Tips for Downsizing in Retirement
If you’re about to retire and you’re living in a spacious home, you might think about downsizing. Downsizing can be a smart way to reduce your expenses, thereby providing you with more financial stability as well as flexibility over the course of your retirement. The following are a few tips for downsizing that you should keep in mind:
- Consider the local real estate market – Just because you are downsizing from a three-bedroom house to a two-bedroom house does not mean that you will automatically save money. It costs more to live in some neighborhoods than it does to live in others, so consider the local market when looking at houses to figure out if you’ll actually save money by downsizing.
- Consider the cost of living – You may find a less expensive house to move into, but if the area has a higher cost of living it will be a drain on your finances over time.
- Consider the costs of selling and buying – Selling a home costs money. You’ll want to pay for repairs, hire a real estate agent and invest in marketing your home. Then when you buy a new house, you’ll be responsible for closing costs as well as moving costs. These costs add up and could negate the amount of money that you would save by downsizing, so be sure to do the math.
- Consider buying a townhouse or condo – Not only are townhouses and condos typically more affordable than single-family houses, but they require a lot less upkeep, which can help save you a significant amount on maintenance costs.
- Consider your unique needs and lifestyle. If you’re not happy in your new home, it’s not a successful investment. Make sure you have access to health care, food, recreation and entertainment. The last thing you want is to feel like you have to pick up and move again.
Whether you have decided to downsize, move closer to family, settle down in a more age-friendly community, or live the dream in an RV, Dircks Moving & Logistics makes getting there easier. We offer packing, moving and storage services so you can focus on planning the next stage of your life.
