As Baby Boomers retire, many decide to downsize their houses or move into smaller homes. Estate planning is an important part of getting a secure, comfortable retirement. Here are 10 things to consider when downsizing and moving houses.
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Assess Your Current Housing Needs
The first step is taking inventory of your housing situation. Take into account how big your home is, how much work you need to do, the distance from family and doctors, & what kind of lifestyle you want. Knowing what features you need in a new home can help determine your downsizing goals.
Evaluate the Financial Benefits of Downsizing
Comparing the cost of downsizing is important. Getting rid of a larger home and moving into a smaller, cheaper home can help free up equity, lower your monthly bills, and cut your property taxes. Estimate the amount you can save and how it could contribute to your retirement.
Understand the Real Estate Market
You need to know about the housing market to be in a position to make wise choices. Find out about the state of the market — home prices, market conditions, and the right time to sell, etc. A good real estate agent can guide you through the process.
Consider the Emotional Aspects of Downsizing
Consider the emotional side of downsizing. It can be emotionally harrowing to move out of a family home that has been there for you for so long. Plan the move ahead of time, involve family members, & think positive about the move.
Explore Different Housing Options
Learning about alternative housing options can give you flexibility. So consider different housing options including smaller apartment units, condos, townhomes, and retirement communities. Each has its pros and cons. Choose what is appropriate for your situation and likes and dislikes.
Plan for Future Accessibility
It is important to plan for future access for the ageing in place. If you’re buying a new home, consider accommodations for mobility, like living on one floor, wide doors and grab bars. Accessibility planning can offer long-term convenience and safety.
Budget for Moving Costs
Planning for the moving expenses is an important part of the process. Moving is not cheap so factor in costs for moving services, packing materials and possibly home repairs or renovations. Keeping these expenses in your budget can save you from nasty surprises.
Declutter Before the Move
Getting things organized before you move can make everything easier. Clean out your home and figure out what to keep, donate or sell. The less you have to transport, the quicker and cheaper it will be and the better your new home will look.
Consider the Tax Implications
Think about the taxes associated with selling your home. Capital gains taxes might apply if your house increased in value. Seek tax advice to determine how the tax works and how to get the maximum out of it.
Consult a Financial Advisor
Last but not least, a financial advisor can offer you some strategic planning for your downsizing and home sale. A financial advisor can help you calculate the expense, determine how much you’ll need to rent in the future, and make sure your choices support your overall retirement plan.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.