As you reach retirement age, it is typical to start to downsize, get rid of what you do not need and focus on your estate plan. While most retirees choose a smaller, more manageable estate for retirement, the began to shift in recent years.
According to CNBC, a study showed about 30% of retired respondents moved to larger homes rather than smaller properties.
Retirees may want a more prestigious home
With millennials entering the real estate market, many of them choose prestigious or large homes. Instead of scaling back, many parents choose to purchase homes that match their children’s. Retirees also want to take advantage of new technology and larger homes. While some people may choose to buy a new, larger home, others seek to expand on the home they already own.
Retirees may change the real estate culture
When planning for retirement, many adults think about other members of their families. They may have parents who need to move in for extra help or guests that may need a place to stay for an extended period. Multi-generational households are more common than before. To upsize provides space for family and friends to come together.
Additionally, many retirees understand the importance of long-term happiness. Once you have savings and financial stability, you can afford personal property that lasts throughout your retirement.
As with any retirement plan, if you want to upsize, you should take time to consider your long-term plan. While some retirees downsize to have more flexibility with travel, others may want to settle into a prestigious home full of friends and family.