Now that you’re nearing or at retirement age, and the children have all left the nest and gone on to build their own lives, you’re left with an oversized home with too many empty rooms.
If you’re thinking of downsizing – that is, moving to a smaller home that requires less upkeep – you’re not alone. Every year, thousands of retirees make this decision and downsizing is now considered an American tradition.
It may surprise you to know, however, that it is not only baby boomers who are looking at downsizing. Many millennials are also considering moving to tinier homes for similar reasons as their senior counterparts’. Millennials look at downsizing as part of the “minimalist” movement, which is rooted on the concept of “less is more.”
The perks of living smaller
Downsizing offers several advantages, whether you’re a baby boomer or a millennial. Some of them are:
- Cost savings
Smaller homes in the same or comparable neighborhoods generally come with lower price tags and, consequently, lower property taxes. They also cost less to maintain, and requires less energy, translating to lower utilities cost.
- Less mortgage
Lower home value also means less mortgage payments and interest. Additionally, when you sell your existing home, you may have enough funds to pay for a new, smaller home in cash, plus leftover profit that comes tax-free. This can free up your income and allow you to set aside more money to save or invest, or to spend on other things that matter to you, such as traveling.
- Moving to a better location
You can choose to move to a neighborhood with a lower cost of living, or perhaps, one that provides all the amenities and comforts that you have always wanted.
How to downsize wisely
In order to take full advantage of the benefits of downsizing, it is important to go about the process carefully. Here are some pointers to consider:
- Have a list of the features that you’re looking for in a new home. This is similar to the process you went through in searching for your first home, except, this time, your needs and priorities have changed.
Downsizing can be just as exciting as buying a home for the first time. It can also be just as challenging. Work with a real estate professional to get the guidance you need. Get in touch with us and find out how we can be of help.