July 3, 2006

Today’s Real Estate

So many boomers, so many options…

By Donna Nardi
Special to the Times

I have wonderful news. The “old gray mare ain’t what she used to be.” With available advanced medical care, people are living longer and better than ever. The IRS currently expects citizens to live to 89 years old. Knowing that most of us will live longer lives, we must consider our future housing and financial options. It is not inevitable that we will one day live in a retirement home.

Boomers are working longer than ever before. In the past, most of those over 65 were retired, working no more. Today’s Baby Boomers are quite individual with their needs, desires, interests, income and personal tastes. The majority isn’t moving far from home. Fifty-one percent are moving within the same local area. Only 23 percent are moving out of state.

There are so many varied choices. The limited space of this article couldn’t possibly cover each option adequately, but let’s look at highlights of some available options.

Age in Place - This option is to stay right where you are. This can be the best and most affordable option for you. You may want to have live-in companionship for income and some assistance where necessary, yet this choice can allow you desired independence.

Retirement Communities - While not assisted living, these communities often have available services upon demand. Like-minded companionship and activities are available. Often, these communities are situated next to a golf course, tennis courts, etc.

Assisted Living – While not a medical facility, this type of housing allows residents the option of getting help when needed—no less, and no more. There are prepared meals and laundry services, if desired. Residents have their own apartment and all the independence they need.

Nursing Homes – These facilities give a great deal of care and attention. There is always medical staff at the ready to meet individual patients’ needs. If Alzheimer’s or dementia presents extra challenges, they will be dealt with as required. There are facilities that cater to those patients who need an even higher level of care.

But, before considering any of the above, it is always best to consult with your “team.” You should have a Realtor who specializes in senior needs. In turn, your Realtor should have a team available to assist you, their client, with each area of need. Be it legal, financial, loans, moving, home repairs, home inspections, attorney, tax specialists, etc, your senior real estate specialist should be able to bring service to your door. If your needs are financial, they will have a lender, or a financial planner that can give you customized options for your needs. If you know you need to sell your home to re-locate, your realtor should work out the plan and crunch numbers with you to see which options are best suited to your current and future lifestyle and dreams.

It is not uncommon for a pre-retiree to purchase a vacation or second home with the plan to retire there in the future. You can enjoy the home strictly as a getaway home, or you can rent it out either seasonally, or year-round. This way, you can have the option of having the home nearly or completely paid off by the time retirement actually does arrive for you.

Second homes are becoming a more popular option to Baby Boomers. Translated that means that areas within driving distance are seeing an upward trend in housing prices, i.e., the old supply and demand problem. Thus, it’s a good idea to buy sooner, rather than later, to lock in the price and tax rate of your second home and begin earning equity for your future.

Advice from several areas of expertise is essential for a Boomer making life decisions. After all, this will have a great effect on the quality and security of the remainder of their lives. As touched on earlier, a Senior Real Estate Specialist should have a “team” to turn to that will give solid, honest and objective advice customized to that particular client.

That said, I spoke with John Callan and Joe Guttadauro at JMG Financial Network, a financial planning and wealth management firm, located in downtown Willow Glen. They highlighted a financial principle that affects all of us: Your Circle of Wealth.

Our circle is predicated on how we manage the three types of money—lifestyle money, transferred money and accumulated money, and the real and measurable loss to our Circle of Wealth, resulting from the negative impact of opportunity costs. Getting advice from a financial planner doesn’t necessarily involve the sale of a home or a move. It’s making your current “dead” money work for you, and planning ahead, rather than playing catch-up just before, or when entering retirement. It’s about making our money work for us in order to have the luxury of making the best decision for our future, without the worry of the cost.

With every “great” idea that involves your monetary future, consider each option very carefully and always do the math. What may be right for your peers may not be right for you. Always consider your current circumstances, along with your future needs and dreams. Rarely does one jump right into retirement. It’s a process of many steps taken as the need and opportunity arises.

There are so many available resources. With proper guidance and planning, you can be assured of a bright and secure future.

Donna Nardi is a Realtor with Prudential California Realty in Willow Glen. She also has her Senior Real Estate Specialist designation. You may reach her at (408) 918-4410, donna.nardi@prurealty.com, www.happywayhome.com.