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Jan 4, 2023 · Ultimately, whether downsizing is a good idea for any of us is the wrong question. The issue isn't necessarily moving down in size, but in moving toward the right fit for our values and preferences: right-sizing. It's possible that a house of the same size, situated elsewhere, is what you need. Or even, conceivably, a larger home.
- When Do Most People Downsize Their Home?
- Your Monthly Housing Expenses Have Risen Above 30%
- Your Monthly Budget Leaves Little Leftover Cash
- You’Re Feeling Overwhelmed with Home Maintenance
- Your Home No Longer Fits Your Needs
- You’Re The Oldest Resident in Your Neighborhood
- You Want Or Need to Convert Your Home Equity Into Income
- Your Career Or Family No Longer Ties You to Your Location
- You’Re Not Using All The Property
- You Want to Be Closer to Family
Although an AARP survey reveals that 77% of adults over the age of 50 yearn to age in place by staying in their current homes, it’s not uncommon for empty nesters and retirees to consider downsizing. According to the National Association of Realtors®, the “silent generation” – people aged 74 to 94 (or, the generation ahead of Baby Boomers) make up ...
According to the U.S. National Housing Authority, established in 1937, no more than 30% of your monthly incomeshould be spent on housing. Paying more than 30% qualifies you as “financially burdened,” according to the U.S. Department of Housing and Urban Development (HUD) – and paying more than 50%designates you as “severely burdened.” Thus, if you ...
Many people expect to be free to travel after retirement. But if you’re using your savingsto pay your housing expenses, it’s a sure sign you should downsize to something more affordable. By planning ahead and downsizing five to 10 years before you retire, you can save thousands of dollars each year. For example, by moving into a home that costs $10...
One of the biggest reasons seniors decide to downsize is to rid themselves of the burden of maintenance. Taking care of minor repairs, painting, mowing the lawn, and shoveling snow are time-consuming tasks that aren’t most people’s vision of a relaxing retirement. Even worse, these projects may become too physically challenging for people as they a...
While some seniors desire to “age in place” in the home they’ve loved for years, they may experience challenges to living in it as they grow older, such as: 1. Stairs make it difficult to access living spaces 2. A steep driveway presents a fall risk 3. Large walkways and long driveways require shoveling snow 4. Mowing the lawn has become difficult ...
In addition to the financial savings of moving to a retirement community comes the social aspect. If you stay in your home for a long time, you’re bound to watch neighbors move or pass away, leaving you isolated and maybe lonely – a condition affecting 25% to 60% of older Americans. “Family neighborhoods tend to stay younger as families keep moving...
As many as 51% of older workers have saved less than $50,000 for their retirement. That’s why some seniors turn to their home’s equity to help pay the bills, sometimes through a home equity line of credit (HELOC) or a reverse mortgage. However, it’s not a limitless supply of funds. Homeowners should be cautioned to convert their home equity into, a...
Retirees aren’t the only ones free from career ties to a specific location. Since the beginning of the global pandemic, more employees have been working remotely from home. Among the many benefits, this allows people to live wherever they want. Parents whose children are grown and gone have no need to live in preferred school districts, opening up ...
Once the kids are grown and gone, their bedrooms may be used only for occasional visits. But you still have to clean them, heat them, cool them — and pay insurance and property taxes on them. If you’re retired, you may not need a home office. Perhaps your new lifestyle keeps you too busy to make use of a game room or home theater. Features like the...
Many retired Baby Boomers choose to move closer to their adult children. In fact, this group is the most likely to move the farthest after selling their home. The trend to live near family began prior to the pandemic, according to the National Association of Realtors®, and has continued unabated. More than Baby Boomers, however, the Silent Generati...
- Lori Lovely
People also ask
Is downsizing a good idea?
Should you buy or downsize your home?
Why should you downsize your home?
Does downsizing a house save money?
- Greg Daugherty
- Overestimating What Your Current Home Is Worth. It’s easy to fantasize about the high price your house will fetch. Perhaps the neighbors down the street sold theirs for an extravagant sum—or so they said—and were last seen packing their new Bentley and heading for Acapulco.
- Underestimating What a New Home Will Cost You. Just as people tend to be optimistic about what their homes will sell for, they’re likely to imagine that they’ll get a steal on the next place they buy.
- Ignoring the Tax Implications. Unless you make a whopping profit on the sale of your home (and if you do, congratulations), you may not owe any income tax on the profit.
- Forgetting About Closing Costs. If it’s been years since you bought a home, you may have forgotten all the closing costs you had to pay at the time. Those probably included legal fees, recording fees, title insurance, and a long list of miscellaneous charges.
- Why downsize? Release equity: A common complaint after you retire is that you become asset rich but cash poor. By selling your house and buying a smaller, less expensive property you can free up equity locked in your home and use the proceeds to fund retirement, help children or grandchildren to buy their own home or pay off the shortfall on a mortgage.
- Costs to consider. The accumulative costs of selling a property can be considerable and should be carefully considered and accounted for before deciding to downsize your home.
- Are smaller houses less expensive? Not necessarily. If you are looking to move to be closer to family, then you may be restricted in where you can move to and may end up competing with first time buyers, landlords, new families and the like who are also looking for smaller properties with gardens, amenities within walking distance and good transport links.
- Downsizing options. In many cases, if you own your home outright, you will be looking for a straightforward sale on their current home to a smaller and (preferably) cheaper property.
May 7, 2024 · Downsizing to a smaller home means less upkeep, lower bills, and more time to do the things you love. It’s an exercise in saving both money and time. Move to a more accessible property If you are downsizing in later life, it means you can choose a property that will be better suited to your needs as you get older.
Jun 12, 2022 · While homeowners have many different reasons for wishing to move into a smaller place, downsizing often presents an opportunity to save money and enjoy an enhanced lifestyle—provided you steer clear of common downsizing mistakes. Let’s dive in and explore this topic a bit more. How to know if it’s time to downsize your home
Nov 29, 2021 · Moving into a smaller space can make a lot of sense. Usually, you’ll save money, experience less stress in your life and reduce your carbon footprint by downsizing. It can also signal a new chapter in your life. But downsizing isn’t without its downsides. For starters, it’s a lot of work to move. Not to mention, downsizing doesn’t ...
