For many people, reaching retirement age means the opportunity to re-evaluate life and make some tough decisions. One of the biggest decisions you’ll be faced with is whether to sell your home and downsize or move into a rental or even an assisted living community.
It is important to note that there is no right or wrong decision, you simply need to make a list of the pros and cons and then decide. However, before you start, it is a good idea to get your house valued. Real estate agents can do this for you and you should speak to several.
The Advantages Of Selling Your Home When You Retire
The biggest advantage is simply that you release funds. Your home is probably worth more than you realize and this means, even if you buy a smaller place, you‘ll have extra funds to help you enjoy life.
Alongside this, you’ll be downsizing which means you will be reducing the cost of running your home. In other words, that is even more money available for retirement.
It is also worth considering whether this will allow you to defer claiming social security until aged 70, which means you’ll get a higher monthly allowance.
While these are all positives and help with your cash flow, retiring also gives you the opportunity to move to a different location. You may even be able to find a spot in your dream location.
You should also consider the fact that selling when you retire allows you to find a place that is suitable to age at home in. You can choose somewhere that is on one level and has appropriate aids already fitted. This will help to ensure you are comfortable and safe.
It should be noted that all the above apply regardless of whether you sell to buy a smaller place or to rent somewhere.
Downsides Of Selling At Retirement
The most obvious issue that most people face is the memories that are connected to a property. If you have lived there for many years and have watched your children grow up there, you’ll find that it can be hard to say goodbye.
Alongside this, you are likely to have made friends with your neighbours, and leaving means losing friends and the support of your community. After all, if you have lived in one place for a long time others in the community will know you and be happy to help when needed.
Of course, you may also lose the space to host family members which can be distressing on special occasions. You can also contact a reputable real estate auctioneer and you’ll get an honest opinion as well as a quick sale option.
Roughly half of Australians choose to downsize at retirement, whether selling to buy or rent. That means you are in good company whatever you decide. In short, take your time making your decision because you need to be happy with it and live with the consequences.