I’ve Been in My Home for 14 Years. Here’s Why It’s Not My Forever Home

When my husband and I bought our home 14 years ago, we specifically sought out a house that could accommodate a larger family. And we’re very thankful for the fact that our home can comfortably fit our family of five.

We have enough bedrooms where nobody has to share (though my twin daughters choose to bunk together for social reasons), and we actually have enough bathrooms where everyone can use one at the same time if need be. We also have a decent-sized kitchen, a basement that serves as a nice hangout spot for the kids, and a home office that allows me to be productive.

Our home has met our needs for many years, and we hope it continues to do so for many more. But I’m also well aware of the fact that my current home is not my forever home. Here’s why.

When your circumstances change

The main reason I don’t plan to stay in my home forever? It’s expensive, and I don’t expect to need such a large home down the line.

My husband and I made a point to keep our mortgage payments fairly low relative to our income. But we live in New Jersey, which has the highest property taxes in the nation, and that expense has consistently gone up for us through the years. So even though we were judicious about the mortgage loan we signed, we’re still paying more for our home than we anticipated.

There’s also maintenance to consider. When you have more square footage, there’s more work to do, and there’s a higher cost involved. That’s not a cost I want to bear if I don’t have to.

As such, my intent, at least as of now, is to stay where we are while my kids are still attending school. We like our neighborhood, and the kids are happily settled. But do I intend to stay in this home once I’m retired and have an empty nest? Not at all. Doing so just wouldn’t make financial sense.

Instead, our plan is to do two things on the housing front later in life: downsize and relocate. We don’t expect to need as much space, and the smaller a home is, the easier and less expensive maintenance tends to become.

We also don’t plan to stay in New Jersey due to the high cost. Right now, it makes sense to pay those exorbitant property taxes because we get something out of it — access to good schools. But once we no longer need that benefit, there’s no sense in paying that premium.

Have you really found your forever home?

You might assume that the home you’ve come to know and love is the home you’ll stay in permanently. And in some cases, that could make sense. But before you make plans to never move again, think about the costs of owning your current home versus a smaller one, or a home in a different part of the country.

Many people manage to pay off their mortgages before retirement, and we’re on track to do the same. When you have a paid-off home, it’s easy to grow complacent and just stay where you are. But the harsh reality is that money gets tight in retirement for a lot of people — even those who save for it. So it pays to keep downsizing and relocating as an option once you no longer have kids living at home.

Now, you may be wondering, “Why do I have to decide whether I’ll stay in my home now?” And the answer is, you don’t. If you’re in your 30s or 40s, you can of course take your time deciding where you’ll live in your 60s, 70s, and beyond.

But one thing you should do is keep good records of home improvements you make throughout the years. If you end up selling your home rather than staying there forever, you’ll want that information, because it might come in handy in reducing your capital gains tax burden when you sell your home.

Other than that, you don’t have to take any specific action, though it’s never a bad idea to run through different financial scenarios in your head in the course of your retirement planning. And that includes thinking about where you’ll live.