Moving to an apartment in retirement

[Green Papaya]

We moved from a 3500 SF house into 650 SF apartment located in the backyard of a family member. A lot of stuff being donated and the rest go into a small storage unit. It was supposed to be a quick 2-month transition after we sold our house and buy a new one. But it has been 6 months. We are closing on a new house next month so there is light at the end of the tunnel. After a while we got used to the small space but not without some life style adjustment.

 

[pb4uski]

+1

Having just gone through this experience of picking nursing homes, what I learned was there are some homes that will take private pay patients and keep them when the money runs out.
Generally they do not accept Medicaid patients directly.

Those are the ones that are a better choice (IMHO), it also means a person needs to have $250K -> $350K of available cash to pay for 2->3 yrs before going on Medicaid.

I also found the price for nursing homes here in IL varied from $100K -> $200K per year.

+2 Medicaid LTC planning is my pet peeve.... effectively transfer assets to heirs and have taxpayers pick-up the bill. IMO extend the lookback period to 15 years but have some reasonable annual allowance.

Where great aunt went they favored applicants who could private pay for a period of time and if they ran out of money then Medicaid would step in... I'm ok with that as lng as there haven't been big transfers of wealth to heirs in the previous 15 years.

 

[Koolau]

We moved from a 3500 SF house into 650 SF apartment located in the backyard of a family member. A lot of stuff being donated and the rest go into a small storage unit. It was supposed to be a quick 2-month transition after we sold our house and buy a new one. But it has been 6 months. We are closing on a new house next month so there is light at the end of the tunnel. After a while we got used to the small space but not without some life style adjustment.

Ah yes! 600SF apartment. Our last stent as tourists here in the Islands was actually in a 1BR condo for 5 weeks. We were doing our final test-run to see if we could "live" here (shopping, cooking, driving, parking, existing, etc.). We decided the "dividing line" was 2BR/2bath. Fortunately, we already owned our town-home but it was leased out. The longest we ever got to stay in it before was the 2 weeks we spent rehabbing it between sets of long-term tenants, thus the "final run through" in the 600SF apartment. Without a nice shaded lanai, DW was going nuts before the end of our stay. That told us exactly what kind of place we would need at some point in our future. The town home was certainly big enough, but the set up wasn't right - for DW. I was fine with it. SO, of course, we moved after a couple of years in the Islands - to a place DW could exist. SO far, no regrets after 10 years though YMMV.

 

[travelover]

We went from a 2400 sq. ft. house on an acre and a half to a 1000 sq. ft apartment to a 2400 sq ft house on a tiny lot in a busy, noisy neighborhood.

The take away for us was that we never wanted to be renters and we never wanted to have close neighbors. As a renter, you go from being in charge of your home to being subject to the whims and petty rules of people that were flipping burgers the week before. If you have a common wall or even close proximity, you get to "enjoy" the constant dog barking, domestic disputes, loud parties or just daily music of your neighbors. And if you are retired, you get to do it 24/7 unless you are away. Even in a small lot neighborhood, there is always some jackass that has to use a gas powered leaf blower every other day and run a loud pressure washer in the days between.

So in summary, as a homeowner on a decent sized lot, you can yell, "Get the hell off my lawn!"

 

[2HOTinPHX]

+2 Medicaid LTC planning is my pet peeve.... effectively transfer assets to heirs and have taxpayers pick-up the bill. IMO extend the lookback period to 15 years but have some reasonable annual allowance.

Where great aunt went they favored applicants who could private pay for a period of time and if they ran out of money then Medicaid would step in... I'm ok with that as lng as there haven't been big transfers of wealth to heirs in the previous 15 years.

I agree that transfer of wealth should only happen after your passing and you have done your best to pay your way.
The point I was trying to pass along that Iamolder was making was about trying to protect a surviving spouse. Those couples who sell their houses and choose to rent and use the proceeds to help fund retirement may risk leaving the surviving spouse with little to live on due to Medicaid rules. Does this sound right?
This was kinda sorta part of my plan. Sell the current paid off home worth around 350000 go by smaller place at 150000 condo type and use the 200000 to help fund retirement. But now I dunno?

 

[Koolau]

I agree that transfer of wealth should only happen after your passing and you have done your best to pay your way.
The point I was trying to pass along that Iamolder was making was about trying to protect a surviving spouse. Those couples who sell their houses and choose to rent and use the proceeds to help fund retirement may risk leaving the surviving spouse with little to live on due to Medicaid rules. Does this sound right?
This was kinda sorta part of my plan. Sell the current paid off home worth around 350000 go by smaller place at 150000 condo type and use the 200000 to help fund retirement. But now I dunno?

Not a recommendation but something to consider: LTC insurance out of that 200,000 - you could buy a lot if you are still reasonably healthy. Also, longevity annuities (that's not the right name - you buy an annuity now and it only starts paying off when you are "old" - that could cover a lot of decent elder care or nursing home care 10 or 15 years down the road.)

You may have several options. My take on "down-sizing" has almost as much to do with being able to take care of a place and also adapting it to your "new way of life as you age." May have more importance than planning for, say, Medicaid.

Additionally, downsizing may help you put off placing a loved one into a facility if you buy with that in mind. Setting up the downsized place (simple things such as grab bars in showers, one floor, covered parking, better weather perhaps, safer location, "wandering" prevention, on-and-on.) I think there are actually folks that help with this kind of planning in many locals. But each of us has our priorities to deal with so YMMV.

 

[youbet]

+1

Having just gone through this experience of picking nursing homes, what I learned was there are some homes that will take private pay patients and keep them when the money runs out.
Generally they do not accept Medicaid patients directly.

Those are the ones that are a better choice (IMHO), it also means a person needs to have $250K -> $350K of available cash to pay for 2->3 yrs before going on Medicaid.

I also found the price for nursing homes here in IL varied from $100K -> $200K per year.

Generally agree, but having been through this I note that it is a bit more complicated than just having money to private pay for a period or not.........

The NH will look at the client's particular personal situation and their overall financial picture in making a determination. The overall financial picture will include ongoing income such as pensions and SS. So, if the client has a decent pension + SS totaling $50k annually and a $150k FIRE portfolio, they know the client can fund 3 years in their $100k/yr facility as full private pay. ($50k from ongoing income and $50k portfolio withdrawal each year.) They look at the client's age, health, likely needs, etc., and take a swag at life expectancy and make a decision.

If it turns out the client lives more than 3 years and the client's assets are depleted, the NH must reach out to the government for the annual $50k the client's pension + SS does not cover. The client moves to a Medicaid bed in that facility (usually means downgraded accommodations but in a "good" facility might still be OK) despite the fact the client is private paying $50k of the $100k annual bill.

That's one of the most interesting parts of Medicaid in Illinois. If your ongoing income covers the bulk of the NH annual bill and Medicaid is paying only a small amount, you're still on Medicaid and receive Medicaid level accommodations.

Back on topic. I agree that (all the above complications aside) in the states I'm familiar with, owning a home (as opposed to selling and renting) provides at least a bit of financial protection for the at-home spouse when one goes into a NH.

 

[Third Son]

Yes my thread was seriously hijacked

Thanks to all who replied.

 

[Third Son]

Thanks. I will start a new thread after I have moved in to report back. This one has gone to the great beyond....

 

[REWahoo]

Thanks. I will start a new thread after I have moved in to report back. This one has gone to the great beyond...

Back on the subject of apartments - and closely tied to "going to the great beyond" - is this news story I ran across today:

Ana Cardenas’ apartment was splattered with blood dripping onto her from the ceiling. The blood covered her bed, clothing, furniture - and even her hair.

Cardenas says she immediately called 911 and her apartment management. When officers got to her unit, they looked around and decided to check the apartment above hers - only to find her upstairs neighbor dead and decomposing.

https://www.news4sanantonio.com/new...es-up-to-neighbors-blood-dripping-on-her-face

 

[Lienlord]

DW & I recently sold our 2600 sqft home of 28 years and initially looked at apartments in the area. But driving around the parking lots made us realize how much we'd miss our own driveway and garage. So we found a new duplex community and been very happy. It's only 1350 sqft, but has double car garage and driveway, gated community with clubhouse and pool. The downsizing to move was difficult (and not finished!) but we really love our little place!

 

[TheWizard]

I have a full house and a separate full barn. I dread the downsize that is coming.

Why is a downsizing coming

 

[Focus]

DW & I recently sold our 2600 sqft home of 28 years and initially looked at apartments in the area. But driving around the parking lots made us realize how much we'd miss our own driveway and garage. So we found a new duplex community and been very happy. It's only 1350 sqft, but has double car garage and driveway, gated community with clubhouse and pool. The downsizing to move was difficult (and not finished!) but we really love our little place!

Only?! That was approximately our pre-downsizing amount of space, and it seemed like plenty for two people. As I mentioned above, I downsized (alone) to 400+ square feet. Now, that's small! But I realize it's all relative.

 

[Koolau]

Only?! That was approximately our pre-downsizing amount of space, and it seemed like plenty for two people. As I mentioned above, I downsized (alone) to 400+ square feet. Now, that's small! But I realize it's all relative.

Yeah, that's pretty small. Our spare BR is quite small and we tried setting it up with a King size bed as that's what we have in our master. We figured our guests deserved a King. BUT the room was so small with that bed you had go outside to change your mind! So a Queen works in there reasonably well. A tiny desk allows one of us a "get away" area WITH a door to shut out the TV noise. Works for us. YMMV

 

[harley]

Ah yes! 600SF apartment. Our last stent as tourists here in the Islands was actually in a 1BR condo for 5 weeks. We were doing our final test-run to see if we could "live" here (shopping, cooking, driving, parking, existing, etc.). We decided the "dividing line" was 2BR/2bath. Fortunately, we already owned our town-home but it was leased out. The longest we ever got to stay in it before was the 2 weeks we spent rehabbing it between sets of long-term tenants, thus the "final run through" in the 600SF apartment. Without a nice shaded lanai, DW was going nuts before the end of our stay. That told us exactly what kind of place we would need at some point in our future. The town home was certainly big enough, but the set up wasn't right - for DW. I was fine with it. SO, of course, we moved after a couple of years in the Islands - to a place DW could exist. SO far, no regrets after 10 years though YMMV.

600 SF? I'm not sure how I'd maneuver a 4x8 sheet of plywood onto my tablesaw in there.

 

[RobbieB]

My first buy in CA was a 2 story townhouse, 900 sq-ft. 450 up, 450 down.

Got paradise here at 1400 -

 

[Koolau]

My first buy in CA was a 2 story townhouse, 900 sq-ft. 450 up, 450 down.

Got paradise here at 1400 -

Good things can STILL come in small packages. Honest to goodness when I first experienced the Islands as a tourist, I saw folks living under blue tarps on the beach - and I envied them! I no longer do, of course, but at the time, I hated my w*rk and I hated (maybe too strong a word) where I lived. I think maybe at that time I hated my life. In any case, I made up my mind that SOME DAY I would live near a beach, near the mountains and away from Megacorp and corn fields. If I had to compromise on housing size, I would do it. YMMV

 

[Escapevelocity]

Good things can STILL come in small packages. Honest to goodness when I first experienced the Islands as a tourist, I saw folks living under blue tarps on the beach - and I envied them! I no longer do, of course, but at the time, I hated my w*rk and I hated (maybe too strong a word) where I lived. I think maybe at that time I hated my life. In any case, I made up my mind that SOME DAY I would live near a beach, near the mountains and away from Megacorp and corn fields. If I had to compromise on housing size, I would do it. YMMV

Inspirational post. Thanks for sharing.

 

[meleana]

We sold our big house and had to move into a really tiny rental house until my husband retired and then we moved into an brand new 1100 square foot home that we bought that is an arms length from all our neighbors. HOA community.

But anyway- renting the little home was ok, though it was old. But it was in a nice neighborhood and we did have privacy. Plus we were able to store everything in the basement and garage, so no storage facility fees.

It took getting used to in terms of some noise from a nearby race track and having neighbors and cars going by.. Our former home was isolated in the woods and very peaceful and quiet.

Where we live now is like that also since we are in a vacation area with a lot of tourists and activity.

I do miss the peace and quiet but we wanted to be around some people and activities so we are learning to tolerate it.

As for the size of both the houses, a bit too small but again- we adjusted.

 

[Walt34]

I last lived in an apartment in 1978 and then swore "Never again!"

1. Noisy neighbors
2. No place to park when I got off work at 2:00 AM
3. Lugging groceries from the distant parking spaces
4. Unresponsive/stupid management
5. Unreliable utilities. Yes I do expect the hot water to work at 4:00 AM when I have to get up to go to work.
6. Don't buy a decent car. It'll be beat to death in six months
7. No place to even attempt cleaning said car except at an overpriced car wash that can't do it right even with repeated attempts
8. Getting soaked in the rain trekking in from the outlying parking spaces
9. Scraping ice & snow off the car in winter. The garage here spoiled us real quick! Ditto getting into a heat-soaked car in summer.

There were other issues that I'm forgetting now. And these were not cheap apartments in "sketchy" areas. I'd hate to have to live in one of those! I'd probably end up with the devil himself next door and his brother upstairs.

 

[Markola]

A few years ago, we rented a brand new 2 br/2 bath apartment in downtown Minneapolis for 6 months while our house was being remodeled. I really liked it. Covered, climate controlled parking ramp was in the center of the building and our car was only steps away. We had a pool. High ceilings. Whole Foods with wine store on the ground floor. Utilities were very cheap. Easy Peasy and I’d do it again. Compared to owning houses, it was nice to just have everything “handled.”

 

[Focus]

I last lived in an apartment in 1978 and then swore "Never again!"

1. Noisy neighbors
2. No place to park when I got off work at 2:00 AM
3. Lugging groceries from the distant parking spaces
4. Unresponsive/stupid management
5. Unreliable utilities. Yes I do expect the hot water to work at 4:00 AM when I have to get up to go to work.
6. Don't buy a decent car. It'll be beat to death in six months
7. No place to even attempt cleaning said car except at an overpriced car wash that can't do it right even with repeated attempts
8. Getting soaked in the rain trekking in from the outlying parking spaces
9. Scraping ice & snow off the car in winter. The garage here spoiled us real quick! Ditto getting into a heat-soaked car in summer.

There were other issues that I'm forgetting now. And these were not cheap apartments in "sketchy" areas. I'd hate to have to live in one of those! I'd probably end up with the devil himself next door and his brother upstairs.

None of the items on your list match my current rental apartment experience.

 

[Paulz]

Just a couple thoughts....

We just sold our home and moved 3-4 miles away to rent a townhouse before our move to our retirement home. Besides the smaller space most of the challenges have to do with living closer to others. All the houses are connected, so....noise. Inside, outside on the deck, the surrounding streets. Just a lot less privacy. In an apartment, you'll have someone stomping above you, or you might be the ones doing the stomping. We are only here for two years, and thats long enough!

I live just a short drive away in Virginia, and we call it the "People's Republic of Maryland". Make sure you investigate the taxes, crime, and issues there before you call it home. I have many friends that decided a short drive to PA, WVA, and VA was worth it to not live in MD. That being said, I think Clarksburg would be a better selection. Rush hours on 270,355 and 15 are brutal and Frederick gets the brunt of the PA, MD, and WVA traffic.

 

[street]

I wish you the best in your decision but I wouldn't care for living in an apartment. It sure could happen at sometime as I get older but I would rather own. I'm not so much enthused about so many people so close together people above you beside you and below you.

I would say in my area the cost to rent is way more costly then owning. Good Luck!

 

[Third Son]

Update to the update

All,

We found a home to rent for the same cost as the apartment we had reserved. An added benefit is that we will not need additional storage in a locker and will save on pet fees (we have an old cat). This gives us a needed pause to find an area that we would be comfortable to live in for the foreseeable future. The money we save by selling our home by ourselves easily covers the rent for the next year. Time to breathe!