Erickson Tribune

Eagle's Trace

UPDATED: Friday, February 08, 2008

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Posted on Friday, February 08, 2008
 

By Alan Suderman
THE ERICKSON TRIBUNE

Property taxes, maintenance fees, property insurance … Adding up the costs of owning a home can equal a big headache. Factor in the uncertainty of a tumultuous real estate market, and you’ve got worries that could keep you from enjoying retirement.

“Let’s face it—a home is going to have something happen to it,” says Pamela Johns, senior financial advisor  with Johns Rosal & Associates, part of the Lincoln Financial Group.

But people living at Eagle’s Trace in Houston don’t have to worry about paying for unforeseen circumstances in their homes, like a leaky roof or a cracked wall. Property taxes and maintenance costs are included in their monthly service package.

In addition, residents are guaranteed a 100% refund of their entrance deposit. It’s an investment that makes sense for many older adults. “There’s nothing better than to invest in something that will give you peace of mind,” says Johns.

“Makes a lot of sense”
Bill Williams is a retired vice chair of KPMG (one of the country’s largest accounting firms) who lives at Eagle’s Trace. He used his business acumen to research several retirement options before choosing to live at the Erickson community, which he says has been a sound investment.

“The maintenance fee you pay here is about the same you pay running a  house, but here you get a meal a day and all the other amenities, too—like a great fitness center and a bank that you can walk to without having to go outside,” Williams says. “To me, it makes a lot of sense.”

Interest in the future
The entrance deposit made by Williams and other residents is put toward  construction  costs, so the community remains financially stable and can keep monthly fees low.


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“By investing back into the community, Eagle’s Trace makes sure there aren’t going to be big rate hikes for its residents,” says Pam Burgeson, director of marketing.

And property taxes take a big chunk out of any potential earnings you might get from your investment in your home, without providing the benefit of all the amenities at Eagle’s Trace, Williams says.

He adds that he was also attracted to Erickson Retirement Communities because many of their properties nationwide have lengthy waiting lists for prospective residents—something Williams says is a sign of financial security and well being.

Market instability
Most homeowners don’t share the sense of security residents feel at Eagle’s Trace.

Spectacularly rising home prices and their subsequent fall have made headlines across the country; meanwhile, the Texas market seems to be enjoying relative stability.

“There is still a good market,” says Jim Gaines, a research economist at the Real Estate Center at Texas A&M University. “It’s still there—there are still people buying homes.”

Gaines says the price of homes in Texas will probably continue to grow at a steady rate, but it won’t bring enormous wealth. “We are a little less prone to a big [increase in home prices] because we are not a supply-constricted market,” Gaines says.

Though Texas continues to attract many new residents, house prices haven’t skyrocketed like in California and Florida because there are plenty of resources and little restriction on building new homes, explains Gaines.

But Texas is still vulnerable to the effects from the collapse of the sub-prime mortgage industry that has sunk home prices in other parts of the country, notably Florida. “We are simply not immune to that,” Gaines says. “It’s going to have an impact.”

Ultimately, he says, anything is possible in the real estate market, and it would behoove Texas homeowners to remember the peak and bust in home prices during the oil boom of the 1970s.

Building immunity through community
Burgeson says residents are constantly telling her how grateful they are not to have to worry about the ups and downs of the area’s housing market.

“They say it’s great not to be on that roller coaster anymore,” Burgeson reports. “Instead, they can spend their time having fun.”



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