How do you know if it is the right time to downsize?
Consider Your Monthly Expenses
The U.S. government uses 30% as the standard for housing affordability. If your housing expenses are starting to eat into your monthly budget, it may be time to move to a smaller property with a lower monthly payment and decreased utilities.
Features like large living areas, unused bathrooms, empty bedrooms, and stairs are all aspects of your home that may no longer fit your lifestyle. Paying utilities for unused rooms can get expensive and architectural features may pose as a mobility problem in the future.
Benefits of Downsizing
1. Help attack any debt you may have accumulated over the years.
Decreasing payments can mean more money towards other important things in life. This can be other debt you have accumulated or a vacation in the Bahamas.
2. Enjoy the benefits of smaller living.
Making the transition to a smaller home can lead to less stress and upkeep. Not having the stress of the cleaning, maintenance, and furnishing of a larger home can free up your time. Downsizing gives you the ability to stop spending money on furniture, appliances, etc. that merely fill up your large home, but may not serve a clear function.
3. Lower utilities and upkeep costs.
Think about lower heating and cooling costs and water savings. A smaller home has the potential to save energy and reduce your family's carbon footprint.
4. Free up your lifestyle to follow the things you have always dreamed of.
The burden of a larger home when it's time to go on vacation can be daunting. From ensuring property security, to keeping the yard clear; the headache of a big home can take away from the joy of a vacation. Moving to a smaller home like a condo can make traveling a breeze.
Downsizing can represent a new chapter in your life. You could start that business you always dreamed about or move into the city in a swanky new loft. You can start a new life in a new home.