Traditionally, we think of the homeowner’s path as one of upsizing. A young couple buys a starter home until their family grows, then once their salaries increase and they achieve financial stability, they move into a larger home. In some cases, though, a smaller space makes more sense for homeowners. Here are the four signs it may be time for you to downsize:
1. Retirement is approaching. Retirement is one of the most common reasons homeowners think of downsizing. With retirement savings not lasting as long as some retirees expect due to an increased cost of living and other retirees needing more income due to longer lifespans, downsizing starts to look like a really good option.
2. Too much anxiety. Whether this anxiety is brought on by too much upkeep of the home or other factors, once your home leads to more stress than it’s worth, you may want to think about downsizing. As people age, they oftentimes can’t care for their home the way they used to. Anxiety can also be caused by one spouse passing away and leaving the other to pay the bills themselves. In any case, the price of a smaller condo or apartment is easier for older people to manage—the responsibility and cost of maintaining the home and yard surrounding the property are included in the monthly fees.
Retirement is one of the most common reasons homeowners think of downsizing.
3. Unused space. Sometimes it can feel like your home is swallowing you whole and you have a lot more space than you can use. If you have unused rooms that need cleaning because they do nothing except collect dust and junk, it may be time for you to consider looking for a more realistic and manageable place to live. Perhaps you can get a smaller place with a pool that you can use often, or a built-in patio you can use to entertain.
4. Money = opportunity. If your home has appreciated a lot in the past few years, consider downsizing and buying a nice luxury condo with the money you make from the sale.
If you have questions about this topic or have a topic in mind you’d like me to cover in a future video, don’t hesitate to reach out to me. I’d love to speak with you.