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What may be right in one set of circumstances is not in another. if you ask a general question of an attorney, financial advisor, or CPA and the answer is not, “It depends”, look for a different professional.

Today’s article.

Seniors Avoid Money Troubles by Owning
Boomers thinking about downsizing are increasingly considering the possibility of selling the homestead and renting.

But Julian Zweber, a lawyer specializing in senior law, advises thinking analytically before making that decision. He says selling their home can mean a couple gives up a significant amount of security and stability in their retirement assets.

If a couple sells their home with the idea of investing the proceeds and living on the interest and renting, they are making a significant portion of their invested funds subject to “spend-down” rules before one spouse would qualify for Medicaid to cover nursing home care, Zweber points out.

“If you’re married, you can protect your home, one car, household goods, [prepaid] funeral arrangements, and a certain amount of money,” generally a maximum of $101,640, Zweber says.

People who have turned their home into a nest egg will have to spend that money, potentially leaving the healthier spouse with no place to live.

Other factors that favor holding onto the home rather than selling include the deductibility of mortgage interest and tax payments and the availability of reverse mortgages and home equity loans for emergency cash, Zweber notes.

Source: Star-Tribune, Susan E. Peterson (04/14/07)

Filed under: Trends on April 17th, 2007 | No Comments »

Daily Real Estate News  |  April 13, 2007

Top 10 Cities for Young Retirees
For those who plan to retire young, Money Magazine believes population growth, cost of living, economic potential, and plenty of recreation opportunities should be important factors in their choice of places to live.

Other important factors are proximity to a larger metropolitan area, presence of a college, and housing costs that are below $350,000 (with a few exceptions).

Here are the magazine’s top 10 picks of cities that meet these criteria and the area’s median home prices.

1. Coeur d’Alene, Idaho: $311,700
2. Charlottesville, Va.: $398,400
3. Logan, Utah: $205,400
4. Blacksburg, Va.: $233,400
5. Burlington, Vt.: $378,000
6. Anacortes, Wash.: $347,600
7. Sarasota, Fla.: $423,400
8. Hanover, N. H.: $297,400
9. Manhattan, Kan.: $188,600
10. Ames, Iowa: $176,700

Source: Money Magazine (04/12/07)

Filed under: Uncategorized on April 13th, 2007 | 1 Comment »

I wish I had worked out a way to be in South Florida for the month of April. This continual windy, cold weather is really hampering those outdoor activities. This looks like another Northern Virginia season with no Srping weather as we will go from cold to hot with no mild temperatures in between.

Filed under: Reminiscences on April 13th, 2007 | No Comments »

Fix It or Replace It?
The May 2007 issue of Consumer Reports offers consumers a timeline to determine when it’s time to say goodbye to old appliances that aren’t operating properly. The magazine took into account age, typical repair and replacement costs, and improvements that have been made in newer models.

The following list shows the age when it’s more sensible to replace an appliance rather than fix it:

• 6 years: dishwashers, over-the-range microwaves, and top-freezer refrigerators

• 7 years: clothes dryers and top-loader washers

• 8 years: Bottom-freezer and side-by-side refrigerators, electric or gas ranges, electric wall ovens, and front-loader washers

Source: Consumer Reports (04/10/07)

For some ideas on the cost of other updates go to this link http://pillartopost.com/home-repair-cost-upgrade-guide.aspx

Filed under: Uncategorized on April 11th, 2007 | No Comments »

The following article does not factor into the numbers the extra income gained over the years due to the tremendous tax breaks. It does make one realize, however, that primary residence purchases are made mostly with the heart, not the head. That’s why you hire a good Realtor advisor.

Retirement Savings Should Go Beyond Real Estate
Plan on retiring with all the equity from your home? Think again. While the benefits of homeownership are undeniable, residential real estate is no replacement for retirement savings through vehicles such as a 401(k) plan or an IRA, says Fidelity Research Institute.

Fidelity Research Institute studied inflation-adjusted returns on a dollar invested in residential real estate from 1963 to 2005 and discovered that on average returns on low-risk Treasury securities beat housing over the same period. Stocks performed even better, averaging a return of 5.95 percent versus 1.35 percent for residential real estate. Even in the Northeast and the West Coast, where the growth in real estate values has been the highest, stocks and bonds still earned more money per dollar than real estate.

This suggests that buying less house and more stocks might serve a home owner’s long-term financial interests better than overextending himself to buy a bigger house than he can afford.

Nevertheless, there are many good reasons to own a home. Fidelity’s researchers don’t deny the advantages of homeownership and the magnitude of home equity, citing a 2005 Harvard University study that concluded more than 80 percent of Americans over age 65 own homes worth $3.95 trillion, nearly a third of seniors’ wealth.

People who own their homes have net worths substantially higher than renters — no matter what their age, income level or race — and home equity can create supplemental income for retirees, the study states.

Source: The Washington Post, Martha M. Hamilton (04/08/2007)

Filed under: Uncategorized on April 10th, 2007 | No Comments »

You are not alone. City planners will certainly need to adjust for the changing needs of empty nesters and older singles who still desire to reside in an urban setting.

Buyers Want It All Within Walking Distance
The next hot market could be homes in walkable neighborhoods designed for the 75 percent of families that don’t have any school-age children.

Christopher B. Leinberger, a Brookings Institution fellow, says up to 40 percent of Americans want to live in urban places where they can walk to restaurants, shop, jobs, and entertainment. He predicts that the move to downtown may well lead the housing market out of its slump. “Downtown living is the preferred alternative,” he says.

Though Leinberger believes there are not enough condos on the market to meet demand, builders in several cities have been forced to offer incentives or transform condos back into apartments due to slow sales.
One of the best things about walkable neighborhoods is that locals are virtually income neutral. In other words, well-heeled empty-nesters and cash-strapped first-time home buyers both are able to choose the same neighborhoods, even if they can’t afford the same interior designs, says architect Rick Emsiek, a partner with McLarand, Vasquez, Emsiek & Partners in Irvine, Calif.,

Other urban living trends include:

• More sales to single women who will choose cities as they become safer.
• More pressure by cities on builder to mix residential with retail so service workers can live where they work.
• Cities will cater to the childless while families will move to the suburbs.
• Empty nesters and their grown children will live near each other in townhouses and condominiums.

Source: Builder Magazine, Sharon O’Malley (03/01/2007)

Filed under: Trends on April 10th, 2007 | No Comments »

Developers increasingly are working to attract baby boomers with more than just golf, as a growing number of communities pop up across the country that are centered on a particular hobby. Among them:

• Racers Ranch, a 1,600-acre development near Dallas that will feature 40 homes on five-acre lots, an 8,000-square-foot clubhouse, and a race track for resident race-car drivers. Developers Bill Georgas and Dan Gage plan a 40-foot-wide track with a half-mile straight-away, which will permit speeds of up to 150 mph.
• Pilot Terry Jones-Thayer is building a “lifestyle community” near Ocala, Fla.; that project will feature 100 lots ranging in size from 2.5 acres to 4.5 acres and the biggest private airstrip in the county.
• In Sheperdstown, W.Va., Peter Corum is building The Crofts, an equestrian-estate community with stables, trails and lots up to 11 acres
• Wellstone Communities LLC is working on a 191-acre fitness development outside of Dallas, dubbed Cooper Life at Craig Ranch, with 1,500 residential units priced from $400,000 to $1 million. Residents will have their own personal trainers, doctors, and dieticians and enjoy a fitness center, Olympic-sized swimming pool, and tennis courts, among other health-related amenities.

These developers acknowledge that focusing on one pastime translates into a smaller pool of buyers, but they see success in catering to a narrow niche of boomers who have the money and time to pursue a singular passion. To find buyers, they’re counting on the Internet and word of mouth.

Filed under: Trends on April 7th, 2007 | 1 Comment »

Consumers’ demand for convenience has been the greatest force shaping the appliance industry, says Kurt-Ludwig Gutberlet, CEO of BSH Bosch, the German appliance manufacturer.

People don’t want to clean, Gutherlet says, so products like ceramic cooktops are increasingly popular, and he predicts induction cooking where heat is generated in the pan not in the stove will be the next big things.

“You have a cooktop that you can put your hand on after two or three minutes. It’s very convenient for cleaning,” he says.

Another trend is consumer willingness to pay for energy efficiency. “Just look at the front-loading [washing machine]. It’s amazing. Nobody thought this very traditional top-loader market would switch so fast.”

Source: The Charlotte Observer, Nichole Monroe Bell (03/27/2007)

Filed under: Trends on March 29th, 2007 | No Comments »

Life long learning is becoming very popular around the country at universities. Locally, here in Northern Virginia, George Mason sponsors one. This is where I first heard about the program. Traveling to the Myrtle Beach Area, I noticed Coastal Carolina University has one in place. I suggest if you spend a month or more in one place away from your primary residence, that you check out if they have the classes at a local university. It is a good way to meet locals and find out about the area. What is Life Long Learning you say? Generally speaking it is courses for seniors taught by professors or experts in the field on varieties of subjects. They range from the very erudite to the very practical. The tuition is very nominal, especially compared to what a credit hour costs now days. This Life Long Learning is much more than just Adult education. There are no tests or grades and while the material may be basic or advanced the idea is that they are being offered to a very worldly and distinguished student who will offer tremendous “real world” insight.

Filed under: Uncategorized on March 27th, 2007 | No Comments »

Daily Real Estate News  |  March 26, 2007Home Trend: Oversized Mudrooms to Cut Clutter
With more and more home owners embracing second-floor laundry rooms, mudrooms are getting a new look, says Stephen Melman, National Association of Home Builders economic service director. These spaces typically are used to connect the garage to the main house and to store jackets, shoes, and other outdoor items.

They are now being called transition stations, commuter stations, and friends-and-family entrances and are being enlarged to accommodate computers, security systems, and charging areas for electronic devices. Most have cubbies and storage benches, but some wealthier home owners have included dog showers and other customized features.

Upscale touches, such as hardwood floors and crown molding, are also found in the newest mudrooms.

Source: New York Times, Leslie Kaufman (03/22/07)

Filed under: Trends on March 26th, 2007 | No Comments »