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The problem is that home equity is risky.
If property prices fall and you better sell, you may end up short of retirement income.
And if you gotta move unexpectedly, you may have to sell for less than you hoped.
Here are some mistakes homeowners make that cancost them big in retirement.
By not fully owning their homes, retirees may struggle to cover expenses and maintain their desired lifestyle.
He said, This may require making extra payments or downsizing to a more affordable home before retiring.
However, Turner noted that many homeowners fail to consider these costs when preparing for retirement.
Simply paying off your mortgage is not enough.
Gawley observed the same: Downsizing too quickly can also be a costly mistake.
Its better to be right-size for the long-term to avoid multiple moves.
On the flip side, not downsizing at all can be problematic, Gawley said.
An oversized home means higher utility bills, insurance and property tax costs which can strain a retirement budget.
As with many of lifes problems, a little foresight and preparation goes a long way.
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