When you bought your home, you probably did so because it was spacious and catered to your growing family's needs. But there comes a time when it makes sense to downsize your home.
Here are five signs that it’s time to downsize your home.
Nothing left for savings A bigger home comes with higher maintenance costs, higher utility bills, and higher landscaping costs. You may come to understand that your housing costs don’t give you many options to save for a rainy day. Trimming down your monthly expenses is important.
Too much space in your home If you are retired and your children have moved away, downsizing can allow you to breathe easier and enjoy your work-free days. It doesn’t make sense to pay taxes, homeowners insurance, and maintenance expenses on rooms that go unused.
It's time to enjoy life's luxuries If you are able to pay for your mortgage and maintenance costs without any hurdles, that’s great news. But if all the occasional costs and upgrades monopolize too much of your income and you can’t take vacations, dine out, or just give your family a treat, then that may be a sign that it’s time to consider a smaller, less expensive home.
Mortgage, property taxes, and insurance are too high Spending more of your income on the mortgage, property taxes, and insurance creates room for disaster should unexpected expenses arise. Also, remember that housing costs can increase with changes in circumstance. You don’t want to find yourself in a situation where you have lost a job and all those costs are starring at you. Downsizing means being realistic.
You can make a profit If your home’s value has appreciated to a point where it makes sense to sell it rather than hang onto it, then cashing it in may be better for you. Buying a smaller house after selling your current home can give you more financial freedom.
I understand letting go of a home where you've built memories can be difficult. But wouldn't it be a better idea to build new memories in a home without any time and financial constraints. It's my goal to help you in any way I can so don't hesitate to contact me with any questions.