4 ms·
Reverse mortgages are an option too, especially around retirement. I didn't do too much research and I'm sure on paper it's a scam, but with no kids and no one
by shados 9y ago
Reverse mortgages are an option too, especially around retirement. I didn't do too much research and I'm sure on paper it's a scam, but with no kids and no one to really give the house to beyond charity when my wife and I kick the bucket, I am considering making my place part of my retirement plan.
Or just sell it to pay rent for the rest of your life. Either way it's a pretty big boon.
- ianai 9y agoNot really. End of life care can drag on and is expensive. Even if you're really lucky and net $1 million from your house a single illness could wipe that out quickly. Retirement homes cost much more than comparable rent/mortgages.
- slg 9y agoThose things can be mitigated with some smart financial planning. You can take your lump sum and buy an annuity and use those annuity payments for health and long term care insurance. I would also add long term care insurance is doubly important for the grandparent commenter who doesn't have children who could help care or support them if something goes wrong.
- DesiLurker 9y agoAnnuities are mostly scams with so many knobs & levers that are designed to get unsavvy people on hook with weird mix of investment and insurance. best to keep them separate.
- tehlike 9y agoConsider moving to a cheaper country.
- mikeyouse 9y agoOld people have Medicare, they're almost completely insulated from healthcare costs.
- tunetine 9y agoSell it and rent. The bank won't even come close to the true value of the home for a reverse mortgage.
- shados 9y agoSelling it means I can't live in it anymore. Renting is the ideal option, but if I'm 85 years old, maintaining a rental property or dealing with property managers would be tricky at best. (My actual goal with my current property is to sell it once I'm having trouble going up the 3 flight of stairs leading to my unit and using the money to live in a much smaller place as people mentionned already)
- DesiLurker 9y agoIMO he meant sell the property and rent for Yourself. invest the proceeds.
- GFischer 9y agoThere's something called Bare Ownership sale that's popular among widows with no children here in Uruguay, that retain the right to use the property until death : bare-ownership is a right of virtual ownership. For example, the bare owner of a property has no right to occupy it or rent it out. On the other hand, when the usufruct holder dies, full ownership of the property is carried over to the bare owner without any liability for inheritance tax. He can then dispose of it (by sale, gift, bequest, etc.) as he wishes. The maximum duration of usufruct generally corresponds to the usufruct holder’s lifetime – in that case, it is called usufruit viager, or life usufruct. But it is possible to set a predefined term (10 years, for example), which is called temporary usufruct. http://www.french-riviera-property.com/en/news-detail/4301-the-benefits-of-splitting-ownership-into-usufruct-and-bare-ownership.cfm http://www.french-riviera-property.com/en/news-detail/4301-t... http://bareownership.com/wp-content/uploads/2012/02/Property-Wire-Confidential-March-11.-expert-view.pdf http://bareownership.com/wp-content/uploads/2012/02/Property...
- lathiat 9y agohttp://www.nytimes.com/1995/12/29/world/a-120-year-lease-on-life-outlasts-apartment-heir.html http://www.nytimes.com/1995/12/29/world/a-120-year-lease-on-... PARIS, Dec. 28— Andre-Francois Raffray thought he had a great deal 30 years ago: He would pay a 90-year-old woman 2,500 francs (about $500) a month until she died, then move into her grand apartment in a town Vincent van Gogh once roamed. But this Christmas, Mr. Raffray died at age 77, having laid out the equivalent of more than $184,000 for an apartment he never got to live in.
- woodpanel 9y agoTo be fair: What were the chances, that this 90-year old women would become the Guinness Book of Records entry for "oldest person on the planet"?