retirement

Choosing a Home After Retirement

July 18, 2017 By Chris

Retirement doesn’t mean that it’s the twilight of a person’s life anymore. Many people are living well into their eighties and nineties while maintaining active lifestyles. According to a survey by Merrill Lynch and Age Wave, two-thirds of retirees desired to move after retirement with the reasons ranging from “being closer to family”and “reducing living expenses”. If you’re ready to move after you’ve retired, what should you look for in a new home?

Location, location, location.

Florida is often associated with snowbirds and retirees because of it’s moderate weather year round and it is a large attraction to many retirees, especially those who have spent the majority of their lives in areas that deal with snow and cold temperatures for a good portion of the year. Besides favorable weather, many retirees want to be closer to their families and friends or a place that will allow them time to enjoy a hobby or passion that they didn’t necessarily have time for while working.

Consider the future.

With the average full retirement age ranging between sixty-two and sixty-five and an increase in life expectancy, retirees have two or three decades to take advantage of that time frame. This next stage in their lives should be a large consideration when finding a new home. Down-sizing is a common practice, with retirees wanting to avoid higher housing costs and home maintenance that takes excessive time and effort. On the flip side, other retirees are seeking out larger homes to accommodate visiting family and friends. Retirees should also consider the logistics of owning a multi-story home with stairs possibly becoming problematic as they get older.

The cost.

The majority of retirees live off a fixed income. When choosing where to live, retirees should not only think about the cost of a home but also the cost of living expenses, healthcare, and taxes in a particular area. Pensions and social security are not taxable in Florida making it a financial ideal for retirees. The idea of home ownership is also something that retirees may want to consider retiring from. Depending on the area, renting may be less expensive than owing a home but retirees don’t have to sacrifice a home for the option to rent; many investors are looking for stable tenants ready to make their property a home.

Whatever your goals for retirement are, don’t feel like you need to settle. The perfect place to meet all of your wants and needs is out there!

This post was originally published July 2015. It has since been updated to reflect current information and edited for clarity.

8 Tips For Planning Your Winter Stay in Florida

November 10, 2015 By Chris Leave a Comment

It’s that time of year when our northern seasonal visitors, aka Snowbirds, begin to flock south to enjoy our warmer weather, abundant Florida sunshine, beautiful Gulf of Mexico beaches and worry-free winter. But, before y’all leave your homes in Des Moines, Oshkosh, Ottawa and South Bend, here are a few things to keep in mind before you lock the door and walk away.

Plan ahead. If you’ve never left your home behind in search for Florida’s winter warmth, keep in mind that November through April are the busiest times of year for traffic, restaurants, shows, actually pretty much anything where you may have to wait. They’re also the best weather months. They’re a big part of why we live here. So now, put some thought to where you want to go and how long you want to stay. If you’ve never spent time in Florida you might consider splitting your time between two locations to taste the differences. We’re a bit partial to the west coast, especially the greater Tampa/St. Petersburg area.
Get a checkup. Be sure you’re in good enough health to make the drive south. Also, be sure to bring enough of your medications to last through your stay. If you must get your medications while here, be sure to bring your prescriptions. And make sure you’re up to date on any immunizations you may need. Consider getting a flu shot before you head out.
Get your paperwork in order. Make sure your important documents, i.e. investment reports, wills, etc., are updated and secure,
and have a close friend or family member who knows where to find them in case they’re needed at a moment’s notice.
Copy your travel documents. My wife and I always make two photocopies of all our travel documents, passports (make sure they’re up to date), credit cards (check expiration dates), etc. We keep one copy with us, and leave the other copy with a close friend or family member in case something is lost or stolen.
Travel insurance. For real peace of mind, travel insurance can’t be beat. It’s relatively inexpensive, and it provides you with coverage for cancellations or sickness. Most plans also cover irritating things like lost bags, and even a helicopter rescue if you’re planning on climbing Mt. Dora.
Pack smart. Remember, you’re coming to the tropics, so you don’t need that much. Chances are you’ll also be staying where there are laundry facilities. You can do a load or two on the ride down if need be. Keep in mind that you don’t need to buy all your shampoo, razor blades and Comet cleanser before you leave. Buy that stuff here; our local businesses will appreciate it.
Prepare your home. Have your mail forwarded, or arrange for it to be picked up and sent to you. Put your newspaper delivery on vacation. Clean out your refrigerator. Unplug your appliances and install light timers. If you’re home security system needs a check up, have it done now in case something needs to be done.
Share your plans. Make sure your friends and family know where you’re going (if indeed you want them to know), where you’ll be staying and how to get in touch with you in case of an emergency. At the very least, telling your friends in Buffalo that you’re “wintering” in Florida will make them turn purple with envy.

While you are here and are interested in seeing what is available within the St. Petersburg, Tampa real estate market, contact us. Hounchell Real Estate looks forward to having you here and reminds you that there’s never been a better time to buy that second home or vacation condo in St. Petersburg, Florida. We are the area’s leader in general real estate, pre-foreclosure, short sale and foreclosure markets throughout the Tampa/St. Petersburg area.

Editor’s note: This post was originally published December 2011. It has since been updated with the latest information and edited for clarity.

What Is a Reverse Mortgage and Will It Help Me Retire?

March 3, 2015 By Chris

For the past decade, reverse mortgages have been a buzz term in the conversation about retirement. TV commercials starring familiar actors have been touting the benefits of such loans. Lenders have been calling these loans the key to retirement. While it sounds promising for many people planning retirement, homeowners aren’t sure what exactly a reverse mortgage is and how it can make their retirement stress-free.

What is a reverse mortgage?

A reverse mortgage is a loan product that allows the borrower to access the equity in their home. It differs from a conventional refinance because it does not require monthly payments to be made. These loans can either be fixed or adjustable rate. Not all borrowers can apply for the loan, however. A borrower must be at least 62 years old and the property they are attempting to mortgage must be their primary residence. The mortgage underwriter determines the amount of equity the borrower can access, after all outstanding liens on the house are paid off. The loan becomes due for repayment should the borrower pass away, sell the property, or move out of the property for more than a year.

How can a reverse mortgage help with my retirement?

Borrowers don’t need an income to qualify for the loan which has obvious appeal to retirees. There are several different ways to structure a reverse mortgage including a lump sum at closing, a scheduled monthly payment for a term or the tenure of the borrower’s life, or a line of credit. Since every person’s situation is different these options allow the borrower to tailor the loan to their needs. It’s an easy way to liquidate the equity in their home to use however they’d like. Reverse mortgages also allow borrowers to remain in the homes they’ve owned for years.

What’s the catch?

A reverse mortgage isn’t for everyone over the age of 62. Financial advisers recommend that reverse mortgage applicants have exhausted all of their other assets before applying. Reverse mortgages are more expensive than traditional mortgages; there are associated origination fees, servicing fees, mortgage insurance, and closing costs. Borrowers will also still be responsible for homeowners’ insurance and property taxes. Borrowers should also be aware that their heirs will need to pay back the entire amount of the loan plus the interest accrued or else forfeit the home to the bank upon the death of the borrower(s).

As with every financial decision, you should consideration all of your options and the pros and cons for each. We also recommend that you contact a financial advisor or attorney well versed in reverse mortgages before you finalize any mortgage.

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