Downsizing Your Home

Perhaps you simply want a change, or your neighborhood has changed in such a way that it no longer meets your retirement needs. You find climbing stairs and lifting or moving objects too demanding on you. These are all practical and valid reasons for downsizing a home.

Financial Reasons

As mentioned before, your home can be an important income source, especially in retirement. You can downsize to a less expensive home and create home equity for your retirement income. Moving into a smaller home can provide a strong capital base from which to draw funds if necessary. This is especially convenient if early retirement was not planned and you find your retirement income is not enough to sustain your lifestyle. However, ensure that the extra capital you receive will cover your expenses. If not, your efforts to downsize would be for naught.

A smaller home represents less maintenance and repairs, which equates to lower costs of upkeep and property taxes. Your food costs may also be eliminated if you move into a retirement community where your meals are prepared for you.

Housing Options

The place you retire to should be one that accommodates your needs and lifestyle. It is important to downsize to a suitable home. You do not want to endure another move should you find your new residence is not satisfactory. You save yourself much time and money.

Use the following checklist to help you decide where and how you want to retire:

• Do you want to stay in the same neighborhood?
• Is familiarity with the people and services within your current neighborhood important?
• If you want a change of scenery, which community would you like to live in?
• Do you prefer a change in climate?
• What type of home do you prefer?

There are numerous housing options available. Condominiums are becoming increasingly attractive residences because maintenance is minimal, but you enjoy the benefits of many amenities. They are available in a variety of price ranges and situated in many different neighborhoods. You can take advantage of recreational facilities such as tennis courts, swimming pools and golf courses. However, there is one drawback: condominiums are governed by rules and regulations set out by the condo association. For some people, they may feel restricted, especially if they are used to more personal freedom.

Single, detached homes are another appealing alternative when downsizing. You can continue to own property and have a garden or yard, but there is less maintenance involved.

Retirement communities often exhibit the same amenities enjoyed by condominium or single family home owners, but there is one added benefit: You have the opportunity to spend your time with other retirees. A viable concept since the 1970s, retirement communities have grown and branched into many neighborhoods. A retirement community can be home to as many as 1,000 families. A clubhouse offers resort-like amenities, providing a pleasant change from pre-retirement living.

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