Since many homeowners are “empty nesters” by the time they reach their retirement years, they often consider downsizing for financial reasons. Too much empty space and a mortgage still on the house may not bode well in the retirement years. Homeinc can help homeowners understand how to fund their retirement by selling their home and benefit in several ways such as:
- allocating cash towards their savings
- diversifying investments into other areas of their financial portfolio
- paying off any remaining debt
- purchasing a newer, smaller property in full
- using some additional cash as spending money
Furthermore, there are several other financial benefits to consider when it comes to selling your home for cash and downsizing for your retirement years including:
- Enjoy a Debt-Free Retirement – by selling your current home and downsizing into a smaller property, you may be able to purchase your new home without a mortgage. Or you may have find a property with a lower mortgage payment. On a similar note, if your current home is owned free and clear but credit card, student loan, or other debt, selling for the purpose of downsizing will provide you with the opportunity needed to pay off those debts.
- Increase Your Retirement Spending Budget – the general rule of thumb when it comes to your retirement spending budget is to withdraw no more than 4% annually from your account. Selling your home enables you to allocate part of the proceeds into a smaller, less expensive home and shift the balance of your retirement savings.
- Leave Your Survivors With an Asset – planning for retirement also involves planning for your passing and the impact it will have on your family. Downsizing into a smaller home for your retirement years will enable you to leave your surviving family members with an asset instead of a mortgage.
- Downsize to Boost Your Lifestyle – selling your home and downsizing for retirement enables you to transition to an accessible lifestyle that allows you to age comfortably. Your “must-haves” during retirement will be considerably different from your current living situation such as being closer to family and friends as well as medical and healthcare facilities.
- Lower Your Property Expenses – you can also add to your retirement budget by lowering your property expenses when selling your current home and downsizing. This may help lower your monthly utility bills as well.
If you are approaching retirement and are considering downsizing into a smaller home and benefiting financially, Homeinc can help by purchasing your home and working on a timeline that works for you. Call or text our real estate advisors today (888) 850-2636.