To sell, or not to sell
“To be, or, not to be, that is the question.” This famous line from Hamlet has been referenced and parodied thousands of times since it was first performed at the turn of the seventeenth century. One reason why this line is so powerful is that it makes an extremely complex decision seem simple. In the rest of his soliloquy, a distressed and conflicted Hamlet enters into a detailed discussion of the potential virtues of life and death.
The contrast between the simplicity of Hamlet’s famous quote and the complexity of his decision has many parallels with determining whether to stay in your home or not during retirement. On the surface, this decision seems relatively straightforward. You have two options, so pick one. In reality, this decision is based upon a complex set of variables that can greatly impact your retirement life.
To sell, or not to sell, it is never so simple.
There are many potential benefits of staying in your home.
You might love hosting family gatherings and visitors from out of town and that might motivate you to stay. If you’ve made strong social connections in your neighbourhood, you also might want to keep your home to sustain a vibrant social life.
Staying in your home presents potential challenges as well.
Upkeep and mobility are the two most common. As we age normal parts of daily life including cleaning or taking the stairs often become more difficulty. It can be costly to make your house livable under these circumstances. You may need to hire cleaners or people to shovel your sidewalk. You may need to install a stair lift, widen doorways, or make various other renovations to assist with mobility.
Of course, moving also has its pros and cons.
The prospect of moving can be exciting. You could move to a warmer destination, closer to family or friends, or to a newer updated unit. Moving into a residence with various different tenants could also lead to a more active social life. Downsizing to a condo where many of the chores are completed for you might also leave you more time for recreation and travel.
All of these potential pros could be viewed as cons for some people. If you enjoy yardwork, space, and love your location you may identify these factors as negative aspects of moving.
When deciding on where you’ll live during retirement quality of life needs to be balanced with your financial realities. Before you choose whether to say in your house or not, it is important to budget for different scenarios to help guide you to the right decision.
If you are planning on selling your house and moving a condo for example, try to calculate the approximate price you will receive for your home, as well as the price of a condo and the associated realty fees and taxes. If a new condo costs more than your house, living there may be unsustainable.
If you are moving to a different city or region, beware of increased monthly expenses due to taxes, utilities, or other unforeseen costs.
Retirement communities may seem like an expensive option, but is important to crunch the numbers. Retirement complexes, particularly those that include some form of assistance, often come with higher monthly expenses. However, these places might also cover costs like food and utilities, making them more affordable that it initially seems.
Remember, there are many of potential options. More and more retirees are being creative about their living situation. Maybe you want to sell your home and rent a house to give yourself more financial flexibility. Or perhaps you want to move from the city to a rural area to decrease the cost of home ownership.
In the end, a different quote from Hamlet seems more helpful when deciding if you’ll stay in your home or not. Polonius advises his son Laertes, “This above all: to thine own self be true.”
Making decisions based upon your own priorities and financial situation will help you select the right living situation for your ideal retirement lifestyle.