When the time comes to sell your home and move on, you might be considering downsizing to a smaller place. This is a great option for parents whose children have flown the nest, retirees, or those looking to lead a simpler life.
There are a number of good reasons to consider downsizing your home. Numerous benefits await the would-be downsizer, from financial gains to lifestyle changes. Read on to see the various benefits you can gain from downsizing.
Depending on how much equity you’ve built up on your current home, you might be able to buy a smaller home outright, with cash to spare. This rewards you with spectacular financial freedom as you no longer need to worry about monthly mortgage payments.
Even if you do need to take out a mortgage, chances are you can afford a larger down payment and your monthly payments will be lower. This extra cash can be used in a number of ways, including adding to a savings account, travelling, indulging in a new hobby or simply enjoying your free time.
Less Cleaning, More Time
A smaller home naturally demands less of your time. Cleaning and maintaining your new, smaller home can be completed far quicker, leaving you free to enjoy the finer things in life. Whereas in a larger home you may have needed to hire help with cleaning, you’re more likely to be able to manage it yourself in your new one, saving money. In addition, with less space, you’re less likely to buy useless things you’ll never use, making it easier than ever to keep on top of decluttering.
It takes far less energy to heat a smaller home than a larger one. This reduces your utility bills drastically while improving your carbon footprint. Becoming more energy-efficient can be far easier after you’ve downsized, and the money you save on your bills can go on savings, hobbies or simply enjoying yourself.
When you downsize, you’re forced to declutter and get rid of all that junk that’s piled up. This is a great opportunity to sell, donate or bin all those things you never use any more. Once you’re in your smaller home, you may find you change your perspective on life slightly, focusing more on experiences and memories, rather than building up a collection of material possessions.
Opportunity to Diversify Assets
We’ve all heard the saying ‘don’t put all your eggs in one basket.’ This is sage advice in terms of real estate, a market that is well-known for its fluctuations and downturns. If all of your money is tied up in one asset, i.e. your home, your financial security can be compromised if things do take a turn for the worse.
With a smaller home, you’re more likely to have cash available to invest in a diverse array of assets. Many such assets are likely to be far more fluid and accessible than real estate, allowing you to tap into your cash more easily when you need it most.
Intimate and Cozy
A large house can often feel rather lonely, even if there are a lot of people living there. With a smaller home, you’re encouraged to forge more intimate relationships with those you live with. For families, this is a great opportunity to bond, while couples may rekindle their romance as they begin to spend more time with one another. Additionally, a smaller home is fantastic for smaller, more intimate gatherings of friends and new neighbours.
The advantages to downsizing are numerous and clear, but it’s not all rainbows and sunshine. The lifestyle changes are not for everyone, and it’s well worth knowing the potential disadvantages before making a decision. Before you make your choice, check out the disadvantages of downsizing.