As you near retirement, you might begin to question if you are going to have the money that you need to live the lifestyle that you have always dreamed of in your golden years. In many cases, it’s not even so much about being able to afford to travel or pursue hobbies as much as you are worried that you just won’t be able to cover your basic necessities. The cost of living is constantly rising and with the skyrocketing costs of medical care, consumers fear that their nest egg will only make it a few years and then they will be forced to live on their meager Social Security allotment. One bright glimmer of hope for many is the thought of downsizing from their current home to save on living expenses and to cash out a bit of the equity in their home. But there are some issues that can present challenges with that plan.
Polls have found that as many as 1/3 of all older folks think about downsizing as a means of saving money but only about 7% actually follow through with that idea. One of the biggest reasons that homeowners staying put is the cost involved in buying a home and moving. They are finding that they will not be saving as much as they expected by downsizing. Smaller homes are usually newer and that makes them almost as expensive as their current homes. This is due to the increase in cost for more efficient features such as windows, doors and insulation. The homes cost less to heat and cool but the initial investment in these energy efficient items makes the purchase price higher than expected. In addition, homeowners are looking for features such as a yard, being near shopping and upgraded appliances so that means they are competing against young families who are looking for these features as well. Then there is the cost of moving. Most homeowners who have not moved in many years are surprised to learn just how expensive a move can be. When they moved in the past, they simply rented a truck and did the work themselves but now that they are older that is not an option.
Another issue for many homeowners is giving up all of the amenities that they have grown used to in their neighborhood. A big part of this is that we are all creatures of habit. It is easier to go to the same grocery store and dry cleaners than to find new stores to frequent. In addition, there might be features that cannot be replicated in another neighborhood such as proximity to a freeway or to friends and family.
If you need any help with moving or selling your house, call us today at 602-833-7812. We can help you move on with your life by paying cash for your house and closing in as little as 3 days.