Assisted living in Orchard Park of NY is becoming an increasingly desirable option for seniors who need support for certain daily activities, but who still want independence and an active social life. We at Orchard Heights understand that while this is an advantageous move for you, it also comes with its fair share of challenges. For example, after you’ve done all the research and settled on a floor plan at Orchard Heights, the next big decision could be what to do with an existing house or condo.
Essentially, you have three choices: sell, rent, or keep the property in the family. In this article, we will review the pros and cons of each option so you can make an informed choice.
Selling the Property
Selling the property is perhaps the most obvious choice. It is probably the best option in cases where your family lives far away and does not have any long-term interest in the property. The lump sum from the sale can also be a useful injection of cash for the senior, helping to fund the cost of assisted living.
For example, the median sale price of a house in Orchard Park averaged $298,250 over the last month. If you don’t currently have a mortgage, netting at least this much in the sale of your home could comfortably cover your Orchard Heights monthly fee for years to come.
It’s also worth considering how easy it would be to sell the house. Orchard Park is a competitive market, so chances are you would sell quickly. However, it is worth noting that the demand for large family homes is decreasing, making it harder for seniors to sell their homes. Essentially, an apartment or condo will be easier to sell than a big house with a lot of improvements.
Renting Out Your Home
Renting is a good option if no one in the family is interested in living in the house now, but you want to keep that possibility open for the future. It can also be useful to keep the house as an asset and to wait until it gains value.
Collecting rent every month can also heavily subsidize the monthly cost of an assisted living facility. The average rent in Orchard Park is around $1,054, which means that you could use rent payments to directly fund the majority of your assisted living costs. This regular cash flow is easier to manage than the lump sum you get from selling.
Keeping It in the Family
Finally, you have the option of keeping the house within the family. There are several ways to pass on a house to adult children without losing a lot of money on taxes. You can give it as an outright gift, sell it at a reduced rate (this still counts as a gift in the eyes of the IRS), or sell it at the market price.
Bear in mind that there are risks involved in doing this. For example, the sale of the house could count against you if you need to apply for Medicaid for nursing home care within five years. Each has its complex tax implications, so it pays to do your research. Even better, get some advice from an expert like an estate lawyer before making a decision.
Of course, you can always choose a combination of these options. For instance, you could rent the house out for a couple of years while you decide what to do with it, or you could gift it to a family member who will then sell it later. The important thing is to carefully consider your options and make the choice that works best for everyone.