Downsizing for Retirement: Is it a Good Idea?
Many adults start to consider downsizing for retirement, and it can be a big decision. They may sell the same home they lived in for years and move in with a family member. They may also decide to rent an apartment, join a retirement community, or purchase a smaller house.
Several perks come with moving into a new home at this exciting time of life, but it isn’t a decision to take lightly. Should you downsize your home? Consider these benefits and a few tips to help you along the way.
Make Money Putting Your Primary Residence on the Real Estate Market
The main reason to consider a home sale is all the extra money you could free up and put toward your retirement. This is especially helpful if you’re ready to move into a more manageable place.
However, don’t forget that selling a house will usually come with the following expenses:
- Closing costs
- Capital improvements, like paint jobs or new flooring
- A down payment on a new home
Other Benefits of Downsizing Your Home When You Retire
Save Money on Monthly Housing Costs
Finances are integral to any retirement plan. You might consider downsizing because your large home eats into monthly cash flow with the following expenses:
- Homeowners Insurance
- Maintenance and repairs
- Landscaping services and more
Cutting these monthly expenses will boost your retirement savings. If you buy a small house or condo, you’ll likely pay a cheaper insurance premium.
Enjoy Extra Amenities
Many types of communities offer great amenities for residents to enjoy, not only in specifically retirement-centered communities. For example, apartments and condos may provide on-site maintenance professionals for repairs, a gym, a swimming pool, and picnic areas. Some HOAs also have different amenities they charge across each household in their community.
Improve Family Relationships
If you’re downsizing for retirement by moving in with some family members, it could help to strengthen your relationship. It’s great knowing that family will be close by if you need them or your health declines. You’ll also likely enjoy less strain on your personal finance needs.
Embrace a New Life
Emotional factors do arise when you’re selling your home, but it can be freeing to let go of homeownership with its countless financial considerations, including property taxes and upkeep. Downsizing promises less space to manage and fewer responsibilities.
And if you aren’t ready to let go of some items, you can always rent a storage unit until you know what you’ll need in your new place.
Sell Your Family Home With the Help of a Qualified Real Estate Agent
Are you considering downsizing for retirement? Do you need some expert help in selling your current residence? We buy houses in Augusta, KS, and the surround Wichita, KS Metro Area – we are experienced and make things quick and easy.
We offer cash for properties so that you can make more money—call (316) 202-1628 today or connect with Professional Home Buyers online to request an appointment.