Many people choose to trade in their (bigger) house for a smaller one in order to downsize.
Our lifestyles are rapidly evolving and changing thus we need homes to suit our needs.
People downsize for different reasons: they may have reached their golden years or their children have officially moved out and they have too much extra space.
Whatever the reason might be, there are many advantages to downsizing your home.
Don’t let anyone tell you that bigger is better; it isn’t always about size, but how much you enjoy spending time in a home that is your own:
1 – Increased cash flow
As soon as you move into a smaller house, you will notice that you have more money at the end of the month. This is because your bond might not be as big as you are used to.
If you are spending less on your mortgage payment, this means that you have an increased cash flow as well.
This benefits many people in the sense that they can pay off their debts faster, they might be able to afford a new car, or they might be in a position to take that special holiday that they never thought they’d be able to.
2 – More time
Let’s be real here: bigger homes often require more effort, time, and maintenance to make sure that everything is always in working order.
Many people do these chores themselves and it takes up a lot of time during the day. You might think you are quickly going to clean the house or fix the gutters but before you know it, half the day has slipped past you.
Ain’t that the truth?!
A smaller home enables you to spend less time with household chores because the rooms and the yard won’t be as big. This leaves you with more hours in the day to do the things that you enjoy.
However, there might also be disadvantages to downsizing:
1 – No extra room for guests
In a smaller type of home, there won’t be any room for guests to spend the night and they might have to sleep in a hotel.
Hosting holiday dinners will also be out of the question because your kitchen might be too cramped and the dining room non-existent.
If you aren’t too keen on inviting people over as it is, then this might be a blessing in disguise, but if you are a Mother Hen and you want all your chicks in the coop, then, unfortunately, a smaller home is not the best solution.
2 – Fewer belongings
If you have been living in a big house your entire life, you will by now have accumulated a lot of belongings in order to fill the space.
When moving to a smaller house, however, you can’t possibly take all of it with.
Some of the items you will have to donate or throw out. This includes furniture, kitchen utensils, books, gardening supplies, and it might even require you to clean out the garage that you have been postponing for the past two years.
Moving to a smaller home offers the best of both worlds, but it is entirely up to you to decide what the best course of action would be.
The next question that you should be asking is whether you should buy or sell first.
This will all depend on the condition of the market and how your home’s pricing compares to similar homes in the area.
Generally, it is better to sell your home before buying because it keeps your emotions under control. On the other hand, many markets will indicate that it is better to buy first and then sell.
The best way to solve this would to discuss a strategy with your real estate agent.