Could Downsizing Your Home Be the Best Choice for You

As the Baby Boomers enter their retirement years, many homeowners experience an arduous decision: to move in with family or remain steadfast in their current home? But there is a unique and often advantageous solution that may be even better - downsizing. This approach provides retirees with the remarkable opportunity to exchange their existing home for one more suitable to match their lifestyle goals and potentially resettle at somewhere of aspiration. Downsizing should definitely be taken into serious consideration by those pondering retirement!

According to Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of Realtors (NAR),

“As we see the transition of the large Baby Boomer generation age into retirement, it will be interesting to see if they move in with their Millennial and Gen Z children or if they stay put in their own homes.”

Lautz proposes two alternatives: inhabit a shared space with your relatives or remain in the same home – both may not be suitable for everyone. But there is one more viable option, and perhaps it's the best choice of all - downsizing. Multigenerational living continues to gain momentum, yet could still be challenging under certain circumstances; while staying put can become increasingly impractical as life progresses. Downsizing offers an unconventional solution that should certainly be considered amongst these other options.

Downsizing is the perfect course of action for those looking to exchange their current home with a smaller one. Not only does this allow you to adopt living quarters better suited to your lifestyle, but it also provides an opportunity to relocate and settle in that ideal place you’ve always dreamed about!

Not only can downsizing bring personal benefits, but it could also be more financially advantageous. According to The New York Times (NYT),

“Many downsizers expect to improve their retirement income stream if their new home costs less than what their old house sells for. Lower utility costs, insurance and property taxes — as well as investment returns on the proceeds — can also improve the bottom line.”

Not only can a smaller home be more economical to maintain, it could also offer you the opportunity to tap into your equity. Your local real estate advisor is an indispensable resource in understanding how much of this equity you have and what options are available for your next move.

Achieving financial stability is essential for long-term retirement planning. Downsizing can greatly aid in this process, making it easier to attain the desired level of financial security. With this in mind, downsizing presents itself as a viable option for those planning for retirement.

Whether it is moving in with family members, keeping the same home or opting to downsize; these decisions will have lifelong impacts and should be carefully considered before making any final decisions. It is important to review all of your options and do what is best for you and your retirement goals.

Whichever route you choose, always make sure to do your research! Asking questions and doing background checks can help you make an informed decision on the future of your retirement. Finally, consult a professional if needed; they may be able to provide further advice and insight that can aid in your retirement decision.

The key to a successful retirement is proper planning and preparation. No matter which option you choose for your future, take the time to consider all of the available possibilities and determine what works best for you. Don't be afraid to get creative; sometimes unconventional ideas may just be the perfect solution. Downsizing is one of these solutions - it could be your key to a successful and enjoyable retirement!

Even with the higher mortgage rates than a year ago, downsizing remains an economical solution for many homeowners due to their record-high equity levels. By utilizing your home's equity when you downsize, it is possible that you could greatly reduce or even eliminate the mortgage payments associated with your next home!

As a retiree, deciding where to settle is one of the most important aspects of your transition. Allow me to provide you some insight into potential downsizing opportunities and discuss all possible options available to you as a homeowner. Let's chat soon so that we can get started on this exciting new journey!

3-13-2023