Deciding that now is the right time to move to an assisted living community in Phoenix, AZ, is a big deal. You’ll be altering your life in a significant way. Plus, for homeowners, it also means you’ll need to determine what happens with your house.
Examining the benefits and drawbacks of various strategies can make it easier to figure out what’s best. Here’s a look at some available options that can help you decide what happens to your current home as you move into an assisted living facility.
Options for Your Phoenix Home
The Pros and Cons of Selling
One of the most straightforward options on the table is to sell your home before transitioning to an assisted living community. It’ll give you an influx of cash that you can use to cover the cost of the new facility. Otherwise, you can use it to pay down debt or supplement retirement income.
Generally speaking, the Phoenix market is strong. While some experts believe it will slow compared to 2021, the city is one of the top ten hottest housing markets for 2022. As a result, if your home is in good condition and located in a desirable neighborhood, you can likely do quite well.
When it comes to drawbacks, the biggest is that a sale is usually permanent. You’re giving up the home fully, so you won’t have a property to return to if you decide assisted living isn’t for you, or if you would like to pass it down to any heirs.
Additionally, there can be tax implications. You could be subject to capital gains taxes if you don’t meet specific criteria for an exemption, so you’ll want to look into that before making a choice.
The Pros and Cons of Renting
One option to keep the property without it sitting vacant is renting. It can provide a consistent source of income, usually in the $1,243 to $2,079 per month range, depending on the size, location, features, and condition.
If you go this route, you have two choices. First, you can act as a landlord, handling all of the tenant screenings, rent collections, property maintenance, and other concerns yourself. Otherwise, you can go with a property management company. There’s far less work with the latter, but you’ll have to pay for the service, giving you less income.
Renting out the home does come with some tax implications. Rental income is taxable. While you do get to deduct certain property-related expenses, the rest is typically taxed as ordinary income, so you’ll want to keep that in mind.
The Pros and Cons of Giving It to a Family Member
With this option, you get to keep the property in the family, which may be ideal. However, the situation can be complex on many levels. Hard feelings can develop if you and the family member don’t agree on something about the property. The same can occur if the house ends up damaged or in disrepair.
There can also be tax implications for transferring a home to a family member. However, that depends on the circumstances surrounding the transition, so you may want to speak with a tax professional to get insights into what may occur.
Bonus Tip
Understanding the Difference Between Assisted Living and Nursing Homes
If you need additional support to safely live, you need to research the right option for your needs. While assisted living facilities have things in common with nursing homes, the two arrangements also have many differences.
Typically, assisted living involves a community that provides residents with assistance managing their daily routine, but with a high level of independence. In this sense, it can be very similar to other retirement communities. There may be some planned recreational activities and supportive services and health-related support, though not always around the clock. There can also be options to tier up support, starting from near independent living to round-the-clock care.
With nursing homes, the medical aspect is more comprehensive. Residents get support all day, every day, both with their healthcare needs and daily living. Meals are commonly part of the arrangement, as well as housekeeping, planned leisure activities, and more.
If you need to move to a skilled nursing facility to ensure you have access to 24/7 care for a medical issue, you’ll want to choose the right place. When you search online, review detailed facility reports, pricing information, and payment options for nursing homes in Phoenix. That way, you can select the option that works best for you.
