Lifestyle, Sellers

Empty Nesters Should Consider Downsizing

Empty Nest? Empty Nesters Should Consider Downsizing

Consider the Benefits of Sprucing Up Your Home and Downsizing

Empty Nesters Should Consider Downsizing
Photo Credit: Monoar, Pixabay

Think downsizing is just for seniors or those in retirement? Think again. Empty Nesters Should Consider Downsizing.

Once your kids have left your home for good, you should seriously consider downsizing and making some improvements to your current home to boost its resale value. From enjoying a less stressful move to boosting retirement savings to saving money each month, there are many benefits to downsizing in your 40s instead of waiting until retirement.

Moving to a new area means you have the chance to relocate somewhere that’s closer to amenities or your workplace. Once you reach retirement, you’ll be glad that you’re close to amenities like shopping and restaurants. You may also want to live near recreational activities, such as a gym, and cultural amenities, such as a theatre, museum, or concert hall. Being near these things means you’ll never have a shortage of things to do, and you can easily access them. Additionally, staying active and social has proven benefits, especially as you age.

Moving is physically and emotionally hard no matter your age, but the older you are, the more this is true. Make the transition easier by moving in your 40s. To prevent moving again and to allow you to safely age in place, it’s important to choose a home that will suit your needs as you age. You’ll need home attributes such as wider doorways to accommodate a walker or wheelchair, slip-resistant floors, ramps, lever-style doorknobs, remotely controlled lighting, railings, walk-in showers, and more. Also, choose a home that’s either a single level or one that has a master bedroom on the first floor.

Having a higher mortgage can lead to you to cut back on essentials and prevent you from setting money aside for retirement. Also, people with mortgages retire later than those whose mortgages are paid off. If your home is delaying your retirement, downsizing to a smaller, less-expensive house well before retirement is logical over waiting until your 50s or 60s. “If the goal is stronger financial position when you get into your older years and retirement, the sooner you downsize, the better position you’ll be in,” says CBS News.

Waiting until your 50s or later to downsize doesn’t give you much time to reap the benefits. Doing it at 40 gives you another 10 years to boost retirement contributions by investing the difference and watching your money grow. For example, downsizing from a $250,000 house to one that costs $150,000 leaves you with $75,000 to add to savings after you factor out the costs of selling and moving, which is 10 percent of the selling price. Doing this in retirement increases your yearly income by $3,000 if you withdraw 4 percent of the $75,000 annually. However, if you do so in your 40s, you can invest the $75,000 with a 6.5 percent annual rate of return, and it could grow to nearly $250,000 over 20 years.

In addition to cutting your mortgage, downsizing can also cut the hidden costs of homeownership such as utilities, property taxes, HOA fees, and homeowner’s insurance. These hidden costs total to 3.25 percent of home’s value. Downsizing from a $250,000 home to $150,000 home means the costs drop from $8,125 a year to  $4,875 a year, which frees up $3,250 to add to savings. But the difference would be even more if you downsized in your 40s.

Downsizing means you’ll be selling your old home, and you want to get as much money out of it as possible. “One of the keys for adding value to your home is to repair, replace, or remove anything that could turn buyers away,” suggests HGTV. A fresh coat of paint is simple and cost-effective and makes rooms look clean and updated. If it’s in your budget, replace carpet with hard-surface floors. You’ll get the most reward from renovating the kitchen and bathroom. Even if you can’t afford a full remodel, small changes (such as replacing light fixtures or small appliances) will do wonders without breaking the bank. Planting shrubs and colorful plants will add curb appeal.

Whether you’re looking to improve your monthly finances, find a home with less unused space, or put more money away for retirement, downsizing might be a great decision for you. Once your kids leave and you have an empty nest, weigh the benefits of downsizing. To really get the most out of downsizing in your 40s, make some improvements to your home that will increase your resale value.

Photo Credit: Monoar, Pixabay

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100 Years Of Palm Springs History, 101 Things To Do in Palm Springs, Lifestyle

Agua Caliente Band Cahuilla Indians Announces New Cultural Center

Chairman Jeff Grubbe: ACBCI Announces New Cultural Center

On October 6th, Agua Caliente band Of Cahuilla Indians (ACBCI) Chairman Jeff Grubbe announced the Tribe’s plans for their new cultural center in the heart of Downtown Palm Springs.  The location is on their 5.6 acre site at the intersection of Indian Canyon Drive and Tahquitz Canyon Way.  ACBCI Announces New Cultural Center

Groundbreaking is for the early part of 2018 and should take about 2 years to complete. It will feature a cultural museum, a new hot mineral springs spa, a gathering plaza plus gardens and an oasis trail.

From Jeff Grubbe: ACBCI Announces New Cultural Center

“This new cultural center provides an incredible opportunity to share and celebrate our history, culture and traditions with this community and visitors from around the world,” Tribal Chairman Jeff L. Grubbe said. “Each of the 566 federally recognized tribes throughout this country has a distinct culture that includes traditions, language, historic clothing and housing styles as well as historical food and medicine preparations. We want to share that with others as well as acknowledge the fact that we are alive and well today living in the modern world.”

The sacred waters are 12,000 years old and are very unique containing minerals not found anywhere else in the world.

The newly planned oasis trail will meander between the spa and the museum with lots of natural features that include gardens, waterfalls, a sandy beach, a fire pit, and a meditation labyrinth. The idea here is to build on the traditions and features of the ACBCI ancestral lands.

This will leave a true legacy for generations to come who will visit Palm Springs.

ACBCI Announces New Cultural Center
Images Provided by ACBCI

ACBCI Announces New Cultural Center
ACBCI Announces New Cultural Center

From the ACBCI website:

About the Tribe

The Agua Caliente Band of Cahuilla Indians is a federally recognized Indian Tribe located in Palm Springs, California, with 31,500 acres of reservation lands that spread across Palm Springs, Cathedral City, Rancho Mirage, and into the Santa Rosa and San Jacinto mountains. The Tribe currently owns and operates two 18-hole championship golf courses, the Spa Resort Casino in downtown Palm Springs and the Agua Caliente Casino Resort Spa in Rancho Mirage. For more information about the Tribe, visit www.aguacaliente-nsn.gov

About the Agua Caliente Cultural Museum

The Agua Caliente Cultural Museum inspires people to learn about the Agua Caliente Band of Cahuilla Indians and other native cultures. The museum educates people about the issues and challenges of Native and indigenous people. The museum currently operates at 219 S. Palm Canyon Dr. in downtown Palm Springs. For more information, visit www.accmuseum.org 

About JCJ Architecture

JCJ Architecture is a nationally recognized planning, architecture and interior design firm with offices in Phoenix, San Diego, Los Angeles, Atlanta, Boston, Hartford and New York City. Since its founding in 1936, the firm has worked with a diverse range of clients, including over 50 Tribal Nations, on projects ranging from hospitality and leisure, to cultural, community, gaming, education, public safety, and civic and having a comprehensive planning and design process that is formulated to address each project’s unique challenge, context and purpose. JCJ is made up of more than 100 employee-owners who are proud to have created buildings and places of exceptional and enduring quality.

Images from the ACBCI website www.aguacaliente-nsn.gov

 

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Buyers, Sellers

It’s Offer Time- What’s Next For Buyers and Sellers?

It’s Offer Time- What’s next for buyers and sellers?

So you found that perfect home and It’s Offer Time. What’s next for the buyers and sellers process?

Well, first we negotiate until we have ab agreement on price and terms. It’s Offer Time with lot’s of variable to consider other than price including:

  • Length of Escrow
  • offer price financial terms
  • what’s does the sale include?
  • is there a home warranty?
  • contingencies of the sale including loans, home inspections and seller disclosures
  • closing and terms of possession

Once both parties are satisfied with the terms, then we sign off on everything creating a Contract and open Escrow.

Now the real fun begins. Escrow is there to ensure the terms of the contact are fully met. But there’s more. We now begin to go through the paperwork and inspection process. A home inspection comes next and the buyer and seller then get to further negotiate any major defects in the home- usually they will be health and safety related but can also include certain other operational defects. This can be tricky but usually the two parties work through their issues and reach an agreement regarding repairs or a credit. Note that many cosmetic defects are not a consideration  of a home inspection.

It's offer time
This is an actual photo from a home inspection

Concurrently the buyers are provided with disclosures galore.  Hazard disclosures, seller disclosures, HOA documents (if applicable) etc. It’s a lot to consider but important to ensure that you are buying what you think is a good home. This is indeed a mine field but with good guidance from your Realtor, it can be easily navigate and understand this process.

It’s Time For Contingency Release

Then at 17 days, we should be ready to release all inspection contingencies provided everyone has done their respective job which is usually the case. Buyers and sellers are encouraged to read all documents or get legal help to do so.

Now we wait for the lender to complete their work. We have 3 more days to get the loan approval from the lender.  In the case of a cash sale, we can expect to close at anytime both parties agree to do so or simply wait for the agreed upon closing day.

Escrow at this time will be finalizing the numbers and provide the buyer and seller with estimated closing costs and the buyer only with information on the wire funds transfer as outlined in the contract. Also, last minute paperwork is wrapped up so that once all the ducks are in a row, Escrow will schedule the recording with the county. Shortly thereafter the county records the sale and the terms of the contact are complete. At this time the buyer’s agent gets the keys and welcomes their clients into their new home.

For more information, please see This article from the California Bureau Of Real Estate for more information.