By the time you’re at retirement age, finances are the last thing you’ll want to be worried about. Thankfully, there are plenty of ways to cut down on housing costs.
While the housing market can be unpredictable, savvy homeowners can easily work the market to their advantage and save hundreds in the long term. For the best results, you’ll want to start considering these tips now, so keep reading to find out where to get started!
First step: pay off your mortgage
On average, most people spend about a fourth of their annual income on mortgage payments. As one of the biggest financial stressors, paying off your mortgage will dramatically reduce your housing costs.
While this sounds simple, anyone with experience paying off a mortgage before will know it’s not so easy. When you’re buying a home in preparation for retirement, talk to an experienced real estate agent for the best advice on how to finance the home.
Avoid expensive locations
Even after paying off your mortgage, your monthly bills will be significantly more harrowing if you live in an expensive city. While reducing utility usage, shopping economically, and eliminating unnecessary spending will help, living farther away from a high-profile metropolis will save thousands.
According to HomeLight’s Top Agent Insights Report for New Year 2022, homeowners all across the nation have been ditching expensive city living and opting for more inexpensive locations — thanks to COVID-19 and the shift in remote work. If you’re preparing for retirement, you’ll want to hop on to this trend and search for inexpensive areas to settle down.
Start making home improvements now to help you age
Costs of long-term care and nursing homes can be astronomically expensive, so you’ll want to make your home as safe and accessible as possible in order to avoid moving into assisted living.
Motion sensor lighting in your dark hallways, senior-safe flowing to reduce trip and slip hazards, and impact-absorbing flooring are all worthy investments. In addition, replace all doorknobs with easy-to-turn handles and revamp your bathroom with grab bars and non-slip mats. While these investments might be unnecessary now, you don’t want to wait until you need them. Invest in safety and accessibility now to save on medical costs later.
Consider a smaller home for less maintenance
The best way to save big? Live small.
Property taxes are significantly less expensive on smaller homes, while other utility bills will be reduced as well. Heating and air conditioning will be significantly cheaper for a home with a smaller square footage.
Not to mention, a smaller home also means less maintenance, which might be harder to handle as you age. Even if you consider yourself a handy homeowner, you might not want to spend your retirement cleaning, landscaping, and maintaining your home.
A smaller lot means less yard work. Fewer rooms’ means less time and energy spent on cleaning supplies or services. If you’re nearing retirement age, the best option is to consider buying a small home more suited for your needs.
