If you have thought about reducing your expenses, being closer to family, or just making life easier, here is a trend that is worth paying attention:
More homeowners buy their next house downright without taking on a new mortgage. And if you have your house for a while, you might be able to do the same. No mortgage. No monthly housing payments.
A record share of homeowners is mortgage -free
According to analysis of Lub by Census factsmore than 40% of the houses occupied by the American owner is mortgage -free – An all time for this data series. That means 4 out of 10 homeowners own their houses for free and clear (See the graph below):
A big reason for this trend? Demography. As baby boomers get older and stay in their homes longer, many have had the time to pay off their mortgages completely. You may also be in that group and you do not even realize how much purchasing power you have now. It’s time to change that.
How Downsizers of equity are converted into purchasing power
As a homeowner, your equity Is your biggest advantage in the current market. If you are mortgage -free (or close), it can give you the authority to buy your next home in cash. That means that you still do not have a mortgage payment for retirement, plus:
- Less financial stress as you get older
- More cash flow, if you buy a cheaper house
- And it would probably be a faster, simpler transaction
Here is how it works. You would sell your current house and use the proceeds to buy your next house in cash. And although that may sound like something that you thought would never be possible for you, it is more realistic than you might think.
In the Last survey by John Burns Research and Consulting (JBREC) and Preserve current (KCM), agents reported that the share of purchases with buyers with all contacts Nationaal Klimt. And those agents see an increase in almost every region of the country (See the graph below):
Especially for baby boomers, purchasing cash gives more control over your next chapter. You could buy a smaller, cheaper house and lower costs, less maintenance and more flexibility to enjoy what is the most important thing. All while your debts and stress -free stay.
Because downsizing is not about downgrading your house. It’s about upgrading your quality of life. And that is something that is worth exploring.
Bottom Line
You have worked hard for your house. Now it might be time for you to work hard.
Talk to your agent about what your house is worth and what it can unlock for you today. What would your ideal house look like if you would shrink now?
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