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Real Estate Trends: The Right Home For Your Retirement

Posted by Greenwald and Gerke on February 15, 2018
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Are you approaching the retirement time of your life?  You might be thinking about “rightsizing” your lifestyle.  During this stage in your life, do you really need the big yard, multiple bedrooms, and the repair and maintenance of your current home?   Your children are doing their thing and they have expressed no desire to respectfully bring  your “stuff” into their home.  What is the right journey for you?  Can you “rightsize” in your home?  If not, what are the right steps for you to take?

Is It a Seller’s Market for You?

The headlines continue to read of rising home prices and low inventory.  All of that is true. Does that make it the right time for you to sell your home?   What is your plan if you do sell your home?   Where would you go and wish to spend the rest of your life?  The beach?  The mountains? A home that has superior walk ability to shops and restaurants?  A 2nd home?  Let’s talk about it before a crisis rears its ugly head and forces you into a move that was not on your wish list.

Remember the “Tax Man Cometh”:

Do you know the capital gains tax consequences of selling a primary residence?   Recently, we met a married couple that purchased their home for $250,000.  Over the 30+ years of living at this home, the couple added about $175,000 in capital improvements into the home.  The home would sell in the range of $2,500,000.  The gain on sale of this home will be approximately 2 million dollars.  With the onetime exclusion of $500,000, the couple is looking at paying capital gains taxes on 1.5 million dollars.  Please consult with your CPA and financial advisor to understand taxation and selling your primary residence.

Taking Your Property Tax Basis with You:

Did you know that if you are 55 and over, under certain conditions of Proposition 60 and 90, you may be able to transfer your existing primary residence’s factored base year value to a replacement home that is of lesser or equal value than your existing home?

The “Reverse” for Purchase

The Reverse Mortgage is a product that MUST be looked at under the microscope of all the trusted family members and professionals that are part of your life team.  You can do a reverse for purchase.  For example, a person has just sold their home for 1 million dollars and wishes to buy a $750,000 home, age 75, would need to put a down payment of $450,000 and then have a reverse mortgage, no mortgage payment of $300,000.

If you are ready to learn more about the process of moving or selling your home to “rightsize”, our team here at Greenwald & Gerke Realtors can help you with your goals.  Call us to learn more about the current opportunities if you wish to “rightsize” at (844) 782-9674.