When your children are grown, graduated from college, married, and starting down their own career path, you will be thinking about retirement and downsizing to a smaller home, townhouse, or apartment. While downsizing can be a stressful dilemma, there are reasons it is the best option for most homeowners.
Your retirement income is dependent on your investments, 401K plan, company benefits, Social Security, and other sources of income you may have available, such as rental property. It’s important to realize the cost of living may rise so high that it will not be able to provide the standard you currently have. You can save money by downsizing and moving into a smaller home. Selling things you don’t need, making smaller mortgage and insurance payments, and requiring less energy usage will save you money.
Many people have enough equity in their large home to pay for a smaller dwelling and have cash left over. The stress of monthly mortgage payments can be gone for good, and you can use the money you have saved in several ways. You can put it in the bank for a rainy day, use it to travel, buy a new car, or pay off credit cards. The extra money will be a stress reliever no matter how you choose to use it.
A smaller home will require less of your time, energy, and money in maintenance. There are fewer rooms to clean, heat, cool, and maintain. If you choose to purchase a town home, all the maintenance in common areas is handled by the homeowner’s association (HOA). Snow removal, mowing, landscaping, roof, exterior walls, parking area, and other agreed upon tasks are the responsibility of the HOA.
Downsizing requires getting rid of stuff you have accumulated for years. If you have boxes packed away in the basement, attic, or closets, you can have a yard sale or donate to a charity. Encourage your children to take the opportunity to pick up any belongings they want before you start getting rid of things. Think of your new location and only take things you will use. If you are moving to a small house, you will need your lawnmower, snowblower, and gardening tools. If you are moving to a town house, you can sell the yard equipment, and put the money in the bank.
Now is a good time to downsize your home; it is a seller market. With higher homes sale price, selling larger homes and buying smaller ones means more money in your pocket. Not only you pocket more money, but also potential home buyers are more accommodating to your timeline. Motivated home buyers, for example, are often willing to purchase your home while you look for one or give you an extra month or two in rent back.
If you are thinking of Home Downsizing, look at all the positives. You won’t miss all the things you have had packed away for years. Get rid of extra “stuff,” and your move will be much easier.
We helped many families like yours relocate to a smaller home in the area, call us today for a free consultation.