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Practical Things to Do with Your Home When Moving to Assisted Living

Engage Team • Jan 13, 2022

Moving into an assisted living facility means making quite a few tough decisions. In addition to choosing where to move, the other big challenge you'll face is what to do with the family home. Selling it, renting it out, and leaving it in the care of family are all viable options. But which is best? Here are some of the financial concerns to keep in mind as you consider your choices.

Choose the Right Community

Most assisted living communities share common offerings that include help with daily tasks, meal preparation, social activities, and the like. However, despite these similarities, not all communities are the same. Each one has its own specific model that caters to their residents’ needs, and winnowing down your options can feel overwhelming at first. To ensure you choose the best community for your situation, make a list of specifics that you want in a residence, and be sure to tour several places. In addition to cost, other factors to keep in mind as you suss out different communities are levels of care, the types of living space offered, and proximity to services, hospitals, and shopping.

 

Keep in mind that if you need round-the-clock medical care, then a skilled nursing facility will be a better option than assisted living. You can visit Senior Care to learn more about nursing homes in your area including amenities, cost information, and reviews from families. Once you decide where to move, it’s time to determine what to do with your home.

 

Selling Your Home to Fund Long-Term Care

Selling your home can be a great way to cover your assisted living expenses, as long as you think ahead. Find out how much money you can expect to gain from selling your home by checking out the current sales trends in your area. It’s important, however, to keep in mind that selling your home comes with its own set of expenses. According to Bankrate, you can expect to pay up to 10 percent of your home’s sale price in various fees. That said, you're going to want assistance with selling your home, since it requires completing many steps.

 

Renting Out Your Home for Regular Income

Renting out your home may be another good way to fund your assisted living costs, particularly if your mortgage is paid off. As opposed to selling your home, renting will provide a regular source of income that can help cover your care expenses for as long as you need. At the same time, this will allow you to keep your property in the family.

 

One downside is that it’s possible that you may not be able to charge high enough rent to cover your expenses. Find out what kind of rental income you can expect from your home by evaluating other rental properties in your area and comparing your rental rates against your existing monthly expenses. You also have to consider the potential costs of vacancies, evictions, and major maintenance before renting out your home. Fortunately, you will be able to claim many of these expenses as tax deductions.

 

Unless you have a family member willing to take on the duties of a landlord, you may have to hire a property manager to handle your rental. While a property manager will take care of everything—from finding tenants to collecting the monthly payment—Forbes reports that they will also take about 7-10 percent of your rental income.

 

Gifting Your Home to Relatives

If you have other ways to cover your assisted living costs, you may not need to sell or rent out your home. But holding onto your home means you will still be responsible for monthly expenses like utilities, property taxes, insurance, and mortgage payments. A good way to keep your home in the family and avoid these expenses is to pass it on to a family member.

 

Deciding what to do with the family home is more than a financial matter. It can be a very emotional decision as well, especially if you’ve spent decades calling this place home. Take a breath, take your time, and try not to rush into any irreversible decisions. Evaluate your options carefully to ensure you make the choice that best suits your needs and desires.

 

By Kelli Brewer


Contact Royal Realty to inquire about our management services and listing services.

 

By Engage Team 15 Mar, 2022
From the Big Island to Oʻahu One of the benefits of living in the island archipelago of Hawaiʻi is that the other Hawaiian islands are a short flight away. It was during a spontaneous visit to Oʻahu from the Big Island of Hawaiʻi – where we lived for 6 years – that my partner and I got the idea to switch islands. Although each of the Hawaiian islands has unique merits, we were ready to experience Oʻahu’s convenience, plentiful hiking trails and beaches, and diverse economic opportunities. After landing a job offer based in downtown Honolulu, our relocation planning began. Since we were still largely unfamiliar with Oʻahu, we tailored our apartment search to a few factors, including: proximity to work; walkability to groceries and other necessities; and amenities like air conditioning, a pool, and a gym. Of course, budget was a factor as well, and we set our price range accordingly. Choosing Kakaʻako While the apartment criteria narrowed our search to three Honolulu neighborhoods – Waikiki, Ala Moana, and Kakaʻako – we focused on Kakaʻako because of its newer buildings and walkability to shops and dining. While living in a downtown Airbnb, we cruised sites like HICentral , Zillow , and Craigslist to find leads, and looked at several apartments before securing a 1-bedroom in the recently completed Keauhou Place tower. In addition to our unit having an incredible view overlooking downtown and the harbor, it came with shared amenities like covered parking, a pool, gym, and barbecue grills. As well, we enjoyed access to its ground-level pedestrian mall, which offered a natural grocery store, spa, and spots for dining and takeout – not to mention a short jaunt to even more options at SALT and Ohana Hale Marketplace . Aside from walkability, the location served as a central jumping off point for weekend adventures around the island. Change of Scenery Two years, a pandemic, and one job transition later, we were ready for another change of scenery. Since I switched from working in-person to working remotely, we no longer needed to live close to downtown, and began exploring the idea of moving to Oʻahu’s east side, where we would be closer to some of our favorite hikes and beaches. While the search process was similar, the inventory in our budget range was different, and it took a bit longer to find a suitable home. As opposed to the ample selection of apartment and condo listings in Honolulu’s urban core, the east side neighborhoods of Kaneohe, Kailua, and Waimanalo offered mostly ADU’s (additional dwelling units) or single family homes converted into multiple rentals units – sometimes lacking the privacy or amenities we needed. It took about 3 months to find our ideal rental home in Kailua, a similar 1-bedroom condo within a comfortable walking distance to town and the beach. It took a lot of patience, because the inventory was more limited; but, luckily we had flexibility to keep searching until we found our match.  Urban v. Suburban: Which to Choose? Ultimately, I am glad we got the experience of living in both Honolulu and Kailua. Particularly, the Kakaʻako neighborhood, with its abundant street art, well-maintained parks, and diverse shops and dining options, is a great place to get a feel for Oʻahu’s urban core. On the other hand, Kailua has an intimate, beachy feel, which could be a better fit if you can work remotely – and avoid the driving commute into “town” (local shorthand for Honolulu). Either way, pre-determining your unique home, budget, timing, and lifestyle criteria can help to narrow your search and point you in the right direction. About the Author Ali Slous is the founder of Perspective Media , an Oʻahu-based creative agency whose mission is to empower entrepreneurs and small businesses to channel creativity in ways that generate both professional success and personal satisfaction. When she is not creating Perspective Media, Ali enjoys access to the incredible nature Hawaiʻi has to offer. Resources HICentral: https://www.hicentral.com/ Zillow: https://www.zillow.com/honolulu-hi/?utm_content=319854744|1301821912900950|kwd-81363927204438:loc-190|81363895177301|&utm_campaign=zbw_br_natgeo_usa_x_nat_cities_e_b_1&semQue=zillow%20honolulu&msclkid=330d4f9cfa6b19b9b07d2db5ba061625 Craigslist: https://honolulu.craigslist.org/search/hhh SALT: https://saltatkakaako.com/ Hale Ohana Marketplace: https://www.ohmhawaii.com/ Perspective Media: https://perspectivemediahawaii.com/
By Jacqueline Little 16 Feb, 2022
A new year is upon us, and I must say it feels familiar, yet unpredictable. What I mean by that is, although we’re still dealing with the pandemic, the real estate market is still very dynamic. Mortgage rates dropped to record lows for much of last year, while home values and sales peaked to record highs. Where does it go from here? To say that there will be a housing market cool down is too drastic. Steady buyer demand and low inventory will continue to drive up prices. My insight for 2022 aligns with what most are predicting for the housing market’s future - everything will be high. Demand, prices, home appreciation rates, and eventually home inventory and interest rates will rise too. While some trends from 2021 will continue into the new year, some things will change. This year will be defined as a steady year of (slow) growth. The market will no doubt be in the favor of the sellers for now, but things will start to swing the other way. Because the real estate market is affected by current events, fluctuations are inevitable. If you’re looking to buy, pay attention to interest rates and always be in tune with your own personal finances. If you’re in a position to sell this year, it wouldn’t be a bad idea. The smaller housing inventory fares to your advantage because low inventory creates competition among buyers, essentially increasing your property’s value. If you’re a seller, know that there are options for selling. Whether it’s your first home sale or your fifth, talking to a real estate agent will help you explore your options so you can market your home to a wide range of potential buyers and get you top dollar for it. If you’re a buyer, the same advice rings true here. Talk to a real estate agent who can help you navigate this active housing market and help you find the right situation for you to act on. As always, Royal Realty is here for you and ready to take on 2022 with you!
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