I live in a 55+ community. Most folks here are 65+ and retired. Many, if not most new houses built close with a mortgage. I know because there are often closing delays due to bank financing.
It surprised me at first.
Sure, if someone offered me very cheap financing for something I was planning to buy anyway and it didn't increase the price, I'd take it. If your NW far exceeds your loans I don't see the big deal.
I have a friend whose Mom retired from the federal government a few years ago, and moved to a 55+ community. The only problem is, she moved into somewhat ritzy one, and actually upsized in price! She had been living in a nice 4br colonial on about a quarter acre, and she was of the perception that it was getting to be too much house for her. But, she sold it for $535K, and the one she bought was something like $620K! And overall,it's probably not all that much smaller. it's all on one level, but it has a huge footprint, and a finished basement, so it's not exactly cozy. I have a feeling her utilities were a lot more than she bargained for. And then to top it off, the HOA fee doubled in 2017, from something like $100/mo to $200. And that, apparently, was the straw that broke the camel's back. She's had to go back to work part time, and still having trouble making ends meet. And now, she's thinking of selling, even at a loss, to get into something cheaper.
The sad thing is, she only paid $255K for the previous house back in 1997, so you'd think she'd be in good financial shape by now. But, she did go through a bad divorce in that timeframe, and, since she had possession of the house, I'm guessing she had to buy out the ex-husband's half?
Interestingly, about 2 years ago, I looked at homes in this same 55+ community, just out of curiosity. I was only 45 at the time, but the agent told me there were ways I could get into that community, if I wanted. All I'd have to do is get someone listed as a resident, who was at least 55 years of age. So, I could buy the thing, move my uncle in, who's 65, have it listed as his residence (but not as an owner) and I'd still be able to live in it.
And, I'll admit, the houses were really nice. Right now, I really want something with a big yard that's quiet and secluded, with enough room to play with my antique cars. But, when I get to the point that I'm too old to keep up with all that, I could see the appeal of one of these 55+ homes. But, I'm looking at my friend's Mom as a cautionary tale...not just on the 55+ homes, but on making financial mistakes, retiring before I'm really ready, etc. FWIW, she wasn't an early retiree; I think she was around 65 when she did retire...but she really wasn't ready, financially. Although maybe, if she had stayed in her existing home a bit longer, she would have been.
