WHEN IS IT TIME TO START CONSIDERING DOWNSIZING? (PART II)

As stated in the first article, the thought of downsizing can often be overwhelming. Pressure from family members, the daily grind and/or the daunting task of thinking about moving to a smaller living space can make the task seems almost impossible to handle.The main 3 considerations from the first article covered the ‘Empty Nest,” “Money Savings from Expenses,” and the time and effort, cost and consideration of “Maintenance.”

There are many other reasons people consider downsizing, and the three highlighted in this article are:

Do you have a good amount of Equity in your home?
Are you in a preferred School District?
Has there been a Change in Marital Status?

 

 

Do you have a good amount of Equity in your home?

Whether your home is completely paid off, or your are in an equity position due to the value of your home, you may be able to sell your current home, purchase a smaller more manageable property, and have money left over to create a nest egg or investment for future needs and considerations.

One consideration is tax law and making sure to look at what you may have as fas as real estate capital gains. Rest assured, as part of your process, you will be well informed on all financial matters and matters of your sale of your existing home, and the purchase of your new home.

Are you in a preferred School District?

Many families move into higher priced areas due to their location for school districts for growing children. Once the children have passed the high school years, it may be in your best interest to find an area that is still rich in the atmosphere you love, without the taxes and higher prices.

 

Has there been a Change in Marital Status?

Divorce and/or becoming a widow/widower is a common reason people determine they need to downsize. In both cases, the move into a smaller more manageable space due to income loss, income being shared between two parties, the expenses and upkeep, overall house size and monthly payments can become an exhausting issue.

Making the right choices in these times of pressure and sometimes stressful thinking, can determine a long path of payoffs and piled up bills, or can be looked at as a starting point for the future, making sure that your financial resources are used correctly and in such a way that keeps your life maintainable and comfortable.

 

 

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