Downsizing is when you buy a smaller home than the one you currently have. This is often a decision made by those who now have an empty nest, are struggling to deal with the upkeep of their home or are finding the related costs hard to deal with.
It may just be that you are eager for a change, want to simplify your life, want to move closer to friends or family members, or want to start a new phase in life.
1. The Maintenance is too much
Maintaining a big house can be a lot of work. Between lawn care, standard maintenance and cleaning, the upkeep can leave you exhausted. And as you age, it may become more difficult to do certain household tasks.
It’s also costly to maintain a large home, especially if you decide to pay someone to handle maintenance or other services. Plus, you may become physically unable to cut the lawn or shovel a long driveway. Paying others to take care of your property will increase your cost of living. By downsizing your home, you’ll have more time for yourself and will be able to save more money.
2. You’ve retired or you’re retiring soon
Retirement is one of the most common reasons to downsize your home. When downsizing your home for retirement you cut basic expenses and create more retirement income by moving into a smaller, cheaper property that will likely reduce your property taxes, home insurance and mortgage payments.
Even if you plan to have your mortgage paid off by the time you retire, downsizing your house could be a smart move. Having too much capital tied up in a home you don’t need means less retirement savings. By selling your current home, you free up a substantial source of retirement capital.
3. You have a lot of unused space
If you’ve already raised your children, you might be paying for space you’re not using. After all, it’s likely you and your spouse don’t need four bedrooms and three bathrooms. Even if you’ve paid off your mortgage, you could still be paying a hefty sum in property taxes, homeowners’ insurance, utilities and maintenance, all of which are higher for a larger home.
4. Lifestyle change
Downsizing your home for retirement is one way to free up your funds for travel. It’s not uncommon for snowbirds to downsize into town homes that allow them to travel more because they don’t have to worry about maintenance. If your oversized mortgage and maintenance costs are eating up your travel money, it might be time to consider downsizing
At DNG Galvin we have helped thousands of people downsize over the past 40yrs. We are committed to fully understanding your needs and working with you to not alone sell your property but also help you find your next home. Contact us here
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Majella Galvin on Wednesday, November 2, 2022 in Blog