Many of my senior clients are looking to downsize the family home. Either they want to sell it or they are looking to rent it. Either the home has become to large to take care of, or other medical issues are now making the home a challenge to live in. Since quality of life is important, downsizing the family home may be a rightsize idea. Here are 3 main reasons why many of my senior citizen clients downsize the family home.
1. Less home = less stuff = more money in your pocket. Think about this, if you have less room you need less stuff. You can make money selling all the extra furniture and electronics. More so, one TV – not three- means a cheaper cable bill and less electricity to use. It all adds up!
2. Downsizing saves money. If you sell the family home and invest in a condo, your mortgage may be $500 less each month. That’s a savings of $6,000 a year that you can put in the bank or invest somewhere else. Downsizing the family home 10 years before you thought you’d move out of it , given a $500 less mortgagor payment on a new home, is an added $60,000 cash in your pocket. Timing and your savings is everything when looking to move out early and save some cash.
3. You don’t need all that space. In 1950, the average home size was less than 1,000 square feet—and families were bigger back then. With seniors no longer living with their adult children (for the most part), why are oversized homes that require a lot of money (yard supplies, repairs, etc.) so popular? Less space and less financial responsibility are way more in-fashion than over sized homes.