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Boy oh boy where did the time go? A decade or two ago you bought this beautiful home for your family. Each kid had their own bedroom. Common rooms that family members meet are the kitchen and family room. Your better half loves to cook. Then you demanded a large kitchen and breakfast area. You have a huge backyard. One great selling point was a great school district. The home was not just for family comfort and safety. You loved to entertain in your home with family and friends.
Fast forward to today. The kids are grown. They have moved from home. They have lives of their own. Your adult children may live locally or in another state. There is no more non-stop kid or teenager traffic. No toys on the floor, loud music, sleepovers, sports, and cheerleader teams at your home. Years ago you entertained at home all of the time. Now it is every now and then. Now your home has empty rooms. These rooms have unused furniture, pictures, trophies, and memories of bygone times. The kids are gone now the rooms are gathering dust. Baby boomer you are an empty nester. Emotionally it is a hard realization. Upside you may be sitting on an egg nest. With the equity in your home is your nest egg. For many empty nesters, their nest egg is a considerable amount of money. Have you considered downsizing?
What Are Benefits of Selling a Too Big House?
About 92% of baby boomers have equity in their homes. The equity is your nest egg. The equity can enable you to purchase a smaller home or condominium. May want to be free of financial and maintenance responsibilities of your current home. Ever wondering about, just selling home putting money in savings and renting. We are all citizens of the world. Can just travel and visit places you always wanted to see.
Capital Gain Benefits
Selling your principal residence must live there two of five years before you selling. As a single homeowner capital gain is $250,000.00. As a married couple capital gain benefit is $500,000.00. You are not required to purchase another property with these proceeds. This rule does not apply for investment properties. Consult with a tax advisor or attorneys verify your capital gain consequences.
Selling Too Large Home and Purchasing Smaller Home
Selling your current home can result in a substantial down payment on smaller home or condominium. Less expensive smaller home can result in lower monthly mortgage payments. Smaller homes require less maintenance and utility costs. Purchasing a home requires interior and exterior maintenance costs. Conversely, purchasing a condominium the exterior is maintained by the homeowner association. Selling a home in West Los Angeles, CA? Want to move to be near family members in another state. We all know the pricey price tags of homes in West Los Angeles. Check home prices in the state you are considering. More than likely costs of home ownership are much less. Calculate your current housing expenses. Include in your costs the monthly mortgage, property taxes, utility, and maintenance expenses. Compare to smaller home or condominium. Saving could be $600.00 per month. This is an annual saving of $7,200.00 a year.
Cut Home Maintenance and Utility Costs
Smaller living spaces require less maintenance and utility costs. Cut down on water, gas, electricity will result in more money in your pocket. Have a swimming pool? New purchase will not have a swimming pool. Now you can fire pool boy. Moving from a four bedrooms 3 bathrooms home? Downsize to 2 bedrooms and 2 bathrooms home. There are less maintenance and utility costs. Empty nester do you own an older home? Consider now or down the road replacement costs for the roof, foundation, electrical, and plumbing.
Think Twice Empty Nesters Downsizing is a Major Decision. Why Are You Selling Your Too Large Home?
No Longer Want Large Financial Responsibility of Current Home
Want Home with Less Financial Responsibility
Maintenance Cost Too High
Current Home Is Too Large
Several Empty Bedrooms
Backyard Too Large and Not Used
No Longer Need Swimming Pool
Want To Change From Home to Condominium
The Neighborhood Has Changed
Want a Safer Neighborhood
Walk-Ability Will Be Strong Factor in New Purchase
Want To Move Closer To Family Members
Want To Sell Current Home and Rent
Want To Travel
Want To Put Money in Saving Account
Conclusion
Baby boomers are you an empty nester? Decades ago you bought your family dream home. Now the kids are moved and have lives of their own. There are empty rooms gathering dust. Empty nesters now may be the time for you to move on as well. Are you in a too large home? Consider the benefits of selling your home and downsizing. There are capital gain benefits. Smaller homes require less utility and maintenance costs. You may not want to purchase another home. You may want to take your profit put in bank and rent. Or move closer to the grandkids. As a citizen of the world, now leisurely travel the world. Moving from a home where there are so many memories is a tough decision. You may be sitting on a nest egg you can move on. Consider your options carefully.
