For most seniors, there comes a time when mobility issues and memory loss create a need to downsize and move into an independent or assisted living facility. One of the biggest questions is what to do with your current home. Here are some options to consider as you prepare to move into a care center, courtesy of Ashleigh Richards Design.
1. Sell Your Home
According to real estate experts, the market has been booming for many years with no signs of slowing down. Homes have been selling quickly and above the list price with few contingencies. Even if you've only lived in your home for a few years, you stand to make money on your home sale. This extra cash is beneficial if you need money to pay for independent or assisted living.
If you are inclined to sell, it is best to do it right away instead of later to avoid paying capital gains tax in the future. You are exempt from this tax if you have lived in your home for two of the previous five years.
2. Rent Your Home Out
In general, the cost to rent a home has also increased over the past few years, and the demand for properties is expected to continue. Renting your home out for a few years can offset your living expenses and allow you to continue earning equity on your property. You can rent it unfurnished, or charge a higher amount for a fully furnished and decorated home, which is ideal if you can list it as a vacation home or short-term rental. In this case, work with Ashleigh Richards Design to give your home an upscale vacation vibe.
To make your home desirable to renters, you may need to make repairs or upgrades to your house. One way to pay for these is to refinance your mortgage and replace your current loan with a higher balance. Then, you cash out the difference and use it to cover your home improvement costs.
Becoming a landlord is a big responsibility, so consider hiring a property manager to do the work for you. This manager can market your home to renters, screen the applicants, handle collecting the rent and maintain the property.
3. Keep the Home in the Family
Another option is to keep the home in your family. If you still have a mortgage on your house, check with your lender to see if your family members can assume the loan and have ownership transferred to them. Fees still apply, but they are smaller than typical closing costs.
If they can't assume the mortgage, you can rent the property to your family members or sell it at a price they agree to pay. They would then be responsible for securing a home loan of their own. It's best to use a real estate agent for this transaction to guide you through the Washington laws and fees involved in the sale. If necessary, you can offer your family member a gift of equity to help cover the down payment.
4. Choosing a Senior Living Facility
Let’s discuss how to choose a senior living facility. First, if you’re in the Phoenix area, there are plenty to choose from, so the first step is to check reviews. You can also check pricing online to see if it’s something affordable. From there, make a list of the ones you want to tour. There might end up being quite a few, so don’t think you have to take care of all of this in a few days. Give yourself some time. Lastly, write down a list of frank questions, ranging from care to cost. You can contact them in advance and ask these questions over email or the phone, but also ask them in person for extra reassurance.
Deciding what to do with your home when the time comes for you to move into independent or assisted living is a significant decision. Take the time to determine if it's best to sell it, rent it out or keep it in the family. And if you decide to rent a furnished home or turn it into a vacation rental, contact Ashleigh Richards Design to make your space into a luxurious home people will love to book.
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