Senior care is a cost that is bound to be straining no matter how much planning you do, very little in life prepares one for the challenges ahead. Family face having to make tough choices and seniors may end up in unfavorable nursing homes or assisted living conditions.
However, there are ways to leverage using one’s home equity and converting that to cash to care for an elderly person’s needs.
Aging is something that happens to everyone, and it is inevitable this there are many ways to ensure comfort in one’s old age. Companies like Tandem Careplanning are transforming elderly care and staffing needs using innovative online technology and can be used in some of the strategies detailed below.
Putting the property up for sale
This one does not always fly with the grandparents! However, if a house might yield a good profit after years of investment in development, it might be worthwhile. Depending on the real estate market, a single sale can pay for many years in a nursing home.
However, it might be heartbreaking to lose all those memories but it might be ideal for a senior citizen as they need not need to worry about maintenance and such.
Renting out the property
Naturally, the rent would pay for the senior care facility and the memories are somewhat held onto and intact. The security of a rental ensures that a set amount of money is coming in every month and you can take care of expenses.
Perhaps, this will also mean having to hire a landlord who will deal with the on-site management of the property and ensure that rent is on time. Unfortunately, renting can result in a lot of wear and tear and you might have to find an additional place to store items.
Getting a home equity loan
This loan allows you to get a loan against the house and this means you can pay for elderly care, whether it be a caregiver or a nursing home. This allows for continued access to the home for the senior. However, the loan needs to be paid monthly and missing payments might result in foreclosure.
This is the least desirable option, but home equity loans have low fees and are accessible whether you live in the home or not. This is only advisable under serious emergencies.
Applying for a reverse mortgage
This is for people who are above 62 years old and it allows you to receive mortgage payments on a monthly basis. The reverse mortgage is usually taken against the condition that the amount will be paid in full at a certain time or upon the death of the owner.
The catch with a reverse mortgage is that you cannot move out of your home. Thus you can use the money to employ a caregiver or nurse. The money can also be used to modify the home to suit elderly needs. This is one of the most popular options because it is relatively simple to manage and ensure that there is consistent cash flow.
Senior care and senior living should be a dignified experience and these different types of finding ways to take care of the elderly ensure that their safety and care are not compromised. It is important to consider what needs your parents or grandparent might have and assist them in making choices accordingly.
At times, all options should be exhausted before shifting to drastic measures such as selling or renting the home out. When used correctly, the property can yield sustainable ways to care for the elderly and the best place to start would be with a conversation with a financial advisor about the best options.