Home > Blog

How To Downsize Your Home

People are considering making many changes in their lives now that we are in a recession. This is not a necessarily a bad thing. For example, after lossing their jobs, many people have choosen to become a digital nomad, nor location independent entreprenur.

Lowering costs is sound financial advice. One way to lower your overall cost of living is to downsize your home.

The kids have gone to college or are making a living on their own. You have more room than you need in your home. Should you consider finding a smaller home? Here are some considerations before you make that decision.

* Where will you live? If you are moving to a smaller home in the same area of the city, your tax savings may not change. Property tax rates may be based on the county you live in or the city. Check first to see what if any benefits you will get based on your geographic location.

* How is the housing market? Right now, it is definitely a buyerís market. Even if you find a smaller home, you can still enjoy many of the amenities you have now: large kitchen, walk-in closets, porch, and big back yard. Shop around for the most extras for your money.

* Lower mortgage payment Who wouldnít enjoy saving money? Check to see what the savings will be each month. If you can find a fixed rate mortgage with a low interest rate that costs you $200 to $300 less a month, you can use that sum for savings or put it towards a vacation.

* Loss of responsibility This can be a good thing for those who are getting too old to want to mow the grass or worry about the general upkeep of a property, especially if it is large. Consider investing in a condo. Here, your dues go towards general maintenance so you donít have to deal with it. For some, having one less thing to do is worth it.

* Will it sell? This is a buyerís market but you can sell your home and make a profit in many circumstances. Is your home fairly modern? Has it been kept up well? Is it in a good neighborhood? A home with attractive selling points wonít be such an albatross around your neck when and if you make the decision to downsize. Check with a broker first to see what the chances are that they can move your home.

* Lower utility bills With less space, it will take less energy to heat and cool your home. This is prudent, especially if you have rooms that are not being used anymore because the kids have moved out. This is money you can put in the bank.

Are you looking to downsize your home? The first consideration many have is whether it makes good financial sense to do so. Use the points above to evaluate your position.