Yes, the recession of 2008 has to do something with why so many are moving out of the Golden State and downsizing. Since the recession most homeowners delayed moving, feeling the pain of the equity in their homes plummet and the stock portfolios plunge. Who wants to look at mutual fund statements in such state? Many seniors put off retirement because of the retiring value of real estate. However, real estate is cyclical. As values bounced back, retirees have begun selling and are ready to move for the following four reasons.
- Housing values have rebounded (big time).
Underwater mortgages are mostly a nightmare of the past. Most seniors now have substantial equity in their home and are able to cash out.
- Even with proposition 13, it’s expensive to live in California.
Gasoline in the Golden State is the most expensive in the country. There are seven states which don’t have a (state) income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Residents of New Hampshire and Tennessee only pay tax on dividends and income from investments.
- The opportunity to buy up.
Not all seniors are buying smaller homes; many are moving out of state and purchasing their dream home at prices that are bargains compared to California real estate.
- Wanting less maintenance (and more freedom).
Other seniors are tired of stairs and maintenance, they want to simplify their lives by having a smaller home and/or less yard.
Time to downsize or relocate to a single level home? Thinking of moving to a retirement community or out of area? Don’t wait to start tomorrow. Start today and get all the information you need for your big next move with the support of Metropolitan Estates.