What to Do With the Family Home ?

By Craig Floyd

Recently I have been reminded that owning a home can really be a money pit.  Not that I don’t enjoy the comforts of owning my home, but when the appliances break down, carpets need cleaning or replacing and the outside needs repainting with landscaping problems, I wonder how much longer I can keep up the financial and physical responsibilities that home ownership requires.  You spend most of your life accumulating property or homes and they are your biggest assets, but many retirees are now wondering if their biggest investment during their lifetime is now becoming their biggest disadvantage to retirement.  They cannot keep up the payments without continuing to work. According to a recent article in the national news, it all depends on if the mortgage is paid and how much money you have saved to retire.  Selling your home can give your financial account a boost but only if you sell for $250,000 to $500,000  depending on if you are single or married, before you have to pay capital gains tax.  Alternative arrangements could include selling and buying a less expensive home, renting, or making a down payment on a new home and then paying on a smaller mortgage.   There is also the emotional attachment to the home where you probably raised your family.  You have lots of memories that can never be replaced.  It seems like it will be not an easy choice but one that we probably should make before our time is up.  Unfortunately when all is said and done, the children or grandchildren will sell the home because they need the money and don’t want the house.