Advantages of Buying Down

The “empty nest” scenario has come to life with the departure of your youngest child. What is a person to do now that the house seems so enormous? Many people look at the prospect of downsizing to a more manageable house. This does not necessarily mean you are going to move into a studio apartment. There are many options available to you at this point. Colorado Springs and Monument have many areas and options that cater towards downsizing.

Make it a point to consult with two important professionals… your real estate agent and your tax planner. Your real estate agent will be able to meet with you and create a plan to meet your needs. They will be able to tell you the value of your current home and the availability of alternative houses in your preferred areas. Now that the nest is empty, you may want to be closer to certain amenities, or you may want to find something with a floor plan that meets your new needs.

There are many important advantages to buying a smaller home or condo, such as lowering your property taxes, simplifying property maintenance, and generating cash which can be put into income producing investments. The tax laws should also be considered which allow capital gain exclusions whether you buy up to a more expensive home or buy down to a less expensive one.