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However, that may not be the right strategy for yourretirement.
Another option is downsizing and moving into a duplex.
Here are five reasons why downsizing into a duplex could be asmart move for your retirement.
Average rental prices in the U.S. are around $1,739.
That could be extra money you get every month to fund your retirement.
What would you do with an extra $1,739?
You could travel more.
Help out family members when they need it.
Or just leave yourself an extra financial cushion for whatever the future brings.
Downsizing might be practical for the new chapter of retirement.
Plus, you could save money on your monthly housing costs in a duplex.
Your mortgage payment could be lower than what you pay now.
And if your house was already paid off, that extra rental income can go straight into your pocket.
This can be a great way to stay connected to your loved ones during retirement.
You could even make the same offer to longtime friends.
Either way, youd be right next door to some of themost important peoplein your life.
Thats not always realistic in a single-family neighborhood.
Less Maintenance Work
Your duplex will probably be easier to maintain than a full-size home.
Youll have less space to look after, which means less time spent cleaning.
That alone can make your retirement significantly more enjoyable.
That being said, renting out part of your duplex will come with its maintenance tasks.
For example, you might have to upgrade the appliances sooner to keep up with acompetitive rental market.
And when something in the tenants unit breaks, it will be your responsibility to fix it.
Still, your daily maintenance work should be much easier in a duplex than in a full-size home.
You may just have more unexpected one-time expenses.
Thebaby boomer generationis reaching well into retirement age.
Many will likely consider downsizing as it becomes more challenging to navigate and care for their single-family homes.
This could lead to a glut of housing inventory on the market at some point in the next decade.
By acting now, you might potentially beat the rush and get a better price for your home.
Doing so would leave you with more funds to purchase your ideal duplex.
What Happens When You Need Assisted Living Care?
So you may be wondering how that should impact your decision to buy a duplex.
The bottom line is that it probably shouldnt impact your purchasing decision.
To understand why, consider a few scenarios.
First, you might decide to leave the duplex and move into a retirement community.
If so, you could the sell property or start renting both units out for extra income.
Either way, you should do OK financially.
Or maybe youll choose to stay in the duplex through your full retirement.
If so, you could potentially house a caregiver in the other unit.
That could be a way to offset some of your support costs as you grow older.
Just confirm that buying one fits your financial plan for retirement before acting.
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