Feeling Overwhelmed with Home Maintenance? 10 Signs it's Time to Downsize

 Here are 10 signs telling you it’s time to downsize.:

1. Monthly housing expenses exceed 30%: According to the U.S. National Housing Authority, established in 1937, spending more than 30% of your monthly income on housing is deemed financially burdensome. Crossing the 50% mark designates you as severely burdened. If a significant drop in income occurs, whether through retirement, salary cuts, or job loss, this could be a sign to consider moving to a smaller place with a more affordable mortgage.

2. Limited leftover cash in your monthly budget: As retirement approaches, using savings to cover housing expenses is a clear signal that downsizing to something more affordable is a prudent move. Planning ahead and downsizing five to 10 years before retirement can result in substantial annual savings.

3. Feeling overwhelmed with home maintenance: Seniors often opt to downsize to alleviate the burden of maintenance tasks, including repairs, painting and lawn mowing. Selling your home while it's still in good condition can save both money and years' worth of maintenance expenses.

4. Your home no longer fits your needs: Challenges related to aging, such as difficulty with stairs, fall risks from a steep driveway, and other inconveniences, may prompt a move to a more suitable home. Planning ahead for these changes is crucial to ensure a seamless transition.

5. You're the oldest resident in your neighborhood: Beyond financial savings, moving to a retirement community offers social benefits, preventing isolation and loneliness. Staying in a neighborhood for an extended period may lead to witnessing neighbors move away or pass away, contributing to feelings of isolation.

6. Converting home equity into income: With as many as 51% of older workers saving less than $50,000 for retirement, some seniors turn to their home's equity for financial support. Downsizing to a less expensive home can be a strategic move to create a steady income stream during retirement.

7. Career or family ties no longer bind you to your location: The rise of remote work opportunities and grown children can free individuals from location-based career ties. Parents whose children have left home have the flexibility to explore more affordable and desirable locations.

8. Unused property (unused rooms or amenities): After children have grown and left, maintaining unused rooms becomes an unnecessary expense. Features like home offices, game rooms, and other amenities may not suit retirement plans but can be attractive selling points.

9. Desire to be closer to family: Many retired Baby Boomers opt to move closer to their adult children. The trend of living near family has persisted, with the Silent Generation being the most likely to buy a home near family and friends.

10. Seeking a lifestyle change: Seniors have diverse housing options, including age-restricted communities, independent living, assisted living, and nursing homes. Lifestyle changes, whether due to physical limitations, medical needs, or personal choices, can be a catalyst for downsizing.

It's crucial to emphasize that downsizing isn't exclusive to seniors. Choosing a smaller, more manageable home can free up resources for various pursuits, from working fewer hours to enjoying life through travel, hobbies, or other activities. Whether on the brink of retirement, navigating life changes, or simply seeking a more fulfilling living arrangement, downsizing offers a practical and gratifying choice.

Downsizing, especially if you’ve lived in your home for many years, can be an overwhelming—not to mention emotional—process.  When you find yourself ready for this significant step, I would love to have a conversation with you about the details of how I can best suit your needs in your particular downsizing situation, contact me today!

-Betty Ortiz  /   SRES Senior Real Estate Specialist   /   Direct (818)270-7090