Transitioning boomers give ‘leaving home’ new meaning
As boomers transition from their family homes to condos and smaller dwellings, many Canadian home-owners may be asking: is this the time to leave home?
In a number of cities across the country, real estate has appreciated dramatically in value over the years. Selling the family home may result in a virtual windfall that can be used to finance the purchase of more modest accommodation, or invested for regular returns to supplement existing retirement income.
“Emotional attachment aside, a house is more than a financial asset,” says Jack Courtney, Assistant Vice-President, Advanced Financial Planning of Investors Group. “It can be an income generator paving the way to retirement in retirement in many ways.”
These options may range from renting out rooms or space that you no longer need, selling your home and downsizing or taking out a reverse mortgage which allows homeowners to obtain cash, without selling their home, suggests Courtney.
“But finances aren’t necessarily the determining factor in making this important decision. Lifestyle considerations are equally important. Examining your goals and the range of possibilities will aid the decision making process,” notes Courtney.
Location, location, location – You may want to move where your children are, but remember – they may move. Will you uproot yourself every few years?
Smaller homes – Smaller homes are generally easier to maintain, with lower costs and taxes. But capital you put in to your home might be more profitably as investments that increase your income flow.
Condo or Apartment: Rent or buy? –Condos are appealing for those with health concerns because they are low in maintenance and easier to navigate. Travel buffs might opt for rental accommodation with no worries over home security when leaving town.
Doubling up: summer and winter homes – Whether to own or rent winter and summer dwellings has both income and tax implications
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