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55+: Why Sell? Why Stay? How to Prepare. Part 1 of 3

by Tom Townsend, Denise Townsend Group
 
  
This is part 1, Why Sell (or move)?

 

Here are some Facts:

In 2010:

More than one-third of the U.S. population reached age 50
 

—17 million Baby Boomers, 20 percent, were age 60 or older.

Generation X moved into middle age and began knocking on the door of age 50

80% of homeowners are 50+

 

There are 6 Generation classifications:

G.I. - 90+ years old, 1.5% of the population, 4.8 million people

Silent - 69-89 yrs old, 11.4% of the population, 35.3 million people

Baby Boomers - 50-68 yrs old, 24.6% of the population, 76.5 million people

Gen X - 38-49 yrs old, 16% of the population, 49.6 million people

Gen Y - 20-37 yrs old, 24.8% of the population, 77.2 million people

Gen Z - 19 or younger, 21.4% of the population, 66.5 million people

 
Why Sell?
 
Bigger home
For some, getting older means going larger.  Maybe you had a smaller home and now you can afford something newer and larger.  Perhaps you want room for visiting children and grandchildren.  For some, they may need a larger home because their children are returning home due to the economic down turn.  And more and more grandparents are raising their grandchildren.
 
Down-size.
On the other hand, empty nesters may want a smaller place to take care of because they don't need or want the room.  Maybe a spouse has passed on.  People also down-size because they have a vacation or retirement home and don't want to take care of a larger home when they come back to visit.  Or maybe they are moving to that smaller vacation home.  Maybe it's health related and a single-level home is easier to get around in than a multi-level home.
 
Active Adult Community.
As in our previous blogs, these communities have like-minded people who have down-sized.  They are made up of retired or retiring people.  Some are "snow birds" that have winter residences in warmer climates.  They offer single-level homes, condos and apartments, making it easier to get around now or in the future.
 
Health.
Unfortunately, we sometimes can't control what becomes of us heath wise.  Progressive or chronic conditions, urgent needs, sudden changes and advanced conditions force us to move.  Maybe it's just down-sizing to a single-level home or one in an adult community.  Other times it's to various assisted living facilities because more advanced care is needed. 
 
Family Concerns.
Family members often get concerned about where their parents and grandparents live.  The world is full of "what ifs".  What if you fall...  What if something needs to be fixed...  What if you need to get a hold of someone in an emergency...  These are not signs of nagging, but of concern.  Concerns also include the loved ones income level, being alone, safety in the neighborhood and living too far away, just to name a few. More and more popular are children who purchase extended family homes; homes for them, their children and their parents or grandparents.  Usually these homes have separate living quarters, with all the amenities, on a smaller and private scale.  Money to purchase these homes are sometimes shared or gifted from the sale of the other home.
 
Income.
People now a days are working longer and not retiring, or semi-retiring.  It may be necessary to keep the income coming in, but for some, they don't want to slow down and retire.  Others may find they can not afford a large home even if it is paid off.  Taxes and maintenance are expensive.  Moving elsewhere or to a smaller home may save them a lot of money when they do retire.
 
 

 

Tom Townsend, Broker, SRES

Denise Townsend Group

Keller Williams Sunset Corridor

1915 NW Amberglen Pkwy #250

Beaverton OR 97006

503-504-3961

— 

Spring has Sprung, the Grass has Riz, does Anyone know what the Shape of my House is?

by Tom Townsend, Denise Townsend Group

OK, that may not have been grammatically correct, but seriously, how is your house?  With the days getting longer and warmer, now is the time to see how your home fared through the winter.

Here's some things to look at and correct:

- Clean your roof of debris and moss. You'll be saving yourself costly repairs, and the life of your roof.  We suggest getting a professional to do it.  They can inspect it the same time as cleaning. And it keeps you safely on the ground.

- At the same time, have the gutters cleaned.

- Check your attic for leaks and mold.

-Check your crawl space for standing water.  If you find it, get it fixed.  Water will lead to mold in your attic.

-When you turn on your irrigation and outside faucets, check for freeze damage.  Water leaks can get expensive if you don't notice them.

- Prune, or have pruned, trees and shrubs away from eaves, gutters and siding.  Tree limbs should be a minimum of 3 feet from your home.  Limbs that rub cause damage and shading leads to moss, and in some cases, rot.

- Check your siding and decks for wear on the finish.  If it looks like you need paint or stain, start planning on repairing it.

- Check weather seals and caulking on windows and doors.  Repair them now, don't wait until Fall.  You may forget or run out of time.

- Fertilize your landscape and lawn and get rid of those weeds.

- Spring clean: windows, dryer ducts, furnace and filters, air ducts, the garage, remove clutter...

Owning a home is a lot of work, but it's an investment.  Taking care of it will pay off in the end.

If you need professional advice, we have a lot of great contractors to refer you to.

 

Tom Townsend, Broker, SRES

Denise Townsend Group

Keller Williams Sunset Corridor

1915 NW Amberglen Pkwy #250

Beaverton OR 97006

503-504-3961

Buying is Still Cheaper than Renting

by Tom Townsend, Denise Townsend Group

Even thought mortgage rates are slightly higher, buying is still 35% cheaper than renting in the top 100 largest metro cities.

How?  When prices and rates are rising?  Because both home prices and mortgage rates are rising a very low levels and are still below the long-term historical lows.   There are a few markets - San Francisco, San Jose and Honolulu - that are close to the tipping point where renting may become cheaper.

Mortgage rates the last 40+ years

 

To figure out the options of buying versus renting, first do the math:

1) Compare IDENTICAL properties for sale and for rent and come up with an average price.

2) Compare the initial costs of owning versus renting (taxes, insurance, maintenance).

3) Estimate the future monthly costs of owning versus renting (rent increases and inflation).

4) Add in one-time costs such as closing costs, down payment, security deposits and sales proceeds.

5)  Calculate the net present value to account for the opportunity cost of money.

Assuming a 4.8% mortgage rate, 30 year fixed loan with 20% down, itemized federal tax deductions, a 25% tax bracket and you stay in your home for 7 years, buying is 35% cheaper than renting.

 

Buying versus renting is not just about the numbers.  Both owning and renting has advantages.  Owning gives you more control over your home, what you can do with it and is an investment.  Renting gives you more flexibility to change locations and time that would otherwise be spent taking care of a home, and allows for investing in other areas. 

The information for this blog was referenced from Trulia Trends.  www.trulia.com/trends/2013/09/rent-vs-buy-summer-2013/

 

 

Tom Townsend, Broker, SRES

Denise Townsend Group

Keller Williams Sunset Corridor

1915 NW Amberglen Pkwy #250

Beaverton OR 97006

503-504-3961

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