Retirement is an exciting time in your life.
After a long and satisfying career, it’s finally time to reap the rewards and pursue your dreams. Instead of working long and heavy hours on the job, you can kick your feet up and enjoy your favorite activities.
Spending time with family and loved ones, adopting new hobbies, and living out your best life is what retirees can expect from their golden years.
New Real Estate Needs for Retirees
Retirement is a major lifestyle change. Besides a different day-to-day routine, retirement typically introduces changing real estate needs.
That large, multiple bedroom, two-story home with a sprawling lawn may not be serving you as your primary living space anymore. Now that the kids have grown up and have families of their own, it may be time to move on to a home that’s better suited for your changing needs.
Retirees want somewhere that’s easy to take care of. This way, they can spend less time worrying about maintenance and upkeep and more time on things that matter most.
As a result, retirement downsizing is a popular decision that kicks off this new experience. Most people think that because they need to move into a new home, they need to sell their old one — but do they really?
The experts at Knox Financial say never sell your home.
Selling your home is a long-winded, expensive, and stressful process. Who wants to start off their retirement with a difficult and pricey real estate transaction?
Instead of taking on the burdens of selling your home, turn it into a seamless investment opportunity. When you’re approaching retirement, keeping your home when downsizing might be a better investment than selling.
Here’s why, and how Knox can help:
5 Reasons to Keep Your Home While Retirement Downsizing
Keeping your property and converting it into a thriving single-family rental property offers immense benefits that can help homeowners make the most out of their retirement.
Instead of selling your home, which means spending all that money and going through a tough process, keep it and put it to work for you. Owning a rental investment property has never been easier, or more rewarding, than when working with Knox Financial.
If you’re retirement downsizing, this is what keeping your home can mean for you and your family:
A Steady Stream of Income — Without the Work
Converting your home into an income-producing property adds an easy-to-manage, hands-free stream of income to your finances.
When you work with Knox, we do the hard work of property management, leasing, and tenant relations for you. All property owners need to do is watch their profits flow into their bank accounts.
Tax Benefits From Being an Income Property Owner
Income property owners enjoy great tax benefits just from owning their investments. Retirees can use this to strategically manage their wealth. Access to tax benefits can help property owners offset their income by leveraging their taxes.
Grow Your Estate for Generational Wealth
Owning and operating a successful single-family rental property doesn’t just benefit you. It benefits your family, too.
Your real estate asset can continue generating wealth to support your loved ones — even after you’re gone. Retirees who wish to set their families up for lasting financial security should consider income property ownership.
Whether your family continues to manage the asset as a real estate investment, or move in and make it their home, a property is an amazing gift to pass down. The income produced by your investment decision can help your family achieve greater economic mobility down the road.
Since they’ll have their bases covered, they’ll be set up for success.
Build Wealth through a Stable Asset
We never know when we’re going to be faced with a big expense that needs to be paid. It’s always a good idea to be prepared for the unexpected.
Investing in real estate lets people accumulate wealth much faster than through other investment arenas, like stocks and bonds. Real estate is not only profitable, but it’s also stable.
Real estate assets are less prone to dramatic fluctuations than other volatile investments. Property owners build a reliable, resistant financial future — that’s always there when they need it.
Avoid Taxes and Fees Associated with Selling
Owning real estate investments saves sellers money that they would be spending on home sale expenses.
Selling a home is expensive. There are transaction fees and long-term capital gains taxes that need to be paid by the seller. Retirees who choose to keep their homes avoid these expenses as they build a better investment.
If you’re interested in turning your home into an income-producing single-family rental, click here to see how Knox can help.