Downsizing after retirement

As we move into 2022 the annual home assessment came in the mail. In my area, it is impossible for young people to be able to buy a house as property prices rise. I thought prices were holding steady, but I was wrong. My property values increased by three times what I thought they would.

I know that many seniors think about downsizing and my wife, and I have talked about it. However, this may not be the best choice. Timing is very important when it comes to selling your home, and so is assessing the real estate market in your area before deciding. You don’t want to sell your house when the housing market is going down since it could mean losing thousands of dollars you wouldn’t lose if you just waited. If the market is going up then finding another home will be a problem

Additionally, there are other good reasons to wait. A big home can generate plenty of income if you rent it out. You can then use this income to rent a new place in your target retirement community before actually buying. This will allow you to experience what living in the community is like before committing, plus you’ll probably be paying less rent than what you’re earning from your home, so you’ll also end up generating extra income that will beef up your retirement fund if you save it.