Here are 5 things to consider as you think through this big decision.
Do you want to travel...live close to your grandkids...open a business? Do you have the time and energy to maintain your current home and yard, if you have a yard? Knowing how you want to spend your days can help you decide the type of home you need and where you may want to live.
If you downsize, are you willing to part with some of your stuff? If not, you may need to pay for storage, which can get expensive. Also, if you have frequent houseguests, would downsizing make it harder to entertain?
If you're expecting a comfortable retirement income, buying your next home may make sense as it gives you a future financial cushion. But, if you need the cash, renting could possibly free up funds from the sale of your home to cover ongoing expenses.
Check out the Right-Sizing Case Study for more things to think about when deciding whether to rent or buy.
Selling your home and moving will include closing costs, real estate commissions, land transfer tax and more. Before you bank on using all of the money from the sale to fund your retirement, know what a move will cost, and set aside the funds you'll need.
Can you imagine being comfortable in your current home when you are 70, 80 or even 90? Will your home—or the neighborhood you live in—still fit your needs if you can't climb stairs or drive long distances as easily? If you’re not sure, you may want to carefully consider your future needs.
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