Selling your home and buying a lower priced home that meets your current needs can be to your advantage in an "Up" market like the current one with low inventory. The advantage is that you can maximize the price of the home you're selling and don't have to reinvest it all in your replacement.
To illustrate the point, let's say there is a 10% premium in the sales price of a home currently. If you're selling a home for $750,000, it would be $75,000. If you replaced the house with a $500,000 home, the premium would be $50,000, which means you're $25,000 ahead.
Let's further assume that your home is debt-free so that when you sell it, you have considerable cash equity. Instead of paying cash for the replacement home, get an 80% loan at today's low-interest rates and reinvest the proceeds to supplement your retirement.
You may be able to get as low as a 2.5% mortgage and earn significantly more on the proceeds in other investments.
Home prices are up significantly over last year, and they're selling on average in three weeks. Inventory is down, and there is less competition for your home than usual, leading to a higher price. Closed sales increased 9% from August to September, according to a Zillow report.
Moving down in an "up" market may be to your advantage. It could lower your housing cost by saving on property taxes, insurance, utilities, and maintenance while taking cash out of your home to reinvest in your retirement.
You'll be using "other people's money" to free up your equity that you can reinvest at a rate higher than you'll be paying on your mortgage. The difference would be profit.
To explore this opportunity, give us a call, and we'll look at your numbers.