Pros and Cons of Downsizing Your Home in Retirement

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Pros and Cons of Downsizing Your Home in Retirement

Are you preparing for retirement? Well, then you most likely have a dilemma on your hands. Should you age in place or move to a smaller home or a retirement community? In any case, there are factors you need to consider before deciding on a new home, from what you want out of your retirement to what you can afford. There are a lot of things you should think about carefully before coming to a decision. So, to help you out, we have put together a list of pros and cons of downsizing your home in retirement, and we hope you find it helpful.

Pro – You’ll spend less

When downsizing your home in retirement, the first thing you should think about is finances. And living in a smaller home means paying less for the maintenance and utilities. Smaller mortgage payments and property taxes, insurance, utility costs, and so on all come with a smaller home. Thus, if you are worried about your finances, then downsizing is the right choice for you. In addition, you will also spend less on upkeep, such as snow removal or lawn care. Ultimately, spending less on your home in retirement is usually a good choice since worrying about your finances is the last thing you want to spend your time on in your golden years. However, you should also think about selling your old home and whether you should fix it up or sell it as-is. After all, selling your old house will go a long way towards financing your new home.

The main benefit of downsizing is spending much less money overall on things such as maintenance and upkeep.

A pile of different nominals per dollar.

Pro – You have a chance to declutter

Downsizing is the perfect opportunity to go through all of your belongings and decide what you want to keep or get rid of. When preparing to downsize, take the chance (preferably while packing) to go through everything you own and get rid of everything which takes up too much space or you haven’t used in a long time. Experts from also note that the fewer belongings you have to move, the less you spend on moving costs. Decluttering can be difficult if you have a lot of things with sentimental value, but you will end up more organized than ever because of it. We recommend you apply the 1-year approach: if you haven’t used something in over a year, then it’s time for it to go. You can always hold a yard sale or donate the items you are getting rid of as well.

Pro – You can have better access to amenities

It’s just a fact that homes that are close to a lot of amenities cost more. However, smaller homes close to amenities are still affordable. So, when downsizing your home in retirement, make sure you consider the amenities you want to be close to. Also, most retirement communities offer amenities meant explicitly for seniors. Additionally, rental properties usually offer amenities such as lawn care and snow removal as part of the deal. So, if you decide to rent a home, you won’t have to worry about that at all. However, while considering what you want out of your new home, you should consider searching for homeowners’ insurance as soon as you pick out a house to move into.

A smaller home means you will have much better chances to find one close to the amenities you want.

The exterior of a small home.

Con – Adjusting to a new community can be hard

Moving to a retirement community has a lot of benefits that come with it. However, it also comes with a whole new set of neighbors to meet. And especially if most of your old friends live near your old home, it can be quite a challenge to adjust to a brand-new community. Of course, you can always travel to see your old friends again, but you should do your best to try and meet new people around your new home too. Also, when the time comes actually to move to a new home, seniors should remember to look for help from both movers and their families to help them on moving day. After all, you can always get your kids involved in the process. Even if they’re not available on moving day, they could help out with the packing or simply talk to you to help you emotionally prepare.

Con – Less space

Having less space might not seem that bad at first. However, as soon as you move into your new home, you will notice how different it feels. You will have less space to store all of your belongings, and you might not be able to host your guests comfortably. If you decide to downsize to an apartment instead, you will also have to get used to hearing people both beneath and above you.

With all this in mind, you can see how important staying organized is; you will have to be a lot more careful with your space. Because of this, it is best to consider what you should leave behind when selling your home. Bringing fewer belongings will be an excellent way to make getting used to the smaller space much easier.

The most noticeable drawback of downsizing is the overall lack of space compared to your old home.

An interior of a small room.

Pros and cons of downsizing your home in retirement – wrap up

Downsizing your home in retirement has a lot of benefits. You’ll spend much less on your home overall, and you won’t have to worry about maintenance and cleaning as much. However, downsizing also has drawbacks. For instance, having noticeably less space could easily change many people’s minds about downsizing. However, at the end of the day, only you can decide what the right choice is for you. Whether you want to downsize to a home or apartment or if you’re going to downsize at all.

KW: downsizing your home in retirement

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