801-205-3500 or 801-205-1600 Gales@UtahRealty.us
How Buyers Can Win By Downsizing in 2020

How Buyers Can Win By Downsizing in 2020

Marty Gale SRES

Utah Realty BBB Business Review

How Buyers Can Win By Downsizing in 2020

How Buyers Can Win By Downsizing in 2020 | MyKCM

Home values have been increasing for 93 consecutive months, according to the National Association of Realtors. If you’re a homeowner, particularly one looking to downsize your living space, that’s great news, as you’ve likely built significant equity in your home.

Here’s some more good news: mortgage rates are expected to remain low throughout 2020 at an average of 3.8% for a 30-year fixed-rate loan.

The combination of leveraging your growing equity and capitalizing on low rates could make a big difference in your housing plans this year.

How to Use Your Home Equity

For move-up buyers, the typical pattern for building financial stability and wealth through homeownership works this way: you buy a house and gain equity over several years of mortgage payments and price appreciation. You then take that equity from the sale of your house to make a down payment on your next home and repeat the process.

For homeowners ready to downsize, home equity can work in a slightly different way. What you choose to do depends in part upon your goals.

According to HousingWire.com, for some, the desire to downsize may be related to retirement plans or children aging out of the home. Others may be choosing to live in a smaller home to save money or simplify their lifestyle in a space that’s easier to clean and declutter. The reasons can vary greatly and by generation.

Those who choose to put their equity toward a new home have the opportunity to make a substantial down payment or maybe even to buy their next home in cash. This is incredibly valuable if your goal is to have a minimal mortgage payment or none at all.

A local real estate professional can help you evaluate your equity and how to use it wisely. If you’re planning to downsize, keep in mind that home prices are anticipated to continue rising in 2020, which could influence your choices.

The Impact of Low Mortgage Rates

Low mortgage rates can offset price hikes, so locking in while rates are low will be key. For many downsizing homeowners, a loan with a shorter term is ideal, so the balance can be reduced more quickly.

Interest rates on 10, 15, and 20-year loans are lower than the rates on a 30-year fixed-rate loan. If you’re downsizing your housing costs, you may prefer a shorter-term loan to pay off your home faster. This way, you can save thousands in interest payments over time.

Bottom Line

If you’re planning a transition into a smaller home, the twin trends of low mortgage rates and rising home equity can kickstart or boost your plans, especially if you’re anticipating retirement soon or just want to live in a smaller home that’s easier to maintain. Let’s get together today to explore your options.

How Buyers Can Win By Downsizing in 2020

How Buyers Can Win By Downsizing in 2020

Marty Gale SRESHow Buyers Can Win By Downsizing in 2020 Home values have been increasing for 93 consecutive months, according to the National Association of Realtors. If you’re a homeowner, particularly one looking to downsize your living space, that’s great news, as...

Plus Fifty Today

Plus Fifty Today

Do you know where is your market is going? In 2020: More than one-third of the U.S. population reached age 50. 17 million baby boomers (20 percent) were age 60 or older. Generation X moved into middle age and began knocking on the door of age 58 Today demographic...

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How can SRES Help You Plan for Your Future Housing Needs

How can SRES Help You Plan for Your Future Housing Needs

How can SRES Help You Plan for Your Future Housing Needs?

Most of us put time and effort into planning for retirement. That is, we plan for money related issues such as retirement funds. Secondly, people plan for long-term care and life insurance. Deciding on where you’ll live as you age often takes a backseat during retirement planning.

Whether you are considering aging in place, downsizing, purchasing a rental property, or even upsizing to a new location, dealing with real estate transactions and choices can be a confusing maze to negotiate, even for experienced home buyers. Beyond the complexity of real estate transactions, those over fifty are often more sophisticated shoppers and can benefit from a knowledgeable SRES representative.

Benefits of using an SRES agent include:

  • Customized approach to your living situation that fits in with your overall life plan.
  • Awareness of options like senior-based communities and aging in place needs.
  • Multiple choices that help reduce out-of-pocket expenses, acquire cash and create or delay income streams or get financial aid for when you need it at a later date. This can help you remain independent longer.

As someone deciding on where they’ll live as they grow older, there are unique challenges to financing and home accessibility that come with real estate and future housing needs. When planning real estate changes over age fifty, an SRES can be the professional who actually works for the client and has the experience and training to understand the unique challenges facing seniors when it comes to housing.

Marty Gale

801-205-3500

SRES, MCNE, CRS, Broker

Plus Fifty Today

Plus Fifty Today

Do you know where is your market is going?

In 2020:

More than one-third of the U.S. population reached age 50.

17 million baby boomers (20 percent) were age 60 or older.

Generation X moved into middle age and began knocking on the door of age 58

Today demographic forces will shape the future market as generations experience the life transitions. Our own and our parents’—that accompany aging. This blog and the articles to come focuses on the maturing G.I. Generation, the Silent Generation, and the baby boomers because they comprise the 50+ market, now and for the next decade. But, interaction with Gen X and Gen Y members must be considered because they are the young adults who may be involved in the real estate decisions of their parents and elders.

Call Marty Gale

801-205-3500

 

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