Posts Tagged "relocation"

Retirees Do a Stint in London – and Why Not?

Joanna McIsaac-Kierklo in Dublin

Joanna McIsaac-Kierklo in Dublin

Many retirees, freed from their work obligations and looking for adventure, dream of living overseas. Edward Kierklo and Joanna McIsaac-Kierklo don’t dream. They just do.

In May 2021, the couple, feeling trapped by the pandemic in their sleepy town in the Sierra Foothills east of San Francisco, decided to break out and trade rural life for 11 months in London. Joanna’s always been a risk-taker, starting at 22, when she moved to Idaho to be a Vista volunteer. London was her idea.

“Joanna says, ‘I’m tired of looking at these floors and cleaning an 1,800-square-foot home,’ ” Ed, 73, recalled. “She said, ‘Let’s sell the place and go to London.’ I said okay.”

The pandemic played a starring role in their big move. “We felt isolated and a little itchier than we might’ve been so we traded an almost-rural area for a distinctly urban setting,” he said. They relocated to London, vaccinated and boosted, in November 2021.

Edward Kierklo in Warsaw

Edward Kierklo in Warsaw

The couple, who married in their 50s, have the two things that are critical to an ex-pat adventure: fun money and their health. From their new home base, they were able to take weekend getaways all over Great Britain and on the Continent. But it took a lot of planning to move overseas.

Joanna, a former project manager in the healthcare field, is the planner in the family too. She found a London real estate specialist and figured out how to ship their Birmin cat, Suzette, across the pond – for $4,200. They flew to London and found a fifth-floor apartment in a concierge building in the borough of Ealing. The trains, shops, and restaurants were within walking distance so they didn’t need a car, and Joanna went online and bought the furniture, pots, pans, and all things necessary for the new place.

“I take the reins,” she said about their adventure. “I lift all the boxes,” Ed said.

They sold the house in California’s hot real estate market to a cash buyer 18 hours after putting it on the market and booked a nice profit. “Anyone who owns property in California is a millionaire,” said Joanna, 72.

Ed, a retired information technology professional, quickly learned that renting in London is complicated. Retirees must go through an “intrusive” and “bureaucratic” process requiring six months’ rent upfront and disclosure of numerous financial documents, he said. But he was born in England – his parents emigrated from Poland – so his British passport smoothed the path to getting a bank account. Having a passport also meant he didn’t need a visa to live in London.

Joanna, on the other hand, did. She obtained a six-month tourist visa, which required her to leave the country and return to California before her six months ran out. She then flew back to London to restart the visa clock.

During their stay, the couple enjoyed sinking into the local culture. …Learn More

Retiring to Care for Grandchild isn’t Unusual

Retirement can change everything. So can grandchildren.

A new study that looks at the transitions made by older workers finds that the odds of relocating after they retire to be closer to their adult children increase from the pre-retirement years – 16 percent of recent retirees do so.

Some people make these moves, to within 10 miles of family, right around the time of retirement, but the relocations are still happening at least four years afterward.

A new grandchild provides an even more compelling reason to move at a time quality childcare is expensive and in short supply. In the study, the researchers found that one in 10 grandparents who, prior to retiring, already considered themselves caregivers for at least one child move closer to the child’s parents. That doubles to two in 10 after they retire.

The probability of making a move is “higher for older adults reporting grandchild care compared to their peers who do not provide such care,” conclude Megan Doherty Bea and Somalis Chy at the University of Wisconsin.

They tracked some 3,000 older workers’ answers to a regular survey during a 12-year period around retirement. The survey collected a range of personal data, including information about their finances, where they live, and whether they spend at least 100 hours a year taking care of grandchildren.

One curious aspect of this study is that retiring and moving doesn’t necessarily mean the person will simultaneously sign up for Social Security benefits, which raises the question of how the new retirees support themselves. …Learn More

Remote Work Has Pushed Up House Prices

Slack, Citizens Bank, Penguin Random House, Verizon, 3M, Twitter – the list is long and growing of companies that have allowed employees to continue working remotely even though the pandemic seems to be easing.

The COVID-19 upheaval in lifestyles – the moving around to larger homes, to the countryside or to an affordable city – is pushing up house prices.

John Mondragon at the Federal Reserve Bank of San Francisco and Johannes Wieland at the University of California, San Diego, estimate that remote work fueled a 15 percent rise in house prices over the two-year period that ended in November 2021. That’s more than half of the total price increase for that period, which was a record, the researchers said.

A few different types of lifestyle changes drove the price hikes. But the bottom line is that remote work caused a frenzy of buying activity that wouldn’t have happened otherwise. The increase in demand sparked competitive bidding for properties – and prices shot up. And the parts of the country where remote work was more common had significantly larger price increases.

The price increases “reflected a change in fundamentals rather than a speculative bubble,” the researchers concluded.

Soon after the pandemic began, workers who were changing their living arrangements made the news. Renters left behind expensive apartments in New York or San Francisco to escape COVID’s dangers. Now working remotely, they used their newfound freedom to become first-time homeowners in an appealing suburb nearby or a rural area halfway across the country where they could afford to buy a house.

The need for larger homes also heated up market activity. Having more space was suddenly more valued by workers who required an additional bedroom to set up a home office or now had to accommodate both spouses working from home – and, early in the pandemic, children attending classes on Zoom.

The researchers stress that they measured only the price increases resulting from an increase in aggregate housing demand nationwide. In other words, people didn’t add to total demand if they simply moved from Chicago, where they sold a condominium, to Des Moines, Iowa, where they purchased a house of similar value. …Learn More