Are you an empty nester? Thinking about downsizing, reducing your cost of living? Well consider this: Downsizing may not always pay off. Here are some factors to consider:
Timing: What type of market are we in? Buyers? Seller? Balanced? If the buyers have the upper hand, it may not be the best time to List! In this type of market, there is typically a lot of inventory, and you may not get the most for your home. Consider delaying your plans, and using the time to seriously prep your home for sale.
Budgeting: No mortgage? Great now we can travel! This is a problem many downsizers can face. With the freed up expenses, it’s easy to start spending! It’s a good idea to make and stick to a budget!
Lifestyle: Time to think about how you want to live. Are you going to start eating out more and cooking less? Getting rid of a car and using public transportation? This falls right in line with budgeting, eating out will cost you, public transportation may save. Make sure you consider all options before moving ahead!
Taxes: It’s a good plan to sit down with your accountant and review your current and future tax situations. Make sure you’re getting advice from an expert to see if your current tax situation will improve or decline.
Related Costs: Along with the new house-related expenses, you will need to factor in other costs when purchasing your next home. Closing costs, Land Transfer Tax, preparing your house for sale, commissions, movers, etc. All these expenses need to make sense with your needs so that downsizing will mean fewer costs.
For more information on this and other subjects please contact me. I am your SRES®, and I’m here to help!