The kids are grown and out of the house; you look around and suddenly your home seems so large. A few rooms aren’t even used anymore and you begin to add up the cost of the square footage, property taxes, heating costs and general upkeep. Cleaning all those rooms is no picnic either. If you downsized your home, you’d have more money for retirement. Maybe you’d have a little extra to take a few nice vacations. You could buy two smaller homes; one for your primary residence and the other as a vacation home.
Consider the following when downsizing your residence:
1) Townhomes or condos. Maybe people choose to downsize to a townhome or condo for the convenience of paying someone else to mow the lawn or remove the snow. The drawback is that association fees can be expensive, and for large repairs shared by all occupants of the building, you will have no say-so in which contractor performs the work or when it is done.
2) Retirement communities. In warm weather states especially, many communities are age-restricted. These planned communities offer restaurants, movie theaters, fitness facilities, pools and activities geared toward those approximately 57 and over.
3) A smaller home near family. If you wish to live independently as long as possible, but would like a family member close by to check on you once in a while, you may want to look for a smaller home closer to a close friend or relative.
4) Independent Living Facility. Many long-term care facilities also offer a tiered-living arrangement. You move into their independent living apartments and later when the medical need arises, you can move into their assisted living or long-term care facility.
Whichever option you choose, downsizing your home to a smaller and better-suited living space may save you thousands of dollars in the long-run, and this money can be used to better enjoy your retirement or as part of your estate that you pass on to your heirs.