When your kids are living with you, a large house may be a necessity. If your children have moved out, or will soon, downsizing may be a smart decision. Our team here at Corken + Company would love to help you make the best decisions for your family.
How You Could Save Money Each Month by Downsizing:
A large house usually comes with large mortgage payments. Even if you’ve paid off your home loan, you still have to pay for things like property taxes, and maintenance. Moving to a smaller home would most likely lower all those bills. Depending on the type of home you chose and its location, you could save a good amount. If you have built up a substantial amount of equity in your current house, you could make a large down payment on a new home. You could even possibly pay cash and have no mortgage payment.
What You Could Do With All That Extra Money:
Reducing your living expenses would allow you to focus on other priorities. If you have credit cards, auto loans or other liabilities, you can pay them off faster. You could also retire without being weighed down by debt.
Having an emergency fund is important, but many people struggle to save enough. Downsizing would free up monthly income and help you increase your emergency savings account.
If you’re approaching retirement age and haven’t saved as much as you would like, downsizing could help you reach your goals. The money you have saved by reducing your living costs can be funneled into your retirement accounts.
Where Would You Live?
Buying a condo is a popular option among empty nesters. Many enjoy not having to deal with home maintenance and lawn care after years of handling it themselves. Condo associations often charge hundreds of dollars per month in maintenance fees, but your overall monthly costs might still be lower than they are now.
Downsizing could allow you to have the lifestyle that you may have always wanted but might have been unable to afford or considered impractical when you were raising a family. If you have always wanted to live in a rural area or on the beach, downsizing after your kids have moved out could make it possible to finally pursue those dreams.
Consider the Benefits of Downsizing:
You may be emotionally attached to the home where you raised your family, but once your kids have moved out, look at your financial situation and think practically. Downsizing and reducing your monthly living expenses could help you eliminate debt, prepare for retirement and make it easier to relax and enjoy your golden years.
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