When you retire, there are many things that you need to consider. Some retirees look to downsize but many carry emotional ties to their house which makes it harder for them to leave. What you need to keep in mind is what is more beneficial for you and your lifestyle.
When you are considering downsizing, you need to decide when the best time to move is. Maintaining a larger house will require more money spent on maintenance, renovations, expensive real estate taxes, and high premiums. By also ridding yourself of unneeded space, you can live a much simpler lifestyle.
When you decide to downsize, be aware of all of the tax implications and laws of the new home that you want to purchase. Healthcare facilities should always be in a close vicinity to where you are planning to move. Having specialists and physicians nearby will become more important as time passes.
Many retirees make the mistake of putting off downsizing until after their children graduate from college. There are times where you will see young adults move back into their parent’s homes while in search of a job. This prolongs the process of finding a smaller home for potentially years.
Multiple Home Owners
If you are the owner of multiple homes, you have to consider the cost versus benefit factor. The upkeep and bill of your homes can and will add up. With utility bills in the double or even the triple with all of your bills combined, your savings can be quickly run bone-dry and leave you in a tough position. Consider selling your house or even renting it out.
How Will You Use Your Money?
When you manage to sell your home, how do you want to use the profits that were made from the sale? A smart option would be to invest it in a portfolio. Many retirees live off the equity instead and keep their savings in their retirement portfolio. By doing this you can delay claiming Social Security benefits which results in a larger distribution rate. This is actually a very common tactic that retirees turn to.
Summing it Up
Downsizing your home is a great way to live a simpler lifestyle. It also decreases the monthly payments that you will be making. By applying the tips above, you can get a head start on how to manage the retired life with a firm control on your savings.
Kuba Jewgieniew is the head of Realty ONE Group, a real estate firm with a goal to provide ethical, professional and results-driven services to every property owner and prospective real estate buyer.