Baby boomers downsizing want to maintain or enhance their lifestyle and ‘live it up’ in their later years. Here are some avoidable downsizing real estate mistakes.
- Not downsizing soon enough. Big homes come with big bills. Downsizing sooner rather than later can keep extra cash in your bank account longer. Some baby boomers wait until the kids have finished uni who end up boomeranging back into the spare bedroom. It could be an extra 5-10 years of having more home than you need.
- Not researching the new area before relocating. You need to know how you’ll be filling your days there. Public transport options are key, and you’ll want to be in an area with a high ‘walkability factor’ too. What about lifestyle features – shops, restaurants, bike paths? What’s the local watering-hole like? While it’s usually not top of mind for those in their 50s and 60s, health-care providers in the locale also need to be investigated.
- Maintaining two homes. Maybe you’re a beach bunny, who likes living part-time in two locations or maybe you’ve purchased an apartment with the intent to retire there one day. Not only is the upfront price important in your decision making process, so are the running costs. Modern apartments are often a wiser choice for your second home because of lower body corporates.
- Basing your decision on how much storage comes with the apartment and whether all your furniture will fit. It’s human nature to associate meaning and attachment to our belongings. But if you agree we’re here for an experience, rather than to accumulate possessions, downsizing into an apartment is the perfect opportunity to assess what stays and what goes. If you’re clear on your reasons for moving into an apartment, you’ll find it’s not about how much you can store, it’s about a new lease on life!
- Waiting until your home is worth $X so you can buy. This is usually false reasoning, because as we all know, when your home finally hits that magic $? million mark so you can purchase your lifestyle apartment, that apartment has also increased in value.
Hope you’ve found this article helpful. Please share if you have a ‘baby boomer downsizing’ friend that might benefit!