Sizing Up Your 50’s and Your Mortgage

By on June 18, 2019
Mortgage

Retirement. You work up to it all your whole life putting money away from your early twenties to make sure you can relax into later life without unwanted stress. As the years roll by, your kids grow up and you start thinking about the house you want to grow old in, several questions arise, namely, should we upsize or downsize? How does this decision impact your mortgage and finances?

Following the natural progression of climbing the property ladder, you may be ready to move into your the house of your dreams, your most expensive house yet, but what happens in 10 years time when the chores become unfavorable, but so is the thought of moving. Then, is going bigger such a good idea?

Why you won’t regret downsizing

It’s not just the forward thinking of “will I be able to handle the housework?” — that comes second to the financial benefits that downsizing can give you. It can make that mortgage you were still paying off disappear, or it could free up some money for some retirement investments.

With one mortgage gone, downsizing while you are still young could present the perfect buy-to-let opportunity to see you through your retirement. Using the equity from your last house you can settle into a cozier home while generating a new source of income that will help pay off the second mortgage. By the time you retire, you could own two homes and relish the delights of a passive income, but you’ve got to be prepared to put some work in. The downsides of Buy-to-Let aren’t for everyone, so look into this option carefully.

Downsizing can also allow you to rethink your lifestyle. It’s likely to come after a big change in your life, your kids have moved out or you’re thinking about the future, so seize this chance to make a change! Minimalism is big for a reason — it is utterly freeing. If you’re reducing your living space, why not also consider decluttering your life. But you don’t necessarily need to downsize to appreciate this.

Why upsizing at 50 can be just as liberating

Some of us aren’t prepared to give up on the things that make us happy just because of the expectation of where life will take us. If you love hosting guests or having your grandchildren to stay, if you enjoy your space and having lots of storage, if you’ve always dreamed of a particular house and won’t give up now that it’s in reach just because everyone else is downsizing, going with your gut can free your soul.

Rather than regressing at this age, seize your momentum and take it forth. If upsizing means borrowing more money, moving house can be a great opportunity to change your mortgage plan that better suits your current lifestyle. You can still compare online to find the best deals. Check out Marcia Smalley’s account on how upsizing was the ideal choice for her at 60, and why she thinks you can do it, too.

 

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Sizing Up Your 50’s and Your Mortgage