Downsizing For Retirement? 5 Tips To Make It Smooth Sailing
by Luke Fields
Are you approaching retirement and thinking of moving into a smaller home far away? To be sure, you've got a lot of decision-making to do right now—not the least of which is how much to downsize and where to move. If this describes you, here are 5 key tips for finding the right new place.
Don't Feel You Must Leave. Downsizing doesn't necessarily mean you have to pack up and head to Florida. Moving somewhere closer to your current home may be less overwhelming, less costly, and an easier adjustment. In fact, with a little research, you may find that there are a lot of nearby areas that offer amenities you'd enjoy—such as a better climate, a slower pace of life, or a lower cost of living.
Do a Test Run. Before you decide to move to a very different area, spend some time in that region yourself. Try to rent a home (of a similar size) for a month or more and learn about the area and its weather. Consider doing this "trial run" during the off-season, in harsher weather, or during a time of year you've not visited before. Renting a home in your new town also gives you a chance to develop a relationship with a local real estate agent and have opportunities to assess the trends in homes for sale.
Look for a Simple Layout. While you may enjoy good health and an active lifestyle right now, that can change at any time. If this new home is intended to be your last home purchase, think ahead about your needs. When looking at homes for sale, focus on house plans that are single-level, feature wide doors and hallways, have a simple and easy floor layout, and will be easy to upgrade.
Research Costs. There are a number of costs associated with buying and owning a home, and these could impact your budget. Before getting too serious about any particular home, work with your real estate agent to find out what the taxes (both property and sales taxes) are, what the closing costs will be, any repairs that need made, and any association dues you'll have to pay. Make sure you can easily cover recurring costs well within your present budget.
Consider a Mortgage. While being debt free is a very appealing idea, you may find that retaining a mortgage benefits you. Tying up too many of your retirement funds in a single asset carries its own risk. Downsizing should allow you to carry a small mortgage that fits easier into your monthly cash flow while allowing you to use your other funds—including from the sale of any prior home—for investment or emergencies.
By following these few tips before you embark on downsizing or moving, you'll help ensure a smooth transition into a new home you can enjoy as you start this new chapter in your life. For more information, contact local professionals like Mary Couser: Galbreath Realtors.
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About Me
Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.