Helping Aging Parents Downsize While Building Wealth

HELPING AGING PARENTS DOWNSIZE WHILE BUILDING WEALTH

 

America is getting older. 

By 2040, about one in five Americans—or eighty million people—will be 65 or older, up from about one in eight in 2000. The number of adults age 85 and older (the group most often needing help with basic personal care) will have quadrupled by 2040. And while overall longevity rates are declining, affluent and well-educated individuals are still expected to live past their eighties.

An aging population is expected to strain government budgets because younger people are much more likely than older people to work and pay taxes that fund Social Security, Medicare, Medicaid, and other public-sector services. The latest Social Security Administration projections indicate that, by 2040, there will be 2.1 workers per Social Security beneficiary, down from 3.7 in 1970.

Meanwhile, the cost of long-term care keeps going up and most Americans keep believing—incorrectly—that the government will cover most, or all of it.

“Our population is aging, living longer, and not prepared.”

 – David O’Leary, president and CEO of Genworth’s US Life division

Preparing A Place For Your Aging Parents

Caring for our aging loved ones in their later years is becoming a costly challenge.

Nationwide, a private room in a nursing home now costs more than $8,000 per month, or $97,455 per year, according to a report by Genworth Financial. That’s an increase of nearly 50% since 2004. A semi-private room is less expensive, but still carries a hefty price tag: $85,775 per year. As it is, 87% of adults over the age of 65 want to age in place, according to an AARP survey, and nearly three-quarters of those will eventually need some kind of long-term care, reports Genworth.

Given the staggering rise in nursing home costs and the uncertain long-term financial viability of Medicare and Medicaid, a growing number of families are seeking to add a “senior-friendly flat” to their aging relatives’ properties. This can be rented out until the time comes when Mom and Dad are ready to move-in. In the meantime, the rental income is held in escrow to help cover future in-home healthcare costs. Once the seniors move into the smaller flat, the main residence is rented out to outsiders, or used by the younger generation who wish to stay close to their parents and save money on in-home healthcare services (which can run as high as $47,000 per year, for homemaker services, and $49,000 annually for an in-home health aide).

How An ADU Can Help

Adding a “granny flat” or auxiliary dwelling unit (ADU) to an existing property is not only a creative solution to allow seniors to age in place and save money. It also boosts the property’s resale value. According to Remodeling Magazine, real estate professionals in high-tech areas of the West Coast (Silicon Valley, San Francisco, North Bay, etc.) report that most of the homes sold in recent years that included a recently constructed ADU more than recouped the ADU project cost in the resale—well beyond, in most cases.

To help alleviate the housing crisis, the California legislature recently passed a series of bills ( “Homesellers, New ADU Housing Bills Could Add Significant Value To Your Home) aimed at facilitating the addition, or new construction, of auxiliary dwelling units. This easing of restrictions, coupled with the potential for rental income and higher property values gained by the addition of an ADU, are allowing families to build wealth. But more importantly, it gives loved ones the chance to age in place and save money on senior care in the process.

Rental income, higher property resale values, costs savings—what’s not to like?

Can We Help?

For more information on how we can help with your downsizing and life adjustments needs, please contact Julie at 650.799.8888 or Julie@JulieTsaiLaw.com to schedule a free consultation.

    

Seniors

Seniors

 

Seniors often have unique requirements in their real estate needs, whether buying or selling their home.  Julie is a certified Senior Real Estate Specialist (SRES) and has extensive experience for over ten years helping seniors in making their best decisions, solving their problems to achieve their real estate goals.

 

Senior Sellers

 

There are many different reasons that seniors choose to leave the home that they have enjoyed for many years.  But new challenges and opportunities arise, and needs change.   You may want to live nearer to grandchildren, or perhaps there are physical limitations that now require a different style or floor plan or size of home.  Maybe you simply want the freedom from maintaining a home that is now larger than you need.

 

Whatever the reason for your move, Julie will help you define your real estate priorities, and connect you with resources and professionals that can help you answer any questions you may have about the transition to your next home.   With Julie’s network in Leading Real Estate Companies of the World, Luxury Portfolio, Sotheby’s, CRS, CIPS, AREAA,  she can provide excellent referrals if your move takes you away from the Bay Area.

 

 

What will I do with all the belongings that are really so much more than “things” to me? 

 

It’s physically and emotionally challenging to sort through a lifetime of memories.  Julie can refer you to trusted, caring specialists who will help you with the decisions about what to keep, what to give away to family or friends, what to donate, and what to discard.  She will also help you make connections with local providers to pack and move your furnishings, and to arrange for donations of unwanted items.

 

 

Should I move to another home or a townhouse or condominium? 

 

There are so many options when choosing your new home and your new location.  Julie will help you to clarify your unique goals for your next home,  and connect you with people to assist you in your transition into your new home, even if your home is in a another state or another country. Julie has global contacts.

 

Do I need to repair the house before selling? What are my options?

 

Your home can be sold “As-Is” or “Off-Market” or even handled as a “Private Sale” to minimize any activity in or out of your home, and to and facilitate a quick sale.  With these methods, it is not necessary to have an open house. Julie will discuss with you the pros and cons of “AS-IS” sale versus working on repairs and renovation before putting the house on market.

 

At your request, Julie can evaluate your home’s condition and provide suggestions on the areas which may be worth improving for greater return on your investment. Sometimes just a bit of yard clean-up outside or minor reorganizing inside is all that is needed to positively impact the price you can receive for your home.

 

Julie has long-standing, reliable professionals on whom she depends to handle any minor or major repairs.  She can direct you to local providers so that you may choose just the right contractors for your needs. If you prefer, Julie can arrange for work to be done by her preferred vendors, who can get work done in timely manner and with great prices.

 

 

Senior Buyers

 

 

The Next Step Towards a New Home

 

You may have already sold your home and are ready to make a new place “Home.”  Now you’ll need to consider your next steps:

 

What type of community do I want to live in, and Where?  What specific amenities are important to me, like a golf course or close-by to shopping?  Many seniors look at this move as an opportunity to enjoy a lifestyle that is different from when they were raising their family or pursuing their career.  There are many dynamic and active communities and neighborhoods all over the Bay Area and across the country that will provide wonderful solutions to fulfill your interests and your needs.

 

How much do I want to spend?  You may need to speak with financial advisors, attorneys and bankers before determining this amount. Julie knows the best in the area.  They can advise you and guide you to make well-reasoned decisions.

 

Do I want a mortgage?  How do I secure one in today’s market? What are the current rates and terms?  Julie knows the experienced lenders and brokers in this area with proven track records in preparing and processing mortgage applications.

 

Do I want a primary residence or investment property or both? Should I look for a 1031 exchange? If you are purchasing with a 1031 exchange Julie can help you through the complicated process with multiple transactions in timely manner.

 

Julie will gladly help you with the purchase of your next home.  Julie has worked with many seniors throughout the years and has helped them make smooth and successful transitions to their new chapter in home ownership, and life!

 

Her clients frequently say that in addition to Julie’s knowledge and experience, they appreciate her patience and kind manner.  She takes the time to listen to them, understand their needs and explain options and give them wise advice without ever rushing them. She truly has your best interests at heart.

Seniors Selling

Selling?

 

There are many reasons people choose to leave a home that they have enjoyed for years, sometimes decades. New opportunities arise, needs change. Julie will help you clarify your real estate priorities and connect you to trusted professionals in the Bay Area and worldwide who have the information you need for making important decisions.

 

 

Should I move to home or a townhouse or condominium? Julie will explain the variety of possibilities from which you can choose.

 

What will I do with all the belongings that mean so much to me?

Sorting through your personal items can be challenging, emotionally and physically.  Julie knows caring specialists to help you with decisions on what to keep, give to family, or donate. She will connect you with careful, reliable packers and movers.

 

Do I have to repair the house before selling? What are my options? Your home can be sold “As-Is” or “Off-Market/Private Sale” to minimize the activity coming into your home, or to facilitate a quick sale, without having an open house. Julie will explain the pros and cons of selling “AS-IS” versus repairing or renovating your home for market. She can provide suggestions to increase your profits at sale. Sometimes just a bit of yard clean-up or minor reorganizing inside is all that is needed.

 

Julie has developed an enviable list of reliable professionals on whom she depends to handle any repairs or renovations, minor or major, in a timely manner and reasonable rates if you choose to make repairs on the house.

 

 

Julie is your local SRES specialist. She has the experience and the information you’ll need to make your real estate decision.  She will guide you through your options and connect you with the right professional resources to make your next move smooth and worry-free. Call Julie at 650-799-8888  or email her today!

 

Senior Buying

Buying?

 

You may have already sold your home and are ready for your new one. Now you will need to consider your next steps:

 

What type of community do I want to live in, and where?  There are so many options these days.  Which amenities are important to me – golf courses? Close to shopping?  Many seniors look at this move as an opportunity to enjoy a different lifestyle than when they had while pursuing a career or raising a family. There are many dynamic, active communities and neighborhoods throughout the Bay Area and around the country that offer wonderful solutions to fulfill your interests and your needs.

 

How much do I want to spend? You may need to speak with financial advisors, attorneys and bankers before determining this amount. Julie knows the best in the area to advise you and guide you in making well-reasoned decisions.

 

Do I want a mortgage or should I pay cash?  How do I secure a mortgage in today’s market? What are the current rates and terms?  Julie knows the most experienced lenders and brokers with proven track records in preparing and processing mortgage applications.

 

Do I want a primary residence, investment property, 1031 exchange?

Julie is very experienced with 1031 exchanges and investment properties, in addition to primary residences. She knows how to guide you through the complicated process of closing multiple transactions in timely manner.

Julie has worked with many seniors throughout the years, helping them make smooth and successful transitions to the next chapter of home ownership. Julie will gladly help you with the purchase of your next home.

 

Julie’s clients frequently say they appreciate her patience and kind manner, in addition to her knowledge and experience. She will take time to listen, really understand their needs, explain options, and provide advice from her extensive real estate experience…without ever making them feel rushed. When you are Julie’s client, you can feel secure that she has your very best interest at heart.

 

Julie is your local SRES specialist. She has the experience and the information you’ll need to make your real estate decision.  She will guide you through your options and connect you with the right professional resources to make your next move smooth and worry-free. Call Julie at 650-799-8888  or email her today

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