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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com

August 7, 2011

The Housing Market Vortex Postpones Retirement Plans

Hi Everyone,

   Hope you had a peaceful weekend. I spent the weekend ridding our home of any last remaining strains of the Strep virus so that our son may safely come back home and not have to deal with the joyous illness.

   So many times, we have heard the old "Gold Watch" story, about people who stay at a company for most of their life, retire with the company, and get a gold watch and a big send-off. As times have changed, and as that has become a story of bygone days, the lofty cushion that home equity has provided for people at the age of retirement is (or already has) gone the same route.

   In a recent story in USA Today ("Loss of home equity downsizes retirement for many"), author Sandra Block quoted an AARP survey that found "Nearly 32% of adults over age 50 say their home has declined substantially in value over the past three years". Block also adds a very important, yet strikingly true, comment from Jay Butler, an associate professor of real estate at the W.P. Carey School of Business at Arizona State University, who says that, "A lot of folks will postpone retirement."

   "Postpone Retirement?" Wow. It's amazing to even think about that after working hard your entire life !

   Looking even deeper into the ramifications, Block discusses health-care costs, which are quite expensive, as well as long-term expenses, which have been covered in retirement via the sale of a home with (substantial) home equity.

   The vortex and the fallout from the Housing Market is making retirement-age folks as well as younger homeowners re-evaluate their plans, and sadly, as Block says, it is "created a dilemma for seniors who are unable to live independently, or fear they will need help in the future". Some retirement communities (such as CCRCs - continuing care retirement communities), are emphasizing the "benefits of doubling up", says Block, which means that some centers are offering savings for sharing quites in the communities.

   The lesson we can learn from this is as follows: never take anything for granted, just as the "Gold Watch" story. Always make sure you have a contingency plan, and after that, make a contingency plan for your contingency plan...I am not kidding.

   What are your thoughts? Do you find this a frightening new reality of life?

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Have a Great Week, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #homeequity #retirement #AARP #CCRC #downsize

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