As you approach retirement, it is important to consider the size of your home and whether it will be able to accommodate all your future needs. For many retirees, keeping a large home can provide numerous benefits that are often overlooked. From gaining access to home equity to providing space for aging relatives, having a larger residence during retirement can offer numerous advantages. In this article we will explore how having a larger home in retirement can benefit you in multiple ways.
Take Advantage of the Equity
One of the primary benefits of keeping a large home in retirement is that it allows you to take advantage of the equity you’ve built up over time. Many retirees use the equity in their home to supplement their income, either by taking out a reverse mortgage or refinancing with a traditional loan. A reverse mortgage enables you to tap into the equity you’ve built in your home by receiving payments from the lender, while a traditional loan allows you to use your home as collateral for a loan with more favorable terms. Alternatively, if you decide to downsize and move into a smaller home during retirement, you may not be able to take advantage of these options.
Have Guests Over
Having a large home in retirement not only allows you to take advantage of the equity you’ve built up over time, but also provides additional benefits such as having guests over. Retirees with larger homes can comfortably host friends and family for extended periods of time, providing an ideal setting for hosting family reunions, holiday get-togethers, and other special events. Your basement is an ideal place to put extra bedrooms so you can have guests over. With a larger home, guests have more room to spread out and enjoy their time spent with you.
Make Room for Aging Relatives
Having a larger home in retirement can also provide you with the opportunity to make room for aging relatives. With the increasing cost of long-term care, many retirees are opting to take on the responsibility of caring for their elderly family members themselves. For those who have aging parents or grandparents that need assistance, having a larger residence during retirement can help provide them with a comfortable place to stay and be taken care of.
There are many factors to consider when trying to decide whether to downsize your home in retirement. Some people find that they enjoy having a larger space and all the extra amenities that come with it, especially if they plan on entertaining guests or hosting family members. Others may prefer not to worry about upkeep and maintenance of a large property. Ultimately, the decision comes down to each individual’s unique circumstances and preferences. What is your take on downsizing in retirement? Have you downsized or do you plan to?
Check out this article on how to get serious about retirement planning!
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