If you’re a retiree, you may consider downsizing your current home and moving to a smaller place. Moving into an apartment, townhome, condo, or retirement community has many perks, like fewer expenses, less stress, and more amenities. Before you make the big move, you must consider your needs and priorities. Learn more about planning for the future with our guide to downsizing your home.
Determining your needs
Once you decide to downsize, it's time to consider what living situation will meet your current and future needs. Think about location, accommodations, and amenities. Would you like to live close to family and loved ones? Do you enjoy lawn care or want the maintenance done for you? Will you need room in your new place for hobbies or other activities? Talk with your family about your plans, then make a list to narrow down your priorities.
Finding a new home
How to downsize depends on location, size, setup, and cost. We’ve split the choices into two basic categories: residential communities and aging in place. Residential communities may provide additional services like lawn care, social activities, and more. Aging in place may mean staying in your home, moving to a smaller home, or living in a retirement community.
Selling your home
Some of the benefits of moving into a smaller home could include the following:
- Increased cash flow
- Lower mortgage
- Less upkeep and maintenance
- Lower utility bills
If you could use extra funds to cover your expenses in retirement, don’t overlook the equity in your home. If you plan to age in place, you may be able to access some of that equity through a cash-out refinance. If you’re facing a savings gap, it might be advisable to sell your home. You may choose to invest the profit or supplement your nest egg. However, the sale may be subject to capital gains tax. Be sure to consult with your tax advisor to learn more about your options.
How to plan for your move
First of all, you should start early. Give yourself enough time to prepare a plan with goals and a timeline. When do you want or need to move? Work back from that date, and consider the time you need to declutter, pack, and make moving arrangements. Don’t forget to forward medical records, prescriptions, and mail to your new location. Check out our moving checklist to help you plan your move with ease.
How to let go: decluttering sentimental items
Start small. Tackle practical must-haves first, like kitchen and bathroom supplies. Save the emotional items (art, heirlooms, photos) for later. Sort by the following categories: keep, toss, and give away – no maybes! Set up and label containers for what you want to keep, donate (or give to loved ones), and throw away for each room. As you declutter, allow enough time to thoughtfully go through your belongings and enjoy the memories associated with these items.
Whether you are a first-time homebuyer, or a retiree looking to downsize, you have options at KFS Mortgage Company. Our mortgage experts will compare the pros and cons of each loan. We’re here to help you find a mortgage that’s right for you. KFS Mortgage Co. Experience, Trust, Peace of Mind.
For more information, contact KFS Mortgage Company today.
KFS Mortgage Company, 207-873-5153, www.kfshomeloan.com
NMLS #2097505, ME NLC2312503, Equal Housing Lender