When deciding to relocate for retirement some people buy bigger and more expensive homes, but downsizing for retirement is a savvy strategy. Especially for those of us who have not quite saved enough for our golden years. Here are some questions you can ask yourself to ensure your relocation is profitable and comfortable.
What are your goals?
Before you decide where you want to move, reflect on why you want to downsize and what your goals are. Most goals fall under financial or lifestyle. Financial goals can include saving money by downsizing to a small home and pay a smaller mortgage. Lifestyle goals can include spending more time with family and friends.
Where are you going? What kind of home do you want?
When choosing a location to settle down, keep your goals in mind. For example, if one of your lifestyle goals is to live closer to your grandchildren, you should pick a location that is close to their home or school. Size of your home is also an important factor to consider. There should be enough space to accommodate you, your spouse, and family, but it shouldn’t be too big to where it becomes a hassle to clean and maintain.
When is the best time for you to downsize?
Timing is everything! When buying and selling a house a lot of factors should be considered such as interest rates, the strength of the housing market, and the current market value of your home. Ideally you want to move at an optimal time so that you get a return on your investment.
Do I need this?
Think about downsizing belongings – not just the size or the cost of the home. Maybe you don’t want to move into a new home, but you still want to save. Try getting rid of belongings that you can live without. If you are a two-car household try selling one. This will eliminate half of your car maintenance and insurance costs and will save you a ton of money in the long run!
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