In a sale-leaseback plan, an investor buys the home (at a price from 15 - 25 percent below the market value) and immediately leases it back to the former owner for life. The new owner assumes taxes, insurance, major repairs and other expenses usually associated with home ownership. Payment to the seller usually consists of a lump- sum down payment plus monthly payments. Rental is negotiable. A contract spells out in detail the rights and obligations of both parties. Sale-leaseback contracts also contain complicated clauses specifying, for example, what will happen in the event of the original owner’s death.
The living arrangements to be discussed in the next chapters will often involve a household move. Can a move, in itself, be dangerous? A great many studies have been made about the effects of a late-life move on older people. As most of us already know from experience, a move at any age involves considerable disruption. Studies of relocation and older people have traditionally been concerned with effects of moving on health, mental well-being and longevity. These studies don’t always agree with one another, and it is risky to generalize from them.
For example, some early studies showed that frail, chronically ill older people who were moved from their homes to some type of institution tended to weaken and die sooner than others who were not
moved. This reinforced the popular notion that moving, like retirement, was essentially bad for older people and should be avoided. Later studies revealed that moving, per se, was not necessarily the
cause of the health problems experienced by the original group. If the move was to a homelike rather than an institutional setting, if it brought increased social stimulation to a previously isolated person
and did not entail the loss of important attachments, a move could help rather than harm. For many people, a retirement move, perhaps to a Sunbelt leisure community, can be the realization of a dream—a long-awaited opportunity to escape cold winters and enjoy beaches and golf courses year round.
