Adults aged 65 and older accounted for 16% of the population in 2019, according to the Administration on Aging. If you're in or nearing that age group, downsizing is likely something you've considered. Explore these options for housing decisions you need to make.
What to Do With Your House
One of the biggest decisions you have to make is what to do with your current home. The three main options are: selling, renting it out, or keeping it in the family. Each has pros and cons, and your specific situation determines which is the best option.
Selling Your House
If you want to cut all ties with your current home, selling is the easiest option. You can move on and fully focus on your downsized space without future worries about the house.
If you decide to sell, make sure you know how much your home is worth before listing it. Use an online home value estimator that shows recent sales in your neighborhood to get an idea of how much it's worth. A real estate agent can also give you an accurate estimate. The median home price in Bountiful is $496,400, but several factors go into pricing for each home.
Renting It Out
If you're not quite ready to get rid of your home, using it as a rental property is an alternative. If you own the home outright, the rent is mostly profit, other than insurance and upkeep costs. Being a landlord can be a lot of work, though. An alternative is hiring a property management company. Expect to pay an average of 7% to 10% of the rent amount each month for the property management costs plus extra fees, such as finding contractors for repairs.
Keeping It in the Family
When your house has sentimental value, you might decide to keep it in the family. This can be a good option if you have a child, a grandchild, or another relative who wants to live there. If a family member inherits your house and then sells it later, they may have to pay capital gains taxes on the profits. If you decide to let a family member live there, decide if they'll live there for free or if they'll pay rent. Determine who's responsible for upkeep, taxes, and other expenses to avoid arguments.
Deciding Where You're Going
Your new living arrangements can have an impact on what you decide to do with your current home. If you're moving to another state, becoming a landlord and renting out your current house can be difficult, since you won't be nearby to handle issues. You can hire a property management company, but this adds to your expenses and might make it difficult to be profitable.
If you're moving to an expensive assisted or independent living facility, selling might be the best option. You can put the profits of the sale toward the often high cost of those facilities. In Bountiful, the average cost for assisted living is $3,103 monthly, according to Caring.com.
Make Downsizing Decisions
Consider all options for your old house once you know downsizing is your next move. If you need support as you downsize and move on to your next stage, explore how Thriving.ai can help with integrated care.
Written by: Lydia Chan