One thing that many people now consider when retiring is whether or not to sell their home and down-size. This is a popular way of starting a new phase in your life but it isn’t always right for everyone.
So, what are some of the most important factors to take into account when deciding whether to sell up? The following are some ideas to get you started on this subject and get you thinking about what it could mean to your life and happiness once you retire.
Free Up Some Money
Probably the biggest reason for selling your home when you stop working is to free up some cash. A lot of people have a huge percentage of their wealth tied up in their home, while they might not have as much cash in their pension fund as they would like. There is also the fact that if your kids have moved out then you may be paying the monthly bills and maintenance on a house that has become too big for you now.
Of course, this isn’t a decision to be taken lightly. You will probably want to speak to a financial adviser to work out your options. If you get it right then you can free up a big chunk of money and could still have plenty left over after you pay for your new home. One point to bear in mind here is that if you are planning to rent from now on then you will need to budget for doing this effectively. People tend to live long and healthy retirements now, so you should look to plan on paying rent for a couple of decades if not more. It may make a lot more sense to buy a less expensive property rather than to start renting.
Move Where You Want To
Once you retire you may suddenly realise that your house is in a part of town that no longer suits your needs anymore. Perhaps you bought the place because it is close to your old place of work, the train station, the schools or some other place that is no longer of such great interest to you. Wouldn’t it make more sense to now live somewhere with more of the things you need close at hand? Maybe you want to be closer to your kids, the cinema, the shops, the golf club, social clubs or anywhere else. As well as making your life more fun, this could also cut down on your travel expenses in the future.
You might find that your retirement is enhanced by moving a short distance within the same town or you might decide to go to another town or even another country. The key lies in working out what it is it you want to be near from now on. Most of us live our entire working lives staying somewhere that is handy for getting to work, so the freedom of finally being able to choose to live anywhere is exhilarating. However, having so many options can make it really difficult to make a decision. You would be best making a list of your priorities and then looking for places where most or all of them are met.
Gain More Flexibility
Could retirement be the key to a more flexible life for you? It is already sure to be in many ways and making the right decision with your house could give you even more flexibility. For instance, you might choose to live in a mobile home for a while, go round the world in a boat, stay with friends or relatives for a spell or even buy 2 new houses in different places with the cash you free up. If you have always wanted more flexibility in your life then this could be the perfect moment to get it.
It is worth pointing out that you don’t necessarily have to sell your home in order to enjoy these changes. You might decide to let it out instead and live off the rental income for the mean-time. Each case is different, which is why it is important to get expert advice on the subject before going any further.
Enjoy the Experience
Finally, moving home can be an exciting and enjoyable way of starting your retirement years in style. Moving out of the family home may be a bit of a wrench but if you do it right then you will be looking forward to an interesting new phase in your life with high hopes.
We can’t forget that moving home is also typically a stressful experience. If you decide to down-size then take a deep breath, get organized and then go for it. It could turn to be one of the best decisions you ever make.