Is the lesson here: If you're planning to retire/semi-retire in the next 10 years, don't buy a house?
As MarketWatch reports, sales of both existing and new houses are down double-digits and inventory is up double-digits. According to Redfin CEO Glenn Kelman, this slowdown is bound to continue. In talking with Wall Street Kelman projects not so hot a Q3 for his corporation. The stock went down.
Renting out the house which doesn't sell is less than an ideal option. The fear is constant that those leasing will not take proper care of the property. That increases the problems when the owners try again to sell the house.
In some upscale locations such as the Gold Coast of Connecticut professionals who want to leave the high taxes and long commutes, as well as their demanding jobs, for something, anything else find themselves stuck. They can't relocate. They can't downshift to working at something that doesn't take so much out of them.
For example, in the Fairfield, CT region the shock is that not much is selling since GE announced it is pulling out and moving to Boston. Meanwhile, the McMansions entail six-figure taxes. The cost of the commuter train ticket on Metro North to Grand Central in Manhattan keeps going up. Property taxes are collected on cars so if residents buy new ones they are really in a pickle.
Instead of considering home ownership as a mode of building wealth, those over-50 might investigate other kinds of investments. They can adjust to renting. That leaves their professional and re-location options wide open.
The world is changing. So does mapping out The Next after a high-powered career.
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