Downsizing & Retirement: Should You Sell Your Home?

The company in Austin where you have been working for the past several years is unable to cope with the current financial crisis. The management has decided to carry out downsizing in the company in order to cut costs and make the business sustainable. The situation is dire and you know that very soon, you will be landing in hot water. Should you sell your home?

Take another scenario: You’re about to retire. The steady income that covered your day to day expenses will no longer be there. Moreover, retirement does come with certain benefits. It is certainly the end of your career, but the show still goes on. You are free to make so many decisions that you have been postponing for a while. Should you sell your home and relocate to another place. Should you move to another, smaller house?

Your kids no longer live with you and frankly you don’t need a big house anymore. Then, there are the utility bills that must be taken care of as well. In the above scenario, the financial aspect of downsizing or retiring are so strong that they must be considered while making a decision whether you should sell your house or not.

How Selling After Retirement Can Save You Some Money

Over the past several years, the housing market has been very tough. However, when you actually decide to sell your house, you will find out that it is worth much more than you imagined. You may be able to cut your monthly expenses by half when you move to a smaller house. Even if you see that the price of your home is not as much as you thought it should be, you must understand that the price of all the other houses must have fallen proportionately due to the same market drivers that have decreased the price of your house.

You are living in a house that contains a few empty spaces. Moreover, if you seek to save a few bucks each month, you should consider selling your house and moving into a smaller one. This will allow you to save money in utility bills as well as homeowners’ insurance, etc. The electricity bill of a large house with more bedrooms is comparatively much higher than a reasonable apartment with two rooms. You will be able to save hundreds of dollars in this regard.

If there is a mortgage on your property, this might be your chance to get rid of it. In fact, you may be able to simply purchase a condo without a mortgage. Even if there is a mortgage on your new home, the payments will be much smaller than the mortgage on a larger home in Austin.

In the case that you have retired, you may reap the benefits of assisted living. This will allow you to save a lot of money on food, cleaning, transportation and various other day to day costs. You will also be able to save money on your taxes. Real estate tax is based on the value of your home. When you move into a smaller home, its value will be less than the value of your present home. The tax will also be comparatively lower.

Retiring in Austin, TX?

There are many financial advantages of selling your home. It’s certainly an option worth considering for those thinking of downsizing or looking at retirement. If you are ready to sell your home in Austin, Texas, give us a call at Tally Two Investment Group at 512-763-0883. Selling your home to us means you will immediately have cash in your back pocket to purchase your next property, go on the first vacation of your retirement or do whatever makes you happy.