What to Do with Your Property When You Retire

Retirement can be a truly wonderful time in a person’s life when they’re finally able to slow down a little and experience life without having to worry about the ties of a career. It’s also a time when the kids have all moved out and there might just be the two of you left in the house, so it makes sense to want to make the most of it, whether that be through income generation or downsizing to free up some of that equity.

Here’s a guide to help you navigate the various choices and their benefits.

Renting out your home can be the most practical way to generate passive income during retirement. If you own your home, you can lease it to tenants and use the rental income to cover your living expenses. The rent paid by your tenants can cover your new mortgage or rent payments if you choose to buy or rent another property. 

If you’re downsizing, this can often result in a net profit, providing additional funds for your retirement. Property is also comfortably the most secure thing you can own or invest in so if you can afford to hold onto your old property while securing a new one to live in, you’ll have found yourself an endless steady stream of income to keep you comfortable well into your retirement.

Moving to a smaller, less expensive home offers several benefits. First, you’ll immediately pocket the price difference (unless you’re moving to a much more desirable location) and this can be added straight to your retirement fund.

Smaller homes also generally come with lower maintenance and utility costs, further easing your financial burden as you begin to enjoy your golden years. Downsizing is ideal for retired couples who no longer need a large space and want to simplify their living situation while also pocketing a sizeable chunk of change.

For many, the home is their most valuable asset, and they want to do something tangible with that wealth. An equity release allows you to access the money tied up in your property without having to sell it. By releasing money from your home using an equity release specialist, you can receive a substantial amount of cash to use during your retirement.

You can choose to receive the money as a lump sum, in smaller payments, or a combination of both, depending on your needs. While it does mean you’re effectively giving up a portion of your home, this option could be a lifeline for those who really don’t want to move but need funds to enjoy their retirement.

Speaking of which, if moving is not on your agenda, why not consider using your equity release funds to renovate your existing home? This can make your living environment more enjoyable and potentially increase the value of your property.