For homeowners considering downsizing pre- or post-retirement, three important factors to consider are household space, financial sense, and anticipated changes to cost-of-living.
A recent TD Ameritrade survey found that almost half of pre-retirees, 42 percent, say they will likely downsize if they have not yet done so. A quarter of respondents are heading to a warmer climate, and a smaller share, 17 percent, are moving to be closer to loved ones, CNBC reports. "Retiring with a lower mortgage payment, property tax bill, smaller place to clean and maintain can be attractive," says Dennis LaVoy, CFP of Telos Financial in Plymouth, Michigan.
For some homeowners, maintaining a property, especially an older one, is no longer attractive. In February, Sean Dougherty, age 51, and his wife, Juliana V. Atinaja-Dougherty, 56, moved into a two-bedroom, two-bath apartment in Manhattan after living for more than 20 years in the 2,000-square-foot single-family ranch house in Clifton, New Jersey. "The house was run down in small, but noticeable ways, and we kind of lost the emotional energy to fix it up for sale, so we priced it to sell," says Sean, a senior vice president at a public relations firm, and Juliana, an attorney.
