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by Michael Longsdon
Moving to a new home is an exciting, yet daunting task. Not only do you have to decide where to live, you also need to think about the logistics of moving. Because most seniors choose to move into smaller homes or units, downsizing possessions might also be on your mind. Below, learn how to choose the best home for your golden years and find tips for moving and letting go of items.
Independent Living Options
When you think of housing options for seniors, the first thing that comes to mind might be assisted living facilities and nursing homes. However, there are actually numerous options that let you live independently.
First, you can simply buy a smaller house that is easier to take care of. This allows you to pick a new city or neighborhood that fits your lifestyle better. By knowing which recreational activities and amenities you want close by, you can narrow your search.
The local housing market might also influence your choice. For example, over the past month, homes in Scotts Valley spent an average of 38 days on the market and sold for an average of $933K. In a competitive market like this, you’ll need to plan and budget accordingly.
In addition to single-family homes and condos in residential areas, you can also weigh the benefits of moving to a retirement community. These places are not like nursing homes. On the contrary, independent living campuses and age-restricted communities have separate living units and come with extra amenities that you wouldn’t get from a regular condo or apartment.
Assisted Living Options
Your health conditions and physical needs will ultimately determine what type of living arrangements are best for you. If you need help with daily tasks, assisted living may be a good fit. Keep in mind that each facility is unique, so it’s important to do your research to find one that’s right for you.
If you don’t need assistance now, but anticipate that you will in the future, a continuing care retirement community (CCRC) might be a better match. These communities provide every level of care, allowing you to transition to a higher level if needed.
There is also the option of remaining in your own home and hiring a personal care aide or homemaker. With in-home care, you can remain independent while still getting the help you need.
With COVID-19 concerns being a major source of anxiety for many older people, there is comfort in the idea of remaining at home rather than moving to a communal setting where infections could spread more easily. Whether you choose independent living, in-home care, or assisted living, make sure you stay up-to-date with the latest guidance from the CDC.
Planning Your Move
No matter where you decide to move next, you’ll have to figure out some logistics. It’s important to plan your move as far in advance as possible so you can choose a good moving company, pack your belongings, and tackle the usually dreaded task of decluttering.
Because movers can book up quickly, it’s a good idea to contact a company as soon as possible to ensure you can stay on schedule. To find a moving company, you’ll want to do some research online. Reading mover reviews can provide a lot of insight and help you pick the best service for you.
Even though professional movers can pack on your behalf, you might be more comfortable boxing up things yourself. There are many ways to streamline the packing process so it’s not stressful. For example, Consumer Affairs recommends packing up each room completely before moving onto the next room.
Decluttering will also help tremendously during the moving process. Not only will there be less stuff to pack up, you will also have an easier time fitting everything into your new home.
Moving to your new place can be emotional and stressful, but the move will also come with many new opportunities. By doing your research to find the perfect type of housing and planning your move out step by step, you can ease into your new life with less stress and focus on your new possibilities.
When assisted living is on the horizon, there’s one question that looms: What should seniors do with the family home? Most of us dream of passing our homes to our children someday. But in the face of rising assisted living costs, many seniors are realizing that’s no longer an option. If you’re headed to assisted living and wondering the best way to handle your home, this guide can help.
The High Cost of Assisted Living
Nationally, assisted living prices average $4,027 a month for a studio apartment, with higher rates for one- and two-bedroom units. That’s approximately what the average retiree earns in a year before taxes, and seniors living on Social Security alone get by on much less. With these numbers, it’s not hard to see why so many seniors consider selling their homes to pay for assisted living.
Selling a Home to Pay for Assisted Living
Selling a home can be a smart way to afford assisted living. However, it’s important to do the math first to determine if the proceeds of a home sale can reasonably cover assisted living fees.
Assisted living facilities vary in price, and some cost more than the national average. However, seniors on a budget can still find a facility thanks to the wide range of assisted living options. Since pricing depends heavily on individual needs, it’s best to set up tours of facilities to get an accurate estimate of what you’ll spend on assisted living.
Once you understand what assisted living will cost, compare it to home prices in your area. Homes in Scotts Valley sell for an average of $925,000, following an upward trend as the community’s housing market grows more competitive. That could make it a good time to cash in on your investment, but in order to understand exactly how much you could net from selling, you’ll need to do a comparative market analysis to determine what your home is worth. For a basic CMA, look for recently-sold listings in neighborhoods like yours, and choose properties similar in size and condition to your own. This will give you a rough idea of your home’s market value before talking to a realtor.
Renting: An Alternative to Selling?
With the exception of continuing care retirement communities, most assisted living facilities don’t require an upfront lump-sum payment. Rather, payments are made in the form of monthly “rent.” That opens another option for tapping into your home to pay for assisted living: renting.
Two-bedroom units in Virginia Beach rent for around $1,300 a month on average. While that’s not enough to pay assisted living costs in full, it could supplement income enough to make it affordable. That’s especially true if your mortgage is paid off or close to it. Keep in mind, however, that living in assisted living means you’ll need to hire someone to manage your property. Expect to pay around 10% of the property’s rental income toward property management. On the upside, capable property management can increase your unit’s marketability and reduce vacancy rates.
When Keeping the House Makes Sense
For some seniors, the cost of assisted living doesn’t necessitate major financial adjustments. Rather, they’re looking for a way to keep their home in good shape until it’s time to pass it on. While it’s possible to bequeath a home while living, your loved ones will receive more favorable tax treatment if they receive it as an inheritance.
Again, renting may be a wise option. Vacant homes are prone to decay and vandalism, and renting ensures the property is maintained and generates income to cover ongoing expenses. You may also choose to rent the property to family below market rate, although giving loved ones a break on rent has tax implications.
For most middle-class seniors, paying for assisted living means making major changes. However, it doesn’t necessarily have to mean selling the house. If you’re determined to keep the house in the family, try renting it out while you move to assisted living. But if you’d prefer your old house taken off your hands, get in touch about selling your property for a great price.
by Andrea Needham
Image via Unsplash
You’ve decided to downsize. Congratulations! Whether you are downsizinginto a completely new home, decluttering your current humble abode, or downsizing an area of your life completely unrelated to real estate such as finances, this is a chance to start a whole new chapter in your life that many report to be marvelously liberating. It doesn’t take much to start the process, but it can be overwhelming. The key is in the planning so that you are able to enjoy your golden years to the fullest.
Finding Your New Home
Before you take the plunge and pick out your new home, be sure to do your research into whether your retirement savings will fund your downsizing, or if you’ll need to find additional sources of financial support, even outside of a mortgage. It’s exciting to house hunt, but it’s important to make sure you’re only looking for places within your budget! When it comes to shopping for a mortgage, a worthwhile option to look into is a conventional loan if you’re still working. By taking out this type of loan, you can avoid having to pay for mortgage insurance. However, you will need proof of income and good credit (generally a credit score above 620).
Your current house made sense for you when you bought it, but now it’s time to find a home that makes sense for you today.Make a list of what works for you in your current home, what doesn’t work, and how you’d like to see yourself living in the future, whether that’s closer to your grandchildren or living in a warmer climate.
If mobility is an issue, you’ll only want to focus on single-story homes.If you’d love to say goodbye to mowing the lawn but don’t like condo or apartment living, you may want to consider a patio home. These are detached or semi-detached homes that often have amenities like pools and tennis courts, and outside maintenance is typically provided. Consider that down the road, you may prefer walking to your nearest store or doctor’s office rather than driving 20 miles.
If you’re thinking of moving to a new town, spend a few nights there first. It’s better to get a feel for where you might be living before taking the plunge.
What to Do with a Lifetime of Stuff
You can downsize your home without actually moving. It’s what is referred to as de-cluttering. You’ve collected a lot of stuff over the years, but purging and getting organized can create a calming environment, not to mention free up space so you don’t have to have a junk room. Sorting through all your belongings is hard, both physically and emotionally. Here are some tips from professional organizer Sara Getzkin, who has appeared on TLC’s “Hoarding: Buried Alive:”
- Don’t try to tackle too much at once. Getzkin tells her clients, “Let’s carve out three hours and see what we get done. Then, you are going to rest and not even think about this.”
- Prepare three bags or boxes and label them “Keep,” “Toss,” and “Sell/Donate.”Put away what’s in your “Keep” pile at the end of the day and throw out what’s in your “Toss” pile.
What about all the nostalgic items, like your children’s art projects or report cards? Psychology Today suggests photographing them. By taking pictures of them, you can still have them on hand. Once you’ve taken the photos, add them to your computer in a folder called “Nostalgia.”
Take Control of Your Finances
Retirement is the big goal we are all saving up and planning for. Whether you are getting close or have already retired, this doesn’t mean your financial planning should cease entirely. Financial security is a lifetime goal, and one you will need to work at even during your golden years. Take a look at how much you have saved up and determine how much you can withdraw each year without using it up completely. Now is the time when you are free to travel and try out new hobbies, but don’t forget that you may need some extra funds set aside for future medical bills, home renovations to age in place, or assisted living. With all that free time, maybe you could explore a side gig such as woodworking or painting to make some extra cash to ease your mind and fund the fun times. If you haven’t done so already, partner up with a financial advisor who can offer you an objective opinion and expert tips on navigating your senior years. A second set of eyes can prevent you from making a costly, irreversible mistake.
Following these tips will help your downsizing feel like a step up. With some extra planning, you can successfully downsize your home, items, and/or finances with ease. Then, you can truly enjoy your golden years, minus the unnecessary stress.
Guest Post by Michael Lonsdon