Keeping your home well-maintained can be a lot of work. Between yard work and perpetual maintained, the upkeep can leave you exhausted. Or maybe it’s getting harder for you to do certain household maintenance tasks due to age or physical restrictions. There’s also a financial component to home maintenance. You may not want to or you’re physically unable to spend time cutting a large lawn or shoveling a long driveway. When that day comes, you’ll likely need to pay others to take care of your property for you, which will increase your cost of living. By downsizing your home when the time is right, you’ll leave more time for yourself and save money.
Downsizing for retirement is one of the most common reasons people scale back on home size. When you downsize, you’re cutting basic expenses and creating more retirement income. In downsizing your home for retirement, you’ll move into a smaller, cheaper property that will likely reduce your property taxes, insurance and mortgage payments. Even if you plan to have your mortgage paid off by the time you retire, your current home could be a major source of retirement capital. The thought of living in your home, mortgage-free is tempting; however, having too much capital tied up into a home could mean less retirement savings.
If you’ve already raised your children, you might be paying for space that you’re likely not using. If it’s just you and your spouse, maybe you no longer need four bedrooms and three bathrooms. Even if you’ve paid off your mortgage, you could still be paying a lot in property taxes, homeowners insurance, utilities and maintenance, all of which are higher on a larger home.
Are you dreaming of faraway places? Downsizing your home and the expenses you’re spending on your home can free you up to travel. It’s not uncommon for snowbirds to downsize into town homes or condos where they can travel care-free because they’ve relocated to maintenance-free properties. If your over-sized mortgage and maintenance costs are eating up your travel money, it might be time to consider downsizing.
eXp Realty—The Results Team—is ready to help you buy or sell your home! Stop on by our location at 2623 N. Walnut St, Bloomington, IN 47404. Or call us at: (812)822-2746.