BABY BOOMERS FACE RETIREMENT AND RELOCATION DECISIONS
Baby Boomers (1946-1964)
1 Baby boomer will reach 55 yrs of age every 7 seconds in the United States. Many will face a variety of difficult decisions regarding many issues, such as having the financial resources to cope with retirement, health concerns, as well as, the possibility of moving to less crowed parts of the country for less stressful and quieter lifestyles.
Many baby boomers are realizing that time is not a friend, but an awakening call to pencil out (plan) the balance of their lives. In 2005 as an example, the United States had 34 million people, who reached the age of 55, and that amount is expected to double in population to 71 million seniors by the year 2030 according to Newsweek Magazine. Unfortunately many of those baby boomers will not have adequately prepared for retirement and will find themselves short, financially speaking, as social security may not adequately be enough to cover the high cost of living, in areas, such as California.
Many Seniors may see themselves as cash poor, however, many are starting to realize that they may have a viable solutions to their financial dilemma by having the ability to capitalize on the equity of their homes. Baby boomers who were smart enough to buy a home in earlier years, find themselves being rewarded for buying a home. Not only is a home, for shelter, from the elements, it also has provided savings from taxation, as well as, a source of wealth building for those retirement years.
Facts are, that a home is not an investment today, it is a place were we can call our own. History provides us with proof that home appreciation over time has appreciated more than 8.5% over the last 65 years. The current credit crunch with respect to the sub prime loans, has given lot's of Baby boomers a golden opportunity to cash in on their equity rich homes in California, to relocate to other states that are far more affordable with less traffic, less congestion, manageable life styles, in some of the most beautifully areas of the country. With bargains from the recent credit crunch, it's no wonder why many senior citizens are opting to sell their cash equity rich homes here in California to take advantage of their own financial future.
Our housing needs have changed, as with our lifestyles throughout our lives, especially when the home becomes an empty nest, children live on their own, we've retired from the everyday rat race of work, and long to travel or have leisurely quality time, without the hustle and bustle, that everybody is in a hurry. Many seniors figure they have no options, so they stay in their homes, others find they want a newer and quieter neighborhood, while others plan to move to assisted living housing, when they need it.
There are seven questions to think about before you decide to sell or consider to sell when you reach a point when a retirement move might be the best strategy;
1. Are you over housed? Are you paying for more home than you should? Have you considered what you are paying in taxes, utilities, maintenance, and gardening? If retirement means a reduction of income, would buying a lower priced home make much more sense by downsizing to a much more manageable home.
2. Do you need the equity of your home? Sometimes were cash poor when we retired and the only means of retirement savings is in the equity of our home. Sometimes a move is what is needed to convert that equity into income to be used for future years.
3. Is the home overwhelming with upkeep. Are you endlessly spending time, money and energy on maintenance, such as mowing, painting, and fixing things in and around the house, etc. Is your leisure time consumed?
4. Does your home match your physical ability? Are there to many steps to climb. Is the yard to much to handle, to much to clean, are there rooms not in use, but somehow still need cleaning.
5. Does it seem like most of your family, friends and neighbors have moved from the area? To much noise?
6. Do you want to be closer to your family? Do you want to spend more quality time with children and grandchildren? Maybe you would like to cut down on long trips to visit them or perhaps need regular assistances from a family member.
7. Would a move improve your lifestyle? If extensive traveling appeals to you, you may want to consider a low maintenance, more economical home to fit your lifestyle. Golfing, fishing, walking trails may fit into a more leisurely mode of living.
There are many things to consider when deciding to relocate. "The Big Question that still lingers more than ever today", "Can I get the most money for my property now, that real estate prices seem to be dropping in value, or do I chance it by waiting to sell and receive less for it in the future?". Does waiting cost me?
Carlos R. Arvizu Sr.
Prudential California Realty
The Mulhearn Group
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