Shift Happens

I’m not certain when the Golden Years begin.? I remember how they used to seem so far off . . . now, maybe they’re not! ? ?

The term seems to denote a period of primordial peace, harmony, stability, and prosperity.

But the reality is that Shift Happens! ? We age!? Our bodies change, our family? dynamics change, and our living style and everyday needs may change.

I really like the phase, “3rd Half of Life” and I’m now realizing that dreams of changes for our futures are still possible!? ?

Retirement may be a part of your plan, but maybe not!? You might always see yourself working in some capacity.? But likely you are looking to streamline expenses and enjoy this stage of your life . . . that may involve a different location and a house that functions better for your current and future needs.

Also, more and more are deciding to complete a home transition before they retire.? Whether it’s a second home or a future retirement home, spending the next few years in a place that truly makes you smile every day might be the best way to round out a long and meaningful career.

Lawrence Yun,?Chief Economist?at the?National Association of Realtors?(NAR),?explains:

“The pandemic was unexpected, working from home was unexpected, but nonetheless many companies realized that workers can be just as productive working from home…We may begin to see a boost in people?buying retirement homes before their retirement.”

According to the?20th Annual Transamerica Retirement Survey, 3 out of 4 retirees (75%) own their homes, and only 23% have mortgage debt (including any equity loans or lines of credit). Since entering retirement, almost 4 in 10 retirees (38%) have moved into a new home. They’re making a profit by?selling?their current homes in today’s low inventory market and using their?equity?to purchase their future retirement homes. The survey also revealed that 73% percent of retirees currently live in single-family homes. With the overall number of homes for sale today hitting a historic?low, and with the buyer demand for single-family homes skyrocketing, this could be an ideal time to sell a single-family home and make a move toward retirement.

Reasons for moving and making living changes vary, but this survey shows the major reasons:?

Maybe you’re looking to relocate to a dream location or perhaps closer to loved ones. You may wish to clean out years of accumulated stuff and downsize. You may be growing tired of the stairs (and perhaps realize you haven’t used the second story in months!) You may desire less rooms to clean and maintain (while still having room for guests and grandchildren) You may dream of lower utility bills and less yard to maintain.

Retirement planning can be complex, but don’t overlook the value of your home equity.? Home equity is the difference between your home's current value and the amount you still owe on your mortgage.?It represents the paid-off portion of your home.? You build equity over time as you pay on your mortgage.?

Also, your home has generally appreciated in value over time - often significantly; especially in the last 5 years. ? Talk with professionals when determining options with your equity.? Many do not realize what a treasure they own with their equity.? Again NAR depicts that typical home owners are living in their homes longer.? Also, home appreciation accumulates exponentially over longer spans of time.? The national average of equity that homeowners have now:? $298,000!!?

Everyone’s situation differs, but your equity could potentially fuel your next move.? You may have enough equity in your current home to pay cash for your next home; or perhaps make your downpayment and cover moving expenses.

Something else to consider:? Builders are building some smaller homes now to address affordability, one-level living, maintenance requirements, and changing needs.? Even in this era of low inventory, there may be some new construction options that will meet your needs.? Customizing new builds with Universal Design elements to support “Aging in Place” can provide a more positive function in the home’s infrastructure as we age:? such as wider door-frames, barrier-free showers, grab bars, and curbless entries.

Change is the only constant.? Just don’t forget your goals and your dreams. Look for a professional real estate advisor to assist in organizing your thoughts and create a plan of action.