A Home for Tomorrow

As people near or enter retirement, one of the decisions that typically comes up is whether to sell their "big" home and buy a smaller one. If you know anyone who has been faced with that situation, selling one home and buying a smaller one may not save enough money to make it worthwhile.

 

There are sales expenses on the property being sold and acquisition costs on the replacement home. Generally speaking, homeowners may not mind a home with less square footage, but they usually don't want to give up amenities or locations that they've become accustomed.

 

After a little number crunching, the move may not make enough difference in savings and they end up staying in their current home even if it doesn't fit their needs anymore.

 

What if while this couple were still in their peak earning years, they acquired a home in an area where they would consider retiring and rent it during the interim. They could put it on a 15-year mortgage and possibly, even accelerate the principal payments to have it paid off by their anticipated move.

 

In the meantime, they could continue living in the "big" home until it is time to make the transition. Sell the "big" home that may be paid for by then and avoid up to $500,000 of capital gain. Take part of the proceeds and remodel the rental/transitional home and invest the proceeds for retirement income.

 

Ideally, the former rental would be mortgage free by this point, so the retirees would not have a house payment. Even if at this point, they changed their mind about retiring to this particular home, they still have a property that acted as a hedge against rising prices and have sufficient equity to purchase something else without using the proceeds from the "big" home.

 

It is difficult to know what the situation will be years from now when a person retires. It is clearly advantageous to have a plan that allows for options and choices. To find out more about purchasing your retirement home today, give me a call at (407) 467-5155.

 

By: PatZaby.com

 

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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Downsizing for Retirees and Empty Nesters

Your children have flown from the nest, or maybe retirement is not so far away.  Do you still need all of the space your current home has? Or maybe the idea of selling and buying a smaller home and save the profit for a boost to your retirement income.  Whatever the reason, many empty nesters and retirees are downsizing. Let’s look at these things to consider: 

• Downsizing can be a huge change for most, and planning for it is the key.  Talk with your partner, your family and friends, tell them of your thoughts, and have some of them help you start a Downsize Plan.  
• Think practically when you’re thinking about what sort of house you’d like to buy.  You don’t want to go so much smaller that you don’t feel at home.    
• Do you want to stay in the general area you are currently in, or do you want to move across the country? Maybe you’d like to have an adventure and travel.   
• Look at your budget and go through it very carefully.  Even with a home sale, your new place could be in a more expensive area, with property taxes and higher utility costs.  Choose carefully so you save more of the profit from the old house’s sale. 
• We don’t like to think about aging, but one consideration you should be taking is that if this will be your last home, make sure it will work for you as you get older.  In case of mobility issues later on, a single-story house that will be easier to maneuver around in, or one with a smaller yard for less maintenance is best when house-hunting. 
• The thought of maintaining our landscaping can make us groan as we get older in more ways than one, so consider a condominium or townhouse to relocate to. Be sure to ask if there are extra maintenance fees in these communities. 
• Once you make your decision, contact a realtor in the area with questions about the housing market, as they can assist you with figuring out how much your house would sell for, as well as finding a smaller and affordable home for you to buy or even consider a rental for a while. 
• Once you decide to sell and relocate, start the first step of the moving process of going through your belongings, and deciding what you’ll have room for in a smaller home.  This downsizing article from Sixty&Me.com has some extreme but practical advice to help you start this emotional task. Get the family involved if your children still have belongings stored in your attic or spare room. 
• If the thought of cutting out so many of your belongings is too daunting, find a professional organizer who can help.  Look for one that specializes in downsizing. 
• You have probably acquired a houseful of furniture, and a smaller home means less space to place what you have now.  Talk to family members who may want pieces that you have, sell some furniture, or donate practical items to a shelter or thrift store. 

Preparing for the later years in life can be daunting.  If you’re getting ready for retirement, or dreading the thought of the last child leaving home, downsizing and a new beginning can actually be something to look forward to.  Be sure to share your housing concerns and desires with your real estate agent, who will do all they can to find the perfect home for you to make every moment enjoyable for you for years to come. 

Access Teri’s one-stop Orlando FL home search website.

Teri Isner is the team leader of Orlando Avenue Top Team and has been a Realtor for over 24 years. Teri has distinguished herself as a leader in the Orlando FL real estate market. Teri assists buyers looking for Orlando FL real estate for sale and aggressively markets Orlando FL homes for sale.

You deserve professional real estate service! You obtain the best results with Teri Isner plus you benefit from her marketing skills, experience and ability to network with other REALTORS®. Your job gets done pleasantly and efficiently.  You are able to make important decisions easily with fast, accurate information from Teri. The Orlando Avenue Top Team handles the details and follow-up that are important to the success of your transaction.

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