Many people of retirement ages are in quandary in choosing two different options between selling their house or keeping it upon retirement because of many good reasons for both choices have offered.
Benefits of Selling Your House Upon Retirement
On the affirmative side, selling a property is tempting enough for a retiree to decide favourably on the following good reasons and advantages, particularly if the sales price of the house is good enough:
1). It is forecasted that property prices “for 2020…could be expected to see more significant growth in property prices. The February Budget is also anticipated to affect the market. However, it is largely expected that house prices will increase”—according to Lisa Walden from ‘housebeautiful.com’ under the article regarding the top 3 predictions for the country’s property market, published on January 8, 2020. This simply means that there is a big chance of earning a big amount of money in this year 2020 if ever you decide to sell your house upon retirement.
2). It is being observed that upon reaching old age of 60 and beyond, property maintenance becomes more difficult and expensive and many find it practical to downsize their houses where movement becomes easy and closer from bedrooms to kitchen, comfort rooms, dining, living rooms and front yards. On the other hand, senior parents can decide to move closer to the houses of their children. It is, therefore, feasible to sell their houses while they are healthy and able.
3). It might be true that you have chosen the ideal home in the best school district for your children or near your workplace when you were younger but moving even a small distance, away from the city centre for fresh air and wide greener scenery is not only good for the health but could also lower property taxes. Further, it can also put a retiree close to the houses of grandchildren or to such newly desirable amenities for seniors provided by the government or private sector.
4). Selling your home can be a great way to increase your savings in the bank and be able to pay all debts. In this way, you will have peace of mind living as a senior citizen while enjoying your retirement pension.
5). Retirees likely have different priorities in their visions for their future, even to the point of selling everything and relocating to another country where lifestyle and economic commodities are cheaper and the community is friendly and peaceful.
6). If the address of your home is located in a prominent high-end residential area, it is natural that it’s commercial valuation increases annually. A professional estate agent can give a financially wise opinion on the local housing market if a retiree finally decides to sell his/her property.
Why You Should Think Twice
However, on the negative side, after selling your home, the following problems are likely to be encountered, particularly if the sales proceeds are not big enough:
1). It is only practical to rent or buy a downsized home while living alone. However, loneliness is not good for a senior citizen because it might risk their mental health.
2). After the passing years of renting and growing older, subsequently, health problems eventually increases and medical expenses will be costlier than ever before. It is, therefore, feared that monthly pensions will not be enough for paying monthly rentals, basic utilities and health care.
3). Remember that the older your home, the more maintenance costs you must reserve for the future repair it will likely require. As one grows older, a home might also have some essential parts that could suddenly become a real problem such as the stairs, bathroom and floorings. These can create mobility problems for seniors, and costly remodelling of a retiree’s home might be expensive and a big headache.
Practical questions may arise, such as:
- Are all of those extra rooms now only used when grown children or grandchildren visit every once in a while?
- Are limited retirement funds being wasted on a large house for its repairs instead of reserving them for any health-related maintenance medicines and vitamins that are more important than the old home?
Remember that the larger the house you own, the more annual property taxes it costs.
5) Remember, too, that renting a home often means that all the maintenance, and possibly some of the utilities, are included in the rent. Hence, it could be expensive for a retiree who is now relying on their retirement assets to support their spending.
Staying in one’s ‘home-sweet-home’ and modestly living a simple life with a minimum monthly retirement pension may be cheaper in the long run than renting.
Ultimately, it is very important to those who are at or coming close to retirement age to wisely evaluate the positive and negative reasons presented in this article in oder to make a sound decision.
If you are considering selling your house preparation for retirement we are available to help you experience a seamless sale.