The Merits of Downsizing as Retirement Approaches

There comes a time for many homeowners when an expansive property no longer has the appeal it once held.

It's usually a feeling that develops with time. The kids have left home, the mortgage is paid off, or about to be, and retirement is beckoning.

Priorities often change for many people as they approach their golden years.

With the kids gone and more disposable income available, one option is to repurpose newly freed home space into, perhaps, a home cinema or other hobby based facilities that you've always promised yourself. 

For others, the thought of maintaining a large house with extensive grounds is simply too big a price to pay in terms of time and energy required. As they near a period in their lives when taking it easy has more appeal, the thought of downsizing often begins to take hold.

There can be many advantages to downsizing. Selling your home for much more than the amount you'd need to buy a smaller one potentially creates substantial funds that can be invested, used to travel the world and/or, as is quite common these days, buying an RV that enables you to finally get out and explore this great nation of ours. The options are, of course, endless.

If you aren't using all your home's facilities, it is certainly worth weighing up your options and asking if you might be happier and wealthier by settling on something that is a better fit with your actual needs.

The really good news, if you're considering moving to a more modest home, for these sorts of reasons, is that there has rarely, if ever, been a better time to do so.

With mortgage rates still near to historic lows, there is a huge pool of potential buyers looking to move upscale now and lock in a low rate.

Low inventory of available homes, matched to that sort of demand, means that any well maintained upscale home is likely to attract significant interest from qualified buyers. Better still, there's a very good chance of attracting multiple offers above your asking price!

So are there any down sides to downsizing? The answer to that is really dependent on how determined you are to do it.

Having less room often means having to part with some possessions that would otherwise overcrowd your new, smaller residence. Furniture, in particular, may be too big to look right in a more modest setting.

However, if you've thought things through and have a clear plan, downsizing can facilitate a far more enjoyable and financially comfortable retirement lifestyle.

At the Nicoli Group, we specialize in helping buyers and sellers to realize their aspirations at all stages of their lives. Call us today to benefit from our vast experience and thoroughly explore your options.

Dominic Nicoli