RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Surprise! Home Repairs a Common "Shock" for Retirees

July 13, 2016 1:12 am


Pre-retirees often underestimate the expenses they’ll encounter when their working years are over. One of the most common unexpected costs—“financial shocks”—are home repairs, according to a recent survey by the Society of Actuaries (SOA).

“There is still a disconnect between what people think they will do in retirement to manage risks, compared to what approaches retirees actually used,” explained actuary Cindy Levering of the survey.

Most pre-retirees surveyed by the SOA carry mortgage, credit card and auto loan debt—some with $30,000 in addition to a mortgage. An unforeseen home repair, coupled with thousands in debt, could rapidly sap retirement savings.

Home repairs, unfortunately, are inevitable. Downsizing may offload some of that debt, while reserving more funds for unexpected repairs or replacements.

Changing homes in retirement may also be beneficial when considering life expectancy and aging-in-place accommodations. Many pre-retirees surveyed by the SOA expect they will live to age 85—younger than actuarial tables indicate.

“More than half of pre-retirees and retirees estimated their personal life expectancy well below actuarial estimates,” said actuary Anna Rappaport, chair of the SOA's Committee on Post-Retirement Needs and Risks.

Whether 85 or beyond, diminishing capacity and limited mobility related to aging may make performing functions in the current home challenging.

Given the frequency of unexpected home repairs, and that most homes are inadequately designed for aging, changing homes may be the most prudent decision for those nearing retirement.

Source: Society of Actuaries (SOA)
 

Published with permission from RISMedia.


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Log Homes Experiencing Revival

July 13, 2016 1:12 am


Log homes—an iconic symbol of Americana—are as sought-after as ever, partly because of their environmentally-conscious design and construction.

Log homes, according to the National Association of Home Builders (NAHB) Log and Timber Homes Council (LTHC) (LogHomes.org), are erected through a near-zero-waste process, with the entire log purposed in construction. Byproducts of their manufacture are mulch and sawdust, both of which can be used as fuel.

Log homes are also highly energy-efficient, especially if constructed with sealant, according to the LTHC. Logs by nature absorb and radiate heat at optimal times during the day, effectively regulating the home’s temperature—“thermal mass.”

The LTHC is one resource worth consulting for a log home build. LTHC log home builders not only adhere to a code of ethics, but also ensure structural integrity by grading their materials through third parties.

“The log and timber home industry emerged entirely out of consumer demand for this unique style of construction,” said Log and Timber Homes Council Chairman Doug Parsons in a statement. “This distinctive style of home can suit any homeowners’ needs, whether they’re looking for a small cabin for weekend getaways or a multi-million dollar estate.”

Source: National Association of Home Builders (NAHB)
 

Published with permission from RISMedia.


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