Here are the seven signs that it may be time to consider downsizing.
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I work with many sellers, and lots of them are downsizing. Quite a few of them tell me they waited a little too long to decide it was time to downsize. In age 50+ retirees, 51% of those who moved since retirement moved to a smaller home, yet most find it difficult to pull the trigger. 64% of retirees say they plan to stay in their large house.
So today I’m sharing seven signs that it may be time to downsize:
- Your monthly housing expense has risen above 30%. You’re no longer working and don’t have the income to support that big property and the maintenance required.
- Your monthly budget leaves little leftover cash for saving or fun. All your money shouldn’t go toward living expenses.
- You’re falling behind on home maintenance. Maybe you aren’t up to it or don’t have the money to take care of it. Delayed maintenance on a home can be very costly in the long run, and you’ll either have to pull the money out of your home’s equity to sell or sell under market value. So do the maintenance while you can, and sell when you can’t.
Your largest asset is typically your house, and you could downsize to free up some of that money.
- Your home has features that no longer fit your lifestyle. For example, maybe one of the reasons you bought your house was because it had a massive backyard. Your kids loved playing in it, but now it’s an enormous burden to maintain.
- If you are the oldest resident in your neighborhood. Perhaps you moved there when your family was younger, but now all your peers have moved on, younger families with children have moved back in, and you feel a bit isolated. Plenty of people move and find that being among their peers makes them much happier and healthier.
- If you want to convert your home equity into income. Taking some equity out of your home and putting it into a format that will provide some income throughout retirement is a wonderful idea. Your largest asset is typically your house, and you could downsize to free up some of that money.
- Your career no longer ties you to your location. Now you could explore moving to another climate, neighborhood, or an area with fewer taxes. This is an excellent time to analyze your options.
All these are signs it might be time to make a change. If you’d like to discuss whether this is the right time for you to make a move, give me a call or send an email. Also, reach out if you’d like to know what to do to prepare for an eventual move. My team and I would love to help you.