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Baby boomers retire; housing needs rise

July 7, 2008 12:00:00 AM PDT
There is a new demand for housing that can accommodate the millions of baby boomers who are nearing retirement age. Some developments are targeting that community.The Trilogy development in Corona is just one example of a 55 and over community. It offers single level homes, a golf course, and a fitness center. The community is hoping to help retirees make friends, keep their minds active, and stay as busy as they'd like.

"I wanted to be an active retiree. And, I see this as a second phase of my life. But certainly not much of a slowing down process," said Eda Farinacci, a Trilogy resident.

"My folks retired and didn't' have a place. And I saw what happened to my mother. And I wanted a fun place," said Betty Miller, another Trilogy resident.

Many people looking for this type of community not only want to stay healthy physically, but financially as well.

"I didn't want to have a house payment so I took the equity out of my old house in Long Beach and paid this off," said Trilogy community member Mel Wadly.

Even though these homes are loaded with equity, mortgage experts say these homeowners can borrow against that equity with a reverse mortgage. If a homeowner decides to take on a reverse mortgage, the buyer would not have to pay it back until he or she left the home.

"It allows you to take the equity that you have built up and worked so hard for, put into your home and use it during your golden years. And you can use it really for any purpose," said John Silverman, who works with reverse mortgages.

In order to qualify for a reverse mortgage, a person must meet the following requirements: be a homeowner, the home must be paid off, and all homeowners must be at least 62 years old. With some lenders, the maximum loan amount is $374,000.

Retirees looking to relocate within Los Angeles, Orange, or Ventura Counties, may be able to take their current property tax rate with them. The rate is a one-time-only tax advantage and they buyer must be over 55 years of age.

 

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