This post originally appeared on the Hermit Haus Redevelopment website on 2019-12-03
And HomeSings me of sweet thingsMy life there has it's own wingsTo fly over the mountainsThough I'm standing still— Karla Bonoff
Will your retirement home be smaller or larger than your current home?
Downsizing
- Using the equity in your existing home
- For many people, the equity accumulated in their homes is their retirement plan. That’s why home equity loans used for anything other than home improvement is a bad debt. When people look to downsize in retirement, they often use their home equity to pay cash for a smaller home and the rest to maintain their lifestyle in retirement.
- Maintenance
- Smaller homes are cheaper and easier to maintain than bigger ones. The costs of everything from painting to flooring to a new roof are proportional to the number of square feet in the home. And there is simply less to sweep, dust, and mop, giving you more time to enjoy your retirement—unless you look forward to those chores. Then maybe you should upsize.
Upsizing
- Moving to a less expensive area
- If you’re moving from NYC to Florida, LA to Houston, or Austin to Cameron, you can buy more house for the same price in your new city. While tax laws don’t currently encourage or discourage this behavior, having the ability to buy a bigger house can be its own excuse.
- Room for visitors
- Many retirees hope their children and friends will spend time with them. Some even move to resort areas to encourage visits. If so, you’ll need a place to put those folks, and a bigger home can be just the ticket.
- Parents
- Many boomers and Gen-X’ers have parents to take care of. This move toward a more traditional extended family is awesome. My mom and dad lived in their own house until they died. They refused any offer of cohabitation until near the end. But not all of our parents have the means or the health to maintain their independence so long. I firmly believe we should help our elders stay at home or move in with us—whatever they choose.




















