Boomers Beginning the Transition to Amenity-rich Communities

Attention 55+ Insiders: The 1st Boomer Wave is Happening Now!

IN THE NEWS: Boomers: Buying your Next Home. – Wilmington News Journal 10/04/15
How To Tap Into The Next Big Boomer Wave – Inman 10/06/15

question flipBoomers beginning the transition to retirement seems to be the hot topic in all the news media lately.  I opened an email this morning from INMAN, an organization that reports on trends in the real estate industry. Bernice Ross wrote an article about the huge number of boomers who are getting rid of their large family homes and beginning the transition into more manageable homes in communities filled with amenities and people of like minds.

“What has been surprising to me is that most of our baby boomer friends are either going through the same process or considering it soon.” As one of my husband’s college buddies observed, “You’re on the tip of the trend — let us know how it goes,” says Bernice Ross, CEO of RealEstateCoach.com, (a national speaker, author and trainer with over 1,000 published articles and two best-selling real estate books.)

Of course, we at Active Adults Realty have been focused on this market for years, so it did not come as a surprise to us.

So, it got me thinking about all of our Boomer Buyers and what their choices are today in Coastal Delaware. The kind of community Bernice was specifically talking about is perhaps best represented here at Heritage Shores. It offers plenty of activities, full workout facilities, indoor and outdoor pools, concerts on-site, events, a full restaurant and pub, tennis courts and pickle ball courts and more.

There is an excellent selection right now at Heritage Shores of both existing homes and to-be-built homes by two different builders and things are booming. Take a look at these 11 phenomenal existing homes for sale! They all have things that you would have to purchase if you buy a to-be-built home! Priced from $259,900 to $359,900 – these are real asking prices, not the base model pricing of new construction.

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 Why is an existing home a better value at Heritage Shores?

  • Neither Brookfield nor Ryan is splitting the 3% Transfer Tax on new construction. On an existing home, the 3% is always split between the buyer and the seller. On a new home you purchase for $300,000 – that means add an additional $4,500 in settlement costs!
  • Recently, Ryan began to charge a $3,000 Water/Sewer Tap fee or Impact Fee in addition to the Special Tax*.
  • The Special Tax* is approximately $1,300/year on existing single family homes. For lots in the newquestion Phase and from now on, the Special Tax charge will be $2491. That is an increase of $1191 every year for 30 years. Doing the math… that’s $35,730.  Plus, on an existing home, some or all of the Special Tax* may already be paid.
  • Prices on new construction are going up and incentives are going down. On top of that, interest rates are going to increase. If you plan on getting a mortgage, there is no better time to lock in a low interest rate.
  • Lot premiums – all the lots in the new section have lot premiums of anywhere from $5,000 to $30,000. Many existing homes are on premium lots without a premium price tag.

*What is the Special Tax*?

Good question. Special Taxes typically cover the cost of infrastructure like public roads, public water and sewer systems. Municipal bonds are issued to finance these improvements. Homeowners purchasing in a Special Tax district pay their portion over a period of pre-determined years (typically 30 years).

When a new community is planned where there once was a cornfield or a farm, there are only two choices when it comes to the water and sewer infrastructure.

Put in a private water and sewer system. Choose one of two companies in Southern Delaware to put in the system and then charge all the home buyers an Impact Fee at settlement. Fees can range from a low of a few thousand dollars all the way up to $10,000 or more.

If the community is contiguous to a town, get annexed into the town and float a Municipal Bond to raise the money to put in the infrastructure. Residents all pay a Special Tax to reimburse the town for the costs over a 30 year time period. Benefit? You now have a municipal, public water and sewer system instead of a private “for profit” system.

There is a third possibility if a new community happens to be located in a part of Sussex County where there is County sewer available, but that rarely happens anymore.

I thought Delaware had low taxes.

Delaware does have lower taxes than almost any state I can think of in the Mid-Atlantic or the Northeast. If all you want is to find a home with the lowest taxes, we can help you find a nice home in Sussex County with low fees and low taxes.dreamstime_xs_23271802

  • Everyone in Delaware pays a County Property Tax. This property tax tends to range from approximately $1.000 per year to perhaps $3,000 per year in the poshest neighborhoods. The School Tax is a part of that annual tax. When you are 65 and you have been a primary resident of Delaware for at least 3 years, your school tax is reduced or disappears. Ask us for more details.
  • If you buy a home that is within town or city limits, there will be an additional property tax. Typically, that town/city tax is in the Hundreds not Thousands of dollars per year.
  • If there is a Special Tax*, that is normally billed annually by the town/city in which your neighborhood is located.

But, if you want to be in an Active Adult community with all the bells and whistles, then Heritage Shores is for you. Does it have all three of the above taxes? Yes it does. But, I bet all of that adds up to a lot less that you are currently paying in NJ, CT, NY and you are not getting all of the amenities and lifestyle that living in Heritage Shores offers.

Buyers, got Questions? We have Answers.

It’s not unusual to have questions. We recommend that you prepare yourself for the journey by educating yourself. This will ensure you are a knowledgeable home buyer prepared to make a confident home buying decision. CLICK HERE to read our Buyer’s most Frequently Asked Questions, a.k.a. our FAQs page. If you don’t see the answer, email us, we look forward to helping you!