It can be difficult to make the transition from a fully independent life into one of living with assistance. However, making the right financial decisions along the way can make a huge difference in the experience that you have.
One of the most important decisions that you will need to make is how to deal with the administration of assets that you will no longer physically be in control of. First and foremost, this will include the residence that you were staying in before deciding to make the move into the assisted living facility.
The decision to sell your previous residence is one that should be considered deeply, especially when there are so many other options that are available to you. Consider the following:
You may be able to rent your residence, retain ownership and help to finance your assisted living expenses on your own
Before you think about completely selling your previous residence, you might want to think about renting it to a third party if you have the means to manage the property. With today’s virtual administration programs, you do not have to incorporate much physical movement into the actual management of a property; the entire ordeal can be done from an ordinary, private computer terminal.
This means that you do not have to relinquish control of a piece of property just because you are moving out of it physically. There is virtually no downside to retaining control of the property and continuing to profit off of the equity while you use the month to month funds that you generate from renting to pay down the costs of your assisted living expenses.
If you are going to sell your home, you must make sure that you have trustworthy people around you to get you the best value
There may be a situation in which you have to sell the home instead of rent it out. In this case, you should be sure that you have people around you who are not just looking to make a quick profit off of your sale. Some real estate agents will use elderly citizens for a quick payday and move on, completely ignoring the long term financial needs of that person and what that person may actually be securing from an equitable sale of the property.
Also, if it is financially feasible, it may be better for you to move into the new facility just prior to putting the home on the market. By doing this, minor repairs and staging can take place without disturbing you or your belongings and often results in a quicker sale at a higher price.
If you have built relationships with people who have already done good real estate deals for you, it may be best to stick with those people. If you do not have any relationships in the real estate industry, then you may want to ask a trusted family member for the right connections. Keep in mind that any equity that you have in the home may be one of your primary incomes during the time that you are in an assisted living facility and are unable to work (if you are unable to work).
Regardless of whether you decide to rent or sell, you must get the most value out of your purchase. Make sure that you have trusted advisors around you at all times, and make sure that the final decision falls to you. This is the only way that you can ensure that you will capitalize fully off of all of the hard work that you put in over the years to obtain and maintain your real estate.
About Senior Path:
We are a professional, senior housing advisory service which provides personal attention to Seniors and their families. We employ a staff of talented, caring Advisors who have vast experience helping Seniors and their families through this transition. Our Advisors have extensive backgrounds in the Senior Care industry enabling them to understand what Seniors want and need.