Real Estate
Home›Real Estate›Residential›Plan to downsize in retirement even with a paid off ho…
Plan to downsize in retirement even with a paid off home
The article points to New Jersey property taxes and utility costs, plus higher maintenance as a home ages, as key reasons to move to a smaller residence after the mortgage is cleared.
A personal finance article published by Yahoo Finance outlines why one couple plans to downsize in retirement even though they expect to have their home paid off before then. The writer says they are currently carrying a mortgage payment that takes a significant share of their paycheck, but that the family expects to reach a mortgage free home ahead of retirement.
The author cites New Jersey property taxes as a primary driver for wanting to move. They say the tax burden is among the highest in the nation, and that it feels more justifiable while children are using local public schools, but less so once kids have aged out of the district.
They also point to ongoing ownership costs tied to the size and layout of their home, including heating and cooling expenses. The piece argues that a smaller home should come with lower utility bills, especially given New Jersey’s harsh winters and very hot summers.
Finally, the writer says day to day maintenance and the future costs of home upkeep are part of the downsizing plan. They describe the time involved in chores like cleaning and yard work, and note that as homes age, maintenance needs and expenses can rise, making a smaller home more appealing for retirement.