When people reach “retirement age” they start to question if downsizing is the right move for them. Ask yourself these questions to help you decide if downsizing is right for you.
Do you need the extra space?
Parents are left with empty homes as their kids go off to schools, and they are often unsure as to what they should do with all that extra space. If you are in this predicament, and you know your kids won’t be returning to live with you, then downsizing may be appropriate for you. If however you make good use of the extra space, then downsizing would make less sense.
Do you need more money for retirement?
If you have not saved enough for your retirement and you would like to have more money saved, then downsizing may be the right move for you. The “profit you make on the sale can add to your retirement savings”, but it’s important to consult with a real estate representative and a financial advisor beforehand, to see if you would actually be making a profit from the sale. (More on that below).
Would you like to have more money for travel?
[two]If you would like spend your retirement age travelling or doing something you like, then downsizing may be the right move for you. You could have the money from downsizing be put towards travel/leisurely activity, and since you would be away for most of the time, there wouldn’t be need for all that extra space.
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Is your home to much upkeep?
If you feel that your home is hard to maintain, then downsizing may be a solution. A smaller house will obviously require less work, less time to maintain, and it will be less stressful to deal with. If however you don’t mind the upkeep, and have the money to spend on more maintenance, then downsizing would probably not make much sense.
[/two]Be realistic
If after answering these questions you feel that downsizing is right for you, it’s important that you know that “in reality most people who downsize end up with less money than they had expected” to have from downsizing. This is simply because there are many expenses that go along with buying a new home, which is why it is crucial to consult a real estate representative who could honestly help you in deciding if downsizing is right for you. The agent should come up with ways to “minimize the transaction cost,” or come up with new ways altogether to help you get the best profit possible.
Please contact me to help you decide if downsizing is right for you!