There are several financial reasons why retirees should consider selling their current home and downsizing to a new one, according to this article from MarketWatch.
The most prevalent reason is to realize cost savings that result from a reduction in certain expenses, such as property maintenance, utilities, property taxes, and mortgage payments. Other considerations related to retaining or selling a large residential property include determining one’s financial or physical ability to maintain the property and one’s ability to negotiate stairs and perform other physical tasks into old age.
What you do with the capital you eventually unlock from your real estate will be a function of your wealth, income, desire to live in your current home, and estate plans. The best way to make a rational investment decision regarding all your retirement assets is to determine your probable lifestyle in retirement, the resultant retirement liability, and how each asset will help finance those future costs.
