DIGS is the premiere luxury real estate lifestyle magazine serving the most affluent neighborhoods in the South Bay and Westside of Los Angeles, California.
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It's a well-known fact that for many seniors, the home is their single biggest asset, often accounting for more than 40% of their total net worth. And with interest rates near all-time lows while home values are still high, this combination creates the perfect dynamic for getting the most out of your built-in equity. However, many people aren't taking advantage of this unprecedented period. According to recent statistics from the mortgage industry, senior home- owners in the U.S. are now sitting on more than 7 trillion dollars of unused home equity. Not only are people living longer than ever before, and with greater healthcare available to enable them to continue doing so, but there is also greater uncer- tainty in the economy and future structure of taxes. With home prices at new high levels, not taking advantage of the opportunity to free up some of this wealth may be short-sighted when looking for the best long-term outcome. Some families have used Home Equity Conver- sion Mortgage loans (HECM) to turn their home equity into extra cash for retirement. ‡ere have been many misconceptions about these loans and they are not suitable for all people. However, for seniors living on fixed incomes and not wanting to relocate for other reasons, a HECM loan can be worth looking into. However, there are reasons why people choose to sell their home. ‡ey might do well to move closer to children and grandchildren for higher quality of life and family enjoyment. Others might like the benefits of an age 55+ community with programs and activ- ities to suit their current and future life style. It can also be a way to gradually transition into a life with- out as much maintenance to have to think about, or uncertainties about how well the home might suit them through the years to come. And of course the money they could free up might be useful for travel- ing, buying a lower cost place, funding care-givers, etc. All things considered though, there are several reasons why seniors do not elect to sell their homes at the same point in their lives that previous generations had done. For some it is a factor of simply feeling overwhelmed at the prospect of dealing with decades of accumulation of personal things, stored boxes of their children's stuff, etc. Often no one has suggested a plan of action that can gradually resolve this chal- lenge, and how it could be comfortably accomplished while they are still living in their home. For others, the idea of paying capital gains taxes is not acceptable – or their children decide for them to not sell so they can inherit the property years later at a stepped-up basis. Some would sell their home if they already had somewhere else to go, and are not aware of ways that they could accomplish that. In many cases they have not been counseled on a wide range of alternative lifestyles that might be healthier, or provide facilities that would give them many activ- ities to share with other active seniors. Still others would put their home up for sale if they needed to sell before buying their next home, but did not know of a way to be protected in case they were unable to find a suitable replacement. ‡ere are always creative options that can be considered to enable remaining in place for either a short or longer term while completing the process involved in making a move. Request a FREE Seniors Information Guide Today! Call 310-600-7422 Considerations for Senior Homeowners Who Are Worried About Selling eir Home. What options haven't senior homeowners been informed about? Homeowners who are interested in learning more can request a FREE Seniors Information Guide by calling 310-600-7422, or writing Michael@EdlenTeam.com The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service, and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification. Not intended as a solicitation if your property is already listed by another broker. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor agents and are not employees of the Company. ©2019 Coldwell Banker Residential Brokerage. All Rights Reserved. Coldwell Banker Residential Brokerage fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Owned by a subsidiary of NRT LLC. Coldwell Banker, the Coldwell Banker Logo, Coldwell Banker Global Luxury and the Coldwell Banker Global Luxury logo service marks are registered or pending registrations owned by Coldwell Banker Real Estate LLC. CalRE#00616212 Michael Edlen DRE 00902158, Tatiana Weiss DRE 01751813, Christina Wagner DRE 01310664, Jolie Hernandez DRE 01208938, Keith Craven DRE 01239016