Approximately 52 million or 16% of Americans are age 65 and over. It is easy to understand that some of them are thinking of downsizing their home because they don't need the same space they did in the past.
It can be liberating to divest yourself of "things" that have been accumulated over the years but are no longer needed. Moving to a less expensive home, could provide savings for unanticipated expenditures or cash that could be invested for additional income.
Savings can be realized in the lower premiums for insurance and lower property taxes, as well as, the lower utility costs associated with a smaller home.
Typically, owners downsize to a home to 2/3 to 50% of their current home's size. In some situations, it is not only economically beneficial, but their interests may have changed so that a different style of home, area or city might fit their lifestyle better.
The sale of a home with a lot of profit will not necessarily trigger a tax liability. Homeowners are eligible for an exclusion of $250,000 of gain for single taxpayers and up to $500,000 for married taxpayers who have owned and used their home two out of the last five years and haven't taken the exclusion in the previous 24 months.
Homeowners should consult their tax professionals to see how this may apply to their individual situation. For more information, you can download the Homeowners Tax Guide.
Call me at (262) 348-3233 to find out what your home is worth and what it would take to make the move to another home.
Stay up to date on the latest real estate trends.
April 25, 2025
April 24, 2025
Lifestyle
April 23, 2025
Transform Your Workspace with Expert Design Suggestions for Lake Beulah Residences
April 23, 2025
April 22, 2025
April 21, 2025
April 18, 2025
April 17, 2025
April 16, 2025
Bob is dedicated to offering the finest real estate service available in the Lake Geneva area. He attempts to make each buyer or seller he works with feel like they are the one and only client he has and strives to make each transaction a pleasurable experience with the least amount of problems, stress, and inconvenience to them.