Should I sell my home when I retire?
There’s no one answer to this question. Retirement is a life stage that creates a variety of potential changes to your lifestyle. Selling your home may provide ways to embrace a new lifestyle you've been dreaming of for years. However, renting may not be the best decision for everyone. There are many benefits and downsides to consider before making the decision to sell your home.
Benefits of selling your home when you retire
Maybe you dream of travel or simply want to shed the responsibilities of homeownership or buy a less expensive home in a more desirable location. Perhaps the value of your home can open new doors for this stage of your life. No matter why you're considering selling your home, there are some notable benefits you could enjoy.
- Generate additional funds - If you own your home outright or have considerable equity, selling can help fill out your retirement savings. And a strong seller’s market can increase these savings.
- Eliminate maintenance costs - Some homes may require considerable maintenance, and you're on the hook for the costs if you own your home. Owners of larger homes often face expensive yearly property tax costs as well. Downsizing to a smaller home or renting after retirement may reduce or eliminate these costs.
- Take advantage of potential tax breaks - Consult your tax advisor to see if there will be advantages for selling your home.
- Find your ideal retirement home - The perfect home for a growing family rarely has the same requirements as the perfect home for retirees. When you no longer need the space for a growing family, you can prioritize size, layout, features and proximity to amenities you enjoy.
Benefits of staying in your current home when you retire
- Your house is more than a home - It's filled with memories and it’s where you’re likely most comfortable. If you're not sure you want to leave your current home after retirement, consider the things you'll miss if you move. There are a variety of benefits of spending your retirement in a home you already own.
- Familiarity is important - Your home is the space where you should feel most comfortable. If you’ve lived in your home for several years, you're accustomed to the community and area. You likely also have relationships with neighbors, businesses and physicians in the area.
- You have family nearby - Moving to a warmer climate seems nice, but moving away from children and grandchildren may not be worth it.
- You could save money - If you own your home outright and it's in good condition, you may save money by staying put. Rent costs can be unpredictable and can fluctuate with the ever-changing housing market.
- Your home is gaining value - If your home is appreciating in value, it may be wise to delay putting it on the market.
- You want to pass your property down to a family member in the future - A family home is more than just a house. If you own a home that you want your children or grandchildren to have in the future, selling your home simply might not be worth it.
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