living arrangements following retirement (Chicago: rental, HOA fees, condo)

[ToriaT]

Most people do not just up and sell their house and announce they are moving in with their kids. In fact I think fewer people live with their kids now because there are so many options. Years ago, I had many friends whose grandparents lived with them, many did not speak English well. That was the old school way. Now some stubbornly cling to their homes but others sell and move to a smaller ranch home, a condo or apartment. Most that I know do not want to live with their kids. Some move to fancy retirement communities and love it but those are quite expensive. There are so many options for the future so I would not worry about it now. Many are just aging in place. I am retired and live where I have lived for the past thirteen years and don't plan on moving. I do have two stories and a basement. So if it gets hard to do the stairs, I will either downsize to a condo or I'll have an acorn stairlift installed. Options, Options. Then If I can't manage that I'll check into a retirement or assisted living community.

[sydlee]

Originally Posted by ToriaT

Most people do not just up and sell their house and announce they are moving in with their kids. In fact I think fewer people live with their kids now because there are so many options. Years ago, I had many friends whose grandparents lived with them, many did not speak English well. That was the old school way. Now some stubbornly cling to their homes but others sell and move to a smaller ranch home, a condo or apartment. Most that I know do not want to live with their kids. Some move to fancy retirement communities and love it but those are quite expensive. There are so many options for the future so I would not worry about it now. Many are just aging in place. I am retired and live where I have lived for the past thirteen years and don't plan on moving. I do have two stories and a basement. So if it gets hard to do the stairs, I will either downsize to a condo or I'll have an acorn stairlift installed. Options, Options. Then If I can't manage that I'll check into a retirement or assisted living community.

Thanks, Toria. It does sound like there are many options. Those options sure sound expensive, though. Getting old is going to cost all of us big time, it seems.

Thanks again.

[middle-aged mom]

Most seniors stay planted near family.

[Lookout Kid]

Originally Posted by wjj

Read the small print. There are real estate tax breaks if your income is low enough, but there are often strings attached.

We were just referring the the "senior exemption" on real estate taxes. This is just a discount provided to qualifying seniors by the county, no strings attached.

For Cook County, there are only three requirements:

1. You must be 65 years of age or older during the tax year for which you are applying;
2. You must either own the property or have a lease or contract which makes you responsible for the real estate taxes; and
3. The property must be your principal residence. If you have moved or plan to move in the future, you may be entitled to a prorated Senior Citizen Exemption, based on the time of occupancy. To apply for a prorated Senior Citizen Exemption you must submit:

The "senior freeze exemption" is different, and is dependent on income. It has a slightly different set of requirements:

• been born prior to or in the year 1948,
• a total household income of $55,000 or less for income tax year 2012,
• owned the property or had a legal, equitable or leasehold interest in the property on January 1, 2012 and January 1, 2013,
• used the property as a principal place of residence as of January 1, 2011 and January 1, 2012, and
• been liable for the payment of 2011 and 2012 property taxes.

Cook County Assessor's Office

[MSchemist80]

The senior exemption is a joke. It takes a few hundred off my Mother's $8000 bill. My mother cannot live without support from me and I am here because I have a good job.

[sydlee]

Good to know re: the senior exemption. Thanks. There seems to be a lot of agreement re: seniors wanting to stay near family or move closer to them if their children move away. This is a lot to think about. Thanks again.

[wjj]

The exemptions can vary from county to county.

But these programs can be a double edged sword and actually have come back to really clobber seniors the last couple of years.

Here is why.

These programs look to limit the increase in assessed valuation of the senior's property. Since the downturn, assessed valuations have decreased, but taxing units have compensated by raising rates. So even though assessed valuations are down, real estate tax bills have continued to creep up. For example, the assessed valuation of my house is down about 20% since 2008, but my real estate taxes have nevertheless increased every year. The increase has not been huge, but the increase in rates has always more than offset the decrease in assessed valuation.

So what has happened to seniors is that their assessed valuations under these programs are already at a lower level and so they get no credit for the actual decrease in assessed valuation (i.e., they are already well below the normal assessed valuation). But these programs do nothing to limit tax rates and so when rates sky rocket, seniors are stuck because their assessed valuations did not decrease to offset the higher tax rate. Last year, my mother's real estate taxes jumped up over 15% while mine just 4 blocks away went up only 2% - but both of our houses are worth considerably less than they were 5 years ago. And she participates in every available seniors program in Lake County.

As I said earlier, read all the small print and do your research. While these programs can help, they are often quite limited when compared to the very high real estate taxes we have in northeastern Illinois. And as I said in an earlier post, some of these are really loans at 6% interest with a lien against the property. Don't get me wrong, these programs are good, but they have significant limitations and strings attached.

[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.

[MSchemist80]

Originally Posted by ToriaT

Some seniors balk at downsizing or stubbornly want to stay in the house they lived in for many.

Downsizing? This isn't some super mansion that she is living in alone. It is a 2100ft^3 family home. Why should she have to sell her home and flee like this is North Korea when the commies took over simply because the F-ing democrats in Illinois think fleecing the people into bankruptcy to support this bloated corrupt collection of rackets that mascarade as governments in Illinois is perfectly acceptable. In anycase I am eventually going to flee the state and I vote in every election straight republican because the democrats here half belong in jail and the other half aren't fit to run a fast food joint.

[sydlee]

Lots to think about. Lot of fine print to consider, not to mention the fundamental issues involving the likely necessity of having to move in one's old age and/or pay lots of money for services to maintain one's relative independence. Perhaps this is less a function of Chicago winters and more a sign of the times throughout the nation.

Thanks again.