If your retirement plan includes the equity in your home, Pay attention!

We developed TheLifeStyle55Network because we have identified a demographic curve. A curve that shows the majority of Boomers peaking in 10 years time. This may sound rather ambiguous however looking at it from the aspect of Finance and Finance being heavily related to real estate and those finances being needed for retirement – we now have a potential problem!

What are we talking about?
If your retirement plan includes the equity in your home, Pay attention!

What would happen if you planned on selling your home (for any reason) and the day you put the sign on the lawn, 5 of your neighbours did the same thing? Would this be a good thing? Probably not! This will completely shift the supply and demand ratio to the buyers. YOU’RE A SELLER!!! This is not good.

What happens if you plan on selling and the interest rates have increased to 4 or 5%. Could potential buyers afford your home? Will the buyers demand continue? Sellers are nothing without Buyers.

If we simply look at these 2 scenarios we can see a huge concern to your retirement plans. Unfortunately we can’t see the future but given the facts these 2 scenarios are very possible and they will have an impact on your retirement or future lifestyle.

Still don’t see it?
If we know the majority of the population are Boomers and they are aging- looking at retirement, it would be logical that this would be a large part of the population that would be on the market to sell their very expensive houses. If several of them come on the market at the same time, and the market begins to flood with properties, buyers will simply throw out offers waiting for a Seller to accept, forcing the comparables to lower prices in an attempt to catch the next buyer. Do you think the children of an estate are too concerned about getting top dollar for Mom and Dad’s house? or a surviving spouse fighting for money as they face health and emotional concerns? Or a Senior needing to transition to a care community? Supply and Demand.

Take the same scenario and add increased lending rates. We know the rates will be increasing, we just don’t know by how much. Remember rates at 21%? Your investments made money but you couldn’t afford a house costing $150,000! Buyers will be faced with 5% interest and a purchase of $800,000+.

TheLifeStyle55Network works with you by offering you professional Accredited Senior Agents – REALTORS® and  Financial Advisors with Guaranteed Income focus and strategies to move you towards your new Lifestyle. Its not about selling a house and buying a condo. It’s not about ‘downsizing’. It’s not about becoming ‘old’. It’s all about planning your future to reflect a lifestyle you want.

These tips and scenarios are that of Paul Cutajar. Founder of The LifeStyle55 Real Estate Network, focused on implementing  programs for Mature clients . Combining Master Accredited Senior Agents  REALTORS®, Financial Advisors, Professional Care givers, Sell n Stay programs and Affordable Housing for Seniors.  www.TheLifeStyle55Network.com