‘There’s No Place Like Home’

Many seniors would like to spend their retirement years living in the home they raised their family in, and around people and places that are familiar to them. Indeed, as Dorothy says at the end of that great classic, “The Wizard of Oz,” while clicking her ruby red shoes, ‘There’s no place like home.” Unfortunately, due to increasing maintenance costs and rising property taxes, many seniors are beginning to question the viability of this sentiment.

According to a survey conducted by Decima Research, while rising property values enhance an individual’s net worth, the corresponding rise in property taxes places an increased burden on

senior homeowners. The survey, conducted in two key Canadian markets, found that although 84 per cent of seniors believe it’s important to be able to remain in their homes for their retirement years and still have money to spend, maintaining their homes and paying property taxes are their two biggest financial concerns.

Faced with this financial struggle in retirement, many seniors often consider downsizing.

However, given the many costs associated with this approach, such as purchase or rental price of the new home, real estate commissions, legal fees and moving expenses, this may not be the best solution, notes Kelly Healy, a Toronto realtor with Sutton Group.

CHIP Home Income Plan provides an alternative to those seniors who want to remain in their home, but are finding it difficult due to the loss of income in retirement. A simple and sensible borrowing option, a CHIP Home Income Plan allows seniors to access up to 40 per cent of the equity they have built up in their home, while maintaining ownership and control of it. It can also help them create long-term financial stability.

“Often seniors think that selling their home and moving to a smaller place is the only way for them to regain control of their finances, even when they really want to stay in their home,” says Healy. “The truth is, by unlocking the value in their home, seniors can often receive the same amount of money they’d save by downsizing, or even more. It is important senior homeowners consider all their options so they can determine which is best for them.”

For further information about a FREE seminar on Financial Solutions For Seniors on March 19/09 at the Cobourg Library please call Brian Marling at 905-372-7222.