Many people think that it costs much more to modify your home to enable you to continue living there than it does to move to an assisted living facility. In truth, it is quite possible to continue living in your own home and spend less than you might if you moved out. The example below compares a typical home remodel with the average costs of assisted living. What it shows is that moving out of your home can drain your financial resources more quickly than modifying your home. Here’s how:
On average, it costs $3,500 per month to live in an assisted living facility. The monthly costs to stay in your home, including a Confidence Builders Home Maintenance Plan and in home care for two hours per day costs an average of $1,438 per month. That’s a monthly savings of over $2,000 to stay in your home. Even though there is an up-front cost to modify your home, in this example it doesn’t take much time at all to recoup those costs for the long-term benefit.
- Assisted Living: $3,500 per month
- Aging in Place: $1,438 per month
- Monthly Savings : $2,062 per month while staying at home
With a possible remodel cost of $51,610 (see details below) that means you will break even after just over two years while staying in your home. With two people potentially moving to an assisted living facility, the savings may grow significantly by modifying the home. And even a more extensive remodel may still make financial sense. This example assumes you pay cash for the remodel. If you finance the remodel work using a home equity loan the cost savings are even greater over the long term.
Of course every situation is unique. You will need to consider your specific needs and circumstances to determine what makes the most sense for you and your family.