Quote:
Originally Posted by Biggd
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 caught the top of the market, JMO.
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Big-
At the risk of going off-topic, your neighbor had to put down
400K to reserve a spot at an Assisted Living? I've not heard of that before...we looked at a lot of Assisted Living places when we moved my in-laws into one, and the most that had to be paid up front was one month's rent. And you are correct, the rent is not cheap...I think it is like $18K/mo for both in-laws, (they charge by the person and by the services required for each).