One thing that many people now consider when retiring is whether or not to sell their home and move into somewhere smaller.
This is a popular way of starting a new phase in your life, but it isn’t always right for everyone – only you can decide.
So, what are the most important factors to take into account when deciding whether to sell up?
Here’s an idea worth thinking about that could really improve your life and happiness.
Free-up some cash and invest in something that gives you an income!
Probably the biggest reason for selling your home when you stop working is to free up some cash or get the money locked away in your house to work for you. A lot of people have a huge percentage of their wealth tied up in their home, yet have little to spend on themselves.
Once you retire, you may suddenly realise that your house is in a part of town that no longer suits your needs anymore or maybe the old family house is too big for you now. Perhaps the kids have moved out so moving somewhere smaller makes more sense.
Many people, as they get older, move to a bungalow because it’s not only more practical, but cheaper to run too. Old age and staircases don’t always go that well together!
Of course, you may not want to buy a new property at all. In your latter years, renting is also a good option. It saves you tying up your capital in a property where you have no access to it unless you sell up.
A lot of people have more equity in their house than they need.
A great idea is to invest some of it in a Fixed-Rate Investment Bond. You can tuck the money away safely and get a healthy monthly income at the same time! The best of both worlds.
With Fixed-Rate Bonds you know exactly where you stand, and your hard-earned cash isn’t subject to fluctuations in the property market either. How many of us, I wonder, remember the property crashes in the ’80s or even back in 2008 when the financial crash caused property values to plummet?
Not only that, but as the rate is FIXED at the time of purchase, you know exactly how much you get. Whether you opt for a bond that offers a monthly or quarterly income, you receive exactly the same amount for the entire term of the agreement – regardless of what happens to the value of the pound or rises and falls in the stock market.
Downsizing with a fixed monthly income can be a blessing for so many people and could turn out to be one of the best decisions you have ever made!