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How To Generate A Retirement Income From Your Home?

Have you left your retirement planning to the last minute, or maybe you’re thinking ahead? Either way, recent figures paint a worrying picture. A staggering 78% of the UK’s over 55s feel that they are unprepared for retirement according to research conducted by the crowdfunding platform The House Crowd

If you’re worried about how you’re going to plug your income gap in your later years, you’re not alone. Research shows that people over 50 are looking at an income shortfall of at least £11,400 a year. 

But the good news is that even with an uncertain housing market, if you own property there are heaps of options to boost your retirement savings. 

Sell your home and downsize 

Selling your home and buying something less expensive can help you inject your pensions pot with extra funds. After all, your needs in retirement change. For instance, you might not need as much space now the kids have flown the nest, or you don’t want to the responsibility of maintaining a large garden or you just want to live closer to amenities so you don’t have to use your car anymore. 

So, after years of paying off your mortgage, most people’s money is tied up in their home. In fact, downsizing your home can raise as much as £85,300 shows research conducted by Prudential.

Now the world is your oyster—imagine you can exchange city living for a small cottage in the countryside, move abroad or go on a dream cruise. Or you can invest your money to generate a passive income in your later years. 

Downsize and purchase a buy-to-let

There are lots of benefits of purchasing a buy-to-let—for starters even with a fluctuating housing market, investing in bricks and mortar remains a safe longer-term option. Also, the income you generate from tenants rental fees can either provide you with a lucrative extra income or help you pay of your outstanding mortgage. 

On the flip side, being a landlord isn’t for everyone. From managing the property and being responsible for maintenance and repairs, you also then need to find tenants and have a robust financial plan to cover any period when the property is empty and not generating an income. 

Convert your home

Rather than selling your large freehold family home (depending on the size), instead you can convert it into two properties or even multiple flats. And then you can use the rental income to pay off your own mortgage or live rent free in the building. Make sure you consider the planning regulations beforehand and any tax implications. 

Need to sell your house fast? 

As we all know, life situations can dramatically shift overnight. If you find yourself in a position where you need to either need to sell your home quickly or your buy-to-let is losing you money, House Buy Fast can help you. Through their downsizing home service, they will not only purchase your property but will also ensure an efficient and fast exchange, so you don’t have to wait around for a buyer. If you want to find out more, go here: