Why Moving to a Smaller Home After Retirement Makes Life Easier

Why Moving to a Smaller Home After Retirement Makes Life Easier

Retirement should be a time for relaxation, adventure, and enjoying your passions. As you envision this exciting new phase, consider if your current home still meets your needs. If it feels too large, expensive, or inconvenient, downsizing could be the key to maximizing your retirement. To determine if a smaller, more manageable home is ideal for your new lifestyle, consider asking yourself these questions:

• Do the original reasons I bought my current house still stand, or have my needs changed since then?
• Do I really need and want the space I have right now, or could somewhere smaller be a better fit?
• What are my housing expenses right now, and how much do I want to try to save by downsizing?

If you answered yes to any of these questions, it's worth considering the benefits of downsizing.

The Benefits of Moving into a Smaller Home

There are numerous reasons to downsize. Here are just a few, according to Bankrate:

Your Equity Can Help Make Downsizing Possible

If those benefits appeal to you, you might already be in a position to make it happen. According to a recent article from Seniors Guide:

“And at a time when homeowners age 62 and older have more than $12 trillion in home equity, downsizing makes sense . . .”

If you've been in your home for a significant period, you likely have built up a substantial amount of equity. This equity can be a valuable asset in helping you purchase a home that better suits your current needs. Greg McBride, Chief Financial Analyst at Bankrate, explains:

“Downsizing can mean taking that equity when the home is sold and using it to pay cash or make a large down payment on a lower-priced home, reducing your monthly living expenses.”

When you're ready to leverage your equity for your next move, your real estate agent will guide you through each step. This includes setting the right price for your current home, finding a property that meets your changing needs, and determining what you can afford with today's mortgage rates.

Bottom Line

Starting your retirement journey? Downsizing could make a big difference. When you're ready, let’s connect.