Transitioning to assisted living can be complicated enough. When you also own one, or even multiple, homes though, getting your life ready for this major change can be even more of a challenge. You have a few options to carefully consider when it comes to managing those properties as you plan for assisted living, and the tips below can help you weigh the pros and cons of those options and decide which one is right for you and your loved ones.
Turn Your Home into an Investment Property
In today’s housing market, there are so many benefits to becoming a landlord. These benefits include having the option to sell the home for more profit at a later date, as well as having additional income from rental payments to help cover the costs of assisted living. Now, most people will tell you that managing a rental can be very stressful (be sure to run background checks on potential tenants), but you and your family will not need to worry about that stress with a property manager. A reliable property manager will help you maintain and manage your home as a rental, and will also keep you and your loved ones updated on any issues or information regarding your new investment property. Plus, with a property manager that operates nationally, you can also use those services to help manage vacation homes that you would like to rent out as well, to produce additional income and take advantage of tax breaks that can reduce any potential costs of managing a vacation rental property.
Sell Your Home and Use Profits for Assisted Living
The costs of assisted living can really add up for seniors. With national averages ranging from $3,000 to $6,000, rental income may not be enough to help with these expenses and still allow you to live comfortably during retirement. So if you need a larger chunk of money or if you don’t want to deal with the hassle of being a landlord, you may want to think about selling your home. Start by using online tools to estimate the current value of your home, so you can get a better idea of how much money you could potentially make. You should look for a real estate professional who can provide you with better estimates, as well as tips to help your home sell for the most profit, in the minimum amount of time. Finally, you will need to plan on repairs and updates in your home, in addition to decluttering, in order to make your home enticing for buyers. Boost curb appeal by painting the front door, putting in a new mailbox, and adding some outdoor lighting.
Ask Family Members to Take Care of Your Home
If you feel an attachment to your home, know that you are not alone. When you’ve spent a lifetime, or even part of that lifetime, living in a house, it becomes imbued with memories and emotions. So, letting go of that house can feel more like letting go of those memories and feelings, which is why you may not be ready to sell your house or have strangers living in it. In this case, you can always opt to have your loved ones care for your home. By transferring property to your children or family members, you can avoid the emotions and hassles that can come with selling or renting; however, you need to take proper steps during that transfer if you would like that transfer to come with minimal tax implications. Depending on the value of your home, or homes, you may be able to gift property to your family members without any additional tax burden on your, or you could use a trust too.
When you are considering a move to assisted living, you already have enough to think about. Thinking about your home shouldn’t cause you serious stress during this transition, so carefully consider all of the options available and ask for professional advice, to give yourself and your family some peace of mind when it comes to deciding how to deal with your home before you move into an assisted living facility.
Story by Andrea Needham @ eldersday