Many seniors are leaning towards selling their houses and downsizing to one that costs less to maintain, after which the proceeds of the sale and the savings they get can be used to stabilize their retirement finances. Aside from downsizing, other seniors also consider renting. While renting and selling to downsize appear to be great alternatives, remaining in your current residence might be more advisable.
Numerous retirement plans used to augment the retiree’s nest egg with home equity – many still do this up to now. Using your home equity may not be beneficial if the retiree still won’t be able to put together enough funds for moving and buying a new home even if they have full ownership of their previous places of residence.
There are other factors that may prevent the senior from downsizing after selling his or her current home. The prices of residential properties across the nation are gradually regaining stability at present, which may prevent you from selling your home at a high price. When considering selling your home, you have to lower your selling price, although the price of the property you want to buy could have also gone down.
If you’re moving house to take advantage of lower property taxes, keep in mind that property taxes are going to increase along with other areas in the country. You’ll only be saving on taxes on your property until your area catches up. With property taxes slowly equalizing, it won’t be long until you’ll need to pay big.
Downsizing your home after selling might not be a practical option for many seniors who are having money problems, as property taxes are going to increase no matter where you move. In addition, you might not have enough to cover the costs of moving, plus the said taxes. Before you sell your home and move, check your funds to see if you’ll be able to pay for your new home and related expenses.
Puritan Financial Group has years of experience in dealing important financial decisions. Puritan Financial Group will listen to you and your loved ones and craft a custom financial solution that supports your life goals.