A Perfect Storm For Retirees
The hot real estate market is making some real estate seniors very happy according to Patch.com. When Jim and Connie McStay started thinking about the next chapter of their lives, they hoped that a Senior Living community was in their future. Precisely when they'd sell their house and move was less certain. The red-hot real estate market, and the right floorplan, made their decision easy.
That weekend the house had 60 showings and 20 solid offers. To the couple's delight, they received an all-cash, no contingency offer of $35,000 over the asking price. Now they were able to take that money from the sale of the previous home and move into the new apartment. Congratulations to the McStay's for securing the top asking price for their home to apply to their new place in the Senior Living center.
What this article fails to mention is an alternative option they could have considered to keep more cash flow on hand. Instead, the McStays have tied up all their cash from the sale of their home and put it into securing their new apartment.
The McStays Could Have Considered An Alternative Option
Instead of taking the majority of the funds from the sale of their previous home the McStays could have taken a large downpayment from it and kept the rest as liquid cash, or invested it to secure access to their funds for any future emergencies. Of course, accomplishing that would require a Reverse Mortgage for Purchase.
Few retirees can rely on a significant pension and must make their savings last for decades. This may be even more difficult considering that we could see persistently low-interest rates, higher inflation, and market volatility in the coming years.
The result? Today’s retirees could face a perfect storm, and they may have to use different financial planning strategies than retirees of the past.
Learn More About How a Reverse for Purchase Works
If you are considering selling, downsizing, or right sizing your home contact Cynthia today to review all your options. Learn how a Reverse for Purchasecan enhance your retirement years. Worry Less, Live More!
