After the financial crisis in the earlier part of this decade, tons of savings and retirement accounts were hit hard. Baby boomers considering retirement likely put those plans on hold, whether they wanted to or not, until the market returned and their nest egg was healthy and stable again. Since I’ve been in the business, I’ve started seeing how savvy retirees are utilizing the new sharing economy, and booming housing market to their benefit – either providing greater freedom, better quality of life or supplemental income in their retirement years. Here are my best tips on utilizing house hacks for a happy retirement.
House Hacks: Downsize and Rent Out
By far one of the easiest options for retirees who are now empty-nesters is the simple, yet powerful, downsize and rent-out model. Simply put, instead of selling that big home you raised your family in, purchase a smaller, more manageable home, townhome, condo or maintenence free patio home, and keep the old house as a rental. This keeps two appreciating assets within the family. If the old home is completely paid off, you can certainly use the rental income to cover the mortgage (if you have one) and expenses of the downsized home. This provides more financial stability, and a better quality of life and supplemental income.
For those adventure seekers, if you have a home but want to get out and travel, consider renting it out for 6 or 9 months, rent an RV or travel trailer and use the income from your rental proceeds to see the world. Your level of rental income will definitely determine your jet-setting lifestyle, but no matter the income, it’ll help you draw from those retirement dollars at a slower pace – and you finally get to live that nomad lifestyle you’ve wanted.
House Hacks: Home-Share
If you know you’ll need to stretch your retirement income in your golden years, consider a home share situation where you rent out your basement or an extra bedroom. If you live in a college town, this can also be a great option to provide an affordable place to live, while potentially trading some rent for work around the house. Everyone benefits as you gain stability with your fixed income.
House Hacks: Alley House, Granny Flat, and other ADU’s
To add on to the home-share lifestyle, consider building an alley house, granny flat or other accessory dwelling unit on your property. Of course, you’ll have to follow municipal guidelines and make sure you’re legal, however, this can be an incredible way to boost your retirement income and provide a safe and stable rental for a student, family or fellow retiree.
Not exactly a house hack, but a proven way to gain wealth is by investing in real estate. Utilizing your nest egg and amplifying it by purchasing simple investment real estate will provide you with safe, stable and secure retirement income for as long as you own the property. Make your income even more turn key by hiring a property manager to handle all the headaches of maintenance, leasing and rent collecting.
Spoiler alert – these house hacks for a happy retirement can be used by anyone in any stage of life, and they will definitely help you with your retirement goals. I own investment property and I will be able to teach you simple ways to grow your nest egg through real estate. If you’ve considered owning investment real estate, let’s sit down and talk about your options – contact me today.
About the Author: Jared Reimer is a native Coloradoan and an Associate Broker at Elevations Real Estate in Old Town Fort Collins. He’s a community advocate, business champion, blogger, leader, tireless volunteer, innovator, thinker and expert on all things real estate in Fort Collins and surrounding Northern Colorado. You’re likely to find Jared spending quality time outside with his wife, Kacie, and young son, Hudson, or sharing a beer or two with a friend throughout Fort Collins. Call or text Jared at 970.222.1049 or email him at Jared@TheCraftBroker.com