The right time to downsize is whenever you are emotionally ready.
About 78 million
baby boomers are entering their
empty-nest years. Many are already there, and there's a whole cadre of people who have had the empty nest for several years. Many are wondering whether they should sell their home and get something more in line with their current needs. With interest rates for
mortgages still at a 40-year low, some think this could be the time to do it. Others are confused by the real estate market. They may be attracted by a bargain price or two in the area of their choice but wonder how much they could get from their present home.
Daniel Kadlec, author of The Power Years: A User's Guide to the Rest of Your Life (Wiley), says the most important question you need to answer is this: Are you truly ready to downsize? It's not easy to give up the home where you raised your children, one that is filled with many years of memories.
Financial planners say giving up a large house is always a profitable decision in a financial sense. Living in a house that's too big ties up capital and imposes extra taxes and upkeep costs. The large house can also involve a great deal of yard work and housework. Your decision should have little to do with an up and down market, say these planners. The right time to
downsize is whenever you are emotionally ready.
