The Great Recession put a big kink in the retirement plans of upper-middle aged folks all across the country, so many are looking for creative ways to get back onto that track. The obvious way to offset for lost income is to cut costs—and changing what you spend on your home can make up for a big chunk of the losses in one move.
But is it possible to move into a much cheaper housing situation without taking a big cut in your quality of life? If you still need three bedrooms, how much can you really save by changing houses while staying in a safe, vibrant neighborhood?
Enough to retire a couple years early, apparently—especially if you’re willing to move across country.
According to the New York Times, lots of folks nearing retirement age are doing exactly that:
“But for those who long to retire sooner rather than later, there is a way out of workaday life that can be leveraged to great advantage — moving to a lower-cost area. [...] Moving as part of a retirement plan can be an adventure that results in a richer life, both emotionally and financially.
Planning ahead is crucial to this strategy, and right now it also allows time for the housing market to improve. “Two years is not too long to be thinking about where you want to go,” said Bert Sperling, founder and president of the Sperling’s BestPlaces Web site.
Differences between high-cost and low-cost (but still attractive) areas can be steep.”
After all, while $260,000 will get you just 1,000 square feet in a one-bedroom condo in Chicago, it can get you 1,700 square feet in a hip, two-bedroom, mid-century-modern house near White Rock Lake in Dallas.
See the difference?
Dallas is a great place to retire, and a great place to save a bit of cash while kicking your feet up. A mix of low taxes, abundant land, and strong economic fundamentals keep cost of living much lower than most areas around the country. And, as we mentioned a couple weeks ago here at Texas Lending Today, folks from all over America are taking notice — North Texas is currently home to America’s two top fastest growing cities (Frisco and McKinney).
Of course, this same philosophy works for moving within the Dallas-Ft. Worth area as well. If you’re currently leasing a home (and thus don’t need to sell it in order to move), great housing deals can currently be found all over the city. And considering urban living as a way to upgrade lifestyle while downgrading housing size and costs is another easy way to save a little bit of money without sacrificing quality of life.
Give one of our Dallas home purchase loan specialists a call if you have any questions.