Downsizing is a common trend among homeowners, particularly those approaching retirement or experiencing lifestyle changes. This shift can offer financial benefits and a simpler living arrangement that better suits evolving needs.
As an experienced local agent, I’ve observed that cash transactions often increase during periods when financing becomes more challenging. This trend can benefit those looking to downsize, as they may be able to leverage the equity in their current home to purchase a smaller property outright.
For many approaching retirement, downsizing can be an excellent opportunity to maximize their financial position. It can allow homeowners to sell their current property, pay off any remaining mortgage, purchase a smaller home, and potentially have additional funds for retirement or other pursuits.
If you’re considering downsizing, you’re not alone. Demographic trends show a growing number of people entering or approaching retirement age, many of whom may be evaluating their housing options.
Here are some tips to consider if you’re thinking about downsizing:
New chapter – Downsizing is an opportunity to simplify your life and create a more efficient living environment that aligns with your current lifestyle needs and aspirations.
Your priorities – Evaluate your lifestyle and how it might change as you age. What are the features of a home that are essential for you? Consider factors such as location, proximity to amenities and the number of rooms you really need.
Money question – Downsizing is a huge decision, so talk to your professional financial adviser before making any decisions as well as your tax advisor. By selling your current home, you want to achieve the financial goals you’ve set for retirement.
Best property – Successful downsizing depends so much on choosing the right property. Having a secure home is a great play if you want to travel. Apartments and condos are popular choices for would-be travelers.
Use every inch – Focus on floor plans that use every square foot. Downsizers often find it hard to adjust to smaller living areas, so knowing you’ve bought a place with no “dead-space” can be a comfort.
Possessions purge – You’ll likely have to downsize your possessions and furniture. This can be hard, of course. Offer items to family and friends so you know they’re going to good homes, or donate to a charity.