Financing Home Renovations For A Better Retirement

Couples nearing retirement may be considering upping sticks and relocating to be closer to family or to explore a new country. According to a Merrill Lynch study, 64% of retirees move home during retirement. Therefore, increasing your property’s value in the years leading up to your retirement is the perfect way to ensure a good return when the time comes to sell. Everyone knows that preparing for your retirement is essential, so if you’re one of the ones looking to move home, what are your finance options?

Financing Home Renovations For A Better Retirement - retired couple image

Remortgage your home

One of the easiest and quickest ways to free up some cash in order to install a new kitchen, undertake a loft conversion or add an additional bedroom to your home is to remortgage your property. This means borrowing a sum larger than your existing mortgage so that you can use the additional funds to complete your renovations. Once you’ve retired and have bought a new home, you might be wanting to complete home improvements on that too. Taking out a reverse mortgage can be an ideal solution for those aged 62 or over who are looking to free up some spare cash.

 Take in a lodger

As a couple nearing retirement age it’s likely that your children have moved on and in their place are large empty bedrooms, gathering dust. Taking in a lodger is the ideal way of increasing your bank balance each month. Most lodgers are very little hassle and choose to spend most of their time in their rooms, so you’ll barely notice the additional body in your home. The extra income will be a welcome bonus, too. Just remember to make any potential lodger aware of the renovations you’re planning.

Turn your home into a business

If you’re after something a little more lucrative than a lodger, consider transforming your home into a bed and breakfast. American B&Bs can be very profitable businesses with the average daily rate being $150 and average revenue per room hitting $58. When you decide it’s time to retire, you’ll have two valuable products to sell; your home and your business, which can result in a nice return for you to rely on during your retirement.

Invest your savings

You’re probably keeping your savings back to use once you retire. However, investing them to boost the value of your home is a great way of seeing a larger profit when you decide to sell up and retire. It’s not advisable to splurge all your savings on your project, but, taking a chunk of them to cover the cost of the work and to, ultimately, increase the value of your home is a practical way of financing your home renovations.

Finding suitable ways to finance home renovations when you plan on moving home during your retirement is the perfect way to ensure it’s a prosperous and healthy one.

Leave a Reply