So my mom owns a home and is thinking about moving into a retirement home. We are wondering if we should rent out the house and move her into a retirement / assisted living home, or if we should sell the home, and rent her a new place.
The options are:
1. Sell home, rent new smaller home/move to retirement community (disadvantage: we can have cash up front; but loose equity in the home)
2. Rent larger home, use cash to rent a smaller home/move to retirement community (disadvantage: less community of older folks; advantage is we can continue to own the home but make money off of the rent payments; but now we have to manage new renters)
Basically asking if anyone has experience moving to a retirement community, and what the optimal move is with our current real estate assets.
Where could we talk to similar people in this situation? Feel like this is common?
When we have moved parents and friends to retirement homes we liquidate all their assets. Homes, cottages, vehicles etc. Sell them all. The time is quickly approaching where you want to simplify their financial lives as much as possible. Once they are in a retirement home they are down to a single bill/expense. Have their money managed by a bank or investment company. They have plans that will manage their accounts, pay bills and take care of estates at time of death.
Take the cash and add it to their investments to supliment their incomes.
If you are thinking of turning her home into an assisted living home, it's easier than you think. RALAcademy taught me how to do it and now I own three!
Dollars and cents aside - what is best for your mom - there's pro's / con's to all 3
You're asking a somewhat vague question as there are lots of things to consider - such as how much money she has (will she outlive it and eventually go on govt assistance -- the answer to this really could help you in your search for an AL facility or SNF (skilled nursing facility) ---
What are her present needs - how is her health - what does she need help with presently?
Do you have other things in order such as DPOA, DPOA for health, DPOA for Finance or a DPOA for both?
Lots of things to weigh out - Her present health condition and needs can really help narrow down what is best for her.