Retiring is a momentous lifestyle change and your living quarters should be able to keep up with this change. Downsizing your home for retirement is a great idea with a plethora of benefits, from improving one’s quality of life to cutting off unnecessary expenses.
Prepare for your retirement with these home downsizing tips:
Plan your move
To make your downsizing endeavor a success, you need to consider all aspects of the move. Transferring to a smaller space means less room for your things. Think about whether to sell, store, or give away any belongings that you won’t be able to bring with you during the move.
Also, figure out what you want to do with your current property. Selling is the most straightforward approach. Proceeds from the sale can be used to help purchase your next property and enjoy your retirement in your new home.
Meanwhile, other retirees opt to turn their home into a rental property. There is more responsibility that comes with owning a rental property but the passive income is a nice perk to have.
Figure out your lifestyle needs
Before you begin your search for the best home to move to, consider the change in your lifestyle needs when you retire. Ask yourself what you want to do once you are free to do whatever you want. Do you want to focus on your hobbies? Would you like to travel more? Or do you want to continue your side projects?
Knowing how you want to spend your retirement will help you figure out the type of property you should buy. If you plan to travel, for example, a low-maintenance property near travel hubs is best. For those who want to live somewhere quiet, a peaceful lakefront is a great choice.
Find a property with the right features
Buying a smaller home means you may no longer have the amenities and features that you got used to. This is actually a good thing: it means less upkeep, chores, and responsibilities for homeowners.
When choosing a future home, look at the features in your current property. Think about the rooms you use the most and make sure your next house has the same. The kitchen and living room are usually the most important parts of the home because these are where families spend the most time together.
Consider the costs
Downsizing is a great way to save money in your retirement years. In the long term, you get to enjoy lower mortgage payment and utility bills. However, purchasing and moving to a new home comes with several hidden costs.
Consider the closing costs, property taxes, homeowners association fees, moving costs, and storage fees. These expenses can pile up and affect your overall budget if not taken into account early on.
Look for the ideal community
You can change everything about your property except for its location. Research different neighborhoods and find out what each one has to offer. Choose a community that suits your lifestyle needs.