Using Equity to Help Fund Your Retirement

If retirement is something that is in your near future, now may be the time to start thinking about it. You probably want to make sure you’re set up to be financially comfortable so you can live your best life.

If you own your home, you may not realize its likely you have a hidden amount of cash you haven’t even thought about — and that’s the equity in your home. Data from the Federal Housing Finance Agency shows that home values have gone up nearly 60% over the last 5 years alone- and that appreciation gave your net worth a big boost! Additionally, if you’ve been in your house longer than the last 5 years, chances are you have even more equity in your home. So, if you want to have access to more of the equity you’ve built up throughout the years, it’s worth thinking about selling your house to downsize.

Downsizing Before You Retire

Selling your home so you can downsize into a smaller home, or maybe one in a more affordable area, could free up your home’s equity so you can use a portion of it to help you feel confident when you retire. Whether you want to travel, spend more time with your family, or just feel more financially secure, accessing the equity in your home can make a huge difference.

Here are a few ways downsizing to a smaller home can help fuel your retirement:

Cut Your Living Costs

The AARP shows the number one reason adults 50 and older move is to reduce their cost of living. Downsizing to a smaller house or relocating to a more affordable area can help you lower your monthly expenses like utilities, property taxes, and maintenance costs.

Live Simply

A smaller home can mean less maintenance, upkeep and fewer responsibilities. This can free up your time and energy to focus on things that matter most to you now that you’re retired.

Be More Financially Flexible

Selling your house will give you access to your home’s equity, literally turning it into cash so you can use it however you like. Maybe you want to do some investing, pay off debt, or create a financial cushion.  Either way, your home’s equity can open new opportunities for your future.

Take the First Step Toward Your Retirement

If you’re interested in downsizing, working with a Realtor is your next step. At Logical Choice Realty Group, we are experts in investing, so we know what it means to use the equity in a home to help create more financial freedom. We can also help you understand how much equity you have and how you can use it to your advantage. We will also help you navigate the entire process of selling your current home and finding a new one, so you can transition smoothly into your new phase of life.

So, if you’re planning to retire in 2025, now may be the perfect time to downsize and take advantage of the equity you’ve built up in your home. Connect with us today to start planning your move so when you’re ready to retire you’re set up for more financial success.