Downsizing Decisions Seniors Face When Determining What to Do With Their Current Home
As seniors reach a certain age, they are often faced with the decision of what to do with their current home. As they enter retirement, many are left with a home that is too large for their current needs, potentially too costly to manage on a fixed income, or not suitable for their mobility needs. Here are some important factors to consider when making this decision, presented below by BlueprintREA.com.
Should They Consider a Senior Living Community?
Where You Live Matters notes that one option for seniors looking to downsize is moving into an active adult community. These communities typically offer a variety of amenities such as fitness centers, swimming pools, golf courses, and organized social activities. They also tend to have a range of housing options, from apartments to smaller homes, that are designed with the needs of seniors in mind. The benefits of this type of community are that it can be a great way to socialize and stay active while also simplifying daily life.
It may be necessary to move to a skilled nursing facility if you require 24/7 care for a medical issue and can no longer be able to live safely at home. If that’s the case, start by looking online to find the right facility. Check detailed facility reports, pricing info, payment options, and reviews from other families for these specialized facilities in Denver, where there are currently 25 nursing homes.
How Can They Minimize the Tax Burden of Moving?
Another factor to consider is the tax implications of selling a home. Seniors who have lived in their homes for a long time may have appreciated tremendous gains in value, which could result in a large capital gains tax bill upon sale. However, there are strategies that can help minimize this burden, such as taking advantage of the primary residence exclusion or completing a like-kind exchange. It is recommended to consult with a tax professional or financial advisor to determine the best course of action.
How Much Equity to Expect From Their Current Home
One crucial factor to consider is how much equity seniors can expect to receive from their current home. If they have a lot of equity, this can open up many options for their next move, including purchasing a smaller home, a condo, or even an RV to travel in retirement. If they don't have much equity, downsizing may be more challenging, and they may want to consider renting or looking into housing assistance programs.
Leaving a Home With Sentimental Value
A Clear Path points out that another challenging aspect of downsizing is handling the emotional process of leaving a home with sentimental value. Many seniors have lived in their homes for decades and may have raised families or built memories in these spaces. It's essential to talk about the emotional impact of this transition and consider seeking support from friends, family, or a therapist.
Add Safety Items to Their New Home
As seniors begin to downsize, there are important safety considerations to keep in mind. One key aspect is the addition of safety features to their new home. These additions can range from installing brighter lighting to adding grab bars in the bathroom and shower. Grab bars provide a sturdy support system for seniors as they move around and can greatly reduce the risk of falls and injuries. By taking a few simple precautions, seniors can enjoy their new home and maintain their independence with peace of mind and safety.
Can They Donate Unnecessary Items?
Finally, when downsizing, seniors may struggle to decide what to do with all their belongings. One option is to donate items to organizations such as Goodwill or Habitat for Humanity. These organizations can use the items to help others in need and often offer donation pickups for large items. Additionally, donating items can help seniors to declutter and downsize their belongings in preparation for a move.
Use a Home Repair App to Manage Their New Place
If your senior loved one is downsizing to a smaller house, set them up with a home management app that will help them manage daily and emergency maintenance needs. The Frontdoor app helps keep your home running smoothly by setting reminders for regular maintenance and by connecting you with local experts who can consult through video chat on less routine and emergency situations. You should find out additional information on this innovative solution.
Support Your Senior Loved One During the Transition
Downsizing can be a complex and emotional process, but there are many factors to consider to make the transition smoother. By considering the need for an active adult community, tax implications, potential equity, updates, and repairs using a home maintenance and repair app, emotional impact, and donating unnecessary items, seniors can make an informed decision about what to do with their current home. With each factor fully evaluated, seniors can move confidently towards a home that reflects the next stage of their life.
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guest blogger: Carolyn Russo