What You Need to Know About Your Home Before Moving to Assisted Living
When you’re faced with a move to assisted living, you already have enough decisions and tasks to complete. So, if you can get some help making those choices, like how to handle your current home, you may be able to make the impending transition less stressful. If you are still debating options for your real estate property, here are some pros and cons of each choice.
Short-Term Rentals Can Provide Seniors with Valuable Perks
Is your home located in a popular location? If so, you could earn some serious income from renting out your home as a vacation rental. Just make sure you are up for all that owning a vacation rental entails. For example, you could lessen your tax bill by owning a rental property, but you may also be subject to short-term rental laws that could affect the profits and stress involved.
You can use a property management company to take on the responsibility of marketing and renting your home. Not only can a property manager handle housekeeping services for your guests, but they can also provide 24-hour support to take care of any pressing issues tenants may have.
Long-Term Rentals Can Also Supplement Retirement Income
If you’re concerned about filling your rental with vacationers or dealing with local rental rules, then you may want to think about turning your property into a residential rental. So if you have a home in a desirable location, listing your home as a long-term rental could pay off big time.
Plus, owning a rental home can provide seniors with additional cash flow, tax, and appreciation benefits that basically equate to owning a small business in retirement. Of course, managing a rental can come with a fair share of headaches as well, so if you’re moving into assisted living, consider using a property manager to help rent your home.
Sellers Markets Can Make for Seriously Profitable Home Sales
If your home is currently located in a seller’s market, you may be better off listing your property. That’s because this sort of real estate trend gives sellers so much more power when it comes to negotiating a price on their available home.
Not only that, but seniors who can list their homes in a seller’s market can expect to have that home sit on the market for less time, which can equate to even more profits. Of course, before you list your home you will want to make sure it is cleaned and staged to really win over potential buyers.
Selling a home to cover assisted living costs is a common choice for many seniors, as this option can provide a lump sum of profits while also helping to relieve any further responsibility of maintaining or managing a home.
Real Estate Gifts Can Result in Stiff Financial Penalties for Loved Ones
The last option for handing off your home before an assisted living transition is to gift your home to family members. Real estate gifts, when not handled correctly, can result in some pretty substantial financial consequences for those receiving property, so make sure you and your intended recipients are fully aware of these potential issues.
By working with an experienced estate attorney or financial planner, you may be able to avoid any IRS headaches for you or your family members. If your loved ones do want your home and you are willing to give it away, you could also avoid potential problems by selling your home instead.
Once again, working with a financial planner or real estate broker who has this sort of experience is highly recommended.
Cost, time and profits can all affect how you handle your home before a move into assisted living. So use the pros and cons above to weigh your options, but take your time making a decision. Because your home can be a valuable asset for paying for long-term care, but you need to do your homework and you may need the right pros to make a sound decision.
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Contributed By Guest Author Jim Vogel