These seven signs can give you an idea of whether it’s time to downsize your home.
I’m going to be an empty-nester in a few months, which got me thinking about whether I’ll need all this space anymore. If you’re in a similar position and have found that you no longer need such a large home, here are seven signs that it may be time to downsize:
1. Your monthly housing expenses have risen above 30%: You may be retired and no longer have the income needed to pay for and maintain a large property.
2. Your monthly budget leaves little leftover for savings or fun: All your finances shouldn’t go toward living expenses.
3. You’re falling behind on home maintenance: You may be physically unable to get everything done, or you might not have the funds to take care of it. Delaying maintenance can be costly in the long run, forcing you to take out equity to prepare your home for the market or sell below market price.
4. Your home has features that no longer fit your lifestyle: Maybe you originally bought the house because it had a huge backyard, but now that you have kids, it’s a total hassle to maintain.
5. You’re the oldest resident in your neighborhood: The neighbors you had for decades may have moved to different areas, and new families have moved in. It can be isolating, but many older adults who move find themselves feeling happier and healthier when they’re among peers.
6. You’re looking to convert equity into income: It’s a good idea to pull equity out of your home and put it into a format that will help fund your retirement. Your house is typically your largest asset, and you can free up some of that money by downsizing.
7. Your career no longer ties you to your location: You can move to a new area, climate, or neighborhood with lower taxes. It’s a perfect time to look at all of your options.
If you’d like to discuss whether now is a good time for you to downsize or move, feel free to reach out to me. I look forward to hearing from you soon.