Should You Downsize Your Home?

Are you tired of the ‘big’ home you have right now? Do you feel like all you do is clean it but you don’t use half of the space that you have? If this describes you, it’s possible that it’s time to downsize.

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While many people cling onto their home they had most of their lives, they often find that downsizing brings them a feeling of peace and joy. You’ll always have the memories of your old home, but downsizing now can bring you many benefits today that a bigger house can’t provide.

More Equity in Your Home

Downsizing usually means that you spend less on your new home than you made on your old home. If cash in your pocket isn’t reason enough to downsize, there’s still more. Even if you have to take out a small mortgage to cover the cost of the new home, chances are you’ll be able to take a much shorter term and that you’ll own the home free and clear much faster.

Having equity in your home is like having a built-in savings account. If you run into a financial issue, you can always tap into your home’s equity to help you out. If you keep your bigger home, you probably have bigger mortgage payments and less equity in the home.

Less Work for You

If you plan to age in place, you need a home that will be easy to maintain. Taking care of space that no one uses won’t help you in the end. As you continue to age, keeping up with the cleanliness and maintenance of a larger home can be difficult. Downsizing now can help you stay where you are when you are older while finding easier ways to keep up with the home.

Depending on how much you downsize, you may not even have to worry about any exterior maintenance. People that downsize into a townhome or condo don’t have to worry about yard work, snow removal, roof maintenance, or painting the exterior of the home. Your association handles all of that for you. If you do downsize into a home, you can choose one that has a smaller yard and requires less maintenance.

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Lower Your Bills

Keeping a big home operating can cost a lot of money. You have to pay for the water, gas, and electric. These utilities are costly and can eat up a large amount of your income throughout the year. The more space that you have to heat up or cool down, the more the utilities need to work. This means more wasted energy and higher bills on your part.

With less wear and tear on your utilities, you’ll also have to repair or replace the utilities less often. This can help you keep your bills to a minimum as well. Don’t look at the amount you’ll save monthly on your utilities, because the savings might seem meager. But look at it over the time you’ll stay in the home.

Even if you only save $75 a month, that’s $18,000 over a 20-year period, if you stay in the home that long. This is one of the reasons it’s important to look at the big picture. Don’t focus on what you’ll save monthly, as it might not seem like enough to encourage you to downsize. $18, 0000 on the other hand, will probably motivate you to move.

More Time for Fun

With less home maintenance to manage and less room to create clutter, you’ll likely spend less time cleaning your home and more time having fun. If you are in your golden years or nearing retirement, you want to enjoy your time with family and friends. If you stay in your larger home, you’ll spend most of your time cleaning and maintaining your home. Instead, enjoy life and live in closer quarters that offer you the independence you need without the excessive costs and time it takes to care for it.

Downsizing can be a hard decision, but when you look at it from a financial and personal point of view, it often makes sense. Making the move to a smaller home leaves you the money and time in your life to really do what you want. Isn’t that what retirement years are all about?

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