The Best Options for Seniors Managing an Old Home
Many seniors make the wise choice to move into a smaller home. When you no longer need four bedrooms, two baths and a huge living room, moving to a smaller place makes good economic sense. But what do you do with the home you currently live in? These days, seniors tend to opt for one of three routes when they decide to downsize: they sell the home and use the funds to buy a smaller home, they rent out the house to generate monthly income, or they simply transfer title to a child or grandchild. Read on to learn about which option is best for you.
List the property.
The major advantage of selling your home is that you’ll have more than enough cash, in most cases, to acquire a smaller place. This profit provides a bit more financial security for those in their golden years who don’t want to take out another loan. Your profit can be put toward savings, medical bills, or traveling.
The market is Denver is excellent right now for both selling and buying. Interest rates are very low for prospective buyers so there will be plenty of buyers who will want to be the next owner of your place. Inventory has been up compared to recent years so you will have more to choose from. It is a perfect combination. Timing is key so be sure to get expert help with all this.
Turn it into a rental.
Another popular choice for seniors who are looking to downsize is the rental route. This option allows you to remain in legal ownership of the home while still holding onto your investment. Not to mention, the monthly income generated from converting your old home to a rental can be a game changer for those living on a tight budget.
If managing a rental is too much work for some seniors, you can hook up with a rental management agency that will do most of the heavy lifting for you. From screening tenants and collecting rent to maintaining the property and making necessary repairs, these property managers take care of everything. All you have to do is offer them a portion of your monthly income, and they’ll take care of the rest.
Bequeath it to a family member.
If you have a married child or grandchild who could use the home to raise their own family, transferring ownership to them can be an attractive thing to consider. Obviously they could potentially benefit greatly from such and it would keep the home in the family which can be a wonderful legacy thing. There are however serious tax implications in doing this so if that is something you’d like to consider, best to speak to a qualified estate attorney or accountant. An alternative is to set up a Beneficiary Deed that says the home ownership automatically transfers on your passing and does not have to go through probate.
Regardless of what you decide to do be sure to make a detailed budget and figure out exactly how much need for the future. The budget might make the path very clear to you. The good news is that there are several ways you can go when deciding how to manage an old home during a downsizing. The best decision is the one that fits your personal goals and financial needs. Be sure to take sufficient time to decide which option suits your circumstances the best.
The proceeding is a guest editorial from Jim Vogel who is an advocate for senior citizens.