Guest Article by Suzanne Tanner
After months of indecision and anxiety, you’ve finally made the decision to downsize to a new property. Even though you’ll miss your old place, you know that a smaller home will offer a higher quality of life. Now that you’re satisfied with your choice, it’s time to focus your attention on what you want to do with your old home. There are roughly three choices that seniors have when it comes to managing their previous property after a downsize: rent it out, sell it, or keep it in the family. Each option comes with its own positives and negatives. Let’s take a deeper look at these choices to help you determine which is the best given your circumstances.
Rent it out for monthly income.
In the United States, nearly 25 million seniors age 65 and older aren’t economically secure. This astonishing statistic sheds some light on the difficulties that older individuals face when forced to live on a fixed income. If money is tight and you’re in the process of downsizing, renting your old property is a great way to earn some monthly income to supplement your pension or 401(k).
If you do decide to transform your old home into a rental property, you won’t have a large sum from a sale to put toward a new property. Even though your rental income could potentially provide more value in the long run, you still have to deal with your current financial standing.
Sell it to fund the purchase of a new home.
If you’re looking for the most straightforward and hassle-free way to downsizing, you should consider selling your current home. The money generated from this sale can be put toward a new home, and you don’t have to worry about maintaining a second property. Since your new home is smaller, there’s a good chance you’ll have some extra money to pocket. Determine how much you have for a down payment and your monthly spending and use a home-affordability calculator to figure out what you can afford. Setting a monthly budget is a great way to keep yourself from buying a home that’s beyond your budget.
In order to sell your home efficiently and quickly, you should hire a local realtor. These professionals should know your real estate market and can help you get the most out of your property. You may have to put some effort into staging your home to make it more attractive to potential buyers; just make sure you can afford any improvements you make.
Entrust it to a family member.
Some seniors can’t stand the idea of having a stranger living in their home or putting it on the market after decades of memories. If you have a strong emotional connection to your old property, consider entrusting it to a family member. You’ll be achieving your goal of maintaining ownership of the property while still being able to live comfortably in your new home.
If you have family members living nearby, you could have them check on the home from time to time to ensure everything is fine. You could even consider letting a family member live in the home if you want to put it to good use. Discussing these options with your family can generate other ideas about how to logistically keep the property within the family.
Downsizing to a new property brings about many new opportunities as well as difficult questions. When deciding what to do with your old property, consider all of the options while also taking your current circumstances into account.
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