Ready to enjoy a comfortable retirement? Your home could be the key. Rising home values have significantly increased home equity, offering a potential financial boost for your retirement plans. Over the past five years, home values have jumped nearly 60% (according to the Federal Housing Finance Agency), and overall Boomer wealth has increased substantially, with a significant portion attributed to house price appreciation (Freddie Mac). If you’ve owned your home even longer, your equity may be even higher.
Downsizing to a smaller or more affordable home can unlock this equity, providing funds for travel, family time, or simply greater financial security. As Chase notes, “Retirement is an exciting time. Selling your home to take advantage of the equity or to downsize to a more affordable home can open up additional options for your future.”
Here’s how downsizing can benefit your retirement:
-
Lower Living Costs: The AARP cites reducing cost of living as the top reason for moves among those 50 and older. Downsizing can decrease expenses like utilities, property taxes, and maintenance.
-
Simplified Living: A smaller home often translates to less upkeep, freeing up time and energy for your retirement passions.
-
Increased Financial Flexibility: Selling your home converts equity into cash, providing options for investments, debt payoff, or a financial safety net.
If you’re considering downsizing, working with a real estate agent is crucial. They can help you understand your equity, explore its potential uses, and guide you through the process of selling your current home and finding the perfect new one.
If retirement is on your horizon, especially in 2025, now’s the time to explore downsizing and unlock your home’s equity. Let’s connect and start planning your move to make every day feel like Saturday.