Peter Sachs’ addition to his house for his aging mother after she suffered from a mild stroke got me thinking. When does a home renovation to include space for an aging parent make more sense than Assisted Living? I decided to research.
It turns out that many health insurance policies provide a daily allowance towards home health care providers for things like physical therapy, medication administration, and assistance with bathing or showering. Peter Sachs mother gets $240/day from her policy. While this is not enough for 24 hour care, this is perfect for parents who might need Assisted Living but value their independence.
Peter Sachs’ renovation for a 750 square foot “mother-in-law” suite cost $180,000, however, his home equity increased by $300,000 over the last two years.
Using a mortgage amortization schedule calculator (30 years fixed, 5%), this is $966.28 for Monthly Principal & Interest.
I then researched the monthly cost for Assisted Living.
“Just as the cost of real estate varies by geographic area, assisted living costs also vary nationwide. According to a 2011 MetLife Mature Market Study, the national average for assisted living base rates is $3,477 per month. In 2010, the average base rate was $3,293, which represents an increase of 5.6% year-over-year. Residents of assisted living communities can typically expect a 3-5% annual increase in their base rate.” from Senior Homes
The average cost in Massachusetts is $4,950.
There are other factors to consider besides when you move in your parents or in-laws such as: Privacy, Socializing , Decline in Mobility, and Decline in Health. If you decide to explore a renovation, your plan can and should include solutions to these issues. For Peter Sachs‘ renovation, his design for an extra wide stairway will allow for a mobile chair and the bathroom can easily accommodate a wheelchair.
What are your issues and solutions for your aging parents? Please share!