As you move into your retirement, the idea of taking care of a large family home can become unattractive. You want to spend your hard-earned savings and new-found freedom relaxing, spending time with family and doing the things you love.
The thought of downsizing, however, can be an equally daunting and emotional consideration. While downsizing is not the right solution for everyone, it does offer a number of benefits, some of which you may have yet to consider.
1. More Money in Your Pocket
The more space you have, the more money you are spending. While you may no longer have a mortgage, the cost of utilities, maintenance, repair, insurance, and property taxes can quickly add up in a larger home.
By living in a smaller space, you will be able to put more towards your favourite pastimes and reduce financial stresses during retirement.
2. Less Housework and Property Maintenance
While you may enjoy gardening, chances are raking leaves, shovelling snow, mowing the lawn, cleaning gutters and all of those other necessary property maintenance jobs are not something you look forward to doing. Just like you probably don’t look forward to cleaning and maintaining the rest of your home.
Downsizing means that you can spend less time focusing on your property upkeep, and it gives you more flexibility when it comes to last-minute vacations and outings.
3. A More Diversified Portfolio
For many Canadians, your home is the largest asset you own and often ties up a large portion of your net worth. Opting for a smaller home with a lower ticket price, or moving into a retirement community, means you will have more money to put towards other worthwhile investments. This will allow you to diversify your portfolio and protect yourself against possible downturns in the real estate market.
4. It Can Benefit Your Community
Unused space often becomes home to unused possessions. When you own a large home with more space than you need, you begin using extra closets and rooms as storage spaces for items you aren’t ready to get rid of.
Downsizing your home gives you the opportunity to go through your personal belongings and decide whether each item is something you really want to keep. This can be a great opportunity to help those in need – donating items that you no longer need or have use of.
5. A More Fitting Floor Plan
When you purchased your current home, you had different goals and chances are your home reflects that. Perhaps you were looking for a family-friendly neighbourhood where your kids would enjoy growing up, or maybe you were looking for extra space for when your family came to visit. Perhaps you picked a location that was closer to work. As you move into retirement, however, your goals are changing and as you get older, your needs will continue to transform.
Finding a new home with a floor plan that better meets your current and future needs will ensure you enjoy the highest quality of life possible.
6. Location, Location, Location
As we mentioned earlier, retirement means more time spent doing the things you love. Whether that is going to the theatre, playing golf, visiting family, or boating on the lake, downsizing gives you the opportunity to move to an area that better serves your changing lifestyle.
These are just some of the many benefits you will enjoy when you choose to downsize.
Interested in hearing more? Contact us today.