29 Dec 10 Reasons Not to Downsize Before You Retire
10 Reasons Not to Downsize Before You Retire
While some people cannot wait to downsize to a smaller house when the kids are on their own and retirement is approaching, downsizing isn’t right for everyone. There are many factors to consider before you decide to sell your home and opt for something smaller. If you still owe a considerable amount on your home and want to try to pay it off, you may want to put off selling. No matter what your reasoning, here are some things to think about before you decide to downsize when you retire.
#1 Less space to entertain.
People often forget to consider how having less space will impact their social life. For example, if you downsize when you retire, you won’t have as much room when the kids and grandkids come over to visit or for holiday gatherings. If you enjoy having company over, there’s nothing worse than not having enough space and everyone feeling cramped. While you can always host events at a rented facility, it’s just not the same as having people over to your own, spacious house.
#2 Maybe a smaller house is too restrictive for your comfort.
If you’re used to having lots of space in your home, you could feel very restricted and uncomfortable with less space. And in a smaller home, you may be forced to get rid of your furniture because it’s not conducive to the space. (This, of course, is an added expense.) You certainly don’t want to downsize and then find out that you hate feeling so confined in a smaller house.
#3 This may not be the right time to sell.
Timing is everything. And depending on the housing market and what’s going on in your personal life, it may not be the right time to sell. If you have too many things going on in your family, business, or health, the last thing you need is the stress of selling your house, finding a new house, and packing up everything to move.
#4 Less storage space.
Many people don’t think about how downsizing their home will mean downsizing their stuff too. If you’re a sentimental person and find it difficult to let go of things that bring you happy memories, then you may not be ready to downsize your house. If you can’t let go of some things, you may need to rent a storage facility while you live in your smaller home. But this will be an additional cost each month that could be avoided if you stay in your larger home, right? Either way, you’ll need to do some soul-searching and be honest with yourself about this before you make a decision.
#5 You are not ready emotionally to make the change.
Many people are surprised by how emotional they can be when deciding to downsize after retirement. After all, if you’ve been in your home for decades and raised your family there, you are saying goodbye to many beautiful memories. If it’s too hard to imagine leaving these memories behind—if you look forward to making memories in the same house that you raised your own kids in—then maybe you aren’t emotionally ready to downsize.
#6 Moving costs – nobody likes moving.
While downsizing to a smaller home can save you money as far as mortgage payments go, you can’t forget about all the costs associated with moving, packing, and closing. Often, there are unexpected costs too. For instance, maybe in order to sell your house, you need to put in a new furnace or replace the roof first.
Many people choose to rent before buying another home, but if they do that, they lose the tax advantages of owning a home. All of these costs add up quickly, and many people aren’t prepared for the extra costs that come up when selling their house.
#7 Change is difficult.
If you’ve lived in the same home for a long time, selling it and moving to another location could be very difficult emotionally. You’ll be leaving memories, neighbors, and friendships behind; and depending on where you move to, you may not be able to maintain these relationships. Moving means you’ll be leaving everything familiar; you will have to find new places to shop, dine, and bank. You may have to find a new doctor and a new church too. The changes are seemingly endless.
#8 New neighbors, yikes!!!
Let’s be honest. If you have great neighbors, you need to count your blessings. Downsizing means you’re rolling the dice and taking your chances; you may not end up with decent neighbors again. Is that a chance you’re willing to take? Only you can answer that question. You may also feel anxious about making new friends in your new location and wonder if you’ll be welcomed or shunned.
#9 Too much stress to move.
Whether we acknowledge it or not, it’s stressful to move. From dealing with the bank and the closing process to letting go of sentimental objects and packing up your whole house, there’s lots of stress almost every day. There are so many things to coordinate and take care of in addition to closing your bank account, transferring your medical records, and saying goodbye to friends. Sometimes, downsizing just isn’t worth the stress.
#10 Loss of status symbol.
Some people really feel like their house is a symbol of their status or success. If you downsize and live in a smaller home, will you be concerned about people’s opinions of you change? If this bothers you, then maybe downsizing isn’t the best choice for you, and that’s okay!
As you can see, there are many things to consider before you downsize after retirement. You certainly don’t want to rush into a decision you’ll regret just because others you know are doing it. Choosing when or whether to downsize is a very personal decision that you need to make for your unique situation and experience. Remember: you’re the one who has to live with your decision. So make the decision you want to make; don’t base it on what others think or want for you.
