During your retirement, you can finally relax and enjoy your golden years. This is the period when a great number of retirees decide to downsize and move to a smaller house or apartment. Should you decide to relocate and spend your retirement in a new home, you’d be glad to hear that this decision will provide you with numerous benefits. However, it’s important that you take different factors into consideration to determine whether this option is right for you.
Should you stay or should you go?
Moving is always a stressful and tiring process, but deciding to make this step can provide you with valuable benefits. Relocating will enable you to begin a new chapter in your life and have a fresh start. By moving to a new neighbourhood, you’ll be able to change your lifestyle, meet new friends and take up new activities. This will provide you with a more rewarding retirement experience and help you introduce a sense of novelty into your life.
Financial gain is always a plus
However, one of the greatest advantages of downsizing is the opportunity to sell your property and increase your savings. If you’ve been living in a large home, you can sell it and move into a new one that brings fewer expenses. You also won’t have to repay your mortgage, which will contribute to your savings. In addition, selling a big house will provide you with another source of income that can certainly come in handy during your retirement.
For instance, if you sell your current home that is worth around $750,000 and buy a smaller one at the price of $500,000, this will leave you with a $250,000 gross profit. Of course, you will probably need to make certain improvements, but it will still provide you with a substantial financial gain. Should you decide to downsize to a smaller home or an apartment, or even relocate to a city or country with a lower cost of living, you may be able to boost your retirement income by approximately 50 per cent.
Downsizing and moving to a new neighbourhood will also provide you with an opportunity to choose a more convenient location. You can buy a property closer to your family and friends, or choose a new community where you’ll have all the necessary retirement amenities nearby. In addition, you can also have a more enjoyable and convenient lifestyle because you won’t have to maintain a large property. Taking care of a small house or an apartment is definitely a great advantage. You can spend your retirement doing the things you truly enjoy.
A stress-free moving experience
Having decided to downsize, you need to start making your moving arrangements. You need to consider different factors, from putting your old property on the market to preparing your new home. Although you will need to take care of numerous obligations, it’s advisable that you hire a professional moving company for the packing and moving process. Undertaking this project on your own can take a toll on your health, especially if you’re moving long distance. For instance, Australian retirees can find a reliable company that will provide them with comprehensive services that go beyond transportation. Namely, the leading and highly trained removalists in Sydney do everything from disassembling, packing and transporting furniture to reassembling pieces and reconnecting basic appliances. This can greatly facilitate your move and enable you to deal with other important moving arrangements.
When’s the right time?
If you decide to downsize, you need to consider whether to do it early in your retirement or wait a certain period of time. It all depends on your current situation and goals. If you’re planning to downsize in order to increase your retirement income, you can sell your property early on and say goodbye to numerous expenses and mortgage payments. Furthermore, the very moving process will be less exhausting for you if you do it in your 60s rather than your 80s.
However, there are also factors that might make downsizing later in your retirement a better option for you. If your children are still living with you, you may want to wait for them to graduate and move out before you downsize. You may also need to consider real estate market trends and wait for the right time to sell your property at a higher price.
What about the drawbacks?
You need to consider possible drawbacks of downsizing, as well, in order to make the right decision. For instance, real estate market fluctuations may affect the sale price of your home. If you decide to move closer to a big city, purchasing a smaller apartment won’t necessarily be more affordable. You might find this decision and change too overwhelming and realise that your new home doesn’t meet your needs. Finally, you will also need to downsize your belongings because you won’t have enough space in your new home.
Downsizing and relocating can provide you with significant financial benefits, which can increase your retirement income substantially. However, you will need to leave your old home behind and change your lifestyle, which may be quite stressful and overwhelming. Therefore, when considering retirement downsizing, you need to take numerous factors into consideration and see whether the advantages outweigh the disadvantages.
This guest post was graciously provided by Robert Clayton. Robert is a blogger with a degree in engineering based in Sydney. His interests and passions include DIY, green technologies and home improvement. He also loves good food, music, dogs and enjoys spending time by the ocean. He’s a regular contributor for Smooth Decorator, An Australian Home improvement website.