Posted by JT-IN on April 05, 2006 at 11:06:45:
Ken:
Possibly marketing for such prospects through Finac’l Planners who specialize in the Seniors mkt… via estate planning. Although may be competition thru reverse mtg folks… but worth investigating that avenue for any receptive ears…
Hope all is well…
JT
Renting & Selling to Older (Mature) People - Posted by ErickaD
Posted by ErickaD on April 04, 2006 at 16:08:12:
Does anyone do this? What are the challenges? I thought about this because I know of a few people who are older and own homes, however, some are really living from check to check and their kids are trying to get them to either move in with them or go to a senior citizen building and sell their home. Their kids are also helping them with the expenses. The parents are somewhat able to live by themselves. These people are definitely mentally stable, but probably need someone to check on them once a day. They are too stubborn to move to a senior citizen’s building, but not sick enough that they need full time care. I’ve been in some of those senior buildings and I wouldn’t want my mother to live there. I am in my mid-thirties and can’t exactly relate, but I do see this as a good market to target.
Ericka
Re: Renting & Selling to Older (Mature) People - Posted by gerald
Posted by gerald on April 04, 2006 at 20:09:51:
Seniors make good Section 8 tenants. They take care of your property, make no hassles. A nice, not too old little four-plex, doesn;t have to have that much sqft per unit – these seniors make landlording a pleasure.
gerald
Re: Renting & Selling to Older (Mature) People - Posted by Bill H
Posted by Bill H on April 04, 2006 at 18:07:02:
Your post is kind of confusing to me…you intend to market to this group…in what way…older does not necessrily mean mature.
Good Luck,
Bill H
Re: Renting & Selling to Older (Mature) People - Posted by ErickaD
Posted by ErickaD on April 04, 2006 at 19:38:37:
I figure no one wants to be called old so I use the word mature. Maybe that is the question of the hour. How do you say to someone or their kids, “If your house is becoming a burden and you need a little help, call us and we may have the solution”? Solution - Sell your house and rent from us. As I write this my face is cringing, because now it sounds not so good.
Maybe a fairly healthy elderly person who never owned a home who lived in an apartment building for many years, walking up steps, would consider moving into a house that is one level. How do you market to this kind of person?
I knew of a woman who was almost 80 years old, who still was walking up at least two flights of stairs in an apartment building on the East side of Chicago. She was comfortable with her neighborhood even though it was kind of rough.
Ericka
Downside… they/we hate change… - Posted by JT-IN
Posted by JT-IN on April 04, 2006 at 21:15:04:
Expecially the older we get, the more we hate change… Also with older folks, who might be at a point where they are afraid of losing it, a little bit… they usually become distrusting of even their own family members… Fear is likley the reason, fear of being put somewhere or losing control of their own destiny… I have seen it up close and personal. Also, as I age… I can also relate to some of those feelings…
I think that it is a tough market to crack for that reason. One might have better success actually cementing a seniors position to stay put, with the use of a “life estate”. Actually giving the legal right to occupy the property as long as they want… without having to pay for that right. The cost is actually paid for in a discount from the purchase price. However, most investors wouldn’t be in a position to do such a thing… as there would be NO cash flow in these instances.
e.g. Suzie the Senior is 75 years old… and maybe even concerned about the cost of continuing to stay in her own home, currently valued at 200K, FMV. Elegant Ericka the investor comes along and offers a lifetime contract to Suzie to have the legal right to occupy her home as long as she shall live… and agrees to purchase the property from Suzie for 88K. So based on the time value of money and the average life span for a female, Suzie might likely be in the home for another 8 or 9 years… However, if Suzie lives to be 100, she has the same right to occupy the property, free of charge, in addition to hte fact of having 88K cash, tax free to subsidize her living need…
The risk that the investor runs is an accuarial risk… based on the average life span of the average femaile; about 84 yrs today. I realize that this isn’t exactly the answer to the question that you ask, but I think it better addresses what the avg Senior Citizen is concerned about, as opposed to the angle that you are attempting to address. You may be better addressing what their kids might be thinking about… but that is irrelevant, really.
I think you would find, if you talked to 500 people between the ages of 70 and 85, that they would wish to stay in their homes as long as they possibly can, and most hope to die there… This may not be realistic, but having faced this very thing with my parents, the least of all concerns is what to do with the bricks and mortar… The far more pressing issue is the emotion that Mom and Dad feel about the security of the most familiar turf they have known over the years… their Castle.
Just the way that I view things…
JT-IN
old homeowners and taxes - Posted by ken in sc
Posted by ken in sc on April 05, 2006 at 07:00:13:
I have seen it espoused as as REI method to have an agreement such as an option to buy where the investor pays the RE taxes every year for the option to buy from the estate for a set price. This way, Elegant Ericka does not have to pay the 88K now, but just the RE taxes every year to control an asset going up in value. And the owner does not have to start paying rent.
Some retired folks feel the pain of increased RE taxes because their income does not rise enough to cover the tax increases. I a not sure how one would actually market to this niche, and it is an outgo of cash for a long temr investment, but is does seem to be a lucrative idea.
Ken
Re: Downside… they/we hate change… - Posted by Bill H
Posted by Bill H on April 04, 2006 at 21:35:50:
Well put JT…I went through exactly that scenario with my Mom who passed away two years ago at the tender age of 96.
The one place she felt at Home was…HOME.
Good Luck,
Bill H
Texas senior’s taxes - Posted by gerald(tx)
Posted by gerald(tx) on April 05, 2006 at 15:34:38:
As most of you know, Texas property taxes are sky high, maybe the highest rate in the nation.
Upon pressure from the AARP, a few years back the state passed a law allowing for deferrment of all property taxes to seniors on their homestead, if they choose. The taxes don’t go away, just accrue at 8% to be paid when the estate is liquidated.
Even with low appreciation, the overall value of the property appreciates more than the taxes plus interest, so the heirs still get a chunk, while the seniors get relief.
I wonder if any other states have the same option?
gerald