Article by Trulia, Forbes.com
“According to AARP, for the next 18 years, baby boomers will be turning 65 at a rate of about 8,000 a day. That’s a lot of American homeowners who are reaching retirement age and are starting thinking about their next phase in live. Part of that next phase may include unloading their large family homes in favor of spending their ‘empty nest’ years enjoying their newfound freedom.
When you think about the combination of approaching retirement and the children off on their own, what are the real advantages to downsizing?
Here are six enticing advantages to living the “Less is More” lifestyle.
Smaller House = Smaller Mortgage
Generally a smaller home can translate into a smaller monthly mortgage payment. In many cases, if you have lived in your family home for many years, and built up a sizable home equity, you may be able to cash out and purchase a new smaller, less-expensive home – even possibly eliminating a mortgage payment completely.
Less Monthly Expenses
Downsizing your home also downsizes your monthly expenditures, too. Utilities may be smaller, taxes and insurance may be reduced, and general upkeep and maintenance on a smaller home is going to be more affordable.
Downsizing also provides a fantastic opportunity to give up the snow shovel and slap on some sunscreen. Raising your family in the cold winters of the mid west and northeast could become a distant frozen memory if you take the opportunity to move south or west to follow the year-round sunshine.
More Affordable Town
Downsizing is a great opportunity to move to a less expensive metro area. Finding a city that gives you more ‘bang for your buck’ is a big boom to retirees and empty nesters that will soon be adjusting to living on a fixed income. In a hot retirement market like West Palm Beach, Florida, the average sale price on a home is $127,000 and the cost of living in the area is affordable. Compare that to a family and industry-friendly metro like the Chicago suburb of Naperville, IL, where the median sales price is $335,000 and cost-of-living expenses are generally higher, and you’ll see that costs can shrink in towns where affordability is in alignment with real estate prices.”