One's home is often their biggest and most important asset in their life. But should they sell it once they retire to bolster their funds? ComparisonAdviser examines this important decision in its most recent study.
REDMOND, WA / ACCESSWIRE / June 10, 2024 / A home is one of the most valuable assets people own. As individuals transition from their working lives into retirement, a common consideration is determining whether to sell or keep the property they've owned throughout their adult life. In its most recent study, ComparisonAdviser examines the factors homeowners should consider when deciding what to do with their homes as they enter their post-working life, including specific reasons for and against selling and why it's important to seek financial advice. Click this link to access the article: https://comparisonadviser.com/news-and-studies/selling-your-home-in-retirement.
The study begins by explaining why a home can be one of the most financially significant pieces of a household's net worth. To demonstrate this, ComparisonAdviser uses data from a survey it conducted showing reported home ownership by age. It also uses outside data both from the U.S. Department of Health and Human Services and the Census Bureau to illustrate the weight of home equity in one's portfolio, both for those with fewer assets in general and as one progresses in age.
As outlined in the study, there are various practical and financial reasons why someone might want to sell their house before entering retirement. For example, people may want to downsize and move somewhere with less upkeep and space to manage. Others might aim for a change of scenery and relocate to a new city or move closer to family members living elsewhere. The study also highlights that selling one's house around retirement age can give individuals access to a large lump sum of cash that can aid other plans they may have in place, such as travel or estate planning.
Though there are several valid arguments for selling one's house upon retiring, the study also lays out some reasons homeowners might want to keep their equity stake into their old age. One of the primary aspects it emphasizes is that owning a home can allow one to avoid high rent prices, rent out the home to tenants while living somewhere else or protect oneself against inflation. The article also points out that the sale and moving process can be hard, especially for those who aren't as mobile.
Finally, the study ends by shedding light on the importance of discussing one's decision with a skilled financial advisor with expertise in retirement or estate planning. These can offer detailed insight into how the sale of a home, or keeping it, can fit into a comprehensive retirement plan.
Contact Information
Brandon Canonica
Senior Finance Writer
bcanonica@comparisonadviser.com
SOURCE: ComparisonAdviser
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