For most people, your home is one of your greatest resources in retirement, both as a place to live and an important financial asset. It should also be an important part of your retirement planning when you're preparing for the future. There are a variety of ways that you can gain equity from your property as a homeowner, while not owning a home can come with significant costs and financial uncertainty during retirement. Planning to retire soon? Our real estate agents have some important factors for you to consider how your home will factor into your retirement.

• Will You Be Carrying a Mortgage?
  Owning your home free and clear of mortgage payments is an ideal situation for retirement. There are significant tax benefits, and, of course, you won't have to worry about monthly mortgage payments. If you do have a mortgage that makes balancing your retirement budget complicated, then downsizing to a new, more affordable home can make life easier.
  
  
• Owning a Home Means Fewer Withdrawals from Retirement Portfolios and Funds
  Renting a property or paying large mortgage payments will often mean withdrawing funds from your retirement portfolio, while owning your property free and clear means fewer withdrawals. Having to withdraw funds both reduces the equity in your portfolio and prevents you from earning interest or dividends on the funds that you withdraw over time.
  
  
• Consider Downsizing to Extract Equity While Still Owning a Home
  If you're looking for the most direct way to capitalize on the equity in your current home, downsizing into a new home better suited for retirement can be a great option. That's especially true if you have lived in a larger, family home for many years and don't need the same amount of space now that the nest is empty. You can sell your current home, purchase one of many great Atlanta homes for sale that costs less to own and maintain than your current home, and leave yourself with a significant chunk of change to help with retirement. There are costs associated with moving and it can be hard to let go of your old home from an emotional perspective, but the financial benefits are often worth it.
  
  
• Renting Space to Generate Income
  Would you prefer to remain in your current home, even if the costs are higher than what you could get by downsizing? Renting out extra space in your home can be an effective compromise, allowing you to generate a steady source of income while using space in the home that you may not have had much need for otherwise. Becoming a landlord does come with its own risks and challenges, but the reliable income from renting can be worth the effort in the right situation.
  
  
• The Costs of Renting During Retirement
  Choosing to rent a home during retirement rather than owning your own property can be very challenging financially, and not just because of the cost of your monthly rent payment. If you don't own a home, then you can't take advantage of all the equity that homeownership can help you create. As your rent rises over time, that extra cost can also make it more difficult to maintain your retirement budget. When possible, owning your home is simply a better financial option than renting when you're planning for retirement.

Still searching for the perfect home for retirement, or interested in downsizing to generate extra equity? Our team is here to help. Contact us to buy and sell homes throughout the Atlanta, GA, area.