Retire on the House : Using Real Estate to Secure Your Retirement

by Edmunds, Gillette; Keene, James

• ISBN13: 9780471738930
• ISBN10: 047173893X
• Format: Paperback
• Copyright: 2005-11-25
• Publisher: WILEY

Summary

Use your home to finance your retirement Forgot to save for retirement, but bought a house? Saved a lot and also bought a house? Whatever your situation, Retire on the House can show you how to best use your home equity for a long and prosperous retirement. Focusing on both retirement and real estate, Retire on the House is designed for retiree homeowners who want to use their home equity to finance their retirement. Filled with valuable insights and practical advice, this unique guide illustrates a number of ways this can be done, including: * Selling your current home at the top of the market, moving to a less expensive residence, and retiring on your profits * Obtaining rental income from your current home by renting to boarders * Remodeling your home into units for much higher rental income * Three options for obtaining cash from your home without selling, remodeling, or renting it * Reducing or eliminating retirement expenses such as taxes * Balancing your real estate portfolio by diversifying with other asset classes Many of today's homes have tremendous value, and with Retire on the House as your guide, you'll discover how to use this value to achieve the retirement you deserve.

Author Biography

Gillette Edmunds, a leading expert on investing during retirement, has more than tripled his net worth during retirement. He served as the SmartMoney expert on early retirement for the weekly SmartMoney primetime chatroom on AOL and has been a guest on many local radio programs. He currently writes a regular column for SimpleLiving.com, has appeared on NBC Nightly News, and has been quoted in Barron's, Fidelity Outlook, New Choices, ThirdAge.com, MyPrimeTime.com, and WomensFinance.com. He is also the author of three other books on retirement and investing.

Jim Keene, CFA, CFP, is a regional manager for Wells Fargo Private Client Services, who leads teams investing more than $2 billion in real estate, stocks, and other investments for high-net-worth individuals. A money manager for twenty-five years, he specialized in commercial and residential real estate and other alternative investments. Keene is also a California-licensed real estate broker, teacher of CFA review classes, and on the faculty of the University of San Francisco.

Table of Contents

Acknowledgments.

Chapter 1: Live Thirty Years on Your Home Equity.

MANY HOMES DURING A30-YEAR RETIREMENT.

STUDY THE ENTIRE BOOK.

NEVER RUN OUT OF MONEY DURING RETIREMENT.

RETIRE ON THE HOUSE CHECKLIST.

Chapter 2: Sell High, Buy Low.

16 FACTORS THAT WILL DETERMINE THE FUTURE PRICE OF YOUR HOME.

THE FACTORS IN ACTION.

THE HOUSING BUBBLE QUESTION.

SUMMARY.

Chapter 3: What Is Your House Worth?

INDIVIDUAL PROPERTY VALUATION.

CALCULATE YOUR EQUITY.

CALCULATE YOUR AVERAGE ANNUAL PRICE INCREASE.

REGIONALAVERAGE ANNUAL GAINS.

REMODEL TO INCREASE YOUR HOME VALUE.

LEVERAGE: UNDERSTANDING THE TRUE RETURN.

Chapter 4: Keep the House, Add Tenants.

RENT TO RELATIVES “AS IS”.

SMALL-TIME LANDLORD.

RENT THE WHOLE HOUSE?

Chapter 5: Keep the House, Convert into Units.

UNITS FOR INCOME, NOT CAPITAL GAINS.

THE MONEY YOU CAN MAKE FROM ACONVERSION.

HOW TO MAKE ACONVERSION.

BUILD THE UNITS AND BECOME ALANDLORD.

EXIT STRATEGIES.

RESOURCES.

Chapter 6: Keep the House, Reduce Expenses.

SQUEEZING EXPENSES.

TRACK YOUR EXPENSES.

CONVERT YOUR SPENDING TRACK INTO ASPENDING PLAN.

Chapter 7: Keep the House, Refinance.

REVERSE MORTGAGES.

CASE STUDY 1: INCOME SUPPLEMENTATION IN RETIREMENT.

CASE STUDY 2: IN-HOME CARE IN LATER YEARS.

CASE STUDY 3: HOUSE RICH AND CASH POOR.

HOME EQUITY LINES OF CREDIT AND HOME EQUITY (IMPROVEMENT) LOANS.

CASE STUDY 4: USE OF HELOC IN RETIREMENT.

CASE STUDY 5: HELOCS IN RETIREMENT TO BRIDGE THE GAP TO OTHER SOURCES OF INCOME.

INTERFAMILY LOANS.

SUMMARY.

Chapter 8: Sell and Move On.

THE HIDDEN COSTS OF MOVING.

THE $250,000/$500,000 TAX EXEMPTION.

REDUCE COSTS OF SALE AND INCREASE SALES PRICE.

BUY OR RENT? IT’S NOT JUST AQUESTION OF MONEY.

BUY THE NEXT HOUSE FOR CASH.

BUY THE NEXT HOUSE WITH AMORTGAGE.

RENT THE NEXT HOUSE: THE TENATIVE TENANT.

MOVE TO ALOW-COST COMMUNITY.

Chapter 9: Sell and Move to a Senior Community or Second Home.

CAN YOU AFFORD A CCRC?

TURN YOUR SECOND HOME OR RENTAL INTO YOUR RETIREMENT HOUSE.

MOVING ON UP.

AND NOW AWORD OR TWO ON HOW TO INVEST THE HOME SALES PROCEEDS.

Chapter 10: High Returns, Low Volatility.

INVESTING TILL DEATH DO US PART.

ASSET ALLOCATION.

DIVERSIFY BY ASSET CLASS CHARACTERISTICS.

HOME EQUITY CORRELATIONS.

Chapter 11: Never Run Out of Money.

ASIMPLE STRATEGY.

INVEST EQUITY AND RENT.

INVESTMENTS AND A SMALLER ALL CASH HOUSE.

CONCLUSION.

Index.