It’s no secret that being surrounded by family and friends is key to living a long and healthy life.
Who hasn’t sat around a dinner table after a satisfying meal and stimulating group conversation and said, “We should do this more often?”. Many of my friends who are at, or approaching retirement have even said: “Wouldn’t it be great if we all lived in the same location so we could do this regularly?” Whether it happens at the dinner table, golf course, or bicycle trail, sharing more of your life with those who are important to you has obvious appeal.
In this article, I want to explore this idea a bit further, discuss the Carpe Diem intergenerational housing model, and share how it can benefit both Boomers and their children.
How Can You Leverage Your Wealth for Your Children’s Housing Opportunity?
Let’s say you’ve got solid financial planning in place, good lifestyle habits, and now are at the point of actively planning for your retirement. What’s next? As a healthy, affluent Boomer, you’re still left with the questions of:
- Should I sell and move, or stay where I am?
- How can I share my accumulated wealth in a way that most benefits my family?
- How can I arrange my home and lifestyle to ensure I have great friends and community around me?
Moving is always a lot of work so the default tends to be “stay with the status quo”. But for many, accessing the equity in their homes can open up a whole range of options for healthy living in the broadest sense, including financial.
While arranging housing for the next phase of your life, you can leverage your wealth now to provide the best results for your heirs and yourself.
After all, if you’re planning on transferring your wealth to your kids eventually, why not help them now?
There are many advantages to giving your heirs financial support while you’re still alive, including tax benefits. The immediate opportunity is to give your children a leg up now when they need it most. And Carpe Diem’s approach is to leave the “gift money” within your control while it’s helping your kids get into the housing market. That’s better for your own financial security.
What is Carpe Diem and How Does it Work?
Carpe Diem is a new housing model where multiple generations live, share, and play together.
Your own move to an inter-generational condominium community could:
- be easily affordable
- immerse you in a healthy community setting, and
- improve your financial effectiveness.
Alternatively, you can assist your beneficiaries in joining such a community, and gaining an attainable, stress-free access to home ownership.
Here are three ways Boomers can participate in Carpe Diem:
1. Young Adults Get a Leg-Up to Access the Real Estate Market
The Carpe Diem model lets parents assist their adult children with a rental buy-down loan investment. It’s more secure and flexible than simply providing the down payment for an outright purchase.
Your young beneficiary benefits from paying rent that is only one-third to one-half of market rent, for up to 10 years. In this time, they can save more effectively for ownership. They’ll be protected from runaway housing inflation. Their rent remains stable, and they only need less than half the income to qualify for housing.
Maybe home-owning Boomers and their families don’t really have a “housing crisis”. With most or all of their mortgage paid off, substantial non-taxable equity has built up over the years. With Carpe Diem, it’s possible to help your heirs ease into home ownership.
We think great community can happen when it’s set up like this, and housing stress is minimized.
2. Boomers Get the Benefits of Intergenerational Living
We don’t expect many Boomers to relish the thought of living amongst an exclusively “older” crowd, and there are numerous benefits to intergenerational living. Surrounding ourselves in an active community, where people learn from each other and care for one another is integral to healthy living, especially in retirement.
Carpe Diem’s full time onsite management provides for a nurtured sharing economy and the development of optional services as the community ages. So about half of our suites will be sold to Boomers who prefer, and can afford, immediate full ownership. They’ll immerse themselves in a youthful, vibrant community where everyone shares ownership in the building.
3. Multigenerational Families Can Live In the Same Area—But Independently
We’re even expecting to see some families choose to live in separate suites, but in the same Carpe Diem community. The generations used to support each other daily, through living closely together. We’re encouraging a return to a new form of that convenience, in a new kind of urban village.
Conclusion
Make your assets work for you – now, and for your future. Evaluate your goals, and assess options to help you decide the best way for you to leverage your wealth and create an environment that ensures the best opportunity for a long and prosperous future – for you, and for your heirs.