Posts Tagged “in-law suite”
When you are retired and have less income to meet emergencies, take vacations, or handle a big-ticket repair, keep in mind that you have a ready source of cash at hand: your house. Your home is likely the largest financial asset you have. You can put your home equity to work for you.
You may have approached retirement with no plans to sell your home, especially if the mortgage is paid off. When you own free and clear your costs to live there are vastly reduced, although the taxes, repair and maintenance costs, and utilities bills go on. Your home is an asset that can be tapped to improve your quality of life. You should think carefully about how to use the value of it when doing financial planning and develop a strategy to access your home equity if you need the funds by either selling the home or borrowing against it.
When You Might Want To Sell
Does your home still work for you in your senior years? Is it where you want to be? Is it too big? Does it accommodate your physical needs? You may realize it is too big for you or not near enough to the kids. If your health is failing, you may need to consider assisted living or at least find a home that is a better fit to your needs. Selling the home will free up cash.
Thinking of relocating? If you move to less expensive home or condo, you could purchase with cash and have money left over to help fund your retirement.
Becoming a renter. This gives you the option to take all your home equity and invest it to produce a monthly income. You can also pay off any mortgage debt you may have. Plus you eliminate the ongoing expenses of property tax, repairs and maintenance.
When You Might Want to Borrow
If you aren’t ready to sell, you have alternatives that allow you access a lump sum of cash or an ongoing stream. Taking a home equity line of credit (HELOC) can offer you access to cash for emergencies. Assuming you qualify for a home equity loan, a HELOC is a good way to put on a new roof or take the trip of a lifetime.
If you need to supplement your monthly income, a reverse mortgage will pull cash from your home that does not have to paid back until you sell the house or pass away. You can choose either to receive a lump sum or monthly payments, or both. Your home equity is your money and having it in hand can relieve the stress of daily living.
Should You Access Your Home Equity?
The family home should be part of your retirement planning. Using the equity to improve your retirement years is something you have earned. There is no benefit to struggling financially while hundreds of thousands of dollars in equity sits unused in your home.
Looking to sell your home? Give me a call today.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here
So, you’re a senior looking for a new housing option. The old family home is just too big, or needs too many repairs for you to plan on living there for the long run. You occasionally need a little help, but are basically in good health. You want to be near your kids, but want some privacy. Your answer may be to live in an in-law suite in the home of one of your children. An alternative might be to develop a separate suite in your home for either yourself or one of your children to live. Many families find that this would work and provide a safe, economical for aging parents.
Eight Things to Consider Before Changing Your Address to an In-Law Suite. With good planning, living in an in-law suite is a good solution, but pulling it off requires excellent communication and often some upfront money. Here are a few things to consider.
1. If you or your children already own a house that is amenable to having a second suite, you are off to a good start. As long as the property is sanctioned by the city to have an additional suite on the premises, you can make some modifications to assure that you and your child are comfortable. If you have to look for a house, what are the requirements each of you would need the property to meet?
2. This arrangement usually means that one person is going to be the landlord and the other the tenant, which may mean a change in roles for one of you. Will both of you be comfortable with that?
3. What will happen to your furniture and other possessions? Will you be able to move your own things into the space? Will you give away or store the extra?
4. Who will pay for renovations to the space to make it suitable for you? The renovations will be a permanent part of the home and increase the value for the owners.
5. Will the new space be just sleeping space, or will there be a kitchen and additional living space? Will there be a full bathroom there? The more self-contained the unit is, the more that you or whoever resides in the new suite will have a sense of independence. Having a full suite, plus a separate entrance, will make the area rentable in future years even if you move out.
6. If the second suite is in the basement, will that pose breathing problems for you? How about mobility issues? If the area is to cold or drafty for you or if you can’t easily get outside or move between levels, you might feel uncomfortable and trapped.
7. What are your mutual expectations regarding how you interact with your children’s family? As a senior, will you be expected to be a daily childcare provider or occasional babysitter? Will you cook your own meals or eat as a family? Will you care for your own apartment and clothes or will your child – landlord take care of them for you? Will there be free access toward your home and theirs?
8. Is the new space near your old home or in an area where you can meet new people and or participate in activities? If you feel isolated, you may not feel that you are at home.
Living in an in-law suite in one of your children’s homes can be a viable alternative to moving to a smaller house, an apartment, or even assisted living.
Looking to sell your home? Give me a call today.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991, Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here