain within 30-45 minutes [driving time] of our present location to maintain many of our present business contacts and to take care of my mother who lives by herself. And while we have looked at numerous properties over the past year, everything seems to be way over-priced or not suitable for our needs. To purchase any retreat property in the areas desirable far enough away from the city, we would have to sell our existing house and still borrow $200,000 or more – a hefty sum when you’ve been enjoying having no debt at all for the past few years. Therefore, I am uncertain what to do, especially as regards to going into debt for land, etc., versus staying put where we are and remaining debt free. I cannot decide which is better: to be debt free but in some possible danger being closer to the city, or in debt again but more secure at a retreat. I readily see the value of a retreat, but cannot get past the danger of too heavy a debt load – especially if the economy tanks quickly or even goes into a hyperinflation; we could lose everything through bankruptcy. I need some help sorting this out and wondered if you and/or your readers had any other insights. Any suggestions would be greatly appreciated. Thanks again for a great site. – Greg in North Carolina
JWR Replies: In essence, you must ask yourself: What do I fear more? The wrath of the bankers, or the wrath of my erstwhile “peaceable” suburban neighbors? I agree that debt is bad. I agree that debt should be avoided, if at all possible. There might be some alternatives to taking on additional debt to buy a retreat:
One alternative that you may not have considered is: buying a modest retreat free and clear, but encumbering your house with a second mortgage. That way, if times get really bad–particularly in a 1930s-style deflationary depression– then you might lose your house to the bankers, but not your retreat.
Another approach would be to sell your present home, and with the proceeds buy a rural retreat house with a “granny cottage” and live there year-round. Encourage your mother to sell her home and move there with you. That might even allow you to remain debt free.
Yet another approach is to pool your resources and set up a group retreat with like-minded relatives. The retreat could ostensibly be a jointly-owned “vacation cabin.” I’ve also seen this done with homesteaded family farms to “keep them in the family.”
Regardless of what you decide to do, don’t plunge into a major purchase without some careful study and prayer. One key consideration is that here in the U.S., the real estate market is currently softening in inland areas, and deteriorating rapidly–almost to the point of panic—in some coastal and resort areas. Meanwhile, the sub-prime lending market is nearing a crisis, and bankers are starting to dump some foreclosed properties at a loss. It might be best to wait a while and watch for the opportunity to pick up a foreclosure or otherwise “distressed” property at a bargain price. One of SurvivalBlog’s affiliate advertisers is Foreclosure.com. I suspect that in the months to come that they will have some suitable rural property listings at genuine “fire sale” prices. Watch the foreclosure market closely, and be be patient