Are you over 55 and thinking it may be time to downsize? Seniors downsizing in America have more options than ever before. New products like: senior housing, over 55 neighborhoods, assisted living and senior rental communities all allow you to choose the lifestyle you want.
Let’s talk about some things that you may be considering:
- selling and then renting
- selling and then downsizing by purchasing a smaller home, condo or town home
- staying and then using the equity in your home through a reverse mortgage
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Seniors Downsizing: The Pros and Cons
If you sell your home and then rent an apartment or another home, you won’t have to worry about maintenance on the rental. You can travel more and live a much more relaxed lifestyle. However, you do have to worry about the landlord asking you to leave at some point in the future. Moving twice may not be an appealing proposition.
On the financial end of things, if you have equity in your home, you can take that money and put it into savings or investments to live on.
If you sell your home, you can also downsize to a smaller home, condo or town home. Assuming again that you have equity in your home, you can use those monies to put down on the new place and reduce your mortgage payment. In some cases, you may also be able to use a reverse mortgage to buy the smaller home and not have a mortgage payment at all.
From a financial point of view, you may be able to live off of social security, retirement, and investments without the burden of a mortgage payment. A smaller home would require less upkeep allowing you to travel, take those cooking lessons etc.
You may also be able to stay in the home that you’re currently in using a reverse mortgage. If you have enough equity, the reverse mortgage would allow you to stay in the home without a mortgage payment.
Just like the benefits of downsizing, a reverse mortgage could help you stay in your home. By doing so, the burden of a mortgage payment could be eliminated.
Whether you do or don’t want to move, reverse mortgages may be an option. Thankfully, they are finally more readily available in the USA. I say finally because they have been available for seniors for quite a long time. As with anything, with more knowledge and understanding, reverse mortgages are being utilized more and more every day. See https://en.wikipedia.org/wiki/Reverse_mortgage for more information.
Our Team Is Here To Help You
Finances, quality of life and practical everyday living situations all need to be considered. All of which can be a little overwhelming. Knowledge cures overwhelm most of the time, so we’re here to help you. To make the right decisions, you’ll need a few different specialists:
- Financial Planner
- Loan and Reverse Mortgage Specialist
- Real Estate Agent
I have been helping buyers and sellers with residential home sales since 1994. Early on in my real estate career, I knew that having the right team would make all the difference to my success.
I am proud to offer you a team of professionals to answer all of your questions. I worked with most of these specialists for over 20 years and refer them whole heartily.
Call me and I will gladly refer you to any or all of them.
Have a great day,
Tony Ray 🙂
(520) 631-TONY (8669)