THE REALITIES OF HOME OWNERSHIP

Today many retirees own their homes free and clear of any mortgages.  So does it make sense to sell their home and move into a service enhanced community like the Bridges Senior Lifestyle Living Community?  Retirees need to examine many different aspects to see what is really right for them.  Retirees need to look at the current real estate market, what is perception and what is reality.  Another area for evaluation is the true cost of living in their home.  After this analysis is done you will be able to make an educated decision and then create an action plan for your future.

The Real Estate Market

First, let’s look at the real estate market today.  Many people today are deciding not to sell their home based on two misconceptions about our local housing market.  The first misconception is that if they wait a year or two for our depressed housing market to recover, they will be able to get a price they thought they could have gotten a couple years ago.  However, what they are not realizing is that the housing market a couple of years ago was artificially inflated based on a speculative market.   The prices that homes are being sold for now are more reflective of accurate home values.  And, since no one knows what the future holds, how long will it be before we return to home prices that we experienced a couple of years ago?

The second misconception is that home prices have fallen off dramatically; this has been fueled by the media only reporting on the number of homes sold, rather than on actual prices.  This is where a person needs to investigate home prices in the area they live.  A good place to find this information would be The National Association of Realtors.  As you review this information, retirees need to remember the significant increases in the value of their homes since they bought them, often many years ago.

The True Cost of Home Ownership

When evaluating your current living situation in your own home with either a low or non-existent mortgage, there are still many other factors every homeowner should consider. 

Overall expenses:  According to a study by the American Senior Housing Association, retirees who continue to live in their old homes on the average pay more for the goods and services that would be included in the average monthly fee at a retirement community such as the Bridges. 

Taxes:  By moving into a retirement community like the Bridges, you will totally eliminate the property taxes you pay.  Not to mention your home owner’s insurance goes away also. 

Energy Costs:  The average household will spend $2,200 on home energy in 2008 according to the Department of Energy.  This figure could more than double if you also factor in the price of gasoline for trips to the supermarket, the dry-cleaner, and the pharmacy.  And then you must also factor in the size of your home and just how many miles you have to drive to get to the shopping centers.

Maintenance and upkeep:  An expert states that homeowners should figure on spending an average of up to 1% of their home’s value on maintenance and repairs each month.  On a $100,000 home you would be spending $1,000 a month on maintenance and repairs.  Keep in mind, that’s $1,000 per month not year.  Seem a little high?  Remember, it is not just the routine maintenance, but it is also the cost of replacements of heating and cooling equipment, appliances, roofs, and other high ticket expenses that can catch you by surprise.  And more than likely, if you have lived in your home for many years, many of the high ticket expenses that were mentioned are probably due to be replaced now.  Retirees also need to factor in the cost of lawn care and snow removal.  As we all know from last winter and currently this winter, snow removal has been a huge expense.

The Alternative

What is the alternative to all of the above mentioned costs of home ownership?  At the right kind of retirement community such as the Bridges, your monthly rent includes all of the above plus many more amenities and services that go far beyond what a typical homeowner enjoys.  The Bridges fees include maintenance, housekeeping and laundry services, regularly scheduled transportation, valet parking, activities, entertainment, fitness center, in door swimming pool, theatre, and pub/billiard room.

And if you are hungry, the members of the Bridges do not have to drive to get food.  Chef Cherrie and her excellent staff prepare an extensive menu of favorite dishes served in our restaurant, The Sans Souci.  Eat when you want and order what you want – and please remember to invite your family and friends to enjoy this fine dining with you.

Another big factor as you decide whether to sell and move into a retirement community, is the peace of mind that the Bridges offers with an emergency code alert system and 24-hour staff seven days a week.  Medical services and assistance are also available from a home health agency located right on the first floor of the Bridges.  Allen Hospital and Covenant Medical Center are just minutes away.

What’s the Answer?

In the past it always seemed to make more sense financially to hang onto a long-time residence.  Today, the numbers simply don’t support that argument.  However, every individual situation is unique and different.  It is best, and the Bridges encourages this, is that you get some objective advice on your decision whether or not to move to a retirement community like the Bridges. 

The Plan

So what’s the first step?  First, look at the housing market in your area, and calculate your home’s appreciation over the past decade – or even from the time you bought your home.

Second, take time to calculate the true cost of owning your present home.

Third, with this information, talk to your financial advisor.

Finally, the most important step is to carefully assess your current lifestyle and what your future needs may be.  And please remember that you can never know exactly how soon the “future” will arrive.

How would your lifestyle change if you downsized and moved into a retirement community like the Bridges Senior Lifestyle Living?  In many respects, change would be minimal.  Currently you may have a house you call home and the difference at the Bridges you would have an apartment you call home.  But home is where your heart is!  At the Bridges you will continue to live in your own home surrounded by your own treasures.

There will be some very important changes, however.  To start with your physical security would be significantly enhanced.  And instead of struggling with day to day chores that may be coming difficult for you, you would now have the time to enjoy the company of family and of friends, old and new.  You would also enjoy the pleasures of an active, healthy senior lifestyle in a resort type of community.  This is most desirable!