Weather in your area is also a consideration as shoveling snow or mowing the lawn become more difficult with each passing year. A survey conducted by Demand Institute found that aging-friendly accessibility was a key factor among baby boomers looking to move, with single-story, low maintenance and disability accessibility topping the list of most desired features. Because there is a shortage of accessible housing. As of , only 3. If you were starting or raising a family when you first purchased your current home, you probably moved into a family-friendly neighborhood.
That area was ideal when you had kids, but now you no longer seem to fit in. A community starts to feel lonely once your original neighbors have moved on or passed away—especially if you lose your own spouse, too. Downsizing to a smaller home in a retirement community means living among your peers—if it has a healthy, active homeowners association HOA.
That can end up saving you money in the long run. Association-provided activities are less expensive than finding similar entertainment on your own dime. Plus, the socializing they provide may also reduce medical expenses by preventing depression-related health problems and improving quality of life. So how can you afford it? Perhaps by turning the excess proceeds from the sale of your more expensive home into income. Unfortunately, that asset is expensive to maintain. This investment strategy only works if downsizing saves you money in the long run.
You need to work with a top agent who has experience helping retirees downsize. Real Estate Investing. Home Ownership. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.
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I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Personal Finance Retirement Planning. Key Takeaways Downsizing to a smaller home after retirement can have its advantages, such as addressing mobility issues—where smaller and fewer steps are better—and allowing you to travel.
Major things to consider before selling include the cost of moving and the potential loss of friend and family relationships. Alternatives to selling your home include renting it out or renting out a portion of it. Article Sources.
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Mortgage Getting a Mortgage in Your 50s. Partner Links. Related Terms Retirement Planning Retirement planning helps determine retirement income goals, risk tolerance, and the actions and decisions necessary to achieve those goals. Budget A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis.
The calculations are explained in detail on Gov. Read our guide for more detailed information on the rules for Inheritance tax on property.
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Limited on behalf of Which? Pension tax relief calculator Pension lump sum withdrawal tax calculator Pension drawdown calculator State pension eligibility calculator Pension calculator - how much will I have? All 5 calculators. In this article. What is downsizing? The pros of downsizing Cons of downsizing Common reasons to consider downsizing.
Downsizing checklist Consider all the options Downsizing and inheritance tax. Plan your finances. Use our pension calculators to build a financial picture for your retirement.
Pension tax relief calculator Pension tax calculator Income drawdown calculator. Continue reading. The pros and cons of retirement villages.
All 2 articles in guide. Pension age loophole closed to combat scammers. Autumn Budget state pension to rise by 3. Related guides in Which? In Tax. Income tax on your pension. Tax on pensions Married couple's allowance Age-related tax allowance.
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