The Paid-in-Full Illusion
“My house is paid off. Why on earth would I want to join a program with a monthly service fee attached?” This is a fairly common question in our office, and one that took me a while to answer properly. With time comes practice and nowadays, after assisting hundreds of families with their senior living decision, I know how to help visitors put their house into perspective.
First, you may be mortgage-free and own a clear title to your property, but houses are never paid in full. Think of the money you have spent recently (or need to spend in the next couple of years) on roof, gutters, deck, windows, blacktop, and the heating and cooling system. Don’t forget the major appliances: some will need a repair or to be replaced altogether. And remember the yard work, parts of which you will not enjoy doing yourself forever. All of the above come at a cost. This cost may actually be greater than your old mortgage payments, even before adding on another big one that I kept for last: your real estate taxes. Instead of keeping you up at night, those costs will be combined into a regular and predictable amount if you move to a CCRC.
Next, let’s think a moment of what your house can and cannot do for you. Yes, hopefully your house has been a fine investment (in addition to being a roof over your heads during all those years) and you can sell it for more than what you bought it for. But it is an illiquid investment. Today’s favorable real estate landscape can change overnight because of some event overseas, or on Wall Street… or next door: What if three houses go on sale on your block at once? What if your neighbors let their property go to seed? What then of your investment?
And now comes the clincher: does your house keep you company? Does it offer to deliver you meals, to teach you classes, to take you on trips, or to put drops in your eyes after cataract surgery? No? I didn’t think so either. Listen, I am not claiming that a move to a CCRC is the solution for everyone, but life in a CCRC is often the logical chapter following the “Raising a Family and Having a Career” chapter. If anything, selling your house with the right spirit and at the right time should bring relief and a sense of accomplishment. You can look back at the long-time home with fondness – not regrets – and then move on to many more years of worry-free living.
Amy Beste – Senior Retirement Counselor