People often receive a lot of advice when they retire, and a common piece is this: get a smaller home after the kids are grown to save money. Downsizing can help people save if they first pay off their Mortgage Loans Hollidaysburg PA, but there are factors that can result in higher housing costs for a smaller home. Below are several areas retirees should consider before moving.
When a person moves for a job, they may get a relocation package from their new employer or they may get moving help from friends and family. Those who move after retirement must bear those costs alone, and the expense can be considerable if the move is long-distance. Beyond the cost of the physical move, retirees will pay fees associated with selling one home and buying another.
Most retirees have gathered and become attached to collections of things over the course of their adult lives. For instance, if a man has worked all his life to build a classic car collection, he may not want to give up his toys in order to move. Renting a storage space is one option, but it doesn’t come cheap. The average 10×10′ unit costs $150 per month, making it yet another expense. Retirees can donate or sell some things, but they shouldn’t count on a yard sale to supplement their income.
If a person has built up equity sufficient to buy a new home with help from ARC Federal Credit Union, they’ll still be liable for property taxes. Those taxes may be higher in another state even if the home itself is smaller. Some areas offer property tax discounts to seniors, making this an area worth investigating.
Condo Association Fees
Those moving from a single-family home to a condo should consider association fees. Many seniors’ communities have monthly dues reflecting the amenities offered, such as golf courses, pools, and clubhouses. Paying these dues may make sense if a person plans to use the amenities, and it can help them save on other entertainment expenses.
In many cases, downsizing is brought about by life events such as injuries and deaths in the family. To avoid the stress brought about by such a transition, people should consider their options beforehand. Most people think they’ll spend less after they pay off their Mortgage Loans Hollidaysburg PA, but many find out that they’ll spend more than they expected. Visit here to find out more.