As we all are immersed in the Covid-19 era, there is hardly one of us that has not been negatively affected in one or more ways and, sometimes, being forced to embrace unavoidable life changes. For some who have been affected financially or are worried about it, relocating may be an option commonly overlooked, but one that could bring financial relief, while maintaining or even improving their lifestyle in spite of the negative impact of the pandemic.

For most people, their home is one of the greatest financial assets. But not only that; for some having acquired a house of certain size and style in a specific neighborhood and having made amazing life memories in it redounds into being very emotionally attached to that property. Of course, that is one of the fabulous aspects of owning a property to call home. 

Nevertheless, depending on their time in life and/or their financial situation, for some, that very same home may NOT be serving the original purpose anymore and/or it may have become a liability due to the expenses that it causes (taxes, maintenance, insurance, high monthly mortgage payments). Anyway, by owning such property, they may be sitting in a lot of cash that, if it was used wisely in another location, either in the same state or another, they may greatly benefit in different ways. 

It is understandable that, after owning a home for many years and having made amazing memories in it, some people become very emotionally attached to that property. However, many people who have gone through such transition have realized that it was the “right thing to do” and, also, that memories reside in their minds and ‘hearts’, not in an expensive house that was already negatively affecting their lifestyle.

Let us review three hypothetical situations: The first is a couple who resides in a home (already paid off or almost paid off) that is too big for their current needs or they are not able to enjoy it to the full anymore. Examples are, because their children have left the nest and there is no need for that much extra space; or because of health issues it has become painful to use the stairs, deal with the snow, and/or to give proper maintenance to the property. Wouldn’t it be a wise alternative for them to sell their home and buy one that fits their current needs better? And, most likely, end having some extra cash to be used for different purposes? For example, to increase their retirement savings, to invest in an income-generating property, to secure the education of their grandchildren, to travel more, or to finally buy the car of their dreams... Furthermore, relocating to a less expensive state may bring other financial benefits, such as lower taxes (including lower property taxes), lower cost of living, etc. And, if choosing the right area, it may be surprisingly rewarding in many personal ways. 

The second scenario is a couple with children who owns a home in an expensive state, which equity on it is 65% or more. If facing financial uncertainty or struggle due to the devastating effects of the Covid-19 to the economy, they may be able to secure some cash by selling their home and relocating to a less expensive state where to buy a similar property for less (sometimes for half the price) and to benefit from a lower cost of living. And, when choosing the right area, they may be able to have a great lifestyle and to continue to enjoy time together as a family. This example also applies to retirees (individuals or couples), who, in most cases, lose buying power over time after retirement.

The third hypothetical scenario applies to individuals, couples, or families who own property in expensive states, which equity ranging from 20% to 50%. If having been financially affected by the pandemic, to the point where they may risk facing foreclosure in the near future due to the inability to pay the monthly mortgage, they may benefit from selling their house before their financial situation gets worse and to take advantage of lower housing prices and lower cost of living (and probably better lifestyle) available in less expensive areas/states.

In summary, if you are sitting on a lot of cash attached to the property you own and need to alleviate financially during this uncertain time by selling it and moving to a more affordable area, it may be the time to start. Of course, make sure to relocate where you will be able to continue to enjoy the same lifestyle or better.

If interested in relocating to Florida, consider Ocala, “My Dreamland”. To learn more about this amazing area and for real estate services from the experts, contact us (352) 266-2782

*Note: This article is not meant to be financial advice, but a way to opening possibilities of homeowners who may be facing financial stress at the moment and may want to take advantage of the cash they could be able to realize from selling their properties and relocating to a less expensive area/state. Therefore, while considering such decision, make your numbers, think about all the aspects involved in relocating (such as leaving relatives and friends, finding new jobs, changing environment, changing schools, etc.), and seek for financial advice, when needed.