Your home has been a pivotal part of your life. You know the benefits of keeping it are few but are there more benefits to downsizing the family home?
Downsizing the family home frees cash by removing higher utility costs and maintenance fees. A smaller home mortgage will cost less than the price received from selling a larger one. This means unleashing a ton of equity that you can use for other things. You can live off of the sale price as a secondary income while spending less to maintain the house.
We’ll show you some great reasons to downsize your family home, plus bonus tips on how to sell to maximize your cash profit.
Reduce Maintenance Burden
Maintaining a large house can be costly. The costs pile up between gardening costs, yard work, replacing filters, and more. You will have less garden space to maintain in a smaller house. If you choose to live in a townhome or apartment, often they have people who do your yard work for you.
One of the biggest benefits of downsizing for seniors is the reduced home maintenance responsibilities. “When you have a big house, and just you or you and your partner live in it, that’s a lot of rooms and space to take care of”, says Seamus Nally, CEO of TurboTenant.
“It’s a lot of cleaning, repairs, landscaping, and other daily/weekly upkeep tasks. Especially for seniors who might be dealing with increasing mobility issues or physical limitations, all of that work can be very hard to accomplish,” he adds. By downsizing, you can move into a home that requires a lot less of you to maintain.
You’ll have fewer windows, doors, and flooring to maintain. Cleaning times will be quicker, and repairs will require fewer materials. Larger homes require bigger AC/heating units, meaning that when they break, the maintenance takes longer and costs more. A smaller space will have a smaller machine that will be easier to maintain.
Free Up Cash To Generate Secondary Income
While most seniors own their homes when they move, some do not. Investment property loans are a great way to bridge that gap to help you sell your home and generate secondary income. Downsizing offers a host of monetary benefits for seniors. You will receive more money from the sale than the cost of your downsized home. You will buy less stuff to fill your space since your space will be smaller. Utility costs will be lower.
Greater Buying Power For Senior Life Insurance
Downsizing homes for seniors helps them have more income available to upgrade life insurance plans. Life insurance for seniors is important to help pay for final expenses after you have passed away. By downsizing and cutting closing costs, you’ll have excess money that you can use to create a difference between the plan’s face value vs. death benefit.
Smaller Homes Help Seniors Age in Place
Downsizing is a choice that can make it much easier for seniors to age in place. “Lower-maintenance homes will be more manageable as people age, and downsizing also means the chance to find a home with the accommodations you need to stay in place for years to come”, says Wynter Johnson, CEO of Caily. He adds that access to community and at-home care, single-story homes for more effortless mobility, and features like handrails are all good reasons to downsize.
Downsizing Frees Time and Money for Retirement
Martin Orefince, CEO of Rent To Own Labs, suggests that downsizing is a great way to maximize your retirement in a few ways. It gives you less house to take care of. You’ll spend less of your limited time and money on cleaning, maintenance, repairs, and yardwork, and more on the things that are really important. He also says, “downsizing also gives you serious money to live on, especially if you can go from a large, suburban family home to something smaller like a condo”.
Smaller Homes Provide Financial Security for Seniors
Our income stability decreases as we age. The reduction of mortgage payments, together with property taxes and utility bills, creates significant financial relief. “Moving to a smaller home after selling a larger one creates additional funds which can be used for retirement expenses or recreational activities, or healthcare emergencies”, says Geremy Yamamoto, Founder of Eazy House Sale. “The approach provides comfort and security while allowing people to live life without financial burdens”, he adds.
Downsizing Can Add 80% of Home Value
Downsizing is a financial win, particularly for older Americans facing retirement after years in large, suburban homes that are conditioned by size alone. These homes have higher maintenance, utility costs, more wasted space, and become less practical with age. By selling a home like that, you can give your retirement account a serious shot in the arm, and deposit up to 80% of its value into that account. Opting for a smaller home, a condo, or an elderly community when you cannot live alone anymore can make your life better and your finances stronger in the long run.
Conclusion
Downsizing the family home is a serious decision but comes with much more financial freedom. By selling your home, you’ll have access to more income and fewer fees, which means you have greater power in choosing your life insurance plans.
The selling process can be daunting, but you can cut fees by selling the house and taking care of maintenance work. Choosing to sell your home for cash will also ensure that the home sells quickly
