As we age, most of us require help in finishing daily tasks; as such, most people seek out facilities for assisted living when faced with retirement. Residences for assisted living are places where older individuals can get care and attention to complete their daily duties. With assisted living, your parents will get help with taking their medications, visiting medical personnel, preparing meals, finishing chores, and other tasks.
These places might be shared or private, and based on the area and services provided, may set you back between $2,000 to $5,000 per month. This expense can be daunting, particularly when your parents are no longer working and you are raising your own family. Fortunately, you are able to use your parent’s own home to finance their assisted living costs. Getting financial stability for your parents assisted living costs will put you at ease knowing they are happy and cared for by long-term care providers.
The following options are available to help your parents transition into assisted living.
- Use your parent’s home as a rental unit – This is an ideal option if your parent’s property is completely paid off. The revenue from renting the home would be used to cover the costs of assisted living; it would also mean that your parents won’t have to lose the place, which can be a hard thing to adjust to. A property manager can help you rent the house out for a fee. If your parents would like to remain living in the property, they might want to think about renting a room out to a friend to cover some or the assisted living expenses.
- Have your parent’s property sold off – For most families, it can be hard to detach from the house they grew up in. That said, it can be practical for parents transitioning into assisted living, as they can use the home to pay for their expenses as a means of financial security. This choice is preferred for most parents and families who don’t want to deal with the work that comes with operating a household.
- Mortgage reversal – If the property hasn’t been paid off by your parents yet, and they don’t want to sell it, they might want to look into a reverse mortgage. If parents want to keep living in the unit, this option lets them do so. A mortgage reversal would let your parents cash out a portion of their equity without selling their home. To qualify, one of the parents (using it as a homestead) must keep living in the house. The reverse mortgage is due once the original owners depart from the property.
- Bridge loan – If your parents are paying for their assisted living costs by having their home sold, but require cash immediately to cover long-term care costs, they may opt to get a loan while awaiting the sale of their property. They can also cash out faster by selling the home to an investor.
We can purchase your property as-is with cash and offer you a hassle-free process. For more information, contact us today. We will be pleased to answer all your questions.
Don’t forget: there are choices you have to aid your parents in getting the help they require. We understand that you want to be there for your parents just as they have been there for you. Be open minded, and think of utilizing some of the choices discussed in this article.