Many life events can create a need to downsize your home. As families grow older and children move out of the house or area, parents often want to live in a smaller home or a home closer to their children and grandchildren. No matter the reason, downsizing has the potential to provide a simpler and lower-maintenance lifestyle. As you think about downsizing your home, consider these benefits:
Financial – If downsizing your home pre-retirement, lowering your mortgage payment by purchasing a smaller home could increase the funds that you save toward retirement or pay toward outstanding debt. Also, by selling your home and downsizing, you may be able to put down a large down payment or purchase a smaller home with cash, thus reducing or eliminating your mortgage payment.
Utility Savings – Downsizing not only has the potential to lower your mortgage payment; it can also lower home expenses. By purchasing a smaller home, you will likely use less electricity, resulting in a lower power bill. Additionally, purchasing a home with a smaller yard, or a condo with no yard, can save on the expenses of landscape maintenance and pest control.
Less upkeep – In addition to lower energy bills, a smaller home means a smaller area to clean and furnish. With less property, you will most likely have less yard work as well as fewer repairs and renovations. This will hopefully provide you with more time for your family and the things you love.
While downsizing your home has many benefits, make sure to run the numbers. Look at costs associated with selling the primary home, which may include preparing the house for sale, the real estate agent’s commission, moving costs and the cost of the new home. Also, while moving into a smaller home usually means a smaller mortgage payment, location and cost of living can have an effect.