Are you over 55 and thinking it may be time to downsize? Seniors downsizing in America have more options than ever before. New products like: senior housing, over 55 neighborhoods, assisted living and senior rental communities all allow you to choose the lifestyle you want.
Let’s talk about some things that you may be considering:
- selling and then renting
- selling and then downsizing by
- purchasing a smaller home, condo or town home
- staying and then using the equity in your home through a reverse mortgage
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Seniors Downsizing: The Pros and Cons
If you sell your home and then rent an apartment or another home, you won’t have to worry about maintenance on the rental. You can travel more and live a much more relaxed lifestyle. However, you do have to worry about the landlord asking you to leave at some point in the future. Moving twice may not be an appealing proposition.
On the financial end of things, if you have equity in your home, you can take that money and put it into savings or investments to live on.
If you sell your home, you can also downsize to a smaller home, condo or town home. Assuming again that you have equity in your home, you can use those monies to put down on the new place and reduce your mortgage payment. In some cases, you may also be able to use a reverse mortgage to buy the smaller home and not have a mortgage payment at all.
From a financial point of view, you may be able to live off of social security, retirement, and investments without the burden of a mortgage payment. A smaller home would require less upkeep allowing you to travel, take those cooking lessons etc.