Should You Sell Your Home To Downsize To a Smaller Home?
Downsizing is becoming a huge trend these days with all types of homeowners! Not only is it stressful owning a home that is much bigger than you need, but it can also be a huge financial burden if you are looking to save money for things like retirement or travel.
Moving and downsizing aren’t easy tasks, though if you find that your larger home isn’t practical anymore, it may be a good long-term decision to do so.
Here are some of the top reasons as to why downsizing might be a good idea in your personal situation!
1. Your Mortgage Payments Are Too High
Check out the time left on your mortgage before you even consider downsizing. The closer you get to older age, the less and less a 30-year mortgage makes sense. In order to retire and live comfortably in your old age, you’re going to want to make sure that you pay off your mortgage so that you don’t have to worry about working anymore.
Obviously, downsizing means moving to a place where even smaller homes don’t cost a fortune. There are many cities where that isn’t really an option.
2. You Can Make Your Move With Ease
Moving can be a costly and time-consuming process, especially if you’re hiring professionals to get the job done for you. Moving interstate or international is a completely different process. Regardless, you’ll have to take apart all of your belongings, get them packed up, have transport vehicles at your disposal, and then once you get there, you’ll have to rebuild.
If you’re in the middle of working a hectic job or raising kids, this might not be an option for you.
3. You Can Learn To Let Go
Downsizing your home means downsizing your belongings. This means that you likely won’t be able to bring all of your furniture, appliances, or decorations that you’ve fallen in love with over the years. The great thing about downsizing is that it helps you to decide what is important to you and what is not.
The cool thing is, a lot of the things you don’t decide to move with can be sold. You can make quite a bit of money if you know how to sell items that you’re planning to leave behind.
4. Your Home Is Too Big
For those older folks reading this article who have had the home since the three kids were there, those kids which have now moved out into homes of their own, you might need to be honest with yourselves and ask if all of that extra space is necessary.
Paying property taxes and other numerous bills for a large property, most of which isn’t in use, might seem pretty impractical. With that said, there might be a sentimental or financial reason you’re holding onto the larger home, which brings us to our last number.
5. Your Home Is Not Being Inherited
Many families stay in their homes for generations and generations so that their children and children’s children can inherit the homes and live in them with their families. If you’re done paying off your house, this can be a great gift for your children and their families.
If you are still paying off the mortgage however, your children will have to take over the remainder of those payments. Whether or not they will be able to afford those payments or take them on in the first place is a discussion you may want to have.
Assess your downsizing situation with care and caution to see if it is the right decision for you. In a society of excess, downsizing can lead to a less stressful life overall, both financially and mentally.
Do you have any positive experience with downsizing that you’d like to share? Let us know in the comments!