For people reaching retirement, it’s time for an exciting new chapter in life, and for many, this means reconsidering what they need from their home. Many people downsize for retirement, often to benefit from the equity stored in the family home.
There are plenty of other reasons for retirement downsizing your home, though. Now that you’re not working, you may want to live somewhere further from the hustle and bustle, without the need to commute. You might want to live somewhere closer to friends, family or grandchildren, or somewhere that’s closer to the amenities that you’ll use more in retirement. Here, we dig into some of the pros and cons of downsizing for retirement:
Questions to ask before selling your home
- Will selling mean I can release equity to live comfortably in retirement?
- Am I emotionally ready to part with the family home?
- What area would I like to live in during retirement?
- Am I prepared to downsize my furniture and other personal items?
- Will a smaller home suit my lifestyle?
- Am I sure that this is what I want?
There are many factors to consider: financial, practical and emotional. You need to be able to ensure that downsizing will meet your financial needs and that you make enough money from the sale of your home to pay off your mortgage if required and move to a smaller house, mortgage-free – preferably also banking the difference to help out with retirement.
On a practical level, you also need to consider the costs and benefits of reducing the number of possessions you have in order to fit into a new place comfortably. Plus, if you’re moving to a new area, you also need to consider proximity to family and friends as well as health and medical facilities, leisure amenities, public transport, and everything else that will help you enjoy retirement. Downsizing for retirement can be surprisingly emotional, so make sure you’re prepared to farewell the family home or area.
The benefits can be huge, though – particularly if you make the most of the sale of your home by avoiding high real estate agent commissions.
If you’re ready to start a new chapter in your life and sell your current home, you can start by getting an instant property estimate to find out what your home might be worth.