The Financial Benefits of Downsizing
Empty nesters are finding that downsizing their home has many benefits and can free up time and money for things that have more value as you near or enter retirement. If you find yourself with more space than you need, consider the following benefits of downsizing.
A smaller home cost less to maintain. Reducing the square footage will often lower utility bills because you have less space to heat and cool. If you trade up to a newer home, it will also lower utility bills because newer houses have more cost-effective appliances, better window insulation and are more energy efficient to operate.
A newer home has lower maintenance costs in the beginning. A 30-year-old home has constant maintenance which could include replacing plumbing, electrical wiring, to needing expensive repairs such as a roof or HVAC system.
Less yard work. Downsizing to a condo can eliminate all yard maintenance while moving to a home with a smaller yard can make the work inconsequential.
Change locations. The freedom to choose a home without considering the school system. You might choose to live in a less expensive neighborhood and pay cash for a home. You could move to an urban center and eliminate the need for a second vehicle or to a less expensive city with better weather.
Better amenities. Downsizing into a home with your aging needs in mind allows you to choose a home suited for retirement living. Downstairs bedrooms and large bathrooms are both features hard to find in older homes and popular in newer housing options.
Moving will help you declutter, get rid of items you no longer use and save money in the process. You can also benefit financially by lowering your housing costs to free up more funds for debt reduction or adding to retirement savings.