Becoming Older and Downsizing your Next Home – Consult with Bruce Coleman, Vancouver Mortgage Broker
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Becoming Older and Downsizing your Next Home
The kids have moved out and you’re closing in on your retirement. You find yourself rattling around in a large home and might be asking yourself if you still need such a large home anymore.
Well, maybe you don’t so perhaps you should be thinking of selling the old homestead and getting yourself something smaller.
It’s difficult because you’ve put a lot of effort in maintaining your home and you’ve got a lot of memories built around the family home. So why should you think about moving and getting something smaller?
Reasons Older People Can Consider for Downsizing
There are several good reasons why it might not be practical to consider a smaller living space but there might be some good financial reasons to consider as well.
1. Don’t need the space anymore
If you raised 2 or 3 children and they’ve now gone off and started their own lives, then you simply don’t need all the empty available space anymore. If you have a four plus bedroom home then it’s just extra areas of the home that need cleaning and expensive heating costs.
If you look around then maybe you can find a smaller home or condo that is more suitable to your current needs.
2. Less Maintenance
Let’s face it – any home needs regular maintenance. The gutters need to be cleaned, and there’s the lawn work, the deck, windows etc. that all have to be looked after. If you’re not getting younger or your health has started to decline then you’re going to have to hire someone to continue to do this maintenance. Do you really need the extra expense?
Maybe, it’s time to use the appreciation and equity you’ve built up in your current home and find yourself a nice roomy condominium that doesn’t require all this detailed maintenance anymore.
3. Save Money
If you move to a smaller abode such as either a smaller home or condo you will very likely save some money in a variety of ways. First, a larger home is more expensive to heat in winter and cool in summer. A smaller home or condo can save you a lot of money if you have a bunch of empty space that needs utilities.
Then, there are also the property taxes to consider. You might find a new locale where the property taxes are a lot lower for a smaller sized property and that can also save you money.
4. Downsizing might be a good investment
If you have already paid off your mortgage, and considering the retail value of your home, you might be able to buy a smaller property and still have plenty to spare for other investments which you can use for your retirement.
This could be especially advantageous if you are able to buy your property outright without having to get another mortgage. You will still have 100% equity in your property and can always access a “Reverse Mortgage” if you get into a minor cash bind.
Surprisingly, almost over 40% of the ageing baby boomers indicate they will be looking for a new home that is as big as or even larger than their current home. This trend certainly doesn’t apply to everyone’s situation, so you might want to sit down and seriously consider whether it’s worth your while to stay in your current home or consider downsizing to a smaller abode.
