Once the kids are grown, have careers, relationships and get a place of their own, parents find that they may not need their big home like they did before. Their lifestyle may have changed and the house just doesn’t fit anymore.
Benefits of a smaller home:
Easier to maintain
Lower utilities
Lower property taxes
Lower insurance
More convenient location
Convenience of a single level
Possibly more energy efficient
Possibly lower maintenance
Moving from a larger home frees equity from the previous home that can be invested for retirement income, purchase a second home, travel, education or just to have a nest egg for unexpected expenses. The profit on the home, in most cases, will be tax-free up to the exclusion limits set by IRS.
There will be expenses involved in selling a home as well as the purchase of a new home. These will lower the amount of net proceeds available to invest in the new home.
Like any other big change in life, it is recommended that you take your time to consider the possible alternatives and outcomes.
I can provide information that can be valuable in the discernment process such as what your home is worth, what you will net from a sale as well as alternative properties for your next stage in life. Let me know when you’re ready. I am here for you!
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