If you're considering downsizing to a new home, one that better suits your lifestyle, this could be the best year yet to make it happen! Here are 6 compelling reasons the timing may never be better.
Reason #1: Your current home is probably worth much more than you think! Over-the-mountain homes are selling at historic highs. You might be surprised how much your home is worth in today's market. While most economists don't believe we're in a housing bubble that will lead to a crash in prices, most economists predict that the rate of increase in home prices is going to slow. So, selling your home this year will likely generate some pretty impressive gains. With that in mind, this could be the perfect time to sell.
Reason #2: Unlock the profits tied up in your current home- tax free! You can sell your current home and pocket up to $500,000 in gains tax free if you and your spouse file a joint return. A single taxpayer can shelter up to $250,000 in gains. The house has to have been your principal residence for at least 2 out of the past 5 years. You do not have to reinvest the proceeds in another home to receive the tax savings. You might choose to invest all or a portion of your proceeds in your next home. But, you also have the flexibility to do the things you've possibly been putting off- travel more, get a lakehouse, spoil the grandkids, etc.
Reason #3: We can help make downsizing much easier for you. We understand that moving isn't fun and maybe you've been dreading it. That's why we've put together a team of friendly, patient experts to help make the process much easier. We can help you save time and money, and lower your stress!
Reason #4: Rates are at historic lows, but are predicted to start rising in the near future. Now's a great time to lock in an extremely low mortgage rate on your new home before rates go up. Keep in mind, being retired doesn't necessarily mean you can't qualify for a mortgage.
Reason #5: It's probably costing you more than you think to maintain your current house. According to research conducted by real estate author, Matt Parker, the cost of owning and maintaining a home averages 32 cents per square foot, per month. This is based on the cost of utilities, insurance, and maintenance (roof, siding, painting, lawn etc.). This doesn't include your mortgage and property taxes. So, for example, if your current home is 4,000 square feet in size, it will cost $1,280 each month on average to maintain. That made sense when the house was at full occupancy. Moving to a home that better fits your current lifestyle, say one with 2,500 square feet, would lower your cost of maintenance by $480 every month! More money for the things you'll truly enjoy.
Reason #6: We can help you find a home that you'll enjoy more than your current house! Imagine a home in a great neighborhood that better suits your lifestyle with the best of main-level living, lower maintenance costs, lower property taxes, and it's still convenient to all of your favorite daily activities (friends, grandkids, restaurants, etc.). After years of successfully helping hundreds of our clients make the same move you're considering, we know which neighborhoods you're most likely to enjoy. And we're happy to share what we've learned with you.
This is, without a doubt, an opportune time to consider downsizing. So, feel free to call or text us to discuss the possibilities.
Posted by Mike Wald on