Posts Tagged “downsizing”
Some people will opt to buy a smaller home or condo, some others will decide to rent
So the kids have moved out and now you have a lot of extra unused space I your home. You’re paying maintenance, heat, lights and taxes on a home that you may now only be using half to maybe 2/3 of the space. It’s expensive to pay for space that isn’t going to be used. Perhaps it’s time to rightsize.
Some people will opt to buy a smaller home or condo, some others will decide to rent. Regardless on where you move to here are some questions you should ask yourself before you start the process.
Can you afford to buy a house or condo? Hopefully you sell your large family home, make a nice profit and buy a condo in a great building close to all amenities. But if this move involves you needing a mortgage will you be able to afford it in the coming years? Consider the chance of illness in the coming years. Housing is the largest expense for retirees, averaging between $12,000-15,000 per year.
Add in utilities at around $2500-3500 per year. If you or your spouse became sick and have to pay medical bills not covered by government or insurance will you be able to afford a house or condo. Also keep in mind certain health problems may require an immediate and unplanned sale of your existing property if you are no longer able to stay there.
How often will you have house guests? While many retirees look forward to frequently having kids and grandkids visit and stay in the family home that may not be realistic. Between the cost of travel, busy lives and difficulty getting time of work, your family may not be able to visit as often as you would like. If they only going to be visiting 1-2 weeks a year, is it practical to maintain your 3-4 bedroom for such limited usage? In a smaller condo or apartment you could put a sofa bed in a den or second bedroom for guests.
Can you live without a car? It’s great if you are still driving, but remember many health changes, even something as simple as a change in medication or memory loss can result in a permanent termination of your driver’s license. Most accidents in aging adults start between the ages of 70-74 and the highest rates are 85 and above. How would it affect your lifestyle if you were suddenly unable to drive? Is your current home close to necessities like shopping, bank, doctor etc? It is a good idea to be sure that any new place you move to would be manageable without a car.
Although the terms “downsizing” and “rightsizing” are used interchangeably, they are different. If you are moving to streamline life and not because of financial reasons, you are rightsizing. Our housing needs change over time. Making a move to a more suitable home rather than staying in the large family home can actually improve your lifestyle, give you more independence, less responsibility and save you money.
If you are ready to sell your home for maximum value, the best place to start is by clicking here and scheduling an appointment.
Looking to sell your home? Give me a call today.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here
Many seniors are not changing their spending habits to match their coming reality
At 65, will you still have a mortgage hanging over your head? Are you a Boomer over 50 who will still be making mortgage payment once you reach normal retirement age? If so, you’ll be like 35% of other senior homeowners, according to Will Dunning, chief economist with the Canadian Associated Of Accredited Mortgage Professionals. As a senior, a mortgage obligation can take money away from the resources you need to carry you through the remainder of your life. Unless you are willing to cut expenses, you could be in trouble.
Why Seniors May Still Have Mortgages
With the 25 year mortgage common, you might be in that situation if you took out a mortgage past the age of 40. You may have become a homeowner later in life, but Dunning believes that many seniors are still paying mortgages because they refinanced their homes at an earlier time to pay for a wedding or a loan to their kids for a down payment or some other purpose. Their thinking might have been that the kids would inherit the money anyway, so they might as well have it when they need it. A survey from the Bank of Montreal shows that 30% of first-time homeowners look to parents or other family members to help with the down payment while in expensive Vancouver, 40% expect help from parents
The Trade-off For Having A Mortgage In Retirement
This generosity makes some sense, but the great risk is that it will tap into monies that seniors need to live on. With people living longer, the average senior will need to keep working into retirement, cut expenses, and not take on new debt area to make it. In contrast, according to Jeffrey Schwartz, executive director of Consolidated Credit Counseling Services of Canada, Inc., many seniors are not changing their spending habits to match their coming reality. Seniors are both adding new debt and taking on new mortgages which could put them in trouble if interest rates rise and the payments follow. “It could send them into a tailspin,” says Schwartz.
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Some banks hesitate to issue new mortgages to seniors, out of fear they won’t pay. In case of default, the bank always looks like the bad guy when the borrower is a senior. Though only .05% of senior debt ends up in bankruptcy, bankruptcy in this age range has increased from 6% to 8% over the last five years. Some seniors attempt to rid themselves of debt by paying it off with RRSP funds, but most analysts question whether this is a good idea.
How Do Your Finances Line Up?
As you approach retirement years, what does your financial picture look like? If you are thinking of taking out a new mortgage or even if you find yourself holding a mortgage or considerable debt, you need to ask yourself some hard questions:
– How far into your retirement does or will your mortgage extend?
– How far into retirement are you planning to work?
– How much debt do you have and how do you plan to extinguish it?
– Are you making it every month or feeling squeezed?
– Are you prepared to cut your spending so you can both pay off your debt and save for the future?
– Do you have any other assets you could extinguish to reduce your debt or monthly living expenses?
Whether you are paying house or only it out right, can you still afford the extra expenses associated with home ownership, such as taxes, landscaping, repair, and maintenance?The answers to these questions might influence your housing plans in your post retirement years. Your concern is to have the resources to hold you through the rest of your life.
If you have a mortgage or are considering taking out a new one, will you be able to adjust your spending enough to compensate?Should You Tie Yourself Down With A New Mortgage In Your Senior Years?Moving to a less expensive home or even renting a property can be a solution to reducing your monthly outlay while allowing you to save, or at least not withdraw, from your savings at the present time. Even if you are in a good position, you need to do serious thinking before tying yourself down with a new senior mortgage.
Before you make any move, make sure to consult with your financial adviser for additional insight on how to proceed. If you’re interested in seeing housing alternatives in our local Halifax market, I am happy to share my insights with you and show you some options. I’m an experienced Realtor® with years of working with Boomer and senior clients, and I look forward to the chance to help you – just give me a call.
Looking to sell your home? Give me a call today.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here
So, you’re a senior looking for a new housing option. The old family home is just too big, or needs too many repairs for you to plan on living there for the long run. You occasionally need a little help, but are basically in good health. You want to be near your kids, but want some privacy. Your answer may be to live in an in-law suite in the home of one of your children. An alternative might be to develop a separate suite in your home for either yourself or one of your children to live. Many families find that this would work and provide a safe, economical for aging parents.
Eight Things to Consider Before Changing Your Address to an In-Law Suite. With good planning, living in an in-law suite is a good solution, but pulling it off requires excellent communication and often some upfront money. Here are a few things to consider.
1. If you or your children already own a house that is amenable to having a second suite, you are off to a good start. As long as the property is sanctioned by the city to have an additional suite on the premises, you can make some modifications to assure that you and your child are comfortable. If you have to look for a house, what are the requirements each of you would need the property to meet?
2. This arrangement usually means that one person is going to be the landlord and the other the tenant, which may mean a change in roles for one of you. Will both of you be comfortable with that?
3. What will happen to your furniture and other possessions? Will you be able to move your own things into the space? Will you give away or store the extra?
4. Who will pay for renovations to the space to make it suitable for you? The renovations will be a permanent part of the home and increase the value for the owners.
5. Will the new space be just sleeping space, or will there be a kitchen and additional living space? Will there be a full bathroom there? The more self-contained the unit is, the more that you or whoever resides in the new suite will have a sense of independence. Having a full suite, plus a separate entrance, will make the area rentable in future years even if you move out.
6. If the second suite is in the basement, will that pose breathing problems for you? How about mobility issues? If the area is to cold or drafty for you or if you can’t easily get outside or move between levels, you might feel uncomfortable and trapped.
7. What are your mutual expectations regarding how you interact with your children’s family? As a senior, will you be expected to be a daily childcare provider or occasional babysitter? Will you cook your own meals or eat as a family? Will you care for your own apartment and clothes or will your child – landlord take care of them for you? Will there be free access toward your home and theirs?
8. Is the new space near your old home or in an area where you can meet new people and or participate in activities? If you feel isolated, you may not feel that you are at home.
Living in an in-law suite in one of your children’s homes can be a viable alternative to moving to a smaller house, an apartment, or even assisted living.
Looking to sell your home? Give me a call today.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here
For some people, moving from the family home is something to do only when you can no longer manage where you are. There is a certain amount of nostalgia built around staying in the Halifax home where you raised your kids, and where you created many of the most important memories of your life. Even as you move through your Boomer years and well into your senior years, you might modify your house to age in place. You think that if you manage to make it through your older years without a lingering illness, you can even stay there until the end.
This can make a certain amount of sense, but it can also deprive you of many of the pleasures of your senior years if you hold on to your house too long. Often, moving to another residence can net you a lump sum of money and reduce your monthly living costs.
“Wait,” you are thinking, “my house is paid for. How can I really be money I had if I sell my home and buy another one or even rent a place?”
A Lesson In Retirement Math
According to Stephen Sass, an associate director at the Boston College Center for Retirement Research, many seniors have the math all on. With thinking about downsizing, “if it makes sense, don’t wait,” he says.
It may seem like a bad move to leave a house with a paid off mortgage for rental, smaller house, or condominium with maintenance or association fees, but living in a house involves paying for repairs, maintaining the yard, paying utilities, and of course, paying taxes. If your family home was in an area with a great school district, paying those taxes made sense when your kids free on now, you can move to a place with lower taxes and with many living costs included.
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“Preparing to Downsize” Report
Rental units and even condominiums cover many maintenance costs, landscaping costs and often even utilities in rent and association fees. Though you might still have to put in a water heater or a new stove when you need one if you choose a condo, you do not have to pay directly for major outside repairs. What’s even better than not having to write the check for repairs and maintenance? Having to worry about those things! You won’t have to spend a minute trying to find a handyman or hoping your son will be able to cut the lawn this weekend.
Big Annual Savings From Downsizing
As Sass puts it, about 30% of the average retiree’s monthly expenses go for housing. If you move from a $250,000 house the one costing 150,000, you might clear $75,000 after you pay out moving expenses. That would enable you to bolster your nest egg in case you need it later, or to withdraw an extra $3,250 from savings each year. That means if you want to take a trip or buy a new couch, you can do it without worrying that something important won’t get paid. When you throw in the savings on utilities and other expenses from a bigger house, you might be able to save an additional $3,000 per year, for a total of $6,250.
Some people with out of town children and other relatives don’t want to leave the family home because it is a refuge for them when they come home to visit. When the kids come home, they can stay with other relatives or at a hotel. If you feel you want to pay for the lodging, you will be able to use a little bit of the money you’ve saved to contribute toward the cost.
Why Wait To Move?
Besides the monetary savings, other experts point out that finding new housing can mean a whole new world. If you live in the suburbs where young families are replacing many of your old neighbors who have moved or passed away, you can acquire a new peer group if you move to a senior community. If you leave the suburbs where everything is spread out to settle in urban area, you can have instant access to restaurants, culture, shopping, and even amenities such as indoor parking and the doorman. The sooner you move, the sooner you can start reaping the economic and social benefits you seek.
The Time To Get Move Is Now
It makes good sense to downsize your home when you retire. Now is the time to start thinking about the possibilities ahead if you live in a less costly place with lower expenses.
Looking to sell your home? Give me a call today.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here
Here are some things you can do to make the bathroom safer. Some are obvious, some are cheap, and some represent more of an investment.
Keep the floor free of clothes and towels. Are you finding it difficult to bend down to reach things? Have one of those “grabby” devices that enable you to reach items above or below you.
Make sure that bath mats and rugs have rubber backs or other fasteners to keep them in one place. Rinse off shower mats after used to prevent soap scum from making them slippery when you use them again.
Add wall-mounted safety or grab bars around the shower, toilet, and other places in the bathroom. Make sure that they are installed correctly so that they are firmly mounted on the wall and will not pull away when force is applied to them.
Consider a taller toilet or at least an elevated seat with grab bars. Add a built-in shower seat and or a shower stool specifically designed to allow bathing from a seated position and ensure that the armed models can support you as you rise.
Equip the bathroom with a handheld showerhead to allow showering even when sitting. Opt for a unit that is mounted on a sliding bar to allow for adjustments and that the showerhead has the controls to adjust the water right on the handheld part.
Make sure that the shower has a pressure balance valve installed to prevent accidental scalding from hot water. Consider whether the bathtub will still be convenient.
Some people have difficulty getting in and out or have trouble pulling themselves up from a seated position and a powered bath lift that makes it easier to get in and out of the water.
Another approach to easy bathing is a walk-in bathtub that has a door cut in to allow a user to enter and exit without climbing over the side.
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Is The Cost Worth It?
With the exception of the walk-in bathtub or replacement of the tub or shower, all the other upgrades or modifications suggested above are low-cost.
If you are considering making modifications carefully what the impact of more serious renovations will be on what happens next if the modifications are not enough to keep you or your relative in the home.
Some upgrades, such as walk-in bathtubs, ramps, and stairlifts can impact the resale value of the house. Some younger buyers might not even like the grab bars. Removing modifications can be costly for the buyers.
Ask for Advice
With this disclaimer in mind, adding safety features to the bathroom and other rooms in the home can make a beloved home useful and manageable for a long time.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here
Being a homeowner can be a great experience, but if you are just starting out, on a strict budget, or looking for an affordable option for senior living, a single family home can easily make your house poor. Also, having a single family home may not suit you if you don’t have much time, are out of town a lot, or don’t enjoy yard work.
Ownership Without Hassle
Owning a condominium offers you the pride of ownership without the hassle. When you live in a condo, your space is compact, but it can be just right for you. Here are seven reasons why condo living might be the housing solution for you.
1. The price may be right. Condos, especially newly-constructed downtown ones, can be pricey, but there are a wide variety of price points for condos. Regardless of your budget, you are likely to find one you can afford with many of the amenities you want – often for less than the price of a single family property.
2. Limited maintenance. With a condo, you own your space but not the building. You are responsible for inside maintenance, but not the exterior of the building, the landscaping, and the common areas. . If you don’t have time, interest, or even skill to do some maintenance duties, a condo is a great choice.
3. Plenty of extras. Many condos offer all the comforts of home – plus more. Depending on the building, you may have access to a fitness center, pool, tennis courts, and a common area. Condo living can offer you more extras than most single family homes.
4. Contained costs. There is no such things as a free lunch with any homeownership; you pay for the cost of upkeep and exterior maintenance though monthly condo fees and other occasional assessments. You know the monthly in advance so you have a clear idea of your monthly costs. You just have to figure the amount of the Homeowners’ Association charges into your expenses.
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5. Choose your lifestyle. You may find condos in suburbia, but condo living can open the door to exciting urban living. In most major cities, there are few affordable single-family homes near the core of the city. Condo living can place you near entertainment, bars, restaurants, shopping, and maybe even your job, if you work downtown.
6. Secure buildings. Some condos have security guards, buzzer systems, and other security features to put you at ease whether you are coming home late at night or going out of town. You also have neighbors in close proximity who watch out for each other.
7. Rule for the common good. The condo board has rules that govern behavior that everyone must follow. While this aspect of condo living can be annoying to some people, the rules assure that people don’t leave trash in the halls, paint their house purple, or monopolize the washers. As a condo owner, you can serve on the board and help review regulations that seem unreasonable.
Looking to sell your home? Give me a call today.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here