No matter your age, it's never too early to begin thinking about retirement. Retiring from the workforce is a high priority for many men and women, but there's no single way to achieve this milestone. Some individuals pay into an IRA or 401k, while others invest in diverse assets with the hopes of cashing out when they're ready to retire. Our REALTORS® understand how important your retirement plans are and want to help you consider every possible option that will help you achieve this goal. As you think about retirement, we encourage you to consider where your home factors into your retirement plans.
Whether you're considering buying your first home, purchasing a new home for your growing family, or downsizing as your needs change, it's wise to consider all of the potential benefits or drawbacks of owning a piece of real estate. In most cases, owning a home has substantially more benefits than drawbacks, especially when you're housing a family with evolving lifestyle needs. Although a 30-year mortgage may be easily affordable as a working professional, some homeowners have concerns about keeping up with these payments when they move into retirement.
People change, lifestyles change, and needs change. And when that happens, you may need to change your home too. Our REALTORS® have helped people find all kinds of homes, no matter what their needs are. For some people, those changes mean they start looking for a bigger home. For others, downsizing is the answer. If you've been wondering if downsizing is right for you, here are some things to consider to help make your decision.
You need to decrease your monthly expenses.
If you're thinking about downsizing because of retirement or changes in your financial situation, you need to consider the monthly cost to continue living in your home. When your monthly income goes down, your current housing costs will take up a larger percentage of your budget. If you don't have a house payment, there are still taxes, insurance, condo or HOA fees, and maintenance to consider. With a smaller space, you can often lower maintenance costs, property taxes, and utility bills. For people in markets where housing and the cost of living are very high, downsizing can be a necessity.
When your mortgage seems too high and your home seems larger than you need, you may consider downsizing as a solution. At Wright-Patt Realty, we often talk to homeowners who are curious about downsizing. Whether to simplify life or to reduce stress on your budget, downsizing your home can make sense. If you have been weighing the pros and cons of this life change, here are some important things to take into consideration.