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Your home is a huge part of who you are. Whether it’s the first place you bought, or a later in life upgrade, you’ve turned four walls and a roof into a lot more than its impact on your portfolio.
But when it comes time for retirement, there are several options for people to consider when it comes to their house. While your house may have served your diligently through the years, perhaps your future doesn’t require the same 5 bedrooms and 3 baths.
And perhaps you’re torn about how to proceed with your home. If you’re looking to explore all your options thoroughly - talk to your financial advisor, but to give you some initial guidance , I’ve listed below a few things to consider when it comes to your home.
Selling
If you’re looking at your home and no longer feel it’s suits your lifestyle, then it may be time to sell. Selling is a great opportunity to get back the equity in your home, bolster your portfolio , and potentially give you the option to be mortgage free.
Downsizing
Opting for a smaller home with little to no mortgage can make your retirement more affordable, or give you some extra cash to finance a few more trips or that boat you’ve always wanted.
Renting
If you find yourself nearing your retirement and you’re wanting to move to a better climate, I always recommend that my clients rent before they buy. Renting gives that feeling of “try before you buy” in a new community before you’re forced to put down roots, and a lot of your hard earned cash.
Dream Retirement Home
So you’ve worked hard all your life, saved diligently, forwent the Friday night dinners out and the fancy vacations and have given yourself a large nest egg for retirement. Now that you’re spending a lot of your time in your home you want to see that upgraded to suit your new needs and desires.
If this sounds like the retirement style you’re looking for it’s important to note that as of December 15, 2017, the mortgage cap laws have changed. The cap for a mortgage is now down to $750,000 from a million. This may impact your decision to sell, or what exactly you intend to buy.
Related: What Will You Do with Your Home During Retirement?
At the end of the day, every retirement plan is unique to the person it’s designed for. Going forward, it’s important that you understand all your options, and consider the lifestyle you intend to have when your 9-5 is over.
All of these options give you the ability to live the retirement you’re searching for. If you’re in need of guidance of what to do next with your home, contact me today.