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Why Baby Boomers Should Consider Selling Larger Homes

There are a lot of baby boomers who are at the point where they want to retire. Unfortunately, statistics show that many of them do not have substantial savings set aside. The one thing that is helping baby boomers is the equity they have in their homes.

Thankfully, they purchased their homes decades ago when the price of homes was much lower. Now, there is a high demand for homes. With careful financial planning, they can sell their homes quickly for a substantial amount of money and use that money as part of their retirement.

Some Benefits of Downsizing

When baby boomers purchased their homes, they did so looking for ample space to grow their families. Now, their families have moved on and their children have families of their own.

Baby boomers are left with larger properties that require maintenance and upkeep. The maintenance is labor-intensive, so baby boomers spend money hiring professionals to come in and do much of the work that they might have been able to do on their own when they were younger.

They don’t need all that space anymore and may find that many of the rooms in their home are empty or are used to store junk and other items they're not using. Factoring in these things, many baby boomers have decided that they should downsize to a smaller home or even a townhouse.

It's clearly a seller's market. The COVID-19 pandemic has changed how people work and live. Before the pandemic, millennials who were searching for well-paying jobs moved to large and expensive cities. To be close to their job, they settled for small apartments in cramped areas with exorbitantly high rent.

Now that these individuals can work from home, they realize that there's no need for them to live in cramped apartments with no privacy. For the same amount or less than what they're paying to rent a one-bedroom apartment, they can purchase a spacious home in another part of the country.

For the first time, it has become a realistic option for many millennials to purchase larger homes for their young families. Baby boomers own most of these homes. Now is the perfect time for them to sell and make the money they're going to need to survive retirement.

Reduces Monthly Obligations

One of the biggest benefits baby boomers get from downsizing is that they have more spending money. Downsizing during the early stages of retirement gives baby boomers the ability to use the equity they have built up over a lifetime of homeownership to shape their future while they're still young enough to enjoy a level of independence.

While the housing market is booming, the market for condos and smaller units is struggling. This is a win-win situation for baby boomers. They are able to get top dollar for their home and then find a suitable place for them to live at a fraction of the price.

Conclusion 

After cashing out on their home, baby boomers will have a sizable amount of money to build their retirement. If they do it early enough, they can enjoy retirement with relative youth and vigor.