Reasons Downsizing Makes Sense
August 22, 2010 by MJP
Filed under Downsizing
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.
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It took a while for my heart to follow my mind, but I have come to the conclusion that downsizing makes a lot of sense for active retirees. We are flying to Long Branch Lakes in Sept to take a look at the condos. The biggest consideration for us is the fact that we have 2 dogs and 3 horses that are part of the family. Moving them from Washington state to TN will be expensive and stressful for all involved, but I’m hoping everyone will adapt to a new lifestyle.
My husband and I were painting the fence just this morning and I asked him what he would rather be doing than painting: horseback riding, fishing, kayaking, hiking, swimming, poking through little towns, or just plain reading. He grimaced and said “any of the above!” I’m warming up to the idea of condo life in an active place.
We are currently downsizing our 4 bedroom, 2 bath home, 2 car garage. We intend to sell and move to a 2 bedroom, 1 bath apartment. Our goal is to travel more. 6 months home 6 month travelling. We can’t fulfill this dream with all the added expense and upkeep of a home. We aren’t getting any younger and yes we are baby boomers. We have grown, married kids and grandkids but now it is time for us. We want to do more things that we like to do, not things we have to do. Mowing grass, trimming bushes and shovelling snow is something we hope to never have to do again. Housework, we want to keep to a minimum; and we can do this in a smaller place. So when all our stuff is downsized and our house is sold perhaps dreams can come true.