Once you hit retirement, many people wonder if they should think about selling their home. Chances are your kids are out on their own, and you have a lot of space.
There can undoubtedly be advantages of selling your family home and a few disadvantages, as well. There are a few ways to look at the situation.
Moving on to a smaller home can be a great relief to many people once they reach retirement age.
Selling your home and buying a smaller home or a condo makes a lot of sense for retired people. If you are still paying a large mortgage, it would be nice to get that behind you.
That also means more money for you to enjoy your retirement. Get rid of the debt, use that extra money for a new place, a modest rental, or travel to new and exciting places.
You’ll also pay less in energy and insurance for more savings.
If you choose a walking-friendly neighborhood, you will eliminate the need for a car. Going carless will save a lot of money throughout the year. Even renting a car when you need it is less expensive than having a vehicle you rarely use.
Running and maintaining a large family home can be a lot of work. Selling it and buying or renting an apartment or condo removes all that extra work. Cleaning the snow, home repairs, painting, and repairing when things break takes a lot of work.
Let someone else worry about shoveling the sidewalks and clipping the hedges. A large house with a few floors can turn into a lot more work, even when it is empty. If you don’t need the space, why pay for it? The maintenance can be never-ending.
When you bought the house, chances are it was close to work, close to schools or medical centers. Now, you can find that ideal place that has conveniences of a different kind.
Maybe you want to move closer to friends, out of state, closer to the water, a warmer climate, or a new country. Your options are wide open, and you can find somewhere you want to live for the right price.
Making The Right Decision
While downsizing may be on your mind, there are a few things to think about. Many of us have an emotional attachment to the home, but it’s wise to separate those.
Your memories will not disappear simply because you no longer live there.
Make sure you are going to come out ahead financially when you sell. By the time you clear your mortgage, the agent takes their cut, and all the taxes and repairs are added in, you may not make as much as you hoped.