Over the next 18 years, 8,000 baby boomers will turn 65 each day; in other words, they will have reached retirement age. Many homeowners see reaching retirement age to be the start of a whole new chapter in their lives, as their children have grown up and moved out and on with their lives and the burden of work begins to dwindle. It may be prudent to consider downsizing at this point in your life, and here are some of the advantages of making this lifestyle change.
Less House = Less Mortgage
Generally speaking, if you have less home to pay for your monthly mortgage payment will decrease. If you have lived in a large family home for a number of years that you used a mortgage to purchase, chances are you’ve built up sizable equity in it by the time you are ready to retire. If you cash out and use the proceeds to purchase a smaller home, you may be able to eliminate the need to take out a mortgage altogether.
Downsizing your home usually means downsizing your monthly living expenses as well. You will require less energy to heat it, cool it and light it, meaning lower monthly utility bills. You may also shrink your tax and insurance obligations, and with less area requiring upkeep and maintenance, you should decrease costs related to doing so as well.
Lighten Your Load for Upkeep
Retiring for many means the opportunity to relocate since you won’t have to worry commuting to a job anymore. For many, this means finally leaving the brutal winters of the Northeast and Midwest, being freed from the responsibility to shovel, and worry about such things as ice storms causing your roof to collapse or having to refill the oil in your heater halfway through the winter. This can significantly lighten the burden of upkeep in your home, as well as the costs. Moving into a townhome or gated community can also mean never having to worry about mowing your own lawn again.
Upgrade Your Lifestyle
When your kids finally moved out, you probably enjoyed having more free time than you ever had before, and once you retire, you get to decide how you spend every minute of your day. By downsizing or even profiting from the sale of your family home, you are able to afford a neighborhood with added amenities, like access to a country club. Since you require less space, you can also consider moving into an upscale condo, where you can enjoy access to 24/7 valet, concierge and chauffer services.