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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCash Deals for Homes Reach Record With Boomers Retiring
By Kathleen M. Howley Jun 2, 2014 12:00 AM ET
Mike Trafton bought a house in a suburb of Boise, Idaho, where he plans to retire. He made the deal without signing a stack of mortgage papers.
Trafton, 55, and his wife Cindy, 54, paid $400,000 in cash for the 3,200-square-foot house in Eagle after selling their 4,400-square-foot home in a Portland, Oregon, suburb for $680,000. Like a growing number of baby boomers, born between 1946 and 1964, the Traftons had no desire to get a mortgage.
“I feel better about owning my home outright,” said Trafton, who’s moving to a region with an average of 200 sunny days a year and skiing in the winter. “At this stage in our lives, we can afford it, and it’s better than having a monthly mortgage payment hanging over us.”
U.S. home-price gains have restored $3.8 trillion of value to owners since the beginning of the real estate recovery in 2012, according to Federal Reserve data. A record number of Americans are using that equity to pay cash for properties, avoiding a mortgage process that has become even more onerous in the wake of the 2007 housing collapse. In the first quarter, 29 percent of non-investment homebuyers used cash, the highest on record for the period, according to data compiled by Bloomberg.
Cash Deals
The majority of people making all-cash deals are baby boomers mostly because America’s largest-ever generation is beginning to retire, said Lawrence Yun, chief economist of the National Association of Realtors. In 2012, there were a record 61.8 million Americans over the age of 60, according to the Census. That compares with 46.6 million in 2000.
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http://www.bloomberg.com/news/2014-06-02/cash-deals-reach-record-with-boomers-retiring-mortgages.html
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yeoman6987
(14,449 posts)Now they still have some money left over to get them to Social Security age. Baby Boomers will be selling their homes likes these folks for the next 15 years for sure and due to the stalling economy that is just starting to pick up it will be huge! They say that the Baby Boomers have the most money in the 401Ks and savings accounts then any other generation in history. I am a Gen X so I don't know what will happen for our generation, but I think things like elderly studies for things like getting around, medical, and other things to make life easier are going to grow. It will be an exciting time observing the advances this group makes. Boomers have made strides in every aspect of their generation and being elderly won't stop them. It is going to be very amazing!
Submariner
(12,494 posts)they are generally run by republican financial advisers, who we know are inherently dishonest people. They play money games like derivatives and other financial gimmicks to drain away your money and eventually cause economic collapses.
I would only use a financial adviser if it was family, preferably a sibling. Never trust a republican money changer.
Gormy Cuss
(30,884 posts)You bought your residence when you were in your 20s or early 30s, took out a 30 yr note, maybe traded up once without increasing your debt, and paid off the lien before retirement age.
What this couple did used to be much more common. Now what's common is foreclosure and debt that will extend well into retirement.
Aerows
(39,961 posts)and your car outright, neither of them may be the most recent model, but they belong to YOU. I will never have a car payment. It's throwing good money after bad.
