To Sell or Not to Sell? The Ultimate Guide to Selling Your Home to Travel in Retirement
Selling your home to travel in retirement is the ultimate question for many. It feels like a huge, irreversible step! We dive into the pros, cons, and smart hybrid strategies (including what we did!) to help you decide what’s right for you.
Table of Contents
- The “Big Question”: To Sell or Not to Sell?
- Approach 1: The “All-In” (Selling Everything)
- Approach 2: The “Plan B” (Keeping Your Home)
- Approach 3: The Hybrid Middle Ground (5 Smart Strategies)
- Strategy 1: The “Lidia & Jeff” Model (Rent It Out)
- Strategy 2: Downsize to a “Lock-and-Leave” Base
- Strategy 3: Geo-Arbitrage (Sell High, Buy Low Abroad)
- Strategy 4: Go Mobile (RVs & Boats)
- Strategy 5: Co-Own or Share
- Addressing the “What If…?” What About Old Age & Care?
- Conclusion: It’s Your Plan, Your Retirement
Selling your home to travel in retirement is one of the biggest, most emotional topics in our “budget slow travel in retirement” community. On one side, you have the thrill of cashing in your biggest asset for a life of freedom. On the other, you have the deep-seated fear of “what if?” What if I get sick? What if I run out of money? What if I just want to go home?
As one of our members perfectly put it, “Selling property to fund travel is pretty ballsy.” It’s a question of risk, family, finances, and what “home” truly means to you.
Jeff and I have wrestled with this ourselves. There is no single right answer for everyone, but there is a right answer for you. Let’s break down the most common approaches we see, from selling it all to smart hybrid strategies.
Approach 1: The “All-In” (Selling Everything)
This is the path that sounds most romantic. You sell the house, sell the car, sell the furniture, and walk onto a plane with a suitcase and a large investment account.
For many, this is total liberation. They are free from the “tyranny of the lawnmower,” as I like to call it. No more property taxes, no more HOA fees, no more leaking roofs. As one member, Stewart, said, “We sold everything… We own nothing and have never been happier.”
Pros:
- Maximum Liquidity: You have access to your home’s full equity to invest or use for travel.
- Total Freedom: You are location-independent. You can go wherever you want, whenever you want.
- Simplicity: You are no longer a property manager. Your life (and your stuff) is simplified.
- Growth: Some members (like Renee) noted their money, once invested, actually grew faster than when it was locked in their property.
Cons:
- No “Home Base”: When you get tired or sick, you have no dedicated place to return to.
- High Risk: What happens if your investments go down? What if you miscalculate your budget?
- Market Risk: You can be priced out of your original market if you ever do want to return.
- Emotional Toll: You may underestimate the feeling of “homelessness” or the loss of a family anchor.
This approach is for those with a high-risk tolerance and a true “live for today” mindset.
Pro-Tip for the “All-In” Traveler: The biggest con is the emotional toll of having no “home base.” This is why many in our community (and us!) use TrustedHousesitters. It’s the perfect solution: you get to live in a beautiful, comfortable home (for free!) all over the world while caring for a pet. It solves the “homelessness” problem and is the ultimate budget slow travel accommodation strategy.
Approach 2: The “Plan B” (Keeping Your Home)
On the total opposite end of the spectrum are the “Plan B” people. These are retirees who, like member Annie, say, “I personally would never sell our property. Life always needs a Plan B.”
For this group, a paid-for home isn’t an anchor; it’s a fortress. It’s security. It’s a place for kids and grandkids to visit. It’s a legacy. Many in this camp, like Gale, feel that family is the most important thing and want to be a present part of their grandchildren’s lives.
Pros:
- Ultimate Security: You always have a roof over your head, no matter what.
- Family Center: It remains the family’s “home base.”
- Inflation Hedge: Your property value likely continues to grow.
- Peace of Mind: You never have to worry about where you’ll go “if things go wrong.”
Cons:
- Cash Poor: Your equity is locked up. You may not have the funds to travel as you’d like.
- The “Anchor” Problem: You are tied to one location.
- Management Hassle: You still have to pay taxes, insurance, and maintenance, even while you’re traveling. This is a huge drain on a travel budget.
- Worry: Many who travel long-term worry about their empty house (burst pipes, break-ins, etc.).
Approach 3: The Hybrid Middle Ground (5 Smart Strategies)
For most people, the best solution is somewhere in the middle. Jeff and I fall into this category. You want the freedom, but you also want security. Here are the most popular and practical hybrid strategies we see in our group.
Strategy 1: The “Lidia & Jeff” Model (Rent It Out)
This is exactly what we did, and it’s a fantastic way to test the waters.
When we first started our slow travel journey, we kept our house in New Jersey. We weren’t ready to cut the cord completely! We found good tenants and rented it out for the first three years of our travels.
Here’s the best part: the rental income from our tenants paid the mortgage on our new beachfront condo in Mexico. We were traveling and building equity in a new property in a place we loved.
After three years, we had a realization. We loved our new life, we loved Mexico, and we knew we were never going to move back to New Jersey. Only then, once we were 100% sure, did we sell the house. It was the perfect transition—it gave us income, security, and time to make the right long-term decision. https://retireyoungtravelsmart.com/2024/04/19/sun-seafood-savings-the-ultimate-guide-to-retiring-in-mazatlan-mexico/
Strategy 2: Downsize to a “Lock-and-Leave” Base
This is incredibly popular. You sell your big, high-maintenance family home and use the proceeds to buy a smaller, “lock-and-leave” property. This could be:
- A condo
- A park model trailer (like Connie did)
- A small townhouse
- A 1-bedroom flat (as Hazel suggested)
This new, smaller home is cheap to maintain, secure, and doesn’t require any upkeep while you’re gone. You get the best of both worlds: you free up a ton of cash from the sale, and you still have a “home base” to return to.
Strategy 3: Geo-Arbitrage (Sell High, Buy Low Abroad)
Why have a home base in an expensive country when you could have one in paradise for a fraction of the cost? This is “geo-arbitrage.”
We did it and we see other members doing this all the time. https://retireyoungtravelsmart.com/2024/04/19/sun-seafood-savings-the-ultimate-guide-to-retiring-in-mazatlan-mexico/
- Glenn sold in Australia and bought in Cambodia for “100’s thousands $ cheaper.”
- Christine sold high in the US and bought a “luxury ‘retirement condo’ in Malaysia.”
- Scott sold in California and now lives in Guatemala, where his 2-bedroom apartment costs $350/month.
You sell your expensive home in the US, UK, or Australia. You take that money and buy a beautiful, low-maintenance home outright in Mexico, Portugal, Thailand, or Malaysia. You’re left with hundreds of thousands of dollars in cash, and you still own a home.
Strategy 4: Go Mobile (RVs & Boats)
Who says your home has to be on a foundation? For many, the “home base” is the travel.
- Laura plans to sell her home, buy a 5th wheel for traveling, and a smaller home in Florida.
- Keelin plans to sell her house and buy a live-aboard yacht or sailboat.
This gives you a home, but one that moves. It’s a popular option for traveling within one region (like North America or Europe) and combines your housing and travel costs into one.
Strategy 5: Co-Own or Share
This was a creative solution from our member Greg. He and his wife wanted to travel, but also wanted a base near family. So, they “hedged” their bet. They went in with her two brothers and bought a 3-bedroom home. The brothers live there full-time, and Greg and his wife use it as their official address and have a spare bedroom waiting for them whenever they need it.
Addressing the “What If…?” What About Old Age & Care?
This is the number one fear behind the “Plan B” crowd: What happens when I’m 80 and can’t travel anymore?
This is where planning, not property, is key.
- Senior Living: Many members (like Theresa and Fredrik) mentioned that their plan is to eventually move into a senior living or assisted living community. They want the social life, the indoor walkways, and the security of on-site care. They don’t want to be isolated in a big house.
- Affordable Care Abroad: As Peta and Scott pointed out, the care options in countries like Thailand, Mexico, and Guatemala are often excellent and far, far more affordable than in the US. Their “end plan” is to get care outside their home country.
- Renting for Flexibility: As you get older, your needs change. Renting gives you the ultimate flexibility to move from an apartment to an independent living community to an assisted living facility as your health dictates. You aren’t tied to a property you can no longer manage.
Conclusion: It’s Your Plan, Your Retirement
There is no “one-size-fits-all” answer. Selling your home to travel in retirement is a deeply personal decision that depends on your finances, your family, and your tolerance for risk.
As you can see from our community, there is a wide spectrum of smart solutions. You can sell it all, keep it all, or find a creative hybrid model that gives you both freedom and peace of mind—like we did by renting our place out for the first few years.
The most important thing is to have a plan. Think about your “what ifs,” create a budget, and then make the choice that lets you sleep best at night… whether that’s in your old family home or on a balcony in Malaysia.
Call to Action
What’s your plan? Are you Team “Sell It All,” Team “Plan B,” or Team “Hybrid”?
This is the kind of conversation we have every day in our Facebook group. If you’re looking for a community of like-minded retirees and travelers, we’d love for you to join us!
And don’t forget to subscribe to the Retire Young, Travel Smart newsletter for more tips on how to make your retirement travel dreams a reality.
