Should older seniors sell up and rent instead?

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If you’ve owned your home for most of your adult life the concept of selling your property and renting may be somewhat hard to grasp but could it be the best option? Ted Rechtshaffen is president and wealth Advisor at TriDelta Financial and he believes that for some older seniors it may make sense. He says that as prices can drop sharply and take many years to recover; that fees for downsizing will likely run to many thousands of dollars; and that if a move is required for health reasons it can take time to sell and free up the cash that’s needed. While much of this argument may not be relevant in today’s market, we know it could change, and Rechtshaffen suggests that you should be looking to live in a property you buy for at least six years. Read the full story. 
  • Angela Wong-Liao - Invis Inc on 2014-10-02 11:00:14 AM

    In my opinion, it depends on when the seniors sell their homes, if the senior is in his/her mid or late 70s, it may be good to sell and simply move into a retirement community close to nursing home, rent is a good option in this situation. If the senior is his/her mid 60s, it may be good to stay at his/her existing house if he/she can manage the house and they want to stay at their own home, this type of senior can consider "Reverse Mortgage" should they require funds to subsidize their retirement income. It is very difficult to determine which is the right decision subject to individual situation.

  • Brian Lambert on 2014-10-02 12:07:27 PM

    This is the type of rhetoric I hear all the time from Financial Advisers. "Sell your home and rent" we'll take care of your investment proceeds. Or here is another one, "Home owners shouldn't be concerned about paying off their mortgage" You should instead be investing with us. This goes against everything I teach my clients. Being a Mortgage Broker and having an investment and insurance business puts me in a unique position for advising clients. Their plans always start with debt elimination through mortgage refinancing. 65% of my clients can afford to put the cash saving, on that paid off debt, directly towards their mortgage; this is an aggressive approach to paying off their mortgage. It takes them from a 20 year Amm to a 10 year Amm in over a 5 year term that is the difference of paying down say $25K to paying down closer to $100K. I have yet to see a client that wasn't interested in being mortgage and debt free in retirement. Being in business as long as I have, I've had the pleasure of witnessing more of my clients reach mortgage freedom. Why would any retiree want to sell their home just to end up paying $1,400 a month in rent. What I've seen is just the opposite. Retiree's are staying in their homes longer, they enjoy their homes, their gardening and it keeps them active. So, the question was :Should older seniors sell their homes and rent?" I have yet to see a client of mine that have paid off their mortgage, want to sell, in fact they enjoy their homes more than ever through their retirement years. Stop listening to these jokers, all they want is your money. Start planning for a better future with a plan to be mortgage free. When you do reach those golden years you will be grateful that you did?

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