Retirees should think about specific factors when deciding
if it’s time to downsize including living closer to family and safety issues.
Your home can be your sanctuary, but it’s also a big budget item. Once you retire, it may feel like more house than you need. But in the current housing market, when a smaller house with upgraded features can be as expensive as the one you’re selling, is it smart to downsize?
In some cases, downsizing may not be money-saving, but is still appropriate. You may be able to sell your home and buy something cheaper, but it might also make sense to downsize in order to move closer to family or have a smaller house to clean.
Here are some situations that may be a good reason to downsize:
More Cash Flow
You may find that rising prices combined with a fixed income make you feel a little squeezed in retirement.
If downsizing is a question of money, think about all your housing costs. Consider the mortgage, property taxes and insurance, along with bills like electricity and water services for your current and future homes.
Living in an Expensive Area
If you live in an expensive area, you have a better chance of selling your home and finding something cheaper. When you’re in a lower-cost area, you may have a tougher time.
Make sure to do some looking with a Realtor before you purchase. Inventory is low in right now, and competition is steep for a smaller home with good upgrades.
A good way to measure if you’ll be saving enough money, is to think about the value of the home you’re purchasing, versus the house that you’re selling. It should be at least 20% less.
Home Safety Issues
Depending on your health, you may require you to find a new home with fewer stairs, a first-floor primary bedroom or an accessible bathroom. This can be a huge consideration while aging.
Looking for a New Support Network
If downsizing means moving into a new city, remember that you might need to rebuild your community. Even if you’re moving to be closer to family, you may not be able count on them for all of your activities. If you are a social person, you should consider who you will be spending time with. It’s a good idea to check out the area prior to making your move. You’ll need to make new friends, find new medical professionals, find a new gym, etc…
When you ‘re ready to start looking, don’t hesitate to contactme!
