Downsizing Your Home For Retirement With A Laneway Home
The estimated reading time for this post is 6 minutes.
Your kids have graduated from college and are successfully navigating the world on their own. You are now phasing into retirement. So, what’s next on the list? Finding a new home to fit your new lifestyle. A laneway home might be the best option for you.
Table of Contents
- 1 Why Should You Downsize? Should It Be To A Laneway Home?
- 2 What Are the Additional Benefits?
- 3 What Else Should You Consider?
- 4 A Laneway Home Is A Wise Investment
Why Should You Downsize? Should It Be To A Laneway Home?
Downsizing your home may be one of the most effective ways to lower your expenses for retirement. Reducing your mortgage debt and saving on utilities, such as energy costs, can give you the financial freedom to enjoy leisure and travel after retiring.
What Are the Additional Benefits?
Fresh New Start
Ushering in retirement often brings about a personal revolution demanding change on many levels. You might desire a new home for the new you. While it requires careful planning, buying a new home is the start of a brand new adventure.
Your Dream Home
Now is the time to buy the house that you have always wanted. If you never found your dream home, or outgrew what was once your dream home, purchasing a custom home will guarantee you end up in the house you will want to call home forever.
Downsizing your home in order to move to a new area can help you re-prioritize your life. Moving may put you within walking distance of shopping, services and entertainment. It may also allow you to live closer to friends and family that you want to maintain close contact with or re-build a connection to.
Your 3-story home with cascading stairs will become less practical as you age. Perhaps, your children have already expressed worry about you growing older in your home. Consider changing your address before you experience a change in health status that affects your independence and mobility. A smaller home – like a laneway home may be that solution.
The peace of mind of having lower housing costs, a lovely new community and the minimized maintenance of your smaller home will help you feel the positive effects of paring down your lifestyle. You will likely trade space for desired amenities that will make your living quarters much more enjoyable.
We know laneway homes to be small, yet comfortable. You can be proud of leaving a smaller carbon footprint on the planet due to downsizing your home. Government efficiency incentive programs may give you even more of a reason to downsize to a laneway home and save money.
What Else Should You Consider?
Colleagues, friends that have retired before you and even your children will have an opinion about what choice you should make. But, what are some important factors you should consider before downsizing?
Like Where You Live
Do not settle for less than what you want. Move to an area where you can live comfortably. If you have always lived in the suburbs, but want the convenience of living in a metropolitan area, diligently research which areas appear, feel and have a reputation for being safe. What are the demographics? Could you enjoy living there as you mature?
Smaller But Still Adequate
Purchase a home with a sufficient amount of space. If you enjoy cooking, move into a home where you have a large enough kitchen to do so happily. Ensure you have adequate storage space in the event you cannot part with as many items from the past as you had imagined.
Fits Your Family
If you cannot envision the day when you stop hosting, or having guests over for holidays, consider your lifestyle. Maybe you have an adult child that comes back to live at home periodically. If this means having a larger dining room, or keeping at least one guest bedroom, plan accordingly.
A Laneway Home Is A Wise Investment
Consider your finances and what makes financial sense. Can you afford to move, even into a smaller home? Can you afford to stay? If you have a high mortgage, poor credit and low home equity, you may not walk away from a sale with enough resources to buy a new house. If downsizing is financially necessary, consider renting an apartment or condo.
Once you have decided to transition to a smaller laneway home, keeping these important downsizing considerations in mind can help save you valuable time and money.