Thinking of Downsizing for Retirement?
July 20th, 2022
Are you preparing to retire? There are a number of things to think about before deciding whether or not to move into a retirement community or downsize your home. Consider what you can afford, assess your retirement objectives, and consider the role that housing will play in your transition to retirement. Check out our article below to see if downsizing for retirement is the right option for you!
There are several advantages to moving into a smaller house like lower bills, less hassle, and more available features. We’ve put together a list of why relocating to a smaller home in retirement may be the best move for you!
There are many perks to downsizing your home as you approach retirement, including lower mortgage payments, utility costs, and maintenance fees.
You can go through your house and get rid of things that are taking up too much room or aren't being utilized anymore while downsizing. Decluttering may be a tough job, but it will ultimately result in more organization and space for the items that truly matter.
It's no secret that reducing your living space makes you feel less stressed and responsible. You won't have to worry about maintaining your property, dealing with stress, or unexpected repair expenditures if you pick the right retirement living alternative.
Because you'll be spending less time and money maintaining your home, you'll have more energy to pursue your retirement passions and interests! Both social activities in retirement communities and learning new talents are ways to keep occupied in your golden years.
Moving to a smaller home doesn't mean your sense of adventure has to stay put. In fact, many retirees find that relocating is an excellent way to explore new things and meet new people. If you're considering a move, look for areas with good healthcare, low costs of living, tax benefits, and great amenities.
Moving could allow you to be closer to family members such as your parents or siblings. In fact, many retired people all over the world relocate by moving in with their children once they retire. Not only does this help you save money, but it also allows you to spend more time with family and receive care from someone who is comfortable with aging.
A condominium or townhouse may allow you access to certain facilities, such as lawn care and snow removal. Most rental houses give the support you need if you need help with house upkeep. There are also great features like gyms and swimming pools to utilize, and many 55+ communities have social gatherings like trivia nights, singles' nights, and book clubs on offer.
Downsizing your property may help you enjoy better accessibility, such as having fewer or no steps. If you want to stay on one level and have no steps, ranch-style homes are a fantastic choice. You could also consider houses with sitting showers and wider doorways for handicapped access if you're searching for a home built without steps.
Disadvantages of Downsizing
If there are pros to downsizing of course there are cons. From your current home filled with memories to your new space offering less room you will want to take note of how difficult this process can be.
Because of the memories and sentimental value, selling and moving out of your family house may be emotionally distressing. It's the location where you raised a family, spent time and money renovating your house to your liking, and hosted parties. It may be difficult to say goodbye to the home and all of the experiences that were created there.
When you're downsizing, buying and selling real estate is a costly endeavor. When you leave your house, home repairs, inspections, real estate fees, closing expenses, new furnishings, and moving costs can quickly add up.
Many times, people believe that downsizing will save them money in the long run. However, what they don't realize are the added fees associated with renting smaller units. These expenses can include apartment fees and condo fees for items such as trash management, security, interior/exterior maintenance and utilities. Most homeowner's associations in retirement communities and neighborhoods charge quarterly or monthly fees for amenities and to help maintain the property values of houses in the area. According to a study by Realtor.com, the average HOA fee for a single-family home in America is around $250, though this number can rise or fall depending on variables such as square footage and location.
Before you finalize your new home, consider whether it's a good fit for your pets. If there's no backyard for Dogs to run or space for cats to explore, you might need to look elsewhere. If you're looking at apartments, pay attention to specific pet rules like breed and size limits.
For retirees, moving to a new neighborhood or retirement community might be difficult. If most of your pals are nearby, going out to meet new folks may be tough. Although you can go to see your friends, it's essential to get involved in local clubs and events as well as make connections with new neighbors.
Some people might feel crowded after downsizing to a smaller home. They may not have enough space to accommodate out-of-town guests or make everyone comfortable during big holiday dinners. And if you live in a duplex or apartment, you may need to get used to hearing noise from the people above and below you.
Your Downsizing Options
Regardless of where you want to retire, these three factors - your current savings, retirement goals, and health needs - should be taken into account before making the final decision. Use this checklist as a guide to help find the perfect living situation for your retirement!
A popular practice to downsize is to purchase a smaller home. Fewer rooms to heat and cool, lower utility expenses, less house upkeep, and lower property taxes are just a few of the advantages of having fewer square feet. Look for a ranch or a tiny house if you want easy access in retirement.
A retirement townhome or condo is a great downsizing option with several perks. These include less maintenance, often being in a convenient location, as well as fostering a sense of community while also enjoying plenty of amenities. That said, there may be less privacy from your neighbors depending on how the walls are situated in your particular unit.
It's wonderful to retire in an apartment! Renting is frequently less expensive than buying, and there's less upkeep. Apartments also come with a variety of features, including clubhouses, pools, gyms, laundry rooms, and more.
Assisted living may be a good fit for you if you're downsizing! This choice is extremely adaptable, with choices ranging from independent living in an apartment to more assistance if your health deteriorates. When it comes to planning ahead for your golden years, this is also a wonderful alternative.
Take advantage of living in a 55+ retirement community after you've retired! You'll get a feeling of belonging with your neighbors, and there are amenities such as swimming pools, gyms, and golf courses for you to enjoy. Taxes in the region are frequently low since there are no schools nearby. Some 55+ communities may charge HOA fees, however.
Are you seeking a means to stay close to your relatives? If their living situation permits, move in with an adult child! This is a handy choice for retirement housing since you may get health services from them, as well as strengthen your relationship with your family. You could also look into adding an in-law apartment to the property, which is a separate private living area that offers a senior resident their own bedroom, bathroom, and kitchen.
Home is where you park it! If the idea of living on the road intrigues you, look into purchasing an RV. With so many different types - motorhomes, travel trailers, and campers - to choose from, there's definitely one that will fit your needs. Road tripping becomes much more convenient when your home is with you, plus there are added bonuses like no mortgage or utility bills to worry about.
Do you want to retire near the water? Consider living on a boat if that is the case. You'd pay for mooring or docking at a marina rather than a mortgage or rent on a house or condo. You may enjoy the company of others, ease of movement, and low-key boating lifestyle. In addition, because it diminishes energy use in comparison with living in a traditional home, boat life is more environmentally friendly.
Horizon Mini Storage knows that downsizing for your retirement plans can be difficult and we are here to assist you with any storage needs. When you are considering downsizing it is a great idea to rent a self storage unit from a local facility to make going through your belongings a bit easier. Give our expert management team a call today or rent your unit online today!