Assisted living can grant you quality of life and freedom if you need a little help in day-to-day living. If you have chosen to make the move into assisted living in Virginia, there are certain things that you need to do with your current home before doing so. We’ve listed them below to help you out.
Evaluate Current Home Prices
You would need to research current trends in home prices before making any major real estate decisions. Websites, real estate agents, and other sources can provide you with the information you need before you choose what you would like to do with your existing property. It is important that you do not make hasty decisions and evaluate all your options before doing so. Listing your home before making the move to assisted living could help you to cover any expenses you might have.
What Is Your Current Home Equity?
In addition to real estate trends and average home prices, you will also need to consider your current home equity. This is necessary especially if you are still paying off your mortgage. Put simply, equity refers to the difference between what your home is worth, and what you still owe. If your home has gained value, or if you have already put down your mortgage, selling could be profitable enough to steady your retirement income. However, if you still owe a significant amount of mortgage, you may consider renting instead. You can use your rental profits to pay off your mortgage and build additional equity.
Consider the Costs of Assisted Living
Estimating the costs of assisted living is of course a crucial item on your financial checklist. Monthly costs are expected to go up, especially in this economy, with a prediction of a 6.67% increase in costs annually. If you plan to use rental income or your profit from a home sale to cover your assisted living costs, it is important to keep these predictions in mind and keep abreast of any developments in the future.
Look Up Possible Tax Penalties
How will renting, gifting, or selling your home affect your taxes? Renting your home for a profit means that you might be able to use certain tax breaks to expand your profits. On the other hand, if you’ve owned your home for less than two years, selling now could mean that your profits can be narrowed by capital gains tax. Before choosing what to do with your property, it is instrumental that you find out how your decision can affect – or be affected by – tax penalties.
Get the Right Professionals
Real estate can be a tricky industry to navigate. Before embarking on any decisions, it never hurts to get advice from the right professionals. Speak to a family member or loved one that you trust and venture out together to see what trustworthy real estate agents may have to say about what you should do next.
The Next Step
Moving into assisted living can be an exciting decision, but it is also a big one. It is important to do your due diligence when it comes to selecting an assisted living community before moving. This will ensure that everything goes as smoothly as possible and your new life can begin on a good note.