A survey of 1,500 homeowners aged 50-plus was commissioned by the Investor Education Fund, the non-profit group behind the GetSmarterAboutMoney.ca website. Two in ten households had no clue how much they had put away for retirement, and half believed they would run out of money in the first 10 years.
Your house may just be the answer. If you have a house with some equity, you may be able to utilize it to hike up your retirement income. Even if you have more than enough in savings and Social Security to fund retirement, you never know what happens in the future and it never hurts to expand income flows.
5 House Uses to Bring about Retirement Income
- Sell and downsize – If you think your house is too big for you and your family and the money spent on expenses managing and keeping up your house is overwhelming then consider selling your house and downsize.Invest the proceeds into a house that is just enough for you and your family without of course compromising the comfort you are used to. A real estate va can post ads on Craigslist or any site online to help you find buyers and sellers.
- Rent it out – If you don’t want to be a homeowner anymore then the best thing that you can do of course is rent a house. In renting a house, you don’t have to worry about fixing a leaking roof, a broken window, a doorknob and etc. Be sure to rent an apartment that is just enough for you and with reasonable rate.
- Tap into your equity – This is practical only if you are covering expenses for the time being that you know you can fully pay back in a quite short term.
- Get a live-in renter – If you have extra rooms in your house and you find it comfortable living with a stranger, then have a live-in renter. Renting out your extra room that you are not using will give you additional income and you can save it for your retirement.
- Consider a reverse mortgage – Borrow against the equity in your house and when you are able to sell your house, pay it back.
According to the survey, downsizing draws more interest but the least advantageous in terms of turning home equity into cash. Selling and renting was the second most favored pick, but with only 24 percent support in the survey.
While looking for more ways to tap your house for retirement income, hire a virtual assistant to do the following tasks:
- Handle incoming and outgoing calls
- Promote your properties
- Screen or interview buyers and sellers
- Place Craigslist ads
- Fill out questionnaires
- Creating and distributing flyers or videos of your properties for sale
If you’ve saved pretty well for retirement, then you deserve the glory of deciding what to do with your home based on your lifestyle. If not, then it’s time to get real about your house. It may be a hindrance to a financially secure retirement.
Source: the globe and mail