Aging in Place or Downsizing? Good Options for Older Adults in Los Angeles

About 9 out of 10 people over age 50 want to stay in their homes and age in place, according to a 2022 survey conducted by the University of Michigan. However, to age safely in place, older adults need a plan for their physical environment, social needs, and finances. 

Family homes built for several children may be too large for a couple or single adult. Another choice may be welcoming family back to live with you. During the 2020 pandemic, over 3 million adult children moved in with older relatives. 

Whether you stay in the same home or make a move to age in place, it’s important to talk with family and trusted advisors if you’re getting older and want to live safely and comfortably at home.

Have Conversations And Make Plans For Aging in Place

The first conversation to have with trusted loved ones and advisors is “What do I want to do, and why?” Here are some questions to ask and answer:

  • Is our home too difficult to maintain or too large?
  • Are home costs too high?
  • Do you want to be closer to family?
  • Are you lonely?
  • Do you need to be closer to medical or other services?
  • Have friends and neighbors died or moved?

If it’s time to move to a smaller place that’s nearer to family or medical care, it’s also important to consider your belongings.

What’s precious and what can be sold, donated, or left behind? A 2020 study showed that the average American home had over 300,000 items, and the average size of home has nearly tripled since the 1970s.

Storage Facilities vs. Downsizing 

Everyone may be able to downsize a little, but many people aren’t making that choice. The U.S. has over 50,000 storage facilities: five times more than Starbucks! Even if you will not be downsizing, it may be time to get help to go through boxes in the garage, excess items in the kitchen, and unusable goods in the pantry. 

Home Equity And Downsizing

Many people are able to use the equity in their home to pay for renovations that will make it safer for them to age in place. Another alternative is to sell a larger home and move to a smaller one. 

None of the choices about where to live and how to live as we grow older are easy. However, if you begin to talk about your needs and desires before a health emergency or other crisis, you can form a plan and follow through. Working with professionals like California Platinum Realty and California Platinum Loans can help you to preserve your assets and move through the steps you need to do to determine how you can best age in place.

Sources:

Becker, Joshua. “21 Surprising Statistics That Reveal How Much Stuff We Actually Own,” Becomingminimalist, url: https://www.becomingminimalist.com/clutter-stats

Dennis, Helen. “Successful Aging: Have a downsizing conversation even if you plan to stay in your home,” Los Angeles Daily News, 11 December 2022, url: https://www.dailynews.com/2022/12/11/successful-aging-have-a-downsizing-conversation-even-if-you-plan-to-stay-in-your-home/

California Platinum Loans

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Feeding the Fed Beast: Decoding Inflation, Rates, and the Mirage of Declining Home Equity

Mortgage Refinance

Bitter Brew: Inflation’s Downward Trend, But The Fed’s Craving More

Rise and shine, financial mavens! As we kickstart another week, mortgage bonds are showing promise, gaining 22 basis points. Concurrently, the 10-year treasury appears to be doing a mild cha-cha, dipping a tad but still maintaining a rhythm above 4%. If our tea leaves reading is accurate, there might be a turn in the wind, largely dependent on this week’s inflation numbers.

The financial crystal ball predicts a drop in the Consumer Price Index (CPI) on Wednesday, sliding from the current 4% to somewhere between 3.0% to 3.2% year over year. Let’s not get too excited just yet – that’s still a notch above ‘excellent reading,’ but it’s a sigh of relief compared to the suffocating 9% peak we had earlier. Thursday will be another riveting day as the Producer Price Index (PPI) takes center stage. Spoiler alert: We expect it to drop to below 1%.

Fed’s “Never Enough” Attitude: Inflation Drop, Rate Hike, and the Core Readin

In the grand opera of economics, the Fed plays a recurring character that can’t get enough of the spotlight. Even as inflation rates are set to drop, the Fed, like an overzealous DJ, isn’t ready to stop the party. It’s got eyes on the ‘core readings’ – the CPI number currently sitting at a cozy 5.3%, which may gracefully descend to about 5% or, if the bond market gets its groove on, perhaps even 4.9%. The problem is that the Fed has tunnel vision and wants to ignore the food and energy prices. I don’t know about you, but last time I checked, eating and turning on the lights were quite important to consumers!

The plot thickens with the scheduled Fed rate hike on the 26th of this month, which may necessitate ushering in a larger recession or some economic equivalent of a grand finale. But for now, they’re choosing to ignore the looming recession signs like two negative quarters of gross domestic income declines.

The Mirage of Declining Home Equity: Don’t Be Fooled!

The tale of home equity decline is akin to a bad magic trick – not what it seems. CoreLogic recently reported a 0.7% drop in home equity for Q1 2023 compared to Q1 2022. Predictably, the media might don their doom-and-gloom glasses and suggest falling home values. But folks, it’s not about plummeting home values. Our real estate acrobats have merely been performing cash-out refinances, tapping into their equity piggy banks to pay off debts. So let’s dispel the illusions and look at the reality of rising home prices.

In the dynamic stage play of finance and real estate, it’s crucial to decipher the plot. We start the week optimistically, with mortgage bonds gaining and the prospect of inflation dropping. But, like an overeager director, the Fed is eager to enact its rate hikes, focused on core readings rather than the whole story. The narrative of declining home equity can also be deceptive, with homeowners merely capitalizing on their built-up wealth. As we journey through this week, let’s keep an eye on the script, watch for unexpected twists, and always be ready for the final act.

California Platinum Loans

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Unraveling the Housing Puzzle: A Tale of Inventory, Appreciation, and the Rising Tide of Confidence

Dive into the labyrinth of the real estate market, where the pulse of the economy throbs in the veins of housing inventory and appreciation rates. Today, we at California Platinum Loans will decipher this intricate puzzle piece by piece, making it a joyride for our esteemed clientele – the savvy, high-end home buyers and investors who appreciate a good chuckle at the often ironic twists of the financial markets.

Navigating the Labyrinth of Appreciation

Remember that sinking feeling when you lose at a game of Monopoly? Real-life real estate isn’t entirely so black and white. Even as the year-over-year numbers on Case-Shiller are slightly negative, the overall picture isn’t quite as dire as that last round of Monopoly might suggest. The FHFA appreciation figures, for example, were up a healthy 3.1% year over year. Not too shabby considering our roller-coaster ride from June to December 2022 with rates. And the forecast for 2023? A 3% rise in Case-Shiller and a 7% pace on the FHFA front. Now, that’s what we call turning the game around!

The Inventory Conundrum

In supply and demand, inventory is the elusive golden ticket. With the existing home market running on fumes, new construction homes have become the oasis in this desert. The numbers tell the tale: In May, signed contracts on new homes were up a whopping 12.2% compared to the previous month. And even with the total inventory for sale taking a slight dip, the annual sales pace kept up the momentum.

The Rising Confidence Tide and the Bond Market’s Blues

In finance, joy in one place often spells doom in another. Cue the bond market singing the blues as consumer confidence struts in stronger than expected. The European Central Bank president Christine Lagarde adds to the bond market’s woes. She’s standing firm against inflation, much to the chagrin of the bond market. But hey, who said the economy was a zero-sum game?

At the end of the day, the real estate market is like a game of chess, with every move affecting the next. Every piece fits into this complex puzzle, from appreciation figures to inventory levels and consumer confidence to the bond market’s jitters. As the curtain falls on today’s round, we at California Platinum Loans are here with our crystal ball (and a dash of economic humor) to help you easily navigate this labyrinth.

California Platinum Loans

  https://californiaplatinumloans.com