When you think about how you want to spend the second half of your life, where does your home fit in? It’s a difficult question, right?
Most of us, I would imagine, have bought into the idea of the American dream. You know, the idea that owning a home is one of our life goals. The idea that being a homeowner means we have succeeded in our career and are on the right path.
Many people still consider their home their greatest asset. However, after the financial downturn in 2008, this idea is being questioned by some.
Whatever your perspective may be, have you given any thought to the advantages or the downsides of downsizing your home as a way of preparing for the second half of life?
What are the pros and cons for you?
Here are some key points to consider.
If you’re looking to improve your financial position and you have too much house, downsizing is a great option, Sass said. This could apply to people who started their family at a young age and the kids are no longer living at home. Or it could even apply to people with children still at home who stretched the limits of their budget to buy a large home with a mortgage that’s unmanageable or expenses — such as utilities and maintenance — that are more than anticipated.
If you have little to no savings and know retirement will be a stretch, downsizing might be essential, Arzaga said.
It also can be a good option for people who are willing to sacrifice some space for a smaller home or rental unit closer to recreational activities they enjoy or their workplace, Sass said. You just want to make sure you move into a house that will suit your needs as you age, such as one that’s a single floor or has a master bedroom on the first floor. Because Sass said moving gets harder physically and emotionally as you age, downsizing in your 40s can make the transition a little easier by taking advantage of your younger age to make a move that you know you’ll eventually need to make. Continue reading