People born between 1946 and 1964 have worked their way up corporate ladders, built businesses and raised families for 30 some odd years. Determined to make life better for the next generation, they have paid their dues and saved their pennies. Since most are entering their senior years, it may be time to finally sit back and relax and simply enjoy the fruits of their labor. In fact, many have begun to make markedly different financial decisions than they did in the past. For instance, downsizing is on the rise. Should you join the rank-and-file and downsize your home?
Here are 3 key points to consider:
- It Pays to Beat the Rush
Since a mass exodus of seniors from homeownership is projected to occur over the next 15 years, sell your property now before the market experiences a glut. This could result not just from thousands of homes entering the market but also because empty nesters and Millennials could compete for the same size and price range of homes. According to Fannie Mae, the Baby Boom generation owns some 32 million homes. Boomers, in fact, make up two out of every five homeowners in America. Experts estimate the number of available homes on the market between 2016 and 2026 will fall somewhere between 10.5 and 11.9 million. That is a lot of competition! So, if you’re considering listing your home so you can downsize, act now while interest rates remain low.
- Make Do with Less
If you’re like many Baby Boomers, you would like to retire to a nice place with lower mortgage payments and less maintenance than the house you are paying for now. Good thinking! Large, older homes require more upkeep and attention than smaller, modern townhomes or retirement communities. Senior citizens have long enjoyed the
benefits of master-planned communities and homeowner’s associations, which manage outdoor yardwork and other exterior matters so owners can focus on inside space. In many cases, the tradeoff is a smaller home footprint, which most communities offset by providing large, inviting indoor and outdoor entertaining spaces.
- Fewer Demands May Mean A Better Life
During the downsizing process, most people relish the opportunity to relocate closer to the lifestyle amenities they want to enjoy. No longer forced to consider location based on proximity to schools, parks and malls, empty nesters can focus on outdoor activities such as tennis, golf, biking and cultural events. What’s more, with less money devoted to steep mortgage payments, downsizers typically have more disposable income than their younger peers. Also, decluttering may result not only in simplifying your home but your entire life.
About Exact Escrow in La Verne, California
If you plan to downsize (or upsize), buy a home, or refinance your mortgage loan, please consider using Exact Escrow Inc. We are a full-service independent escrow company
dedicated to exceeding our client’s every expectation. Our goal at Exact Escrow Inc. is to make sure even your most complicated transaction closes smoothly and efficiently. Call today to speak directly to an escrow officer (909) 542-1062.