I have written often about downsizing, including our own plans for condo living. Saving $1000 or more on monthly living expenses (mortgage, taxes, insurance, utilities, maintenance, etc.) is the equivalent of adding $300,000 or more of income-generating assets to your retirement nest egg.
We met more recent buyers during a visit. One couple is preparing to build a house in Long Branch Lakes. They are renting in a nearby town during construction. They sold their home in New Jersey. Even though that home was paid for, the taxes were so high that their rental costs are lower than their NJ tax bill. This is a perfect example of why and how downsizing can be such a benefit to a retiree. This couple had done their pre-downsizing homework, including speaking to the county tax assessor and visiting area health care facilities.
I recently wrote a post for the On Retirement blog at U.S. News and World Report, summarizing some reasons why downsizing can be an excellent strategy for the baby boomer.
You may have thought of other reasons why downsizing would make sense for you (or not). If so, please leave a comment for the rest of us.
Thanks for reading.