First of all I would like to say what a crazy year 2020 was for everyone. Not to mention the real estate industry, but not in the ways you'd imagined being in the midst of a pandemic. The fact that our board actually exceeded 2019 in 2020 in both units sold (+1.4%) and in values (+9.9%) is astonishing. Real estate really is a shining pillar holding up our economy in such an unprecedented time, and that's something to both pay attention to and to be thankful for.
Today I would like to speak to my empty nesters and the young investment savvy professionals. The topic at hand is downsizing, and what that might really mean to you. Ultimately it is your decision, but I'd be lacking if I didn't try to open up the door to discussion. Our industry needs inventory desperately, and you could very well be in the perfect position to help.
If you have unused bedrooms, a massive kitchen you don't cook in, or a rec room the size of a small apartment it may be time to think about downsizing. With home values being at an all time high with interest rates at an all time low you have the opportunity to cash out of that large half a million dollar house and transition into a life of simplicity with half as many rooms to dust on the weekends.
Not to mention the amount of time you will save walking from one side of your estate to the other (or up and down those damned stairs) Imagine the amount of money you will save going from a 4,000 square foot home to a 2,000 square foot home! Between gas, electric, roof repairs, and so much more can you honestly say it's worth it? Instead, you could have more time and money to do what calls to you most. Do you only need a landing pad going from long Europe trips in the summer to Hawaii vacations in the winter? Maybe you're ready to fly south to Florida full time? Even if it's as modest as needing a cozier space to spend quality time with those you love the most? Tiny houses are in and they are super cute! Plus they have amazing resell potential if life were to change again a few years down the road.
Whatever it is, if you pull the trigger just right you could be setting yourself up for a life time of financial freedom. The big one you want to look at is how much equity are you holding in your current home? Make sure to reach out to your favorite listing agent to get you a Comparative Market Analysis and sit down with you for a pre-listing consultation to really dial in what options you have. Also, if you don't happen to have $200,000 just sitting there in equity, you should reach out to a lender to see what kind of payment you could be looking at if you were to downsize. Imagine having an extra $500 bucks in your pocket every month and what you could do with it.
If you're my investment savvy friend you may want to reasses how important that giant house is to you, and what your opportunity cost is of not cashing out now to capitalize on investment properties. I'll tell you right now is the time to buy, and the time to collect that investment portfolio to set yourself up for financial independence. If you'd like to discuss this more please don't hesitate to reach out. I love real estate and everything that is made possible because of it.
Now that I've planted the seed I'll keep it short and sweet to let you do the rest of the decision making from here. If downsizing is right for you, or if you're not sure yet give Nicole or I a jingle so we can help you plan the next step. Whatever that may be.
Thanks for reading,