As retirement approaches, homeowners must decide where they want to spend their golden years. While multigenerational living is becoming more popular, it's not an option for everyone. Staying put in a current house may no longer fit your needs. There's a third option that could be the best one for you: downsizing to a smaller home.
Downsizing means selling your current house and purchasing a smaller one that better suits your changing needs. In addition to personal benefits, downsizing can be more cost-effective. The New York Times reports that downsizing can improve your retirement income stream if your new home costs less than what your old house sells for. Lower utility costs, insurance, and property taxes, along with investment returns on the proceeds, can improve your bottom line.
Being in a strong financial position is crucial during retirement, and downsizing can make a significant difference. The record-high level of equity homeowners have today means that leveraging your equity when downsizing can lower or even eliminate your mortgage payment on your next home. A smaller home is likely to have lower upkeep costs, and leveraging your home equity could provide even more financial benefits. Consult a local real estate advisor to understand how much equity you have in your current home and what options it can provide for your next move.
In conclusion, downsizing to a smaller home could be the best option for retirees. Contact a real estate advisor to explore your downsizing opportunities and understand your options. With lower costs and greater financial benefits, downsizing to a smaller home can help make your retirement years the best they can be.
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