I've just returned from the Bahamas. What a place; warm breezes; crystal blue water; a little bit of paradise. So is my lovely home in the states, a nice peaceful spot in a thriving city. Both places serve a purpose in life, but what is that purpose? As I grow older and my adult kids seem to call a bit less, I wonder about my future...and I wonder; what is home? Many of us have fond memories of what a home is, others do not. If you're one of those blessed, lucky ones to have had a great "home" life, I'm going to speak to you for a minute. More specifically, to those of you born between 1946 and 1964, and are currently homeowners. Especially, to those of you who have lived in that same home for many years now. My distinction here is to compare a home to a house. My feeling is, what was once a fully bustling home, has now become something different. So here goes:
Baby Boomers, you have been told your whole lives that owning a home is important, and that is true. However, is the equity in your home substantial enough to allow you to live somewhere else for years to come and never mow the lawn again? Liquidity, namely the possession of money or assets that can be turned into money quickly, should be your new goal. Sell your big house—you can take your memories with you—and be free to take some time to consider your many options. Even if you rent a new apartment for the next few years, the improved lifestyle in a housing setting that suits your current needs, desires, and abilities will make you wonder why you waited. Why should you move before you know where you will be next? Because, the very act of staying somewhere when it’s time to move on keeps you from thinking freely.
For many Boomers, the idea of giving up their homes to bounce around the planet having fun, seems wasteful. Aside from the emotional attachment they have for the place with so many wonderful memories, they also view their house as a valuable financial asset—maybe the most valuable one they have. All those hard-earned mortgage payments, coupled with steady appreciation, are one big equity paycheck that they can cash or pass on to their children.
Except the truth isn’t quite that simple. Big suburban "McMansion" owners have the potential to face a harsh reality. Despite the impressively high appraisal of a home’s value, the owner risks losing a huge portion of their investment over the next several years, because there are simply may be too many sellers rushing for the exits all at once in a couple of years. We have all lived through our share of housing downturns. You know the feeling, too many sellers create a bit of a desperate situation. Are you better off selling now, living it up a bit and then settling back down again?
Everyone has a different story, and many of you should stay where you are. Age in place has it's advantages. However, many of you need to ask yourself, what am I waiting for? You've worked hard, it may be time to hit the beach on a more permanent basis-while you can still enjoy it! Or, go ahead and move closer to the grand kids. Carry the memory of home with you where ever you go. Don't hang on to a house thinking it's home; we have heard many times "home is where the heart is". Is your heart whispering to you? Mine has been.
This excerpt comes from my book Radical Housing Solutions. You can read the rest of the story by picking up a copy today.