4 Advantages of Downsizing as a Senior

I've written about it before and I know I will continue to since it's an important topic-Downsizing! It can take years, requires help and proper planning to get it right. 

I have the pleasure to have a guest writer today who is an expert on the topic, Michael Longsdon with Elder Freedom. I know you'll take away some valuable tips, enjoy!

 Photo via Pexels

4 Advantages of Downsizing as a Senior (and How to Get Started)

According to research by Trulia, more Americans want to move to a smaller home than a larger one. It isn’t all millennials looking for tiny homes, either; those over 55 are the most likely to want to downsize. This makes perfect sense because moving to a smaller house as you approach or enter retirement has many clear-cut benefits. In this article, we will go over the biggest ones and give you some advice to get started on your downsizing journey.  

Financial Benefits

For many, the main motivation to downsize to a smaller home is financial. You could save quite a bit of money in the process, especially if you move to a cheaper area, which may free up more cash for you to enjoy your retirement. 

That said, you may be overestimating how much money you can make from downsizing. Things like capital gains tax, moving costs, insurance, or just the state of the market can make you spend more money. Make sure you consider all these elements before buying. Downsizing may still be worth it, but it could be less profitable than you imagined. 

Before you get started with the home-selling process, take a look around online to get a ballpark idea of what your home might go for on the market. In Blue Bell, for instance, home sold for an average of $463,000. Of course, markets will fluctuate, and you might end up with more (or less) depending on where you live in the area.

Less Maintenance

A smaller home doesn’t just mean fewer expenses, it also means less time spent on everyday maintenance. You’ll be amazed by how much free time opens up once your cleaning and general upkeep are cut down. If possible, consider moving to a house without a yard, such as an urban townhouse. If this is not an option, keep the yard small (unless you are a keen gardener and landscaper) and focus on only having essential rooms. 

Good for Mental Health

Depending on how long they have been living in a house, seniors may have accumulated a lot of stuff they simply don’t need anymore. Moving to a smaller house means getting rid of a lot of this stuff, which can be good for us. 

Indeed, the act of decluttering is good for mental health. Many experts agree on this, seeing how those who declutter their lives feel liberated and relaxed. It can even have a knock-on effect on your habits: if your kitchen is tidy, you’re more likely to eat well.  

Safety

Downsizing is also a matter of safety. Moving to a smaller house decreases your risk of injury in a number of ways, especially if you take the time to make the necessary home modifications. These range from grab bars in bathrooms to step-free access and widened doorways, or even moving kitchen cabinets to be easily reachable. This extensive guide by AgingInPlace has detailed recommendations for every room in the house. 

How to Downsize

So, we have established that downsizing is generally a good idea. But how do you get started? How do you find the perfect new home? And how do you actually part with decades worth of clutter? Below are a few tips.

• Look for step-free, accessible homes. Everything else can be modified or added, but structural changes are much more complex and expensive. Currently, according to Fixr, the national average sits at around $9,000.
• Use a home renovation cost calculator to estimate how much a given set of modifications would cost, and adjust your homebuying budget accordingly.
• Look up a few decluttering methods to find one you feel works for you: there’s not just one way to do it! The “four boxes” method is especially useful for moving since you can already pack the “keep” boxes as they are. 
• Consider hiring a professional moving company to help you relocate when all is finally said and done. Not only will this take some of the stress of your shoulders, you can rest easy knowing your stuff will be in the hands of the pros. If you’re concerned about cost, it’s actually a bit more affordable than you might believe. In Blue Bell, you’ll pay $305 on average for a team of professional movers.

Downsizing is, at its core, a way of making life simpler for seniors. It can also make life cheaper, healthier, and safer, and it can free up time for you to enjoy it better. Any move is a challenge and an overhaul, but once you’re settled in you will be grateful you took the first step and started looking for a smaller, easier, more senior-friendly home. 

Enjoying Summer around Philadelphia

I admit and apologize that I've been slaaaacking with my blog posts. Being a new mom, working during a fierce real estate market and my non-profit obligations are just a few of my excuses. By far my favorite excuse is enjoying motherhood. This life change has given me the opportunity to enjoy the Philadelphia region on a new level. One thing I love doing is taking Madison for walks in various parks around Philadelphia. So here are a few I think you should check out!

1. Upper Merion Farmers Market is every Saturday until mid November. It's located at the old township building and has a wonderful park to walk around after you pick up some locally sourced goodies. What I especially liked about the play ground area is that it's shaded and has turtles!
http://uppermerionfarmersmarket.org

At Upper Merion Park with Madison

2. Sutcliffe park is a convenient spot for walking and enjoying the playground within Conshohocken. There is a covered picnic area and enough to see and enjoy for my 8 month old.
https://www.facebook.com/pages/Sutcliffe-Park/105565816167337
Mary H Wood park is finally opened and looking forward to visiting later this week!
https://www.facebook.com/pages/Mary-H-Wood-Park/120509151331403

3. Kelly Drive has always been a favorite of mine. Now I get to enjoy a flat running path with my daughter in her jogger stroller. We don't get there as much as I'd like, but I try to stop when I'm on my way in or out of the city.

4. Wentz Run Park is a place I've driven by for years and for some reason never visited- until recently! What a gem! A good size playground that has shade, volleyball, baseball fields, basketball court and a great walking path. I highly recommend meeting up with a friend and going for a stroller walk here.
https://www.whitpaintownship.org/216/Wentz-Run-Park

Where have you visited? I'd love to hear your recommendations and get some new ideas to take Madison.

2018 Trend

At the beginning of a new year it's natural to reflect on the previous 12 months and look ahead at what's to come. Personally, the last year was my favorite! I became a mother to our daughter Madison and professional I achieved goals and learned a lot. Now politically, well it was even more historic. 

Looking ahead in terms of the real estate, the overall assumption for 2018 is positive. Slight increase in sale prices, only a slight increase in interest rates and economic growth.

Forecasting exactly what the mortgage interest rates will be is tough without a crystal ball. But we can make some educated guesses by watching the Federal Reserve trends. It's predicted rates will go up 3 to 4 times this year, but not to exceed 5%. According to Housingwire recent article, "The MBA predicts rates will increase to 4.6% in 2018, 5% in 2019 and 5.3% in 2020."

What does this mean? If rates increase, home buyers may be priced out of the homes they want. With this threat, it will encourage many buyers that are on the fence to purchase a home sooner than later. This will spur a healthy market in 2018, especially for the 'move up' homeowners. Also, inventory is predicted to remain low, favoring home sellers-again a great opportunity for the 'move up' buyer. However, builders are gradually increasing their construction and their confidence is at an 18 year high according to the National Associations of Home Builders. "NAHB’s Chief Economist Robert Dietz said that the measure of homebuyer traffic increased 8 percent, and “with low unemployment rates, favorable demographics and a tight supply of existing home inventory, we can expect continued upward movement of the single-family construction sector next year,” he added." source: https://www.nahb.org/

Tax reform is a biggie for 2018... 
Definitely speak with your accountant to see how you'll personally be affected. Here are few changes:
1.Generally lower tax rates for individual tax filers. Example; Individual income between $38,700-$93,700 was in 25% bracket. Need law is income between $38,900-$82,500 is 22% and $82,500-157,500 is 24% bracket
2. Itemized deductions for state and property taxes as well as income or sales tax is capped at $10,000
3. Standard deduction for single is $12,000 and $24,000 for joint returns.
Here is more information >>https://www.forbes.com/

Want some good news about taxes? Locally, Chester, Delaware and Montgomery counties did not include property tax increase for 2018. However, Bucks county approved a 5.4% property tax increase.

https://www.apartmenttherapy.com

Now the important stuff 😀- what is the color of the year to spruce up your home? Try a pop of Ultra Violet! https://www.pantone.com/color-of-the-year-2018