The kids have moved out. Is it time to downsize?

The kids are gone. The celebrating is done and now its time to make a big decision. Should you sell the big house and move into a smaller house or maybe even a condo? Is downsizing a good move at this point in your life? Maybe, let us discuss it a bit.

On a large home, the expenses are much bigger than on a smaller home, obviously. Maintenance, repairs and tax expenses all have to be accounted for in your decision. Does it make sense to keep paying all those high costs for one or two people? Only you can answer that question. Here are two popular options for you to consider:

Buy a condo

Buying a condo is a popular choice for many people for many reasons. The maintenance is minimal, the ongoing costs are much more affordable and the freedom to come and go is greatly improved so if you like to travel, you are all set. Most condos complexes have security onsite so peace of mind is easy to keep. If you shop around, you can find condos where everything is taken care of for you. You can go away on vacation for two months and come back to your home knowing all is as before you left. What’s that worth to you?

Keep your big house but use its equity.

A good option for people who want to stay in their existing home is to get a reverse mortgage. This choice is becoming more popular as it allows people to live comfortably without having to spend their hard earned personal savings. You get to stay in your home and spend some money that would otherwise just sit stagnant in the form of equity. These reverse mortgages are occasionally named equity conversion mortgages. Keep in mind that the money borrowed does not get paid back until the home is sold or the owner dies and there are no taxes paid on the money.
Think about what your plans are, what you can afford and what makes the most sense for you at this stage of your life. I don’t know about you, but travelling sounds good to me!