Too Old to Buy a Bigger Home?

[MercyMe]

My spouse and I have been blessed with well paying jobs and we've lived well below our means for 30 years. This might have had at least one unintended consequence. I first thought of it as "under-spending" because that sounds fairly benign, but then I got to thinking it is more like "over-saving" seems more appropriate.

Anyhow, we wanted to build a new house in 2017 but decided to stay put in our current home and focus on completing our semi-fat FIRE goal. We met that number in 2019 when were both 49, but we continued working partly because our jobs are fairly enjoyable. But a bigger part of our continued employment was so that we could save enough money to buy a newer and larger home without financing it. We've reached that point, but now we're both 54 and that scares me a bit.

Our current home is considered "mid-size" for our area and it's a bit tight for the two of us. That is not because we're hording things. It's just that we both have many interests that take up space. We have an exercise room that is used daily. We have a spare bedroom that is used as a home office. We have a small craft room where she sews and quilts... something she really enjoys. I enjoy metal/woodworking which takes up 75% of the basement. The other 25% is for storage of file boxes, holiday decor, paint, and miscellaneous replacement parts for various things around the house.

We'd like us both to have a house that doesn't prevent us from doing all the home-based things we enjoy, but we feel like time got the best of us. There is a bit of decision-making trouble now though. We can afford to pull some money out of our investments and sell our existing home to get the things we've always wanted in a new house (other than just some additional space). We can do this without putting our retirement plans in jeopardy due to the extra money we socked away over the last five years. But I often read that people start downsizing at 55. Even some CCRC websites recommend moving in at 55!

We're seeking the wisdom of those who have been in a similar situation. If you moved to a larger house in or after your mid-fifties, what were your reasons and did you regret it?

I hope this thread will not turn into a discussion about minimalist living. There are tons of people who can happily live in a smaller home, but that is not us. We've also considered the property tax and upkeep implications of owning a larger home and it hasn't impacted our desire.

 

[audreyh1]

54 is not too old for a larger home IMO.

 

[Texas Proud]

Heck, if it has been a goal for so long and you now are at the point of achieving that goal then go for it...

One question I have (out of curiousity only) how large a home are you look at getting? And if you are building it you can be sure it has what you want where you want!!

 

[Mark1]

When we retired we planned on downsizing some (3,300 sq ft to say low 2,000 sq ft). However, when we moved and starting looking at houses, all the house in the lower 2,000 sq ft all seemed to small and we ended up going with another 3,300 sq ft house. We looked at some houses even bigger, but they seemed to have too many rooms.

Get the house you want. At your age, you can down size later.

 

[rkser]

When we retired in 2015 at ages 60 & 55, we were happy to downsize from 3400 to the present 2300 odd sq ft, 3 bedroom/3bath home.
Kids were out of the house, I had injured my leg & we wanted a single story, no pool house & were lucky to find it in a nice neighborhood.
We had to declutter a lot & I was happy we did it, now we use a nearby gym & we are comfortable at present. I found if there is room we try to find the st*ff to fill up the space.

Obviously your conditions are different, you seem to need the room, have the means to pay for it without harming your retirement funds, I would say go for it.
At a later time you can downsize when the needs do not warrant a bigger space.

 

[Retired Expat]

If you can afford it I always recommend doing what makes you happy! We opted for a bigger house at 65/60 and have been very happy! We have space for guests and our stuff. While not overly huge there are rooms we hardly ever use unless guests come but that was the ideas could perhaps use some more storage space but that just leads to hoarding and we really don’t want to do that!

 

[Car-Guy]

We moved into our new custom built 2000 sq ft home a year or so before I retired at 60. Over the past 13+ years it's proven to work well for us and should be all we need until it's time to move on to our final stop. e.g. A smaller home or even apartment in a retirement community in the next 5 to 8 years?

I do all the maintenance inside/out and 2000 sq ft is plenty for us, the dog and the occasional guest.

 

[aja8888]

54? still a kid....I moved last year at 79.

 

[HI Bill]

At 51, we went from a series of 800 square foot condos to our first house, 2,600 square feet. The cost to maintain the house, pay for utilities, etc., was quite a shock. But I've really enjoyed living in a place large enough for our hobbies. Just be sure that you can afford to hire out anything you don't want to/can't do yourselves. I've had yard and pool service, but we decided to paint the house. 147 hours and counting, on the way to 200! Go for it!

 

[youbet]

DW and I are sniffing around the concept of a larger house at 77 yrs old! So, no, your tentative plans are not out of line in my view.

Our tiny (1500 sq ft) single story home has served us well for almost 50 years. But, even with a full basement (partially finished) to house hobby activities, it has a serious failing: it's difficult to have overnight guests. With only 1.5 baths, we have to wait in line for the full bath for morning showers which, except for the closest of friends/relatives, is sometimes uncomfortable, like being back in the dorm at school!

Our home represents less than 5% of our net worth so we're probably under-invested in real estate. We think we could sell and upgrade without digging into the main FIRE portfolio so financially it's within reach. But, the effort involved at 77 is a bit intimidating......... Well, more than just a "bit intimidating."

OP, make your move NOW, before you're in our situation.

 

[ERD50]

You gave good reasons, we were in a similar boat. We did downsize from a larger home ( 4 large bedrooms, large FR, LR, 4-season room, 3 car garage, a large 'den/music room', full unfinished basement and are now empty nesters). We're happy here, wife still has her craft room, I have my office/music room, bet I feel a bit cramped. I just really need to make another organizational pass.

If you plan living there a long time, consider a ranch style or at least something that accommodates single floor living (bedroom and full bath on the ground floor).

 

[ERD50]

... But, the effort involved at 77 is a bit intimidating......... Well, more than just a "bit intimidating."

Sure is! We moved 3 years ago, and it was a real effort @ 66! But we had a large house with tons of stuff in the unfinished basement, in the rooms that the kids moved out of. So the declutter was a massive effort. We were pack-rats, with maybe a pinch of 'hoarder' added in. And it all had to happen fast, between an offer accepted on the home we were buying, and quickly getting an offer on ours. It was rough.

 

[Dtail]

We retired to Florida at 57/56. We went from a 1,100 sq ft apartment to a 2,866 sq ft house.
We are very happy here and the fiance definitely does not wish to downsize.
At different times, 3 of the combined 5 children have lived with us, so the extra bedrooms came in handy.
Plus my brother lives permanently with us.

Thus I would say go for it, since the finances work.

 

[RetiredHappy]

We went from 4600 sq ft with a beautiful indoor pool to a 2850 sq ft single story penthouse condo in a different state, where we now live, and then in 2021, another move to a 2850 sq ft single story single family home in the same community. We love all 3 homes, and currently eyeing on another home of similar sq footage and still in the same community. The thing that holds us back is that every move costs money and reno costs even more money. We just paid about $200K to renovate our current home, and likely to put in another $100K. If we were to move, we are looking at $100K more in price of home, and another $300K in reno. We will likely stay put.

Basically, our ages don't deter moving, but costs do.

 

[athena53]

DH and I married and moved from NNJ to KC for my job when I was 50 and he was 65. We both had small houses in NJ- it was all we could afford. We were so dazzled by what we could buy in KC that we bought a McMansion. It was nice for awhile, especially on the rare occasions we entertained, but we downsized 13 years later. The McMansion was a lot of maintenance (cleaning, mowing, outdoor pool, high utilities for rooms we didn't use, 2 full baths and 3 half-baths) and the sole bedroom on the main level became a drawback when DH developed health condition that woke him up in the middle of the night with itching attacks and a balancing problem made it perilous to go upstairs to a spare in the middle of the night.

So, yes, it sounds like you have good reason to want more room. When you're looking you may want to consider factors to avoid that might make you want to downsize early.

 

[MarieIG]

We have absolutely no desire to downsize. Our intent is to have enough space to suit our activities and be comfortable. The issue will be maintenance as we age, and we entire to hire help as necessary.

 

[Dtail]

I wish to add that we upsized to a single floor house. We did not consider a 2 story home due to potential aging issues with the steps.

 

[brett]

We did the opposite. Went from three story, 3700 sq. ft finished home to a 1400 sq. foot lock and leave. We planned on doing two extended trips per year. No plants, no pets.

When I retired the first thing my spouse said was lets sell the house. Three stories, six bedrooms, four full bathrooms were not on her must have list. Lawn mtce, snow removal, repairs were not on my list. We really only lived in three rooms.

Downsized and we could not be happier with our decision after 10 plus years.

There is no right answer to this. Only what is best for you.

 

[Texas Proud]

At 51, we went from a series of 800 square foot condos to our first house, 2,600 square feet. The cost to maintain the house, pay for utilities, etc., was quite a shock. But I've really enjoyed living in a place large enough for our hobbies. Just be sure that you can afford to hire out anything you don't want to/can't do yourselves. I've had yard and pool service, but we decided to paint the house. 147 hours and counting, on the way to 200! Go for it!

Not sure how much it was but my mom lived in a 900 sq ft condo and the monthly condo fee was a lot more per month than I was paying on our 2700 sq ft house... she had 1 BR, I have 4... she had 1 BR, I have 3 1/2...

IMO the cost of a single family house is a lot less than condo fees plus utilities you might have to pay...

 

[MC Rider]

There is no right answer to this. Only what is best for you.

Yes. Do what works for you. We don't want 3,000 SF or more, 1300 or so is fine for us. Plus garage and shed. Less to take care of. And less stuff that ends up owning you.

 

[momoney]

I've seen some pretty sweet man cave outbuildings on here. That might be an option for a smaller house with some land. Not sure if that's cheaper tax wise.

 

[Trailwalker]

We upsized at age 51 to 2400 square feet and nearly three acres on a steep, mostly wooded lot. We loved it for over ten years. We have space galore, including room for big boy toys in two pole sheds. But we plan to downsize next year because the property has become difficult to manage, and our desires have changed. Was it the wrong choice? No, I wouldn't trade the years here for anything. Being financially independent means being able to pivot when goals and capabilities change.

 

[Route246]

We are shopping now to upsize as an asset allocation play at 67/66 years old. We feel this is our last shot to do it as the energy required to do any face-lifting and renovation is running out at our age. We have sufficient funds to do this and the primary reason is to move some equity assets into premium location real estate which historically never loses value decade over decade in NorCal (north to south: Hillsborough, Atherton, Los Altos, Saratoga; these chosen due to historic valuations NOT related to school district bubble shopping which is dependent on high income white collar demand). These four communities chosen, in general, have histories of attracting "old money" and have sustained original mid-century condition upscale homes.

 

[mtpisgah]

We are in our mid 50s and last year sold our 2600sf split level house and bought a 6000sf house with a finished basement (included in the 6000sf). I moved my woodshop to the basement so we can use both garage spaces again. We have multiple entertaining areas. I have an official office again (two houses ago had an office). The house is big and we do not use all of it frequently, but we do try to sit in different rooms when reading and rotate through two of the three indoor dining tables. I make a special effort to use each of the seven toilets once a week.
We are much happier.

 

[yhoomajor]

We went from 4600 sq ft with a beautiful indoor pool to a 2850 sq ft single story penthouse condo in a different state, where we now live, and then in 2021, another move to a 2850 sq ft single story single family home in the same community. We love all 3 homes, and currently eyeing on another home of similar sq footage and still in the same community. The thing that holds us back is that every move costs money and reno costs even more money. We just paid about $200K to renovate our current home, and likely to put in another $100K. If we were to move, we are looking at $100K more in price of home, and another $300K in reno. We will likely stay put.

Basically, our ages don't deter moving, but costs do.

Was the renovation cost for previous home (aka renovate before selling)? or for new home (renovate after buying)? Trying to see what to expect when we move.