The Baby Boomer’s Guide to Moving
2020 saw a higher than the usual number of Baby Boomers selling their homes and moving to popular retirement destinations within the US, such as Florida and the two Carolina states. While some Baby Boomers opted to move to a senior living facility after selling off their home, most purchased new private accommodation and often downsized to give themselves leftover money to spend.
If you’re thinking about moving but are unsure if it’s right for you, read on to discover some of the considerations you should make when mulling such a decision and an outline of some of the most popular tourist destinations for Baby Boomers.
Should I Sell My Home & Move Elsewhere?
Everyone is different, but there are a few common reasons why Baby Boomers decide to sell their home — which they have typically lived in for several decades and may have raised their families in — and move to another property in the same city, move to another state, or leave the US altogether.
One common reason for switching homes is it gives Baby Boomers the opportunity to downsize. While this may sound like a bad thing, there are several benefits to downsizing, such as being left over with some extra money which you can spend on leading a better standard of living in your twilight years, or invest in an annuity or government bonds to help you get through retirement more comfortably.
Other pros include reduced utility bills and the fact a smaller property is easier to clean and maintain than a larger one.
Alternatively, you may want to sell your home and move elsewhere because it gives you a chance to move closer to family or move to a part of the US that has a better climate to your liking. Or, you may simply be looking for a change — and you may even fancy spending your retirement abroad.
Things to Do When Moving
Moving from one home to another, even in the same neighborhood, can be a stressful and time-consuming endeavor. But, as long as you think your decision through, conduct the required due diligence and be smart about selling your home, moving can be well worth the effort, especially if it leaves you with some cash left over to invest or live off.
Here are four important things you should do to give yourself a better chance of making the right decision and sell your house for a good price in a timely fashion:
Consider All the Financial Implications of Moving
Relocating can affect your wallet in countless ways — and it’s important to consider all of them prior to making a decision. Firstly, you should figure out if you can sell your existing property for enough to cover the cost of purchasing another one in your desired location, or alternatively, look at how much renting would cost there.
It’s also important to look at other ways your cost of living may be impacted by the move, such as more expensive groceries, utility bills and travel expenses, among other things.
This exercise will allow you to get a better sense of the financial implications of moving and will allow you to determine if it’s financially viable and whether it will leave you worse or better off. Even if it will leave your financial position worse off, you may still decide it’s worth moving due to other benefits, but it’s nevertheless important to know this in advance so you have a chance to make changes and preparations so you don’t end up putting yourself in a difficult position.
Get a Property Appraisal
Paying to get a property appraisal is absolutely worth the money, as knowing how much your home is worth in today’s market will allow you to get an idea of what you can realistically expect to ask for.
This will help you make a more informed decision and it reduces the risk of you listing your house for sale but waiting for a long time to sell it because the price doesn’t reflect its current market value.
Consider Repairing & Improving Your Home
Fixing minor damage to your property can increase its value by considerably more than the cost of the repair work, so this is a no-brainer when it comes to maximizing the selling price of your home.
You should also consider making improvements to your home to increase its value. Also, simple things like tidying up and reorganizing can give your property a better chance of winning over a prospect buyer when they come over for a viewing.
Think About Downsizing
Baby Boomers often have extra bedrooms in their homes which their children previously used, so for many of us, downsizing is a good idea when moving to another home.
We’ve already gone over the benefits of downsizing, and it’s worth evaluating if this would be a good move for you, as it can be a good way to improve your finances in your twilight years.
Declutter Before Moving
If, like many other Baby Boomers, you’ve lived in your current property for a while, it’s likely you have a lot of possessions and items lying around which you don’t really need, want or use.
Decluttering before moving not only makes your home more appealing during realtor viewings, it is also advisable for you as transporting unnecessary possessions and taking them to your new home is an unnecessary expense and a waste of time. Furthermore, if you’re downsizing, you might not even have enough space to store these surplus belongings.
Should I Rent My Home Out?
You may be wondering if it’s a good idea to rent out your home instead of selling it, as this way, you can continue to earn a monthly income during your retirement. The trouble is, renting out your home instead of selling it means that you can’t buy another property in the area you intend to retire in unless you have significant savings in the bank or other assets which you can sell to fund the purchase of your new home.
So, if you don’t have the money to buy a new house, you’ll have to rent, which will eat up most or all of the income you’re earning from renting out your existing home.
Ultimately, it comes down to your individual circumstances and the relative rents of your house and the property you want to rent, but renting out your home instead of selling it usually isn’t a great idea for retirees.
Popular Retirement Destination For Boomers
Florida has been the most popular state for retirees for a while, with thousands of Boomers moving there every year for its warm, sunny climate and great selection of facilities for middle-aged people and seniors.
However, last year saw an increase in the number of Boomers relocating to other states, particularly Georgia, North Carolina and South Carolina, though Florida remains a popular retirement destination.
Final Thoughts
Relocating can be a good move for Boomers, especially once you enter retirement and therefore aren’t tied to a certain city by a job anymore. But it’s important to carefully think about whether or not relocating is a good move for you at this stage of your life, and you should be sure to evaluate the financial implications of moving to whatever place you have in mind.
Furthermore, while there are a handful of states which are popular retirement destinations, you shouldn’t restrict your options to only them. Instead, you should consider where you want to spend your retirement, and you may even consider doing something a bit more radical and moving abroad for some or all of your twilight years.
Irrespective of where you move, you should be smart about selling your home so you can sell it for a good price and find a suitable buyer in a timely fashion.
A Quick Summary
- Tens of thousands of Baby Boomers decide to relocate within the US every year, and some even decide to move abroad for their retirement.
- Many use this as an opportunity to downsize as this may allow them to have some left over cash after selling their home and buying a new one which they can invest in an annuity or use to help fund their retirement in another way.
- When selling your home, you should be sure to get it appraised before listing it on the market so you know how much you can realistically ask for.
- It’s also a good idea to repair any damage to your home and consider making minor repairs to increase its value.
- Florida is by far the most popular retirement destination, but other states, like the two Carolinas and Georgia, are also growing in popularity among the senior crowd.
- You should consider the financial implications of moving to a certain place, in addition to the climate, distance from your friends and family, and several other things.
- If you plan on retiring abroad, there are some extra things you need to think about, such as potential language barriers, access to healthcare, and exchange rates.
This article was first published at BoomerBuyerGuides.com.
