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Real Estate Professional | 02 Oct 2014, 07:50 AM Agree 0
Calgary MLS sales near record level for September… Fund management company says BoC needs to revert to talks of interest rate rises… Could some seniors be better off renting?
  • Linda Williamson, broker | 02 Oct 2014, 09:26 AM Agree 0
    Yes some seniors could be better off renting but financially not many.
    This is very true if they are very senior and it looks like the market is headed south.
    Also individuals who cannot maintain a property without a huge amount of paid help
    plus a health problem are the only ones that will be better off renting.
    This of course means they also would have to have sound advice as to how to
    invest their equity from the home in a safe place that earns a good interest.

    Most others would actually lose money in the end by selling and renting.
    When you add up the rent paid out, the taxes on the invested money and the loss of the
    increase in equity in the property, it usually pays to stay where you are with help
    or buy a low maintenance condo or house.
    I am an Accredited Seniors' Real Estate Agent with Keller WIlliams in Toronto and
    have been helping seniors and their children through this decision making process to sell or not.
    If it is best for them to sell, then how to do so and where to go as there are so many aspects to consider.
  • Regina Mumford | 02 Oct 2014, 10:46 AM Agree 0
    In my experience as an Accredited Seniors' Real Estate Agent at Royal LePage with extensive exposure to the Seniors' Housing Market in Mississauga, the profile of a Senior purchasing a Retirement Residence Condo is single or a Senior couple, healthy and still active, between the age of 55 to perhaps early 80's, presently living in their multiple level detached homes with costly maintenance. Life in the private Retirement Residence Condo enable seniors to stay active, meet other seniors, enjoy organized activities and even have their meals in the in-house "5-star" restaurant. Seniors living in these Retirement Residence Condominiums have an option to seamlessly transition to a Full Care Retirement Rental (with optional graduated care services) in an environment familiar to them when their failing health demand more support, such as constant medical dispensing and preparation of meals. They are in a safe environment with professional nursing and retirement staff and their families would not have the burden of constantly ensuring they are safe in their own homes.

    Renting a privately owned Senior's Retirement Condo works best especially when you have a savvy financial manager ensuring that your investment keeps well ahead with inflation, cost of living, income taxes and his financial management fees. Renting is also a good alternative if you are single and have health issues which may require full care within 5 - 6 years. The transition to a Full Care Retirement Rental is also available to someone renting a condo.

    My favourite scenario is when the children purchase the Senior Retirement Condo and the aging parents pays for the carrying cost or pays market rents while staying there. When the parents graduate to Full Care Retirement service, the children have the option to rent the condo to someone else, sell or maybe move into it themselves. The aging population is growing and if renting is your parent's option, buying one is a great investment in the long run. Don't forget when buying a Senior's Retirement Condo that location! location! location and the reputation of the service provider offering Full Care Retirement Service is paramount.

    Finally, it appears today that downsizing from your almost life-long detached home is an universally inevitable step to transitional your golden years and it gets increasingly daunting to make that decision the later it gets.
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