Could Downsizing To A Smaller Home Be The Right Move For You?

February 23, 2023by Christo Joe0

As retirement looms near, many homeowners are faced with a tough decision: where to settle down and spend the golden years? Whether you’re looking for sun or snow, there is an abundance of options to choose from. Now’s your chance – start researching today! Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of Realtors (NAR), says:

“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.”

Looking for an alternative solution to relocating your family? Downsizing might be the answer! When you sell your house and purchase a smaller house, it’s known as downsizing. With multigenerational living on the rise, and staying in a current house no longer offering all of life’s needs, downsizing could be just what you need. It won’t work for everyone; but if it fits best with your particular circumstances then give this potential option serious consideration.

Ready to make a change? Downsizing can be an ideal solution when you’re looking for something more suited to your needs. Plus, it gives you the opportunity to move into your perfect spot with less effort and expense than ever!

In addition to the personal benefits, downsizing might be more cost effective, too. The New York Times (NYT) shares:

“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.”

Retirement isn’t just about being comfortable and having fun – it’s also important to have a strong financial position. And one of the most effective ways to do that is through downsizing, since even with higher mortgage rates than we’ve seen in years past, homeowners can use their record-high equity levels as leverage when they purchase another home. Doing this could effectively lower or eliminate your loan payment altogether!

Owning a small home may be more economical than you think. With the right guidance, leveraging your existing equity can really open up opportunities for future moves. A real estate expert in your neighborhood is key to helping determine how much of an asset you have and what options it brings along with it!

Also Read: What’s the Latest going on with Home Prices?

Bottom Line

Are you a homeowner transitioning into retirement? Let’s talk and uncover the potential living options available at this stage in your life – allowing you to identify great downsizing opportunities!

Christo Joe

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