As we get older, our needs and skills change, and not all homes are designed to work with us to support this change. It’s common to expand your home as your household grows – whether it’s for kids, pets, or simply because you need extra space for a home office. But what was once the perfect home can now be too difficult to manage and maintain in your golden years.
The benefits of downsizing your home are myriad and it’s a wonderful way to open the door to the next phase of your life. Deciding to downsize, however, can be difficult, and leaving a home full of precious memories can cause heartache. When is the right time to downsize? If owning your current home has been causing more stress and worry than joy and comfort for the past few years, maybe now is the time. Here are 8 signs it is time to market and downsize your home.
1) Your monthly housing costs have exceeded 30%
As a rule of thumb, you will have to spend around 30% of your monthly budget on housing costs. This includes yours mortgage payment, Utilities, maintenance costs, homeowner insurance and property taxes. In fact, every household that spends more than 30% is viewed as financially burdened. Financial stress can affect your mental, emotional, and physical health. Saving a little extra money can help prepare for unplanned expenses or health issues.
Downsizing your home is a great way to lower monthly housing costs, as a smaller home usually means lower monthly housing costs. Make sure you do the math before you start any home buying and selling How Much House Can You Afford? on a steady income.
2) You have little to spare once the bills are paid
The definition of retirement has changed dramatically over the years. Today more than ever, retirees have an active lifestyle that includes hobbies, exercise and continuous learning – and all of that costs a little money. How would you like to spend your time? Maybe go to the gym, take painting classes, or take some college classes. If your monthly housing costs are so high that you cannot enjoy your hobbies or activities, now may be the perfect time to save some money so you can spend the way you want.
3) Taking care of your home becomes difficult
Our homes are full of precious memories that are very dear to us. The wall where you recorded the heights of your grandchildren to the living room where your daughter first learned to play the piano. Our homes are a reminder of the love and laughter we shared with friends and family, and this results in many staying in their homes longer than is reasonable for their health and financial stability.
Impaired mobility can prevent you from doing general maintenance around the house, such as: B. Gardening and regular cleaning. Regardless of your age, there is always chores to be done. However, as you age, it can become more difficult to clean the gutters, vacuum a two-story house, or mow the lawn and prune the shrubs. One of the many benefits of downsizing your home is that you can choose a property that will take longer to deal with these chores. When you’ve reached the stage where these tasks seem impossible, it’s time to get smaller. And it is better to make that decision sooner rather than later. If the chores pile up and it affects the condition of your home, there may be a decline in Property value when it comes to selling.
4) Your home has features that make aging difficult in place
If you have developed mobility problems as you age, you have likely done home improvement and changes to ensure a safe and comfortable life. You’ve installed handrails, upgraded the lighting, and swapped your hard floor for carpet. However, there could be a few depending on your layout Key Features You cannot make changes that are still a threat to your security Aging in place heavy. Features such as multiple flights of stairs, narrow doors, or high-maintenance landscaping can pose safety risks. If those home features have become a hindrance for you, now is the time to shrink down to a safer floor plan. A home that is designed for optimal accessibility, convenience, and safety is essential to prevent falls and serious injury.
When considering downsizing your home, it is also important to consider the weather in your area as snow and ice can be dangerous for someone of any age.
5) Your neighborhood no longer fits your lifestyle
If you have lived in your current home for countless years, you have likely settled on a neighborhood that suited your lifestyle at the time. Perhaps you have chosen a suburban neighborhood to escape city life. Or maybe you moved to a townhouse in the busy city for easier commuting to work. These neighborhoods may have been ideal for your previous situation, but now they may no longer suit your needs.
Maybe downsizing to another neighborhood is what you need for your current lifestyle. By downsizing your house, you can cut maintenance and free up time for free time activities, more peace and quiet, and time with family and friends.
6) You want to convert home equity into retirement income
For most homeowners, equity is one of the most valuable assets, but sometimes your home is too expensive to maintain. If you plan to rely on home equity for income in the retirement years, e.g. reverse mortgageNow may be the right time to downsize. Property taxes and maintenance costs can be even lower. Work with a real estate agent so you can Sell your current home for the greatest possible money.
7) You have the option to live anywhere
The nice thing about retirement is that you are no longer tied to one place and can choose wherever your heart desires. This gives you the ability to look anywhere US real estate market for districts with the lowest property taxes, utilities, sales taxes and more. So if you want to sell your home Vancouver, BCand escape too sunny Sacramento, CA.or if you want to be closer to family, the world is your oyster now.
8) Consider scaling down your home when several rooms are not in use
It may feel like yesterday when three bathrooms weren’t enough, or when your grandchildren’s toys somehow managed to take over the whole house. At that time, you probably longed for a bigger house to control the chaos. However, if one of the previously used rooms is now rarely opened, it doesn’t make sense to pay for heating, cooling and lighting. Saving money on utility bills and property taxes are just a few more reasons to consider downsizing your home.
Types of Housing Options for Downsizing Your Home
So once you’ve decided that now is the right time to downsize, it’s important to consider a number of factors when choosing between housing options. Mobility and ability restrictions, care needs, location and budget play a major role. When downsizing your home, it is important to find a place that suits both your current and future needs. Here are four main housing options that you should consider when downsizing your home.
- Buy or rent a family home or a one-story apartment. If changes are made to your home as needed, e.g. For example, grab bars in the bathroom or non-slip mats throughout the house, you can live independently longer. If you are still relatively independent or if you are getting the help you need, e.g. For example, food delivery, housekeeping, or the help of a home carer, staying at home can be a good option.
- Move in with a loved one. Being close to children and grandchildren not only creates a stronger bond with them, but can also give you security in the event of health concerns. Do you want more alone time? Consider adding a tiny home in the back yard.
- Move to an independent shared apartment. This includes senior housing, retirement communities, senior housing and active adult communities. The houses can be single-family homes, townhouses, apartments, or condominiums. They typically provide food preparation, transportation, cleaning or maintenance, and health-related services. There are often leisure centers or clubhouses in the community where you can interact with others and participate in community activities. You will be surrounded by people of similar ages and interests and can enjoy the amenities and activities together. Because independent housing facilities are aimed at older adults who need little or no assistance with daily living activities, most do not provide medical care or nursing staff. However, you can rent the in-home help separately if required.
- Move to an assisted living community. This is usually intended for seniors who can live somewhat independently but need assistance with some daily chores. As a rule, the staff is available around the clock. Meal preparation, medication management, bathing, dressing, housekeeping and transportation are available. They also offer social groups and recreational activities.
Depending on the situation, home care services are also offered at different levels. Home caregivers can help you with everyday activities such as cooking, grooming, or shopping while making sure you are safe.
There are many factors to consider in answering the question: When is the right time to downsize? By keeping these 8 signs in mind, you can make a decision that will guide you into the next phase of your life with ease.
Redfin does not provide health, legal, financial, or tax advice. This article is for informational purposes only and is not a substitute for professional advice from a medical provider, licensed attorney, financial advisor, or tax advisor.