Collaborative Post | As you approach retirement, your property will likely be at the forefront of your mind. You might be worried that you won’t be able to afford your mortgage once your retire or you might be tempted to move house once your children move out. Either way, there are plenty of options for you to consider. Below, we explore the different routes you can take.
Why look at different property options later in life?
Property is one of the biggest and most valuable investments you’ll make in your lifetime. Rather than passively resting on this investment, you can use it to your advantage to make your retirement more comfortable. Whether you want to provide financial support to your children, travel the world or just enjoy a luxurious quality of life, your property can help you achieve this. Below, we take a look at how it can do this.
Renting is one option for you once you’re approaching retirement. For instance, you could rent out your current property to a tenant, before renting a less expensive property yourself. With this surplus income, you can enjoy some disposable money to do with as you please.
For those over 55s, you have the option of an equity release. This is where you use your property to release tax-free cash. You might be wondering how equity release works. The most common form of this is a lifetime mortgage. This type of equity release occurs when you receive a lump sum in a loan that’s secured against your home. The repayments on this loan aren’t required until you move out or move into care, making this a stable way of accessing a cash injection.
Another option as you approach retirement is to downsize. This is ideal for couples that are living in a family home, but no longer require that kind of space on their property. By moving to a smaller, less valuable property, you’ll open up financing for any sort of project you’re interested in.
Renovating your home
If you love your home and can’t imagine moving out, you could consider home renovations as you approach retirement. By carrying out value-adding home improvements, you’ll be able to enjoy a luxurious addition to your home, knowing that you’ll get a return on your investment when it comes to selling your property. Whether you’re getting a new kitchen or embarking on a loft conversion, renovations can give your home a real lift.
As you enter your 50s it pays to be strategic with your property. And by following the guide above, you should be all set to make the right decision for yourself and your family.
Disclaimer: This is a collaborative post
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