You would have noticed that many senior couples decide to downsize their life after they retire. Don’t know what that means?
Downsizing refers to the practice where retired people realize that they could save up money by selling their current house and living in a much smaller house.
Downsizing is popular because of various reasons like when the senior couples stay on their own and there are spare rooms in their house which no one uses, or they decide that they want to shift to a quieter place like some countryside locality.
If you have retired or are planning to retire soon, then here are some things you need to consider if you are planning to go for downsizing.
- Decide where you want to retire
If you decide that you want to downsize, then the first thing to do is to decide where you want to spend your retired life. This involves various aspects like choosing whether you want to stay amidst the city chaos or settle in some countryside house, whether you prefer a city which is known for its coastal shoreline or the one that has a stunning nightlife. Once you decide where you want to live, you can move forward.
- Think about the space
Next comes space. For this, the best thing to do is to look around your house and observe. Are you using all the bedrooms of the house? Do you use the garage often? Do you make use of the guest rooms? Once you have answers to all these questions, you can decide the ideal size for your new house.
- Don’t lose track of the budget
It is quite possible that in the whole run behind downsizing and selling your current house for a small house, there is a chance that you might end up spending more than you can afford. So, the best thing to do is chart down all the costs which include the tax, insurances, and utilities and then purchase the house. Also, give a serious thought on whether you need to rent the spare bedroom to manage the finances of your new house or you are better off.
- Sell your old stuff
If you are short of cash, then you can consider selling off the old house stuff that you do not wish to carry to your new house. You can sell your unused furniture, kitchen appliances or your old car if you don’t use it anymore to get some extra cash.
- Give a serious thought to rental
What you need to keep in your mind is that renting might not be for every retiree, however, it is a good option to consider. The best thing about renting a place instead of buying one is that you are likely to save money. This is because you would not be responsible for house costs like repair, maintenance, and yard work. At the same time, there is a risk involved in renting a place if the rent hikes up drastically. This would be a problem, especially if you are already finding it difficult to make your ends meet with the pension money.