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Originally Posted by TomC
some good ideas... only thing about a reverse mortgage is that it is only applicable to one's primary residence. Of course a regular cash-out mortgage could also extract cash from the property.
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Pretty tough for a retired person in their 70's and 80's to get a regular mortgage with no income. I also think it would be difficult to get someone to buy it and let you continue to live in it without a substantial monthly rent. A reverse mortgage is probably your only option.
Just to clarify, my neighbor is moving into an assisted living facility in Peabody Ma. because his wife needs constant care. He needed 400K buy in money to reserve their apartment which he didn't have, thus the reverse mortgage. So, he needs to sell no matter what! The stock market taking a nosedive yesterday won't help the real estate market. The property is on the market for 1.25 million. By the time he pays off the real estate fees, reverse mortgage, and capital gains taxes there's not much left. It may seem like he will have a lot of money left, but those assisted living facilities get a hefty monthly rent that will eat into that money depending how long they both live.
My neighborhood is starting to turn over as a lot of my neighbors are in their 80's. Another one of my elderly neighbors cashed out last spring and sold his waterfront home this past summer for 1.55 million and bought a brand-new home in Meredith away from the lake for 1 million. Another one sold a family camp for 1.3 million and cashed out. It looks like they both may have caught the top of the market, JMO.