Upon retirement, you may consider the advantages of selling your home and downsizing into a smaller property. Upon the decision to cease working, it is likely that you will wonder increasingly how you plan to build up your retirement fund to relieve any financial worry and strain. You can sell your property once you have retired in order to release equity and give you access to money to put into savings.
In addition to helping you build savings, by selling your property you will gain the opportunity to downsize. It is likely you will not need a large house in retirement, and such a decision will allow you to live in a smaller house that is easier to maintain and less costly to run – something else which will contribute to aiding your retirement savings.
What Are The Advantages of Selling a Property Once Retired?
Selling your property after you have retired will allow you to release equity and give you access to funds that will be all the more valuable after you have stopped working. Building adequate funds to support you once you have ceased working can be a stressful feat, so selling a house can be a big help in this endeavour.
Selling and moving house can allow you to downsize and cease living in a larger house that you may no longer need. In retirement, it may become more difficult to maintain a larger property and, realistically, it will only get more tricky to do so as you age – especially if you have a large garden that needs constant work.
Downsizing is a suitable option as it will help you to save you money long-term as your utilities and taxes may be much less than they currently are, particularly if you have lived in a larger house. An added advantage of downsizing is also that you can choose a new house anywhere. You can look at moving closer to family if you choose, or consider moving abroad to enjoy your retirement in the sun.
Both selling your property and then choosing to preside in a smaller house will help you save money in the long-run, helping to protect your financial situation after you have stopped working.
What Difficulties Come With Selling a Property In Retirement?
There are negatives with every decision, and selling a property once you have retired is no exception in spite of the advantages this choice can offer. Perhaps most obvious is the stress such a change to your lifestyle can cause. Selling a property, particularly one you may owned for a long time or if you inherited the property, can be a difficult decision to face. The emotional impact of such a decision will likely be unavoidable.
Moving house is known to be one of the most stressful events we go through in life, and doing so in retirement may make it even more so. You are already going through a momentous change, and may be caused further stress if you encounter problems when selling and have difficulty getting viewings for your house or getting help to move boxes and furniture.
It can also be tricky to find a property that is suitable for older residents. Despite the age you may retire, it would be wise to choose a house that will continue to serve you well for the years to come. Of course, there are lots of 55+ year resident flats that could be ideal, but if you’re looking for something like a bungalow, you may struggle. According to the National House Building Council, in 2014 only 1% of new builds in the UK were bungalows – a huge drop from 7% in 1996.
There is also the financial aspect to take into account. If you decide to sell your property and move to a rented one, there is the monthly rent to consider. Monthly rent can rise over time, something which may not be ideal on the reduced income that comes with retirement. Furthermore, in a rented property you may also be given notice on your rental agreement and have to find somewhere else to live – something which can be incredibly stressful and difficult to prepare for.
Indeed, there is security that comes with owning your own house and, by selling it, you will have to relinquish aspects of this security and freedom.
What Is The Process of Selling a House in Retirement?
The process of selling a property in retirement is much the same as selling a house in any other circumstance. The most popular method is going through an estate agent, but there are other options such as using a quick house sale company.
Selling a property, perhaps most especially in retirement, will be a stressful experience. By using an estate agent, you can remove a lot of the hassle that comes with this process. Estate agents have a great knowledge of the local property market and will have a good idea of how much your property is worth. They can also help in setting up viewings for your house.
However, they may take a long time. If you wish to sell your house quickly as possible, you may go through a quick house sale company.
Regardless of how you choose to sell your house, in retirement there are some other more specific things you must consider. Primarily, the house you plan to move into after the property has been sold. For example, you may want to live closer to your family in retirement, or in a house with fewer stairs, such as a bungalow. You may even be looking to move into a retirement home – something in increasing demand due to the UK population living to older ages than in previous generations.
Ensuring you opt for a well-rated and trusted estate agent or quick house sale company is vital. This will ensure the sale of your property is done safely and within regulations, allowing you to receive your deserved funds in full without any illegal swindling – something that is all the more important as you look towards financially preparing yourself for retirement.