As retirees are living longer and staying active later in life, more people are redefining their retirement lifestyle. Within this trend, some seniors are finding that downsizing to a smaller home is not only safer, but it is also a smart way to make their income stretch further (and fund a more active lifestyle). Of course, downsizing in the era of COVID-19 has become tougher. But if this sounds like something you’re ready to explore, we advise asking yourself these questions so you can be confident in making the best downsizing move for you.
When Is the Best Time to Downsize?
Some seniors who wait until they need to make a change end up feeling rushed into the decision. This is why we recommend making a move sooner rather than later. When you do this, downsizing can be a vehicle for reshaping your life in retirement — a new life with less stress, more money, and more time to enjoy hobbies and find happiness.
Should You Consider Assisted Living?
Even though downsizing early gives you more options, there are plenty of reasons why some people choose to wait. Waiting isn’t a mistake, but it may impact what you decide to do. One thing to ask yourself is whether you (or a senior loved one who is looking to downsize) should consider assisted living. Moving to assisted living is an option for downsizing that’s best for someone who needs more than just the ease of a smaller space. If you need help with everyday activities but still want to live independently, assisted living can give you that perfect balance.
It’s smart to explore this option before going through the whole process of searching for a house so you don’t waste time and money on the wrong decision. If you decide this is the best choice, you can shift your focus to touring assisted living centers to find the one that’s right for you. Make a list of the amenities, living arrangements, and other features you want, and of course, consider cost throughout your search. Keep in mind that many facilities may not be accepting new residents and that tours may be limited as we ride out the last phase of COVID-19.
What Kind of Home and Location Do You Want?
To achieve your dream retirement lifestyle, a few key factors to consider are location, the type of home you want, and the type of community you want. For example, some retirees seize this opportunity to move somewhere they’ve always dreamed of. If this is your plan, be sure to think through all the pros and cons of relocating. Before committing to a move, you can rent a home in the new city first to make sure it’s everything you expected. The other big decision is whether you want a smaller single-family home or something lower maintenance like a condo or townhouse.
House hunting has been especially difficult during COVID-19 since you likely won’t be able to visit a home you’re interested in purchasing. Ask your real estate agent if it’s possible to take a virtual tour of the home. Some virtual home tours offer high-resolution walkthroughs for 3D viewings.
Should I Hire Professional Movers?
Unless you have a team of able-bodied family and friends who are ready and willing to take up the charge, you should definitely consider hiring a moving company to assist you with your transition. This is especially true if you have lots of furniture and possessions; though you’ll downsize many of these items, chances are you’ll still have bulky items that need moving.
Before you decide on a company, take a peek at websites like Angi.com to look up movers and read any reviews their previous customers have posted. Between the reviews and the ratings, you should have a pretty good idea if the company you have your eye on is worth the money.
How Does This Decision Impact Your Budget?
Cost isn’t everything, but it does play a major role in this decision. Some people assume that a smaller home will automatically be cheaper than their old home, but this isn’t always the case, so make sure your new home is one you can afford. To truly downsize your budget, CNBC recommends moving to a home that is not only smaller but also less expensive. Besides the price of the home itself, some seniors make the mistake of overlooking hidden costs like condo fees and tax implications. To make sure you understand the tax implications, find out what income and property taxes are where you plan to move and compare them with where you currently live.
It’s also important to look into your loan options. Fortunately, there are many loan types and programs that can help you get a mortgage for a new house. For instance, if you’re a veteran, you can look into getting a loan via the VA loans program. VA loans can help veterans secure a mortgage, and you may not have to make a down payment. They also require less stringent income documentation.
You’ll also need to think about any improvements you want to make to your new home. Kitchen remodeling and bathroom remodeling are two projects you should consider if your new abode’s spaces leave much to be desired. While kitchen and bathroom remodeling obviously come with a cost, you can negotiate a lower price for a home to make room in your budget for this expense. Plus, if you work with Sterling Works, you know you’ll not only get quality work done, you’ll get a fair price, so contact us today to start your project!
Finally, another common mistake some seniors make is selling their home for too little. This is another reason why it’s best to downsize when you aren’t under pressure. An experienced real estate agent can also help you price your home right to ensure you’re getting its full value.
These details may seem minor, but every decision can help you avoid mistakes. Downsizing in retirement is the perfect solution for many seniors, but it will be made more complicated during coronavirus. How you go about this process, though, is key to making the move that’s right for you.
Leave a Reply