After All These Years - frontSomeone recently told me of an acquaintance who had confided to him that he didn’t know what to do with the house he had owned for many years.

“I’ve had my house for 40 years and it would sell for at least a million dollars. It’s more house than I need at 75. I can’t shovel snow anymore, so I pay a service to do that and cut the grass for me. I’m just not sure what to do.”

It’s a much more common scenario than most people think.  The important take-away is you have options:

  1. Are you foregoing vacations, because your equity is all in your house?
  2. Did you know you can live-rent free and enjoy your freedom?

If you sell your house and you net $1 million after real estate expenses, here’s a break down of one possible scenario to live rent-free:

Time to Sell Your House

At 75, you should be living a more care-free life and let your equity work for you. But, since none of us knows what the future brings, you might require more help in the future and not be able to live independently. Let’s suppose that after two years, you decide to move to an assisted living suite. Rents on assisted living units can range in the $5,000 per month range. Even if you subsidize the new rent from your equity, your equity would last 29 more years. Let’s see, you’d be 106!  The bottom line is, you have options.

Check with your financial advisor.

– Chip Barkel, MCNE, SRES, Toronto Real Estate. Extraordinary Service. Top Results.