A Smaller Home Could Be Your Best Option in L.A. & Beverly Hills, CA
A Smaller Home Could Be Your Best Option | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
Many people are reaching the point in their lives when they need to decide where they want to live when they retire. If you’re a homeowner approaching this stage, you have several options to explore. Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of Realtors (NAR), says:
“As we see the transition of the large Baby Boomer generation age into retirement, it will be interesting to see if they move in with their Millennial and Gen Z children or if they stay put in their own homes.”
Lautz lists two options: move into a multigenerational home with loved ones, or stay in your current house. Multigenerational living is rising in popularity, but it isn’t an option for everyone. And staying put may fit fewer and fewer of your needs. There’s a third option though, and for some, it’s the best one: downsizing.
When you sell your house and purchase a smaller one, it’s known as downsizing. Sometimes smaller homes are more suited to your changing needs, and moving means you can also land in your ideal location.
In addition to the personal benefits, downsizing might be more cost effective, too. The New York Times (NYT) shares:
“Many downsizers expect to improve their retirement income stream if their new home costs less than what their old house sells for. Lower utility costs, insurance and property taxes — as well as investment returns on the proceeds — can also improve the bottom line.”
Being in a strong financial position is one of the most important parts of retirement, and downsizing can make a big difference.
A key part of why downsizing is still cost effective today, even when mortgage rates are higher than they were a year ago, is the record-high level of equity homeowners have. Leveraging your equity when you downsize can lower or maybe even eliminate the mortgage payment on your next home.
So, not only is the upkeep of a smaller home likely more affordable, but leveraging your home equity could make a big difference too. Your local real estate advisor is the best resource to help you understand how much equity you may have in your current home and what options it can provide for your next move.
Downsizing to a smaller home may be the best option for some homeowners approaching retirement. With record-high levels of equity, leveraging your home equity when you downsize can make a big difference in cost-effectiveness, potentially lowering or even eliminating mortgage payments on the next home. Los Angeles, CA is an ideal destination for downsizers who want to remain close to family and enjoy year-round sunshine. With its many attractions, cultural opportunities and temperate climate, this vibrant city offers something for everyone. From sipping coffee in Venice Beach to visiting Dodger Stadium in Echo Park, your days will be filled with adventure. With their knowledge of local market trends and access to a wide selection of properties in the area, real estate advisors are the key resource to help you understand how much equity you can leverage in your current home and what options it can provide you for your next move.
If you’re a homeowner getting ready for retirement, part of that transition likely includes deciding where you’ll live. Let’s connect so you can understand your options and explore your downsizing opportunities.