The Benefits of Downsizing When You Retire
Tired of looking for ways to save money as you get older? Think no longer! Downsizing your home could be one of your best options! A great way to look at this perspective is by seeing how expensive your bills are for your home - mortgage payments, gas, electricity, water, and other utility bills. When you downsize your home, you are downsizing the bills that come along with that home. Realtor.com states,
“A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something smaller.”
The longer you have been living in your house, the more equity you have built up over time. This equity would better help you purchase your next home that better fits your needs today. Daniel Hunt, CFA at Morgan Stanley, further explains,
“Home equity can be a significant source of wealth for retirees, often representing a large portion of their net worth. . . . Retirement planning can be complex, but your home equity shouldn’t be overlooked.”
Once you are ready to move to your new downsized home, contact Clara Duran Reed today! (310) 519-7670. She will help guide you through every step of the process, including setting your home to the right price on the market when you sell, helping you find the home that best suits you and your needs, and helping you understand what you can and cannot afford based on your savings.
What Does This Mean for Me?
When thinking about downsizing your home, ask yourself these questions:
Do I need this extra space in my house or could a smaller space work to fit my needs?
Are the reasons that I bought my house in the first place still important to my living situation today or have my needs changed since?
What are my current bills for my house, and how much money can I save by downsizing?
What are my current options in the market right now? Clara Duran Reed can help walk you through how much equity you have built up over time from the house you are currently living in and what your possible options are when you downsize.