living arrangements following retirement (Chicago, Evanston: how much, house, job transfer)

[Lookout Kid]

Originally Posted by ToriaT

Some seniors balk at downsizing or stubbornly want to stay in the house they lived in for many years even though it might not suit them any more. I am sympathetic but if someone has a tax bill of 8,000 maybe that is the time they should look to move into a different situation, unless they have other means that can subsidize them.

I only wish my tax bill were $8,000! Our bill jumped in to the five digits the last time our property was re-assessed.

And the funny thing is we competed with a retired couple to buy our house. It was their "downsize" house.

At least a property tax bill is tax deductible.

[ToriaT]

Methinks in the future there will be far more seniors renting apartments than owning a place. Unless you have a paid up condo and all you need to worry about is maintenance and taxes, its not cheap if you have a mortgage and are trying to retire. Also do you really need a big house with all the upkeep. Anyway, options abound there are so many ways to slice and dice it. Lets just say taxes average 700 dollars a month. If you own a place free and clear, you can't rent for that. Of course you have to add in upkeep, etc. and maybe an HOA fee, but condo taxes would be less. Most places you have to pay utilities too. My mothers friends were constantly carp about taxes for their "paid up" condos but in reality they were living very cheaply. Rent would have been way over the monthly cost of taxes and HOA fees. No such thing as a free lunch.

[Lookout Kid]

If I just had taxes to pay with no mortgage, it would be far less than renting a similar house (probably about a third, in my case). And rents are prone to increases each year, which over a 20-30 year retirement can really add up. And rent is not tax deductible. If you have paid off your house, I think you're still better off owning, assuming you can handle your home's upkeep and don't need to cash out your home equity to live.

[sydlee]

Renting as an elderly person is not ideal. Everyone, but especially older folks, rely on their social safety net and being comfortable in their surroundings. This is not a luxury; people need this especially as they age, as this is critical for their mental and physical health. It's much harder to uproot oneself at an older age, I'm sure.

Renting leaves you susceptible to rent increases, the building being sold/converted into condos, etc. For example, elderly, lifelong residents of places of like San Francisco who have rented are being kicked out of their rented homes more and more these days to make way for more profitable condo versions and whatnot. Renting has left them vulnerable. Where will they go now? People can't work forever, and it's likely they will be on fixed incomes after a certain point. They need a reliable place to live near the people and places that make up their safety net.

[Happy Goldie]

I have never heard anyone move TO Chicago from a warm climate for retirement. You must have a very good reason to contemplate this. We are about 5 years from retirement. We have decided to rent our house out ( we are seasoned landlords with rental properties) and move to Dallas to be closer to the kids and escape the long, dark, harsh winters. We are going to move this fall. We live in a suburb ( for 26 years) and have raised our kids here. State income tax and property taxes are terrible here. Other than city services, we do not use any of the amenities that our property taxes support. So why not move somewhere where we are not paying through our noses.

I encourage you to put a lot of thought and planning in this idea of a move to Chicago. The lifestyle in cold months can be very daunting in old age. You are doing the right thing by researching and getting feedback. Good luck.

[sydlee]

Originally Posted by Happy Goldie

I have never heard anyone move TO Chicago from a warm climate for retirement. You must have a very good reason to contemplate this. We are about 5 years from retirement. We have decided to rent our house out ( we are seasoned landlords with rental properties) and move to Dallas to be closer to the kids and escape the long, dark, harsh winters. We are going to move this fall. We live in a suburb ( for 26 years) and have raised our kids here. State income tax and property taxes are terrible here. Other than city services, we do not use any of the amenities that our property taxes support. So why not move somewhere where we are not paying through our noses.

I encourage you to put a lot of thought and planning in this idea of a move to Chicago. The lifestyle in cold months can be very daunting in old age. You are doing the right thing by researching and getting feedback. Good luck.

Thanks.

I'm not retiring anytime soon. I have a few decades to go before I reach that age. We are a relatively young family and are trying to figure out a good place for us to put down roots. But, having said that, growing old seems might expensive from what everyone is saying here, and I'm trying to figure out if I can put down roots in a place where we might also be able to grow old.

From what a lot of folks here say, it sounds like seniors often end up moving, whether downsizing to a condo, apt, or assisted living facility. Or they move to where the grandkids are. This is completely different from what I saw growing up. The elderly, by and large, stayed in their own homes till they died. If possible, I would like that, too, but who can say if this is doable anymore? Chicago, for various reasons, seems to have what we are looking for as a family -- for now that is.

But what will happen when we get old? Will we be able to handle the weather, the taxes, etc.? Must we resign ourselves to moving to a new smaller place like an apartment, condo, assisted living facility away from the friends, neighbors, church/temple, community groups we've known for years? Or will we drift toward wherever the hypothetical grandkids are (assuming our kids even want us nearby)? Maybe this is not a Chicago-specific question, though Chicago does add its own particular nuances (harsh winters, rising property taxes) to the discussion.

I know. Maybe I'm worrying too soon about stuff. I've always thought of buying a house as investing in a place you can always call home, even in your old age.

Congrats on your impending retirement!

[Lookout Kid]

Originally Posted by Happy Goldie

I have never heard anyone move TO Chicago from a warm climate for retirement. You must have a very good reason to contemplate this.

Me either.... At least in terms of living in a suburban house. I have heard of it in terms of urban city living in a high rise, however. There are plenty of people who want the stimulation of the urban Chicago lifestyle after retirement.

But it's still true that LOTS of people grow old in Chicagoland and just stay where they are. This is not uncommon at all. And this is what the OP is contemplating... Moving to Chicago when they are young, and staying put.

[Lookout Kid]

Originally Posted by Happy Goldie

State income tax and property taxes are terrible here. Other than city services, we do not use any of the amenities that our property taxes support. So why not move somewhere where we are not paying through our noses.

They are contemplating a move from California, where the state income tax rate is considerably higher than in Illinois. However, property taxes in California are capped due to Proposition 13, and are usually around 1% of value, sometimes a little higher. In a nicer Chicago suburb, property taxes will likely be in the range of 1.5-2.2% of value, depending on the municipality and the mix of properties there.

[ToriaT]

My mother was widowed and sold her single family home in 1989. She had lived there for over twenty years. She bought a nice two bedroom condo with cash so only had to pay HOA fees and taxes. It was a nice condo but nothing super expensive. It was in the burbs, an elevator building, had underground parking, a pool and two balconies overlooking a gold course. She lived there well and pretty cheaply. To me that's the way to go. If you are more affluent, then buy two condos, one in FL, or AZ and live part of the year in each one. That's what some of the people in this building do.

[Arabel]

My son and grandchildren live near Chicago. I have been missing them terribly. My husband recently got a choice for a job transfer, one of the areas on the list was in Arizona, Chicago and Seattle. We are getting up there in years and have decided to live closer to the grandkids, so Chicago it is! Warm weather is nice, we can hopefully take a week or so to travel south in the winter, but time goes by so fast that we don't want to miss time with our family. Hopefully the weather won't be as bad when we move there (April).