Life Style Choices

Living in a dwelling that you own is already a lifestyle choice that involved the purchase of that property. If you are currently renting or living in a property you do not own, you have also made a lifestyle choice. This portion of my website is an open discussion on changing your lifestyle from where you are now to where you want to be.

If you have not purchased a dwelling before, then you  probably have  a little more carefree lifestyle in that you are not responsible for maintenance of that property. Being a renter or sharing space with someone who owns the place may exempt you from the normal concerns and jobs that fall on a property owner. There are advantages to that status, namely:

The Landlord or Owner:

• Has made an intitial investment in the property.
• Has a monthly mortgage payment.
• Pays the taxes and Insurance on the property.
• Is responsible for repairs and maintenance - lawn, roof, exterior, interior, mechanicals.
• Suffers any loss in rental payments or damage to the residence.
• Is affected by the market value of homes in the area.

The Tenant:

• Not so much - the monthly rental payment.
• Keep the property in the same condition as when the lease was signed.

If you own the property you are living in, changes in circumstances and the stage of your life can be a time to rethink your current living situation:

• Illness or loss of a spouse/partner/roommate.
• Retirement, with plans for travel or less responsibility.
• Downsizing or finding a different configuration of rooms/floors that will be more acceptable to your current needs.
• Health problems that make maintaining your current home a difficult situation.
• Addition of family members needing to share your living space.
• Need for a change in climate or neighborhood.
• Need to capture the equity in the property and redistribute. 

Let's look in detail at each of these possibilities:

 ILLNESS OR LOSS OF SPOUSE/PARTNER/ROOMATE:

Whether there is time to plan this circumstance, or whether it comes abruptly, out of neccesity or choice, it may require a change of lifestyle that will encompass housing. Rather than the first impulse to surface being the best - that of selling the present property - it may be well to let an amount of time elapse before making this drastic decision. Undoubtedly, friends and family will offer advice and solutions, but it may be best to take a longer look at where you really want to be within the coming 1-5 years. Making one carefully thought out move can eliminate a second change within a short time if you are not happy.

RETIREMENT

Whether by plan and choice or as an unexpected occurance during these uncertain times in our economy, a form of Retirement may be your current situation. It may be a circumstance where you have planned and invested and saved, and are now ready to enjoy having more control over your time. This may be the time to enjoy the family more, and perhaps diving into those travel destinations that have been postponed in the past. If however, it is a time of concern over finances and affodability, it may be prudent to consider financial downsizing with your residence. It could be as extreme as sharing living space with other family members as an economy and way to enhance relationships - if not in your present home, in their home.

It could also be a time to consider a smaller dwelling, or perhaps selling your present home and leasing or moving to another community with a lower cost of living. Sometimes, just a move of less than 100 miles can locate a suitable home for less money and make retirement more enjoyable and comfortable.

DOWNSIZING

The children are grown and out of the nest, you provided an adequate home for them during the many years you were together, and now it might be a time to look around and decide if you really need all the space you have. Undoubtedly, you have accumulated sufficient "stuff" to fill this dwelling - and perhaps then some, but maybe it is time to lighten the load and start sorting through the things you have saved. Better that you do it than leave the chore to family or friends. During the years of World War II, families went through this process in order to save money and make do with what was available. Different family groupings emerged in one home, or rooms were rented, second floor bedrooms were converted to an apartment. Much on the same principle, it might be time for you to re-evaluate your situation, and fill up the house with others, or find something smaller and more manageable.

 HEALTH PROBLEMS

There may be a time in your lifespan that the present house you live in just holds too many physical challenges for you to handle. This might be any number of issues - too many stairs,;bedroom on the upper level; kitchen that is difficult to work in; bathroom(s) that won't accomidate your physical needs; large yard or garden that is too difficult to maintain; detiorating mechanical and/or structural components - all or one of these deficiencies could cause you more problems than you need.

The first consideration might be to consult a Contractor who could retrofit your space to accomodate these needs. Hallways can be widened as well as door frames and doors, bathrooms can be made accessible for a wheel chair or scooter, and safety rails can be installed, steps can be eliminated with ramps or elevators, etc. It may be possible to add a main floor bedroom or modify an existing room (dining room as an example) to work as a bedroom. The primary consideration should be to make the home more user-friendly and not worry about resale. Most of these changes can be reversed, or they may prove to be an asset to a future buyer. Kitchens can be modified with lower counter tops, appliances that can be accessed from the front. Hard surface flooring might be more conducive to walking than the existing carpeting. Lighting may need to be enhanced - light switches and outlets may need to be moved to a more accessible level.

All of these suggestions point to being creative before electing to sell your beloved home and move to something new with less features. Think about it.

 ADDITION OF FAMILY MEMBERS TO SHARE YOUR SPACE

A trend is developing that brings families back together in the same dwelling as a solution for aging in place and boomerang children. These two terms are also recent additions to our vocabulary - Aging in Place, which means adapting the present housing available to your needs rather than moving to a care facility. This comes in the form of mature family members moving in with their children or other relatives and creating an inter-generational household. A feasible situation might be for the mature member to sell their present home and apply a portionn of that equity in retrofitting the home of the relative to acdomodate the addition of the mature member. This could be in the form of finishing a lower level, adding a bedroom and bath, or reworking exisiting space to fit their needs.

Boomerang children refers to adult children who have left home, and for whatever circumstance, needs the support and assistance of the parents once again and return home. The need might be financial or a matter of health as examples. The same principles would apply as discussed in the above paragragh. In both scenarios, this can be a very positive and relationship building experience for everyone.

 NEED FOR CHANGE IN CLIMATE OR NEIGHBORHOOD

One well-tried and loved experience has been splitting time between an exisiting home and a home or condo in a warmer climate. Many Midwestern home owners have purchased homes, condos, mobile homes, travel trailers and spend the harsh Winter months in warmer locations, returning to their primary homes in Spring. Arrangements need to be made for lawn care, etc. and security checks on the home while gone, but most have neighbors, family and/or friends who seem to accomodate this need. One advantage of this arrangement is that many folks who follow this pattern for a few years seem to have a better concept of where they want to permantly live when they retire or tire of the travel. Often they have developed friendships in both locations and choose the destination based on these contacts.

 NEED TO CAPTURE AND REDISTRIBUTE EQUITY

if your home is paid off or the equity is considerable, a consideration might be to find a way to extract some of the funds for investment in other equities or use it to pay off smaller obligations. This could be accomplished with a new mortgage, either short-term, long term, or on a revolving credit arrangement (home equity loan). Payments can be tailored to fit comfortably within your budget and could have the long term effect of allowing more spendable cash with the elimination of credit cards and other credit obligations.

Reverse Mortgages are promoted regularly on television, but caution needs to be taken with considering this solution. Be sure to check on the Closing Costs and fees and the interest rate to determine how they compare to conventional financing. This is generally not the best solution if your credit is good and you have strong equity.

The comments and suggestions shown above are intended to be just that - thought to stimulate your thinking about options and avenues to consider when a change of lifestyle involves housing. Consult your Investment Counselor, Attorney, or a Realtor.