Is your home the right size?
Making Sure Your Home The Right Size Is Worth Considering As Your Family, Work and Needs all Change.
Our Team watches trends in the market both in our local market and trends on a national level because we know it matters to you. Entering our 25th year in the Naples real estate market, we see lots of changes and changing needs with our clients. The first move to Naples might be a seasonal retreat, later a larger property for the entire family and a third move is typically a down sizing move. Nationally, roughly 12.5% of the population is over 65 years of age, so it is understandable that some of homeowners are thinking of downsizing because they may not need the amount of space they did in the past. There is something to be said for the freedom acquired by divesting yourself of “things” that have been accumulated over the years but are no longer needed.
When you consider moving to a less expensive home, the savings could provide you cash that could be invested for additional income or savings for unanticipated expenditures. Savings can also be recognized in the lower utility costs associated with a smaller home, not to mention, the lower premiums for insurance and property taxes.
Going from the home where you raised your family to one of the new “tiny homes” may be a bit extreme so downsizing or Right-Sizing” to 2/3 or 50% of your current home may certainly be reasonable. In some situations, your interests may have changed so that a different area or city might be a possibility. Adding to the trends we see in our own community are sellers moving to smaller homes but without giving up the high-end amenities and features they currently have. In fact, moving to the right-size home, many increase the lifestyle that best fits their current needs and expectations.
In the past, the IRS had a once-in-a-lifetime exclusion of $125,000 of gain from a principal residence. It has since been changed so that homeowner’s 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. If you need help finding an accountant, we are happy to make a referral.
And if you find it’s time to ask “Is your home the right size” please be in touch with us to make the most out of your decision!