As we reach a more advanced age in our life, our priorities start shifting, and financial considerations are not an exception. We start feeling ready to downsize our abode, while on the other hand, health care expenses often start increasing. One way to reconcile these two needs is to use your primary residence as an investment and revenue generator. Selling your house is not the only option, as financial advisors often suggest that renting it can provide several additional benefits. This option is also taxed favorably, while it lets you still keep the connection to the house you are emotionally attached to.
- Think about the financial benefits that come with renting your home, as you can make money while also keeping your investment.
- Property owners can hire someone to manage the rental or handle everything themselves.
- You can calculate if renting your home will cover your care costs simply by figuring out the median cost of assisted living vs. independent living, etc.
“Though selling a home is among the most common approaches to financing senior care, using the home as an investment property — or renting it out for short-term or long-term stays — stands out as a growing and beneficial alternative.”