Bigger is not always better – especially in retirement. Many couples are now choosing to downsize their home for retirement. When the kids are grown and moving into their own home, when you just do not need as much space as you do now, or when gardening is no longer a source of pride but a backache, downsizing is a good option.
If you approach it the correct way, downsizing your home can provide you with some much-needed financial relief and help make your retirement a more enjoyable one.
Earlier this year, financial guru Dave Ramsey highlighted the benefits of selling your current home and downsizing into a smaller home. Ramsey explains three possible financial benefits of downsizing.
1. A smaller home means less space, but also less time, stress, and money spent on maintenance. Anyone who has ever owned a home knows how much time, energy and effort it takes to maintain it. All things being equal, a smaller house requires less time, energy, and effort to get the job done.
2. You’ll save a lot. Let us say you save $500 a month on your mortgage payment. In 30 years, you could have an additional $1 million to $1.6 million in the bank to fund your retirement.
3. You can use the proceeds from the sale of your current home to buy a smaller home in cash. Imagine what you could do if there was no mortgage on you! If you cannot pay cash, aim for a 15-year fixed-rate mortgage and make a down payment of at least 10-20% on your new home. Offset the $500 you saved by downsizing your home against your new monthly payment. At a 3% interest rate, you could pay off a $200,000 mortgage in less than 10.5 years and save nearly $16,000. That’s still a big saving.
Selling a home is an important financial decision, but it’s also a lifestyle choice. It encourages you to look for opportunities and pursue your dreams at the earliest time possible.
Downsize and travel
If you want to travel the country and the world in retirement, maintaining a home that is not being used is a waste of money. A lower mortgage and lower maintenance costs mean more money for more destinations on your wishlist.
Downsize and socialize
Smaller homes in senior living communities or neighborhoods with multiple people of the same age means you have more people around to interact with. Living in a community with people who share your interests and experiences fills up your social calendar.
Downsize your home and become a “snowbird.”
If you are selling a home built for a large family, maybe you can buy two smaller homes in different locations. Move south to avoid too much snow in the winter and north to escape the summer heat. A vacation home on the beach and a cozy and luxurious cabin in the woods could be the ideal way to escape the harsh weather and keep the scenery fresh.
Let us help you take the next step!
At www.integrityresolutionsllc.com we are here to help you with your downsizing process. Serving all over Virginia, our team of experts will ensure that you receive a fair cash offer on your home and that the buying and selling process goes quickly and smoothly.
We can even help you with packing, moving, and other expenses. If you or someone you know is looking to start a new adventure, contact us today by calling (571) 404-0464. We guarantee the best service you deserve.