The state of Alabama gets some love for its quality of life

Colleges and Universities A-Z University of Alabama
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<p>Retire Here, Not There: Alabama
Hitting the retirement trifecta — golf, warm weather and the beach — at a low price
By Anya Martin, MarketWatch </p>

<p>Retirees seeking the retirement trifecta — golf, the beach and warm weather — often flock to pricey places like Hilton Head, Palm Beach or Santa Barbara. But sugar-sand beaches, sunshine and some of the best golf in the nation can be had at a much lower price in Alabama. </p>

<p>The northern part of the state encompasses foothills of the Appalachian Mountains, where the outdoor amenities include hiking, lake-side living and fishing. High-tech Huntsville, where the National Aeronautics and Space Administration planned its moon landings, attracts professionals in all kinds of scientific fields. Cities such as Montgomery, Birmingham and Fairhope offer Southern hospitality and more arts and culture than some might expect. </p>

<p>Among the highlights for many retirees is the Robert Trent Jones Golf Trail, a collection of 11 different sites with 26 championship-quality courses within about 100 miles of each other, which The Wall Street Journal said “may be the biggest bargain in the country.” </p>

<p>But it’s not just the golf that’s affordable here. The state’s overall cost of living is 10.1% below the national average, and even living along the coastline is reasonable. Gulf Shores, along the Gulf of Mexico, costs only 1.6% more than average to live in, compared with 33% for Hilton Head, S.C., 92% for Palm Beach, Fla., and 105% for Santa Barbara, Calif. </p>

<p>The state has several top-notch health-care facilities, including the University of Alabama Hospital in Birmingham, the Southeast Alabama Medical Center in Dothan and the Baptist Health System statewide. And Alabama’s assisted living and nursing homes are notably affordable. A private room in a nursing home in Alabama has a median daily cost of $191, compared with $230 for the nation as a whole; and families faced a $2,600 median monthly rate for assisted living, compared with $3,450 for the rest of the country, according to a 2013 study by Genworth Financial, Inc. </p>

<p><a href=“Retire Here, Not There: Alabama - MarketWatch”>http://www.marketwatch.com/story/retire-here-not-there-alabama-2014-03-07</a></p>

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<p>Interesting post. If your S/D goes to school here, they may end up with careers in the south.</p>

<p>Often you do not have control over many things during a career. Maybe have more choices in retirement.</p>

<p>But it all depends on family ties, health, personal goals.</p>

<p>There are a number of people that retire here (N AL) but it is because of S/D or grandchildren. Of course some stay once they retire from their job.</p>

<p>Met a lady who retired as a NY school teacher and retired here because she studied where her COL would be low and she could enjoy a home she could never afford in NY. Very happy with the move. Able to afford travel too.</p>

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<p>TAX-FRIENDLY</p>

<p>The Yellowhammer State is very tax-friendly to retirees. Most retirement income, including Social Security, is exempt from state income taxes. Homeowners 65 and older don’t pay state property taxes, but some cities and counties apply their own property levies.</p>

<p>Read more at <a href=“State-by-State Guide to Taxes on Retirees | Kiplinger”>State-by-State Guide to Taxes on Retirees | Kiplinger;

<p>Alabama’s state property tax rate is 0.65%. Each city and county may levy its own property tax rate. In calculating the property tax bill, the assessed value of residential property is 10% of the property’s appraised value. </p>

<p>Median property tax on the state’s median home value of $119,600 is $398, according to the Tax Foundation.
Read more at <a href=“State-by-State Guide to Taxes on Retirees | Kiplinger”>State-by-State Guide to Taxes on Retirees | Kiplinger;

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<p>For anyone interested, The State of Alabama publishes a brochure detailing the advantages of retiring to Alabama.<br>
<a href=“http://revenue.alabama.gov/taxpayerassist/retire.pdf”>http://revenue.alabama.gov/taxpayerassist/retire.pdf&lt;/a&gt;&lt;/p&gt;

<p>As SOSConcern mentioned, North Alabama is also a popular retirement destination. I hear that the area around Guntersville is especially popular due to the number of outdoor activities and low cost of living. It’s about 2.5 hours from Tuscaloosa.</p>

<p>One thing I noticed about Alabama is that there aren’t really retirement cities/complexes like one might see in Florida, Arizona, or Southern California.</p>

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<p>Median home value of $119,600? Around here you can’t buy a house without wheels for twice that price. My shed costs more than that. Property tax of $398? I pay over $14,000. I don’t know whether to laugh or cry.</p>

<p>I can’t wait to retire…to Alabama.</p>

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<p>lol…I just bought two properties in tuscaloosa last week…total combined cost? less than $200k lol </p>

<p>One in VERY good move in condition…the other needs new kitchen flooring and some inside paint. A trip to Home Depot yesterday figured all that out. :slight_smile: Got some gorgeous tile clearanced for less than 50 cents per sq foot. Installation will be add’l. </p>

<p>Each will have a property tax of less than $500 each. lol gotta love it. </p>

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<p>I am looking into it. I’m thinking Gulf Shores, but not sure that is the place to retire. I would like to be able to walk to town, parks, restaurants, etc. I’ve looked at B’ham for that reason, but the nicer areas seem expensive.
The one downside I could see with AL is less availability of cheap flights assuming my kids live in the NE, particularly during the holidays. You can usually always find good fares to FL.</p>

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<p>^^^
Since you told me about some fab prices down in the Gulf Shores, I have really been itching to go down there and look. </p>

<p>What are the flight prices out of Mobile? I guess that even if it’s a bit more, the overall lower costs would more than make up for that. </p>

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<p>M2ck, let me know how you make out. The other attractive thing about the Gulf shores is that we,could rent something out during peak summer season as we have a summer place. Anything highly rentable is expensive. I haven’t seen much under $200K & that is across the street from the beach.
I’m also looking for a condo for 5+ waterview & fireplace to rent for a couple of days over Thanksgiving. I thought we’d get down there to look more this spring, but H just started a new job last week, sigh</p>

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<p>So realistically, assuming one buys a nice (above median) home to retire, what overall monthly budget might be needed to live comfortably in AL?</p>

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<p>^^^
Good question. I’m figuring that out myself since H may be retiring.</p>

<p>One of the places we bought last week is intended to be a retirement home. 3 Br, 2 Bath, small yard, brick exterior, low maintenance, does have a low-cost HOA for the pool, clubhouse, etc. We paid about $35k under market value (owner’s company transferred owner to another state, the company now owned the property, and the company wanted to sell.) We paid $120k…lol.</p>

<p>So, when I figure:
electricity
gas
water
HOA
Uverse
internet
property taxes
homeowners insurance
maintenance/improvements
food - paper goods - toiletries
clothing
entertainment
cars
insurance
gas
health related med/dental
vacation/travel
christmas/bdays/gifts
hair/personal expenses.</p>

<p>what else am I forgetting</p>

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<p>^ football tickets</p>

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<p>lol…</p>

<p>Yes, football tickets
and car registration (which is cheap here)</p>

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<p>I would just factor that into the other car expenses. </p>

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<p>So, I’m not sure how much living costs will be. I want to “fix” them as low as I can. I don’t see the above as costing more than $4k per month…do you?</p>

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<p>What do you pay now for each of those items?</p>

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<p>Well, I have DirecTV now…but will likely have Uverse at this place. I pay about $80 for DirecTV.</p>

<p>Some costs aren’t easily compared because of size of home difference and different gas usage. I’m guessing that electricity will be about $150 a month. Gas (water heater & fireplace…not stove or dryer) will be about $25. </p>

<p>That’s why I came up with about $4000 a month should cover the above listed items.</p>

<p>I should spend less on gasoline. </p>

<p>I’m a big Costco and Sams Club shopper, so I buy stuff in bulk…TP, paper towels, pasta, pet food, etc. </p>

<p>Ooo…just realized I forgot to include cell phones in the list above. …and pet stuff. </p>

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<p>You might want to investigate Fairhope. It is a great little town with lots of retirees.</p>

<p>For flights, check out prices from Pensacola and Biloxi/Gulf Port, Mississippi.</p>

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<p>I have friends that own a gulf shores place, with a condo association. They are in a more upscale area. The homeowners/property insurance rates are high due to the gulf (they did have some damage due to wind blowing in water under sliding doors and damaging flooring and framing, maybe during Ike or one of those storms). A problem they are having are with the condo association - you get a few bullies in there who try to then railroad the association bylaws in a negative way. There are some condo owners that do rent out their condo when they are not using, and these bullies are trying to eliminate that (so trying to drive these people out). Shouting at association meetings. A B’ham Realtor who owns a condo there has had to hire an attorney, there is that level of harassment. Friend’s husband is on the condo board and bullies are trying to force his voice and him out.</p>

<p>Another family friend had a condo in a waterfront high rise with nice beach area; there were some headaches with that too. </p>

<p>The gulf property values went really high, then dropped with the 2009 crash, and are moving up again.</p>

<p>Dave Ramsey warns about these associations because if you are not in a well run one, then it is a headache. Also if the occupancy falls, the common areas (pool, outside areas etc) have less money to keep things up. If occupancy falls too low, someone cannot get a home mortgage.</p>

<p>There are many great areas to live in, and some costs (like airfare and to certain other locations) is a personal consideration. It may be that the day to day expenses held low would keep more money for those other personal expenditures. </p>

<p>It may be renting for a while to find where you really like. Yes moving is a pain, but owning wrong is painful in more ways than that.</p>

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<p>So it looks like a couple can retire very nicely on just $40-50K per year.</p>