The morning crew at Chet’s Diner often asks me real estate questions. Sumner, Steve, Billy, Carl, Bill, Jess….we converse over morning breakfast. Steve recently complimented these articles, and Sumner asked what should seniors do?
One thing we observe is seniors with the “big house” often freeze when viewing the difference in selling price for their big house and the purchase price for an over 55 or assisted living center. They are surprised it is so small, and conclude they should stay in the “big house.”
We’d offer the maintenance and upkeep of the “big house” isn’t going to get smaller….and deferring maintenance often decreases the value of the home. Add in increased utility costs and the senior is further disadvantaged.
Some seniors have decided to take advantage of the lengthy run of home value increases since 2008 and want to sell before any “pullback.” Rather than purchase an over 55 complex at the perceived height of the market they are opting to rent…and will purchase again when the market adjusts.
By renting the senior realizes the benefits of a smaller property managed by someone else (providing predictable costs), and the proceeds of their home sale can be used to opportunistically purchase when the right property comes along. Some seniors are using this strategy to rent in the city…so they can experience city living!