Moving into assisted living is an uncertain time for many seniors. If you or someone you love is facing this difficult decision, there may be many questions about what to do with their current home as they enter this new life stage. Fortunately, there are options, and here are a few things to know about the most common, which are selling, renting, and keeping it in the family.
Selling can help you cover the cost.
According to Caring.com, the average cost of senior living around the Philadelphia area is about $3500 per month. This is on par with the national average, meaning that Philadelphia is a fairly affordable city in which to retire. But, that does not mean it’s cheap, and selling your home may be a necessity. If so, you can trust Franklin Investment Realty to help you get the most out of your home as quickly as possible.
If you’re not sure how much you can get for your house, keep in mind that the Philadelphia housing market changes often. But, as of December 2021, the median sale price in Philadelphia hovered at around $255,000. So, if you have been in your home for many years, you likely have a large amount of equity to cover your assisted living care cost.
You can rent for a monthly income.
If you’re looking to earn a monthly income, you might also consider using your property as an investment/rental. In the Philadelphia area, a two-bedroom can rent from anywhere from about $900 a month up to nearly $2,800 a month. This might not be enough to cover the entire cost, but, if you have some money in savings it can help bridge the gap.
Leasing your home does pose challenges, however, including continued maintenance costs and the potential for poor renters. You also must continue to pay taxes (likewise, you may have to pay taxes on profits if you sell). Something else to consider if you plan to handle property management on your own is how far away your assisted-living center is from the property.
Make an estate plan if you want to leave the home to a specific family member.
Another option that many homeowners choose is to keep the home, continue to make payments on it, and leave it to heirs upon their death. If this is the case, it’s important to create a legal estate plan, such as a will, trust, or transfer-on-death deed. According to Santaella Law Group, either of these is a viable option. Something to keep in mind here is that your heirs will be responsible for property taxes and any outstanding liens on the home, even if you have left it to multiple individuals.
Another important point to consider when creating an estate plan is that you can change it prior to your death if your circumstances change. For example, you deed the property to another upon your death but then choose to sell the home instead. You can change your estate plan to remove the beneficiary on this property and outline exactly what you want done with your home sale proceeds.
While you might be intimidated at the thought of moving into assisted living, you should know that you are in good company. Around 835,000 men and women currently live in assisted living throughout the United States. With this many moves each year, you’re sure to find a real estate agent or financial advisor that has experience in this arena to help you make a decision that’s best for you and your family. Remember, you have options. And, short of selling your home immediately, you can always change your mind later if your situation changes.
Founded in 1992, Franklin Investment Realty has years of experience and can help you buy or sell the home of your dreams.
– Rhonda Underhill