TORONTO – Boomers looking to bolster retirement savings may want to consider whether this is the time sell their homes given persistently high prices and solid demand from buyers.
Selling the family home can result in a cash windfall that can be invested or used to purchase a more modest abode, helping to boost retirement income, the Investors Group says.
“Emotional attachment aside, a house is more than a financial asset,” says Jack Courtney, assistant vice-president of advanced financial planning for Investors Group.
“It can be an income generator paving the way to retirement in many ways.”
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Options include:
– renting out rooms or space you no longer need.
– selling your home and downsizing.
– taking out a reverse mortgage, which allows homeowners to take out cash from their home without selling.
“Finances aren’t necessarily the determining factor in making this important decision,” Courtney notes.
“Lifestyle considerations are equally important. Examining your goals and the range of possibilities will aid the decision making process.”
Here are some factors for boomers to consider when deciding whether to sell, from Investors Group:
– Location. You may want to move where your children are, but remember – they may move. Will you uproot yourself every few years?
– Downsizing. Smaller homes are easier to maintain and have lower costs and taxes. And the lower capital cost will allow you to put more money in your investment portfolio.
– Rent or buy. Those planning on travelling or relocating every few years may want to consider renting and using the cash not spent on a mortgage and home repairs for other investments.
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