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Downsizing Might Make Sense

By
Real Estate Agent with Long & Foster Real Estate, Inc.

DownsizingWith roughly 12.5% of the population over 65 years of age, it is understandable that some of them are thinking of downsizing because they may not need the amount of space they did in the past. There is something to be said for the freedom acquired by divesting yourself of “things” that have been accumulated over the years but are no longer needed.

Moving to a less expensive home, could provide cash that could be invested for additional income or savings for unanticipated expenditures.

Savings can also be recognized in the lower utility costs associated with a smaller home, not to mention, the lower premiums for insurance and property taxes.

Going from the home where you reared your family to one of the new tiny homes may be a bit extreme but downsizing to 2/3 or 50% of your current home may certainly be reasonable. In some situations, your interests may have changed so that a different area or city might be a possibility.

At one time, IRS had a once-in-a-lifetime exclusion of $125,000 of gain from a principal residence but it was changed so that homeowner’s are eligible for an exclusion of $250,000 of gain for single taxpayers and up to $500,000 for married taxpayers who have owned and used their home two out of the last five years and haven’t taken the exclusion in the previous 24 months.

Homeowners should consult their tax professionals to see how this may apply to their individual situation.

Regards, Gretchen

Posted by

Gretchen Conley, Realtor®  "Your Transition Specialist" 

Keller Williams Realty Centre   *   Cell 443-676-1625

Questions about the neighborhood, the community, the market?  I'm always happy to help - Give me a call!

About the Author...This article  was provided by Gretchen Conley, a Nationally recognized Realtor, Certified Residential Specialist, and Certified Short Sale & Distressed Property Specialist.  Gretchen can be reached via e-mail at Gretchen@GretchenConley.com by cell phone or text message at 443-676-1625. Gretchen has helped many people buy and sell their home.  For Maryland real estate and homes see www.GretchenConley.com.   If you need to Short Sale your Maryland home please contact me for more information.

Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Any relocation is often stressful and time-consuming, but rarely do we wonder about the impact the process has on the environment. This is amplified when moving to a smaller house or condominium, and additional decisions have to be made regarding items that must discarded in order to save space.

I just moved to a smaller place, so I trashed, donated, gifted a lot of staff. It is all good.

Sep 30, 2015 04:53 PM