Is Downsizing Your Home The Right Choice?

Determining your downsizing needs, and the time to meet them.

With the kids out of the house and retirement on the horizon (or already here!), downsizing your house might seem like it makes a lot of sense. Once you downsize, though, it’s difficult to go back. It’s important that if you do downsize, you do so at the right time for the right reasons.

To help you make this major life decision, as yourself these important questions.

Would a smaller home still suit my lifestyle?

If you’re a collector or a regular party-thrower, a smaller home might not enable you to continue to enjoy the same activities. If, however, you love simplicity, want a life with less work (a smaller home means a smaller maintenance to-do list), and want more financial freedom, less square footage could help you get all of that.

How could downsizing help my financial future?

Generally, financial experts advise that you spend no more than 30 percent of your fixed income on housing once in retirement. If you’re in a smaller home, you should be spending less than that, freeing up more money for other things. If you’re concerned about having enough money for medical expenses, travel costs, or estate planning, downsizing could be the right move.

Where would I move?

Before you set your heart on downsizing, consider what your downsize will actually look like. Take a look at costs of homes in the size you want in the areas you want, and talk to a real estate agent to see how much profit you can make if you do downsize. It’s important that you understand the full picture before making this important decision.

Would you like to get a clearer idea of what downsizing could mean for you today and in the future? For insider insight into how downsizing could work for you in Orange County, contact Judy Qualls in Irvine, California.