Downsizing to a Smaller Home or Assisted Living Facility? Here’s What You Can Do with Your Current Home
Downsizing is often difficult for aging adults. Not only do you have to adjust to a much smaller living space, but you also must determine what to do with the home you are moving out of. Do you try to keep it in the family, turn it into a rental property, or sell it? As challenging as this process can be, it can also be a great opportunity to reduce stress and thrive in your golden years. This article will discuss the benefits of downsizing to a smaller home or assisted living facility and cover the three primary options you have when it comes to your current home.
The Benefits of Less
If you’re like most aging adults, you’ve accumulated your fair share of stuff over the years. While there’s nothing wrong with having material items that improve your everyday life, there is a problem with having too many things. Not only can clutter increase the likelihood of trips and falls occurring, but it can also cause stress and make it harder to find things.
Getting rid of clutter can set you free. Of course, there may be some belongings that hold a certain sentimental or monetary value that you can’t take with you to your new home. In this case, you might consider asking family if they would be interested in keeping them. If this doesn’t work, you could donate them to a nonprofit organization or sell them. Remember that the clarity and reduced stress will make parting with these items well worth it.
Finding the Right Home
You’ve made the decision to downsize. Now you’ll need to find suitable new accommodations that allow you to live comfortably and safely. If you’re still able to handle the rigors of maintaining a home, then downsizing into a smaller living space is definitely an option. Look for senior-friendly features like no-step entryways, larger doorways, and non-slip flooring. If possible, find a one-floor home so you won’t have to navigate too many stairs.
If you need help with activities of daily living (ADLs), then assisted living may be your best choice. In these facilities, you can still mingle and socialize with other seniors, but you get some extra support like cleaning services, meal preparation, and medication management.
However, if you have a serious medical concern that requires constant monitoring, then a nursing home will be the safest place for you to reside. If you’re living in the Atlanta area, Senior Care shares reviews, features, pricing information, and payment options so you can find your preferred skilled nursing facility.
Option 1: Family Property Transfer
Many older adults who are downsizing decide to keep their home in the family.
There are two primary methods of doing this:
- You add a family member to the deed, making them a joint owner of the property, meaning that they will receive full ownership after you pass away.
- You gift the property directly to a family member so that they own it in full now.
The most important thing to remember when determining the best course of action here is that there are tax implications. Researching and understanding these implications will help you come up with the most effective plan. Also, if you decide not to sell or rent out your property for income, it’s essential that you know what you can afford in terms of a new home or assisted living facility. If you’re downsizing to a smaller home, make sure you can afford the down payment and mortgage payment. If you’re moving to an assisted living facility, make sure you choose somewhere you can afford the monthly payments and any additional services.
Option 2: Renting Out the Property
Another option is to rent out your current home. If you approach it the right way, this method can earn your monthly income that you could save and/or put toward your new living situation. Here are some factors to consider when determining whether this is the right option for you:
- The realistic cash flow you can expect after paying taxes, insurance, maintenance, and other operating expenses
- What kind of ROI you can expect
- What kind of value appreciation you can expect
- Whether you want to be a landlord
Option 3: Selling the Property
Finally, you could sell your current home. If you can get the sale price you want from your home, this might be the best way to go. However, this depends heavily on what the local housing market is like. Will you actually be able to sell the property as is, or will you need to perform several major repairs or lower your price significantly in order to make the sale? The home selling process can be arduous and stressful, so consider that as well.
Downsizing is the best path to a fulfilling life for many aging adults. That said, it’s important that you consider all your options when determining what to do with your current home, and remember that there isn’t one right way for every situation. Most importantly, be open to any advice from loved ones and people who have been in your situation before.
Ready to downsize? Whether you’re in the market for a new home or selling your current one, the skilled real estate professionals at Preferred Realty Services can help! Call (770) 486-5242
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