Real estate across the country has been pretty hot over the past year and we’ve gotten a lot of questions about how to approach the housing market. What should you do if you’re looking to buy, sell, or rent right now? And what’s the outlook in Connecticut? We’ll find out what Joel thinks and what he’s been seeing from real estate in our region.
Want to save time? Click the timestamps below to jump ahead to specific spots in the episode.
What You’ll Learn:
Real estate will always be an important part of every retiree’s portfolio but there seems to be much more attention paid to it right now because of how hot the market has been.
We’ve gotten quite a few questions from both retirees and pre-retirees about what they should be doing right now in terms of buying, selling, and renting. The pandemic has shifted the way people are viewing certain regions of the country along with the types of locations they are interested in.
Two years ago, the overall theme for many retirees we were working with was to move south. But that’s starting to change. People are still moving to other parts of the country, but we’re seeing more downsizing and a shift in attitude to stay here closer to family. That’s particularly true of Connecticut, which has seen a surge along the coast as large numbers of people move out of New York City.
We’ve also heard from people that are thinking about selling their homes to take advantage of the high prices and then rent until they find another location. In many situations, the renters come out ahead of the owners. If that’s something you’re thinking about, it could absolutely make sense and we can make sure the math backs that decision up.
The housing market is also impacting the younger generations as well. We’re seeing that many young people want the flexibility to travel and move when they want. There’s a group of people now that live in different places for a month or two and go to another location. For those people, purchasing a home wouldn’t be the best idea. But for anyone that’s wanting to start a family, it’s a great time to start looking for a place to buy and invest that money.
One other aspect of real estate that can impact retirees is helping a child with a down payment. This could come in the form of a gift or a loan, and parents want to help out as much as they can. But should you do it if it could hinder your retirement? We run a future income analysis to see what their long-term financial health will look like if they provide that gift. If it has a negative impact on their future, then we’d discourage it but it’s still their decision and we’ll help them through it either way.
Let’s get started with the show. You can listen to it by using the audio player above and click on the timestamps to skip to a specific topic of conversation.
[0:35] – General opinion of the housing market right now
[3:27] – How are you advising younger people?
[5:36] – Helping kids with a down payment
[7:24] – Money Map process on housing
[10:34] – Mailbag question on renting in retirement
[14:49] – Mailbag question on managing inheritance
[17:00] – Mailbag question on how much to retire.
Thanks for listening to this episode. We’ll be back again next week for another show.
“We’re seeing a lot of people wanting to get out of New York. With the work at home that some people will continue to do, a lot of people have said, ‘You know what, I’m out of here.’ And there’s a pretty hot market in Connecticut from a real estate standpoint, especially along the shore.”– Joel Johnson
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