If you have spent the last 25 years or so raising a family, you will probably be evaluating your housing needs in the foreseeable future. Should you stay where you are or consider one of the many alternatives? These include a smaller house, a condo, a cluster home, or an apartment. Of course, you would like to make a choice that would fulfill both your lifestyle and financial needs. Below are some factors you may want to consider.
Maintenance
Will the age and/or condition of your present home bring unacceptable cost in the future? Will repairs or replacement of components become overly burdensome? How about the physical energy necessary to keep your property looking sharp and in good working order? Are you able to do the work yourself or can you afford to have someone else do it for you?
Retirement income needs
Can you continue to own your property with its current mortgage payment obligations and still meet your future retirement needs? If the house is free of debt, it may be best to stay put. A large debt load may require you to sell this property and buy something that will carry a much lower financial burden. This may be particularly true for those who have helped finance one or more college educations.
Price comparisons
How affordable are your alternatives? Compared to the value of your present home, would a condo or smaller home within an acceptable area be within reach? Where would your money be best invested? This question can only be answered by looking at the monthly cost of owning each property versus the expected annual inflation in the value of cash.
Advice: You will need good and reliable information upon which to evaluate your future real estate needs. The best source of this data is your local Realtor®. He or she can show you all your alternatives.
