Deciding How to Downsize as a Senior
Seniors face a lot of challenging decisions as they age. If you're a senior or the loved one of a senior citizen, you probably know all too well how age can impact the ways seniors live and force them to make tough compromises. One of those major decisions is deciding what to do with your home in South Bend, Indiana. Many seniors decide to downsize for the benefit of themselves and their family members, but how you go about this depends on your needs.
What to Do With the Home You Have Now
You may decide that you no longer want to live in South Bend, or you may want to make money from your home for a variety of reasons. The most obvious option that you have is to sell the home before moving into an assisted living facility, moving in with relatives, or moving into a smaller property. However, the potential drawback is that you will no longer be able to pass the house onto your loved ones.
Renting Out Your House
Renting out your home is a great way to keep it in your family and draw some income from it each month. If the property is paid off, it can be rented out for significant profit, after maintenance and management costs (if you use a management company). However, if you choose to rent out your home, it may need a variety of upgrades and repairs that make it more livable and attractive to potential tenants.
Refinancing Is an Option
If you’re more interested in immediate financial benefits, refinancing may be a smart move. Refinancing your home essentially allows you to take out the equity stored in your home and restructure the existing mortgage by creating a new one that only includes the unpaid balance. You can also use this technique to create a new mortgage and extract the full value of the home if it’s already paid off.
If you don’t mind the home being sold by your descendants or being acquired by a refinancing company after you’re gone, this can be a great way to get the money you need upfront for living expenses or medical care. Refinancing can also be used to pay for upgrades that can make the property a more attractive rental.
Where to Move After Downsizing
Depending on your needs, an apartment might be more suitable for your later-life situation. You might not have a spouse or a partner anymore, or kids living with you in South Bend, so the extra space in your home might feel redundant. You might also have health needs that warrant moving into an assisted living community or similar setup.
You Have Options
Wherever you decide to move, make sure that your needs are met and that you’re in a situation where you can live comfortably and safely. Don’t forget that renting and refinancing can be great options if you aren’t interested in selling your home.
See Turning Point for information on care solutions for seniors.