safe max cost of new home purchase

I am a newly retired teacher and am shopping for a new home for retirement. i am planning on paying cash.I have two accounts of 250,000 each,earning 1% interest, a 97000 annuity (through a fraternal organization)earning 4.5-5%., 7000 in stock, 20000 in bonds, and two smaller accounts of 15000 and 17000 each. I add 12000 to the annuity each year. I add 2000-3000 to the smaller accounts each month when i can. My pension last year was 45,800; it increases 3% each year. I opted to wait until 70 years of age ( am currently 67.) to claim my social security, which will be $400 a month (Now it would be only $313.) I have begun paying 3000 annually for ltc insurance; this can be reduced if necessary or eliminated, if need be.(I followed your advice about this.) I have an out-of-state summer home with a tax responsibility of 2000,which i hope to keep because my father built it.i am planning to sell two small, inexpensive condos that I and my mom currently live in separately. we will live together in the new home. I have been looking at properties in the 300,000 range with taxes at approximately 6000. without the homeowners and senior discount deductions subtracted. I have been able to live frugally in the past. i have always been adverse to being in debt and don’t want to start now with a mortgage.(I paid my first mortgage off right away and began saving for my next house.) I want both my mom and i to be comfortable and safe.(She is 90.) Is this an appropriate amount for me to spend in my financial position?I would be most grateful for your advice.

Terry Says:  I can give you a reassuring, off-the-cuff answer that says “it looks like it will be ok” — because even if you spend $300,000, you will still have enough income to live comfortably and pay the taxes on the new place.  With a pension income of slightly over $4,000 per month, including a small amount of Social Security income,  (not to mention taking income from the annuity), you should do fine.  But keep in mind your mother’s longevity and potential needs for costly care — as well as your own.  Will you spend your retirement caring for her?  And who will care for you?  That’s why the LTC insurance is important.  Congratulations on reaping the rewards of a frugal life — financial peace of mind!