Economy Forces More Adults
To Move in with Mom and Dad
by Lauren Baier Kim
March 26, 2008
Here's a look at what's new in real-estate markets across the U.S. from around the Web. (Some links may require registration or subscriptions.)
Moving back in with Mom and Dad -- at 52
Thanks to the slumping economy, more middle-aged people are taking up residence with their parents to help make ends meet -- some after getting laid off, and others after a divorce, according to this Associated Press article.
Financial planners are reporting an increased number of calls for advice from parents who are taking in their grown children, according to the AP. One 52-year-old events planner, mentioned in the story, moved in with her parents in December after losing her job. While this woman tries to save for a down payment on a house, her 80-year-old mother and father refuse to take rent money or let their daughter help pay for groceries.
One financial planner quoted in the article warns that parents nearing or at retirement age "jeopardize their financial freedom by continuing to subsidize their children."
Meanwhile, in the New York metro area, the New York Foundation for Senior Citizens helps people find low-cost housing with others who aren't their parents, but could be. Their Home Sharing program matches hosts those 60 years old and older with younger guests. The hosts are often widows who own homes outside Manhattan or rent a large apartment, says the New York Times.
In exchange for a place to stay, guests make a monthly contribution to household expenses -- usually less than $1,000 a month -- and often help with chores around the house. Guests are often students, those new to the area or those that have been divorced, the Times says.
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One guest, James Thompson, 49, has been staying in his host's Long Island house for eight years. He pays $500 a month for his room, takes out the trash, vacuums the swimming pool and cares for the host's cats while she's away.
Don't get scammed by your mover
You thought selling a home in today's housing market was tricky. But relocating can also be tough, thanks to moving scams, reports the Washington Post.
In one scheme, movers provide a lowball estimate, often asking for an upfront deposit of 25% of the total. Once they move your stuff, they'll ask for much more -- four or five times more -- and will hold your goods "hostage" if you don't hand over the cash. In another type of scam, movers will ask for a hefty deposit before moving day -- and then never actually arrive to move your things, the Post says.
To avoid getting scammed, the Post recommends checking out the moving company on the Better Business Bureau's Web site. The article also notes some warning signs: The moving company doesn't come to your home to look at your goods before giving an estimate. They refuse to put anything in writing, ask for a large deposit before moving day or give you an estimate that's much lower than others you've received. The company's Web site lacks licensing information or a local address.
Parking gets neighbors' engines running
On residential streets, parking has become a big issue, sparking heated disputes between neighbors, writes Joe Robinson for the Los Angeles Times. In part the issue is territorial -- nobody wants somebody else parking in the space in front of their house, he says. But the amount of clutter that the average homeowner now owns is also behind the trend -- many homeowners do not have space to park their car in their garage because often, it's filled with junk.
According to a study from the University of California, Los Angeles (UCLA), 75% of middle-class Los Angeles residents no longer use their garages to park their cars. This is despite the fact that in 2005, 84% of U.S. homes had two- or three-car garages, Mr. Robinson says.
The disputes that arise between neighbors range from the silly -- one homeowner in northeast Los Angeles has developed the habit of placing orange traffic cones in front of her property to reserve a parking space -- to criminal: one Los Angeles resident was convicted last month of fatally shooting a father of four for parking in front of his home.
Ms. Kim is a senior editor at RealEstateJournal.com.
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