Your family home can be thought of in two diametrically opposing ways. Firstly as a place to live, your home and sanctuary.
Also, it can be considered an investment and an important asset in your estate. So given these two facts it can be a very challenging decision of what to do with it in retirement.
Live In It
So should you live in the home once the family are all grown up and fled the nest? There’s a strong emotional case to be made for this course of action, it is, after all your home, all your memories are here. Also wouldn’t it be nice for the kids to be able to return and stay over, in their old rooms? Even having the grand-children over will be easier in a larger space and it will be a nice touch for them to see where their parent grew up. You also have the option to pass it on to your kids after you’re gone.
Sell It On
The opposite view to that of the above would be to sell up, cash in and pocket the difference between the cost of the new and down-sized property. This is clearly advantageous to your bank balance and the possibility of enhancing your enjoyment in retirement. You could much more easily enjoy the finer things in life with this income boost.
Take Equity Out Of The House
There is a way of both staying in the family home and realising some of the equity in the property. You can take some of this out in cash by basically taking a loan against the property, you can easily get retirement advice from Key to ensure this is the best option for you. If you do go down this route it’s important to remember to plan how to re-pay this, if you are waiting on a pension to kick in or other investment to come to fruition then it could be a good option otherwise you’ll need to find the balance from somewhere.
Rent It Out & Travel
You may have always had a dream trip, a long travel option that would have been impossible with the annual leave you have when employed. There is the quandary of what to do with your home when on this extended trip? Especially if you are away for a long period, say six months or more then you won’t want to leave it completely unattended during this time. You can get a friend or neighbour to check in every so often but why not rent it out and make some money while you are gone? This can be relatively easy if you get a good letting agent who will ensure the rent is paid and the property is regularly inspected.
Let Out Rooms On a Temporary Basis
There is also the possibility of letting out your rooms on a more temporary basis. There is quite a trend in this with the rise of platforms such as AirBNB and other similar ones. This gives you the flexibility of being able to do this when it suits you and if you have a nice property in an area with a decent tourist industry you can do quite well.