Downsizing into a smaller home can save people nearly $200K over 10 years! This study is assuming adult children are not living in the home.
Housing Costs and Property Taxes
A recent analysis of housing costs and property taxes of the largest metro areas estimates the average savings from downsizing is nearly $200,000 over 10 years. It’s a good idea to give some thought to what you can achieve by moving to a smaller home. Of course, different metro areas will result in differing numbers, and the analysis is likely on the conservative side, as it didn’t factor in potential savings from lower utility bills.
If you downsize into a less expensive state, that’s additional savings as well. Consider a simple move from a largehome in the Chicago metro area to a smaller home in a more rural central Indiana area. Your savings will be even greater!
Move in Your 50s & Early 60s
If you move in your 50s or early 60s, it will give you an ideal time to set up for a successful retirement. Think about all of the elements of a home that will work for you at 85- or 90-yrs old. Look for single story homes with less maintenance. Try to be closer to town, so getting out and socializing is easier and does not depend on needing to drive on a highway.
And remember, your family will still come to visit you at your smaller home. They may just stay in a hotel instead of a guest room. Overall, there’s tremendous upside to downsizing before you retire!
