Funding Your Next Phase of Life
By Curtis Fisher
If you’re starting to look into the benefits of moving into an assisted living environment, you’re probably thinking about the costs. Fortunately, if you own your own home, there are a number of ways you can tap into your home’s value to fund this next stage of life. If you decide liquidating your real estate assets is the right move, Lauren G. Tizabi can ensure you get top dollar for your property.
Is It Time?
Many seniors struggle with deciding when the “right” time is to downsize, move in with adult children, or consider assisted living options. While there are no hard and fast rules, ideally, you want to have a say in the decision-making process. That means thinking and talking about it in advance. Consider your finances, your assets, and your needs. Take a few tours, ask questions, and find a place that feels like it will be a good fit for you. This allows you to be in control of where you go, and when you go there.
Sell Your Home
The most straightforward approach to funding assisted living is to sell your home and unwanted contents and use it to pay for your new residence. This frees up all of your real estate equity and allows you to downsize personal property at the same time. The downside of selling is that while you’ll get a lump sum, the property will no longer be yours. Before you make a decision, research the average price of homes in your area to see if a sale would indeed be beneficial.
Rent Your Property
If the rental market in your area is healthy and stable, you might consider renting your home. This way, you’ll generate a monthly income, and if the property continues to appreciate in value, you’ll be able to cash out down the road or make it part of your estate. The downside to renting is that you won’t get a lump sum upfront, which you might need to move into assisted living. There’s also the matter of managing the property, advertising for renters, writing rental agreements, collecting rent, and troubleshooting repairs. You can hire a property management company to do this for you, but it will cut into your profits.
Loan the House to Family
If you aren’t ready to part ways with the family home, you don’t need the money, and you have relatives who need a place to stay and would be good caretakers, loaning the house is another option. This ensures the property stays in the family, continues to appreciate in value, and remains part of your estate. You may or may not charge rent, or require the caretaker to handle repairs and upkeep. The downside is, the property won’t be used to fund your move into assisted living. According to CBS News, to protect your assets, you should lay out all of the terms of your agreement in writing.
Other Things to Consider
There are plenty of options when it comes to assisted living, with prices and services varying quite a bit, so do your due diligence in finding a place that feels right for you and meets your current and long-term needs. Some facilities focus on memory care, while others have tiered living options that allow you to increase your level of care as needed. There are a number of resources available to help you narrow the focus.
Moving into assisted living is a major life step, but it simultaneously gives you a sense of security, of community, and of ensuring your mental, physical, and emotional needs are being met. Consult with your family, conduct your research, and make the choice that’s best for your unique and individual needs.
Lauren G. Tizabi is known for putting her clients’ best interests at the forefront. Call (310) 666-1537.