I have received my certificate noting that I've passed the Senior Real Estate Specialist designation. This is the original (slightly edited) post from May 1st, which was written after I completed the course.
Contact me anytime at mschadenberg@rogers.com or 519 537-1553.
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By Mark Schadenberg
The SRES OREA course I participated in at the end of April, taught me a lot about CMHC programs, Gen-X, CHIP, SAFE, ADL, NORC, HELOC, SKIING, RRIF and ISL.
I somewhat reluctantly write about the program now because I have yet to receive my course marks. To receive the SRES designation I need 80 percent on the final exam, and those results are still pending. (I passed !)
So, what is SRES?
Seniors Real Estate Specialist is an accreditation I can add to my business cards, in essence informing the consumers, and in particular those older than 50, that I have passed an intensive course dealing specifically with needs and requirements for home buyers and sellers in this life stage.
It certainly doesn't mean I will be concentrating all my efforts on empty-nesters, but the information acquired will assist myself in understanding the demographic of this generation. It is about empathy through understanding.
The course, which was offered in London, included more than 60 real estate sales reps and most of them had travelled from as far away as Barrie and Brampton to learn the subject material.
Topics ranged from 'aging in place' to NORC (Naturally Occuring Retirement Communities) to CCRC (Continuing Care Retirement Communities). The best example locally of aging in place is the Southgate Centre and the various walking trails we have along the Thames River, and communities that offer volunteer opportunities.
The term ISL is 'independent supportive living', and would be best described as the format of Oxford Gardens.
Did you know that the Canadian Mortgage and Housing Corporation (CMHC is a multi-faceted federal government agency best known for offering mortgage insurance to families with less than 25 percent of a downpayment on a house they financially are qualified to purchase) offers grants to families who create garden suites to assist in the caring of aging family members in the home. SAFE is an acronym standing for safety, access, fits needs, and ease of use. The term ADL covers a person's ability to continue living on their own as the letters represent Activities of Daily Living such as hygiene, dressing, doing laundry, eating and mobility.
The course mentioned a long list of important 'life' activities: health, driving, walking, family, volunteering, working, hobbies, seeing and hearing.
When it is time to maybe sell the home a family was raised in, terms such as downsize, declutter and disband are discussed.
As far as finances are concerned, the SRES course delved into reverse mortgages from both a positive and negative angle, and retirement income timetables such as converting an RRSP into a RRIF (register retirement income fund) at age 71.
A reverse mortgage sounds like a great idea as at the age of 60 you can receive the cash value of up to 50 percent of the home's value, but there are legal and appraisal fees, and the interest compounds over time. The good news is that it is your money and your principal residence, so you receive the money tax free. Through their marketing efforts in print and TV, most people are familiar with CHIP (Canadian Home Income Plan) reverse mortgages. The loan is repaid when the house is sold, but in theory the equity in the home does decrease gradually. Reality is that a person applying for a reverse mortgage would likely not qualify for a conventional mortgage based on their income.
Another option is a HELOC (Home Equity Line of Credit).
Estate planning, power of attorney and the process of probate were also explained.
Most seniors spend a ton of time travelling and therefore still spend a ton of money. The course (with tongue in cheek) referred to this as SKIING (Spending the Kids' Inheritance). When is a good time to buy a condo, so you can spend the warm months at a home in the south?
We know we have an aging society. One number tossed out is that by 2015, 48 percent of the workforce will be between the ages of 45 - 64, and that includes myself. Statistics Canada compiles the numbers for the oldest cities in average age and other concrete numbers. For example, the senior capital of Ontario is Peterborough. Next on the list are communities like Haliburton, Niagara-On-The-Lake and Elliot Lake.
With age, however, the wrong thing to do is to paint with a big brush as there are many youthful 80 year olds.
The SRES course forced me to be a sponge as a lot of terms -- demographics (Active Retirees, Baby Boomers, Generation X) to finances to lifestyles -- were tackled. The next step is to take the 147-page manual and use its concepts in my daily career as a full-time Realtor.
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