Posts Tagged “Nova Scotia Retirement Homes & Communities for Seniors”
At 65, will you still have a mortgage hanging over your head? Are you a Boomer over 50 who will still be making mortgage payments once you reach normal retirement age? If so, you’ll be like 35% of other senior homeowners, according to the Canadian Association 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 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. Your thinking might have been that the kids would inherit the money anyway, so they might as well have it when they need it.
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 a new debt areas 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.
How Do Your Finances Line Up?
During your 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 homeownership, such as taxes, landscaping, repair, and maintenance?
The answers to these questions might influence your housing plans in your retirement years. Your concern should be to have the resources to hold you through the rest of your life.
Call Me For Expert Senior Housing Services
Looking to sell your home? Give me a call today. When you are buying or selling a home, don’t waste time. Give me a call for experience, market knowledge, correct pricing, and a sincere interest in helping you fulfill your real estate goals. If you are ready to sell your home for maximum value, the best place to start is by clicking here and scheduling an appointment.
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
Over time our housing needs change. The kids leave to get married and start their own families and your housing needs changes. My senior clients decide to sell and move to something smaller. This process Is called downsizing. Not just getting something smaller but finding a new place more suitable. More accurately called Rightsizing.
Common questions I am asked by my clients are “When do I downsize and sell my home?” These are really two questions rolled into one. The first question “what time of year is best to sell” and the second “based on our situation, when is the time for me/us to sell”.
The first question has a very simple answer. Whenever you want to sell can is the best time. There are certain times of the year that have unique advantages. January to March period are good because there are fewer homes listed for sale means you have less competition.
The selling market in the Spring / Summer market (April to July) usually the busiest market and when the most buyers are actively looking. Spring and Summer are also when most homes are for sale and you have the most competition. The Fall market (September to November) usually the second busiest market of the year.
The second question is difficult to answer because situations are different for everyone. To decide for yourself when you to make a move, ask yourself these questions.
How much longer can I realistically stay?
If you are in the mid-60s, in good health, still able to mow lawns & shovel snow, and enjoy gardening, staying for 5-10 years or longer possibly makes sense. But if you are in the ’80s, experiencing health issues, unable to maintain the property, and rarely able to leave your home, make the move.
What are the advantages of staying?
Emotionally it’s hard to leave your home, but look at it objectively and make a list of the advantages of staying. People stay to maintain their independence. However, selling your home and moving to accommodations more suitable to your current needs could increase your independence. You may end up closer to necessary amenities and family.
What are the financial benefits of rightsizing?
The vast majority of my clients and seniors, in general, prefer to move to a rented apartment to enjoy a maintenance-free lifestyle. This frees up the equity in the home for investing to produce an income. If you netted $300,000 from the sale and invested it at 3% it would produce $9,000 in annual income.
Eliminating expenses like property tax and maintenance you could free up another $5,000-10,000 (or more) per year. Let’s say an average of $7,500. Add that to the $9,000 and it gives you $16,500 to put towards the cost of the rent. And of course, the original principal stays intact and untouched.
Call Me For Expert Senior Housing Services
Looking to sell your home? Give me a call today. When you are buying or selling a home, don’t waste time. Give me a call for experience, market knowledge, correct pricing, and a sincere interest in helping you fulfill your real estate goals. If you are ready to sell your home for maximum value, clicking here and scheduling an appointment.
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
More Canadians are planning to use their home to fund their retirement and rightly so. Many people have the majority of their net worth in their homes. Being equity rich and cash poor is common. Over time our housing needs change and your 2 story, 4 bedroom house may simply be too much house for your current needs.
There are several different ways to access the equity in your home to produce income. If you want to stay in your home but need income, consider a reverse mortgage. Depending on your age, you can access between 10-50% of your home’s equity. The minimum age to qualify is 55 and the older you are, the more equity you can access. You can borrow a lump sum amount or set it up to pay a monthly income. You do not have to make any payments and the mortgage doesn’t have to be paid until you die or sell the home.
Request Your Complimentary Copy of My “Preparing to Downsize” Report
Another option would be a sale and leaseback arrangement. If you want to keep the home in the family but either can’t afford the property or need to access your equity you could sell it to one of your adult children and simply rent it back from them. This allows you to access all your equity while eliminating the costs of mortgage payments, property tax, and maintenance. You simply pay a set rent each month. You can then invest the equity to produce a monthly income.
If selling to a family member isn’t an option, then selling it to someone else is a third option. This would allow you to buy a smaller home, a condo or move to an apartment. Once the home is sold and you have received your equity you have many different options to invest the money to produce an income. While you should consult a trusted financial planner about investing the money, here are some options to generate income and lower taxes.
Top up your RRSP
If you or your spouse are under 71 and have an unused room in your RRSP you could contribute each year until you turn 71. This lowers your taxable income for each of those years.
Top up your Tax-Free Savings Account
You can immediately put as much as $52,000 per person into a TFSA and subsequently add an additional $5,500 per person per year going forward. TFSA won’t initially generate a tax deduction like an RRSP, but all interest earned is tax-free.
Purchase an Annuity
You can take a lump sum of money and purchase an annuity which will then pay you a monthly, quarterly, or annual income for either life or a set term (until age 90). This will give you a secure predictable income stream. There is also an option to have a beneficiary get a payout should you pass away before the end of the term. If you choose a life annuity you don’t have to worry about outliving your retirement income. If you purchase an annuity at age 71 when you are collapsing your RRSP, it defers income tax because you only pay tax as you receive the income.
Call Me For Expert Senior Housing Services
Looking to sell your home? Give me a call today. When you are buying or selling a home, don’t waste time. Give me a call for experience, market knowledge, correct pricing, and a sincere interest in helping you fulfill your real estate goals. If you are ready to sell your home for maximum value, the best place to start is by clicking here and scheduling an appointment.
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
If you are a baby boomer with retirement insight, you may be grappling with whether to downsize to another home, condo, or apartment that you buy or rent or stay put. In Canada, wherein many areas housing inventory is low, many of your contemporaries are deciding to upgrade their homes so that they can age in place, rather than putting them on the market.
The 2011 Canadian census identified 3,900,000 empty nesters or one-person households that are retaining their homes at a point in their lives where selling might make sense. What does this mean for you, as the owner of a home desirable to a new generation of buyers?
Low Inventory Impacts Asking Prices
First, this situation is causing a shortage of homes, especially for younger families of the Millennial generation who find themselves having to bid on several houses before they secure one. If you are interested in selling your home, you stand to get a great price for it in view of the demand.
While rising prices lead some people to hang on to their homes to see how high housing prices will go, many real estate analysts point out that the market is poised for the housing bubble to burst. As evidenced by the 2008 housing crisis in the US, homeowners might find themselves stuck with a property that they are unable to sell because they waited too long.
In addition, a dearth of homes on the market makes it difficult for downsizers to find new homes. Mobile Boomers may find themselves in bidding wars with Millennials for smaller, more affordable single-family homes. What has once considered a starter home is often a rancher style that accommodates older buyers who want or need one-floor living.
Request Your Complimentary Copy of My “Preparing to Downsize” Report
Problems With New Housing
A lack of housing in some areas is causing many potential buyers to look at new housing, which is costly. More affluent older homeowners may be sitting on substantial equity in their homes, which puts them in a better position to buy new condos and single-family homes, but many younger families can only afford new real estate by getting loans from their Boomer parents.
Ironically, even for more established homeowners, single-story housing is often not available. Many governmental entities prefer to zone areas for high-concentration properties rather than low-slung single-family homes.
Looking to sell your home? Give me a call today. When you are buying or selling a home, don’t waste time. Give me a call for experience, market knowledge, correct pricing, and a sincere interest in helping you fulfill your real estate goals. If you are ready to sell your home for maximum value, the best place to start is by clicking here and scheduling an appointment.
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
Are you a baby boomer or senior ready to make a housing change? You might be interested to know that you are part of a growing trend in Canada. According to the National Association of Realtors (NAR), nearly half of all Canadians are retirees or baby boomers approaching retirement.
Among real estate agents in Canada and the US, Senior Real Estate Specialists (SRES) are a growing category of professionals that I am proud to count myself among.
Whether you realize it or not, handling real estate transactions requires unique expertise, as not all listings and purchases are one-size-fits-all. People move in and out of different types of housing based on their need for size, space, amenities, convenience, and a host of other factors.
Just as a young couple or a young, growing family just starting out have certain housing needs, older homeowners do as well. An agent with the SRES designation is equipped to serve this niche market.
Understanding The Senior Housing Market
What’s different about the senior market? While some seniors continually seek single-family housing, a growing number of sellers in this demographic want to downsize to a condo that they buy or even an apartment, senior housing community or assisted living facility that they rent.
An agent who works with seniors is happy to serve as a counselor who offers guidance about preparing the house for sale and then listing it, even if the client may not want assistance with an additional purchase.
Many senior clients seek assistance because they have no family or friends available to help them evaluate the best housing choice for them or to assist in developing a plan for decluttering, repairing, and selling their home.
Taking this step is hard for most people, as moving on can be hard to cope with. An SRES understands the psychological toll that seniors pay when they divest themselves of the family home or surrender their independence to move into assisted living. While a real estate agent can’t give legal or detailed financial advice, he or she can offer a few basics, along with referrals to the experts they need.
Request Your Complimentary Copy of My
“Preparing to Downsize” Report
Why Work With An SRES?
Senior real estate specialists offer several benefits to their clients. These include:
Clear communication
An SRES will demystify industry terms and current practices so that a senior client who may not have bought or sold real estate for decades can understand how it’s done these days.
Great listening skills
Going back to the psychology mentioned above, an SRES is attuned to our clients’ needs, desires, and future plans so that he or she can make appropriate recommendations.
Professional connections
Seniors often need estate planners, attorneys, insurance agents, accountants, and social workers to offer the special expertise that a real estate professional cannot offer. Your SRES knows who to call.
Understand Seniors Needs
Real estate transactions can be tedious and stressful to clients, but an SRES is prepared to listen with understanding and patience from the initial consultation to the completion of the sale.
Market knowledge
Whether the next step for a baby boomer or retired client is a downsized single-family home, a condo, or various rental options, the SRES knows the local market. Based on the knowledge of a client’s situation, he will present a range of alternatives.
The goal of any real estate transaction is to help a client move onto the next stage of housing in their life. An SRES will help this come to pass in a manner that is kind, efficient, and timely.
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 many families, the death of a loved one is followed by family squabbling over possessions. In a previous blog, we discussed the importance of having a will, which should designate who inherits certain possessions. Today we will discuss ways to simplify the distribution of your property.
What Happens To Your Property When You Pass Away
When you die, your estate goes through the legal process known as probate, which may assess probate taxes and accrue legal fees. Having a will, with an executor in place, helps the process go smoothly. if you die intestate, without a will, the court appoints an executor, at greater cost to your estate.
With careful estate planning, you can get around most probate fees by designating beneficiaries on life insurance policies and registered investments, or holding your assets jointly with someone else, so that full ownership passes to them upon death.
If you specified how you want your property distributed, a court-appointed executor gives it to the next of kin after subtracting debts and fees owed to the court. A same-sex partner or significant other has no legal standing to receive your property.
A Will makes sure that your property goes to those you want to receive it. You can even specify that money goes to a favorite charity.
Request Your Complimentary Copy of My “Preparing to Downsize” Report
If you own a considerable amount of property or other assets, you should hire a lawyer to ensure that your estate passes to your heirs with minimal taxes. For a simple estate, use a Will kit.
Simplifying Property Distribution
Your heirs may not like how things get distributed. If you own a large estate, families can argue over who gets small items that you own. Few Wills list every possession someone has.
Grieving family members may argue over a box of recipes, family photos, or a special vase you did not specifically bequeath to a child or other family member. How can you simplify your estate to prevent family drama after your death?
How can you simplify your estate to prevent family drama after your death? Below find a few tips to keep in mind.
– Routinely declutter your home, so that you own fewer possessions for your heirs to worry about. Before you donate or sell furnishings, ask your children or other family members if they want your items.
– Considering that many items in your home do not interest your kids or other heirs, do not hold on to things you don’t use.
– For other items of value, consider passing them along now so you can see them enjoying something that you love.
– To prevent arguments over heirlooms or other sentimental items, label them or at least make a list of who gets what.
– Keep your Will, power of attorney, and final wishes current.
Looking to sell your home? Give me a call today. Give me a call for experience, market knowledge, correct pricing, and a sincere interest in helping you fulfill your real estate goals.
Ready to sell your home for maximum value? Click here and schedule an appointment.
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