Are you approaching retirement? There is a huge amount to plan and think about, including what to do with your house. Many people are nearing the end of paying off their mortgage in retirement or are close to it, which can open up a few different options for using your property to improve your retirement lifestyle. This post will look at the main options you have for your property in retirement. It will come down to your circumstances and personal preference, but being aware of your options is helpful.
Renovations
Many people decide to renovate in retirement. Renovation allows you to upgrade your existing home, which could include bathroom and kitchen remodelling, enhancing outdoor areas, and making the home more accessible so that you can continue to live there as you get older.
Downsizing
Downsizing is common when people reach retirement age. By this point, kids have often left the family home and are independent, so there is no need for a large family home anymore. Downsizing can free up a lot of money to improve your quality of life in retirement and means that you do not have a large family home to maintain as you get older.
Equity Release
Equity release is a financial product that allows you to release some of the value tied up in your home. This is an option available to homeowners over the age of 55 and allows you to stay in the home and retain ownership. The loan is repaid by selling the home once you pass away or move into care. The money can be used in any way you wish, whether this is renovating the home, improving quality of life, travel, or helping loved ones. There is a lot to consider with equity release, particularly when it comes to inheritance. This is why you should always speak with a specialist to see if equity release is a good option for your needs.
Renting
Another option to consider is renting your current home. This could involve renting or purchasing a new property and renting out the old property to tenants. Alternatively, if you have space, you could rent out a room. Renting can be an excellent way to create a passive income stream that could significantly impact your finances in retirement. If your current retirement pot is not enough to lead the kind of lifestyle you have planned in retirement, this could be a smart option.
As you can see, there are a few options to consider for your home in retirement. Ultimately, it will depend on your individual circumstances and the kind of lifestyle you want to have in retirement. All of the above can be good options for homeowners in retirement, so it is important to think about your goals and work out what the best option is for your specific circumstances.
