Dear David,

My wife and I are planning on moving into a retirement home. We’ve checked out a few residences. Some of them require a substantial downpayment to move in, so we’re thinking we will have to sell our current home to afford our new place. Is it wise to secure a spot in a retirement home without knowing how much our existing house is worth?  – LOOKING AHEAD

DEAR LOOKING: When it comes to managing health and lifestyle concerns in your golden years, it really doesn’t matter what your house is worth, and here’s why: you need to do what you need to do, and your options may be limited if a crisis forces you to make a quick decision.

This next move could be one of your most important yet. If you think of your home in terms of an asset that needs to be cashed out before you take your next step, you’ll see that securing a place that meets your needs is more important than what the real estate market is doing. 

At this stage of life, there are fewer choices to make than there were when moving was governed by work commutes and school zones. When health and lifestyle needs are the driving factor, the move to a retirement home or assisted living facility is often made due to circumstance. You may be looking to fulfill an imminent need you haven’t had to address until this point.

If at all possible, secure the property that fits your lifestyle best, and take comfort in the fact that houses sell regardless of their condition, the state of the market, or what’s going on in the rest of the world. Fortunately, many (and probably most) retirement living options allow you to rent rather than purchase, and most don’t require a buy-in. Purchasing preserves your capital, while renting provides a carefree type of lifestyle with virtually no upfront costs. Both options are available in our area.

PRO TIP: As mentioned at the start, if you’re ready to transition to a retirement home, it really doesn’t matter what your house is worth. If life circumstances are forcing you to make a change, worrying about what the market is doing is like moving chairs around on the deck of the Titanic. 

As we move into our golden years, planning can make decisions easier. Have your financial ducks in a row so you know in advance if your existing home needs to be sold to fulfill your needs in the future. If that is the case, you can start exploring your options a couple of years in advance.

Buying or renting, ensure you have trusted advisors, lawyers, doctors and an experienced Realtor on your side to protect your interests so you can focus on the future. If you wait for a health or lifestyle crisis, the decision is taken out of your hands and you’ll be moving regardless of what your home is worth or how long it takes to sell. #Advice #AskDavid #TheNegotiator

David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Moving? Get it right. Ask David today! Call or text 519-577-1212.