News that impacts senior housing is BIG news in the real estate market.
The Greatest Generation causes economic swings at every stage of their lives, and now that they’re entering the retirement years in droves, the housing market has taken notice.
In our last newsletter, we covered a troubling (but real) trend of seniors taking on extra debt and choosing to stay in their homes longer to help their families who are struggling financially. Click here to read that story.
And now, additional news indicates that Medicare Advantage plans may expand the scope of their coverage starting in the year 2020, including new additions for chronically ill enrollees.
What does this have to do with the senior housing market or reverse mortgages?
Medicare’s Impact on Senior Housing
Accessing cash locked up in their home’s equity is a major reason seniors consider a reverse mortgage. And few things strain savings and cash flow for seniors as much as a chronic illness.
The proposed Medicare changes would provide chronically ill seniors with an expanded ability to stay in their homes and age in place.
Additionally, the proposed changes outline potential scenarios where seniors could use Medicare funds for home improvement projects to accommodate illness or the need for handicap accessibility.
Expanding the Reasons to Understand Reverse Mortgages
Some of the reasons seniors consider reverse mortgages include:
- Eliminate monthly mortgage payments
- Access cash to consolidate bills, protect savings or improve cash liquidity
- Funding home improvement projects (such as those outlined above)
These proposed Medicare changes could have a big impact on the third item above, allowing seniors to stay in their homes even longer with careful financial planning.
If you’d like to learn more about how these changes may affect your clients or a loved one, please get in touch with us today!