Housing Transitions
Perhaps one of the most visible signs of entering your third age will be a change of address. If you have been in a house for the decades in which you raised a family, it may no longer serve your needs. A recent television commercial for a real estate company shows an older couple looking longingly at their home, which they have just sold. The realtor leans into their car and reassures them, saying that they have sold the house but all the memories move with them.
Packing up memories may be a heavy emotional task, but the physical work involved in selling the family home can be backbreaking. Better to take this on in your early third age, before leaving work, for a few reasons:
You will have more energy — both physical and mental — to deal with breaking down a home.
Adult children may enjoy using furnishings and memorabilia they grew up with in their own homes.
You are liberating yourself from maintaining a property that had been needing more and more attention.
There may, in fact, be a magic window of timing for breaking down a household. If you wait too long into your retirement it almost becomes taboo to abandon the home in which you spent time with your family and in which your children were raised. Particularly if a spouse dies, the deceased spouse's extended family may view the home as a memorial to a time long past that should not be disturbed.
For many Americans, their home is a major piece of their net worth. It is yours to do with as you see fit. Deciding to shed it before you are fully launched into retirement may be a signal to your constellation of family and friends that you are writing your own script and do not plan to be an observer on the sidelines of everyone else's lives.
By cashing in on the equity you have built in a home, you may be able to reinvest in a smaller home or perhaps two condos. If you have been living in the suburbs, maybe you are ready for the buzz of city living offset by the relaxation of a seaside place. Cut the number of bedrooms and eliminate overnight guests.
Downsizing should help you cut back on your overhead expenses, including real estate taxes, maintenance, and utilities. Explore more economical living options by asking yourself some questions:
Would you reduce your real estate taxes if you moved one or two towns over?
If you have homes in two states, can you establish primary residency in the state with lower income taxes?
Would you be able to get rid of a car — or all cars — if you moved into the city?
What would you save by eliminating any yard maintenance?
Do the math. Make a change when you can get the most enjoyment from unburdening yourself from carrying a the mortgage of a home you no longer need.
