Finding affordable retirement living

  • For retirees looking for affordable housing with a few amenities, a diligent search is needed.
For retirees looking for affordable housing with a few amenities, a diligent… (Metro Creative Connection )
November 04, 2012


I would like to sell my summer home in Florida and build another home in the same area. If I make a profit on the house up north can I put all of the profit into the building of that new home without creating a tax event? Or, would I be better off moving North?

— D.



You have touched on some fairly complicated tax rules.

The IRS allows some tax-free profit on the sale of your main residence but not on your vacation home. In any event, it no longer makes any difference what use you make of the proceeds.

If you went back to being an official state resident up north, you could qualify for tax-free profit on the sale of your summer home if it became your principal residence for at least two of the five years before you sold it.


Each week I look at the new homes section hoping to find affordable retirement living. I have seen some good ones but they are still a bit pricey. I would certainly think with so many retirees living longer now, there would be developments in which the average income person can live.

— S.


You don't need to keep searching on your own. When you see an open house advertised, visit it, and start a conversation with the agent there. If the first broker is busy or doesn't seem compatible, keep visiting open houses.

When you find a broker who is interested in your search, work with him or her. A good agent will calculate how much you can afford and suggest properties or places that suit your requirements. It won't cost you anything and it'll be much more efficient than trying to find a place by yourself.

You might also try contacting your local senior center. They may have a list of affordable possibilities.

Half a question


If someone gives title to someone else, who no longer pays the house payments, taxes and insurance — the first person does — then does the person giving title risk anything other then their credit and a possible foreclosure if the second person stops paying?

— Email


It looks as if you meant to ask what danger is there to the original owner?

That original owner once signed a note, a personal promise to repay the loan, which went along with the mortgage documents. Giving the house away doesn't cancel that note. If the mortgage payments aren't made, the lender has the right to sell the house at foreclosure. For that matter, with most mortgages today, the lender has the right to call the whole loan in immediately (all due and payable) as soon as there's a change in ownership.

Edith Lank will respond personally to any question sent to

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