The Retired & Their McMansions: 40% of Baby Boomers Look to Sell Homes

More than 40% of US citizens between the ages of 50-65 are planning on selling their homes and McMansion’s for something smaller and more practical, as “prospective downsizers exceed would be ‘upsizers’ by nearly 3-1,” reports the WSJ.  They are under the assumption that, by downsizing, their lives will be made simpler and more inexpensive. While the former depends on each individual, the latter is certainly not always the case. Bulking your retirement up by selling your McMansion in a depressed market is certainly not the option, but with California properties losing luster due to CABs, and the aforementioned data regarding the retired and their McMansions, home prices seem anything but stable in the coming months.

In the end, selling one’s home in this market could result in added, unforeseen expenses. Thinking that you are well on your way to a new life in a new environment, your house on the market never sells, and a deposit you put down on a condo must be forfeited. Or, you find yourself in a place you decide is not amiable to your lifestyle, but, because of market conditions you are unable to sell the house. Perhaps, upon moving into a new home, you find that you crave some of the amenities you had in your old home - Jacuzzi, pool, home theater and patio – and so you spend thousands to recreate that prior environment.

If conservatively done, then one can succesfully downsize. For instance, one ought to ensure their current property sells before entering into a new arrangement. Moreover, actually downsize. Don’t move, and then recreate your prior existence. Most people, when they move, only move upwards of 20 miles way from their prior location. They are scared to create new habits and rituals. But, by doing this, they are not allowing themselves to move out of a neighborhood with expensive housing and living prices. Maybe you moved to this part because “the schools were good,” so, if you don’t have kids anymore, it’s time to move somewhere cheaper if you must.

Why not leave the country? If you’re open to leaving the country, which you should be, then the folks over at Dollar Vigilante offer a great newsletter regarding getting out of dodge. You can subscribe to TDV Here.

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