After 33 years and four children, Baby Boomers Marta and Octavian Dragos say they feel trapped in what was once their dream home in El Cerrito, California.
Both over 70, the Dragos are empty nesters, and like many of their generation, they’re trying to figure out how to downsize from their 3,000-square-foot, five-bedroom home.
“We are here in a huge house with no family nearby, trying to make a wise decision, both financially and for our well-being,” said Dragos, a retired teacher.
But selling and downsizing isn’t easy, appealing or even financially advantageous for many homeowners like the Dragos family.
Many Boomers whose homes have surged in value now face massive capital gains tax bills when they sell. This is a kind of tax on the profit you make when selling an investment or an asset, like a home, that has increased in value.
Plus, smaller homes or apartments in the neighborhoods they’ve come to love are rare. And with current prices and mortgage rates so high, there is often a negligible cost difference between their current home and a smaller one.
Why’d you put this in reply to my comment?
Because im one of the “angry people hating on boomers”
Huh? Did you only read that single sentence from the entire thing I wrote? I posted explaining my take on what the problem being described in this article really is. Then how this situation doesn’t just affect the older, house-rich folks, but how it goes on to hurt all of us. And moreover how the fixes for the general problems in housing policy to help everyone get into more affordable homes would also help these same people.
… and your takeaway from what I wrote is that I’m white knighting for boomers?
That’s very frustrating for me.