The decline in home equity in recent years has affected the strategy of those seniors who were looking to sell their properties and use the proceeds to move into assisted living or retirement communities, said an executive with a marketing company that specializes in providing assisted living referrals.
The cost per year for a one-bedroom unit in an assisted living facility averages about $35,000. However, in light of the recent economic downturn, many independent and assisted living facilities, some reeling from expansion plans that are now in danger, have offered potential residents special deals in order to boost sagging occupancy rates.
"These days, many facilities are deferring rent until their target residents can sell their homes, or at the very least are offering lower move-in rates," says Mary Jo Leste, chief executive of Senior Smart Inc., Moorpark, Calif.
"I've seen communities permit couples to move in after collecting the entry fee initially, but allowing a postponement on the due remainder for a period of six months after they move in."
In some cases, many facilities will waive the "community fee" to those who ask. This is a deposit which is usually about the same amount as one month's rent.
Among her suggestions to help seniors fund a move into an assisted living facility is to get an "intra-family loan." According to Senior Smart, "these loans are available to the children of seniors, which allow them the resources to loan money to their financially struggling parents as they try to sell their homes."
