Many boomers will decide to sell their current homes and downsize to a smaller one as their kids leave the nest. The benefits of downsizing include a smaller monthly mortgage or rent payment, lower utility and maintenance bills and the ability to simplify ones life. Here are a few tips to keep in mind if you’re thinking about taking the leap.

Decide If You Want To Buy Or Rent

The decision of whether to rent or purchase a home depends on ones lifestyle and budget. Renting provides the benefits of a more nomadic lifestyle which may appeal to boomers who don’t want to be tied down to a particular location. Apartment living may also provide perks like concierge service and include maintenance service and costs allowing for more leisure time. On the other hand, buying may offer more stability. Deb Delancey from Team De Lancey based out of Reno, NV says “Mortgage payments remain constant while rents generally increase annually. Purchasing a home can protect boomers from rising rents”.

Sell Your Home First

If you’re a longtime homeowner you’re likely to have a substantial amount of equity in your home. You will probably need to sell it first before purchasing a new one since banks will generally not finance another home until the first one is sold. Test out the market by putting your home on the market early in order to see what you can get for it.

Factor In Income

Consider your sources of cash and how long you plan on working. Calculate how much you can expect from social security or pension payments, other sources of income such as investments and if they will be enough to cover living costs. States like Nevada and Texas don’t have an income tax which could lower your overall tax bill. However, if you plan to travel back and forth to visit family that could be an additional cost to keep in mind.

Choose A Home You Can Grow With

You may be in excellent health right now but that could change as you get older. Look for a home that will be accessible to those of any age or disabilities. Jim De Lancey says: “Features to look for include flat thresholds and wide doorways and slip-resistant floors. A home with a single story is ideal since stairs may become more challenging to tackle with age”.   

Downsizing Your Belongings  

Moving to a smaller home often means downsizing your personal belongings as well. Consider selling your belongings to a consignment shop, holding a yard sale or making charitable donations.

The decision of whether to downsize or not will inevitably come up as you get older. Weighing all of the pros and cons and making the right choice for your lifestyle will enable you to enjoy your golden years.