Should you really downsize? It was not so long ago that empty nesters and retirees were sensibly deciding that just two people in a 2,500 plus square foot house, just did not make sense. The house was put on the market, extra furnishings and other items were sold and the couple moved into a condo. No lawn to mow, no snow to shovel and a carefree lifestyle. There are certainly valid reasons for downsizing but there are things to think about before making this decision. What should you consider?
Financial sense?
Does it make financial sense to downsize? Mortgage rates are hovering around 7% for a 30 year fixed rate mortgage. If you have a lower rate on your current home, you may want to stay put. Buying a smaller home at a higher interest rate may mean your payment is about the same for less home. If you are moving into a condo don’t forget the condo fees that will more than likely go up every year.
Smaller space
Are you really going to be comfortable in a smaller space? Going smaller more than likely means fewer bedrooms, giving up an office or a bathroom. If also more than likely means giving up storage. What about the holidays when the family comes to visit. Giving up that space may mean giving up rooms that you have come to love. This may mean you feel less fulfilled, less comfortable. Downsizing may mean you are not content.
Age in place
Do you prefer to age in place? If you own a home that could be modified to help you age in place, then downsizing may not be the right choice for you. Instead of downsizing, plan to take on projects at your current home that will make it better accessible as you age. Add the hard surface flooring, the accessible bath and shower that you will need. Also add grab bars and ramps. A larger home allows you to choose where you will spend most of your time in the house and prepare the space for aging.
All my stuff
What will I do with all of my stuff? Your current home may have a den, the office, the home gym and the guest room for visitors. Are you ready to give all of that up? Look at how small your next home truly could be to allow the lifestyle that you like. It my be best to just keep the house that you love, where all of the memories were made. Emotional attachment is a legitimate reason to skip downsizing.
Downsizing is not right for everyone. Retiring can be an emotionally challenging time already, adding a move to that can make it even more stressful. Be honest with yourself and assess all of the factors that will affect your life. Make sure you will benefit from downsizing.