Here are some of the hurdles many older homeowners say they’re facing. They own an asset that has soared in value, after all.īut as she and her husband sit at their dining table discussing the morbid math - what is left after capital gains taxes, what happens if he dies first, what if she goes before him - she says they see no good options for how to get out from under their home while keeping an acceptable amount of profit from its sale, which they’d like to use to fund their retirement. ![]() “Better to hold steady than to do something we will regret.”įewer older homeowners selling is part of what is keeping the inventory of homes historically low and pushing prices ever higher in markets across the US. Empty nesters of this age own more larger homes - three bedrooms or more - than Millennials with kids do.ĭragos said she understands that, as homeowners, theirs are enviable problems. “For now we’re staying put,” Dragos said. Related article Home sales last year dropped to the lowest level in 28 years Photographer: David Paul Morris/Bloomberg via Getty Images David Paul Morris/Bloomberg/Getty Images ![]() Sales of previously owned US homes unexpectedly rose in November, led by a pickup in the South and representing a respite in a two-year downturn caused by higher borrowing costs and a lack of inventory. ![]() Homes in Pinole, California, US, on Tuesday, Dec. And with current prices and mortgage rates so high, there is often a negligible cost difference between their current home and a smaller one. Plus, smaller homes or apartments in the neighborhoods they’ve come to love are rare. This is a kind of tax on the profit you make when selling an investment or an asset, like a home, that has increased in value. Many Boomers whose homes have surged in value now face massive capital gains tax bills when they sell. “We are here in a huge house with no family nearby, trying to make a wise decision, both financially and for our well-being,” said Dragos, a retired teacher.īut selling and downsizing isn’t easy, appealing or even financially advantageous for many homeowners like the Dragos family. ACH payments are always free.After 33 years and four children, Baby Boomers Marta and Octavian Dragos say they feel trapped in what was once their dream home in El Cerrito, California.īoth over 70, the Dragos are empty nesters, and like many of their generation, they’re trying to figure out how to downsize from their 3,000-square-foot, five-bedroom home. *A convenience fee applies to this option if you use a debit/credit card.
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