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Combine these lower interest rates with buyer incentives and competitive realtor commission fees, and you’ll have plenty of eyes on your property. Clever’s Concierge Team can help you compare local agents and find the best expert for your search. Downsizing your home is not just about moving to a smaller residence. It can be an exciting and adventurous time for many homeowners. Homeownership continues to be a goal for many people, with it being a sign of stability and financial capability. And for young professionals, it’s often considered an important milestone in their journey toward a secure future.
And if you’re nervous about holding costs, here are things you need to know about property taxes. Taking on too much house is one of the easiest ways to set yourself up for disaster. When you overspend on housing, you make it harder on yourself to save money and you give yourself limited wiggle room when unplanned expenses arise.
Signs to Downsize: Tax Advice
My older kids became teenagers and didn’t need much space beyond the phone in front of their face. All in all, I feel many homes from generations past had the right idea. If you are not sure what to do, there is some middle ground to explore. Instead of selling, you could rent your home and move into something smaller, using the rental proceeds and banking the extra money.
Now for a look at the highs and lows of travel hacking, which means maximizing points offered by travel reward credit cards. I agree that she would be so much happier getting rid of so much stuff. It’s paid off and she could pay for a smaller one with no payments. A promotion tool me back to my Midwest roots to live in Chicago where I had no desire to make a daily 2 hour round trip to work, so I settled in the city.
Signs to Downsize: Fears about Aging in Place
The Minimalists—Joshua Fields and Ryan Nicodermus—developed a novel approach to downsizing and called it a packing party. The idea was to pack everything as if to prepare for a move but what Nicodermus was actually doing was pare down his belongings to become a minimalist. He labeled each box and spent the next three weeks unpacking only the items he needed. He noticed 80 percent of his belongings remained in those boxes.
It can also be much harder later in life due to health issues or mobility restrictions. In-home care services are also offered at various levels depending on the situation. In-home caregivers can provide help with day-to-day activities like cooking, grooming, or shopping, while also making sure you’re safe. I moved after a few years to a new development, a 63 story building with indoor pool, gym, community garden, and parking, now having purchased a car, a MINI. My current one bedroom condominium is 1,245 sf/115 sm with in unit laundry, master bath, and powder room.
Your home no longer fits your needs
But if you find that your costs are exceeding the upper end of that range, it may be time to move to a smaller home that's less costly to keep standing. Review your bank and credit card statements for the past two years, see how much your home costs you to maintain and decide if that figure is reasonable. Owning a home has long been the American Dream, but these days, far too many people are pushing themselves too hard to attain it. It's estimated that 39 million Americans can't actually afford their homes, while more than half the population has been forced to make major financial sacrifices to keep up with housing payments. Get free, objective, performance-based recommendations for top real estate agents in your area. If the benefits outweigh the drawbacks and you’re ready to pull the trigger on a move, create a plan that covers all the steps.
The beauty of retirement is that you’re no longer tied to one location and can choose to live wherever your heart desires. This gives you the opportunity to look all across the US housing market for neighborhoods with the lowest property taxes, utilities, sales taxes, and more. So, if you’re wanting to sell your home in Vancouver, BC, and escape to sunny Sacramento, CA, or if you’re looking to be closer to family, the world is now your oyster. For example, by moving into a home that costs $100,000 less than your existing home, you’d earn $3,000 in income from the proceeds and save $3,250 in housing costs annually. In five years, your household will have an additional $31,250, and in 10 years that doubles to $62,500 extra in savings by the time you’re ready to retire.
Step 3: Set a budget
Are you ready to give up having a yard or garden to downsize to a maintenance-free space? Do you need more outdoor space for your children to play or your dog to run around in? The size of the house is one thing, but the property is important also.
Maybe your housing costsdon'texceed 30 percent of your pay, and your maintenance costs are minimal. But be that as it may, if you find that you're not saving money month after month, and housing constitutes your greatest monthly expense , then you may need to work on trimming that figure. If you’ve gained mobility restrictions as you’ve grown older, you probably made home improvements and modifications for safe and comfortable living.
We purchased 26 years ago on a wooded lot by the lake and it’s almost paid off. The commission/ closing costs on this house plus closing costs on another one is a chunk of money to consider. Moving expenses and costs of redecorating another home is also a factor. We instead chose to stay and have updated our HVAC system to the highest SEER rating and our utilities are more than affordable.
But, sometimes a major life change is a sign that it’s time to simplify and downsize. It could be the case that you've just retired and therefore no longer need the home office that came to the rescue when your office building closed during the pandemic. Or your adult children recently moved out, leaving you with extra space you admittedly don't need. If that's the situation, it doesn't make sense to pay for space you're not benefiting from.
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