During the boom year from through 2007, many homeowners, including first-time buyers and move-up buyers bought more spacious homes on large lots. However, along with these larger homes came the requirements for maintenance repairs and upkeep. After the economy collapse in late 2008, many borrowers experienced a dramatic change in their financial circumstances, such as job loss, disability, and other challenges.
Many of these people currently live under a lot of stress when it comes to making their mortgage payments and maintaining their homes. Many borrowers who are in a position to sell their home have considered the benefits of downsizing to smaller houses improve their overall quality of life.
Who Should Downsize
Downsizing your home can help anyone who wants to relieve financial stress or make their lives simpler. It’s especially attracted to retired homeowners who want to sell the family home where they raised their children. Whether cashing out of seeking a lower monthly mortgage payment, the extra cash ca n support traveling, a move retirement community, and other objectives. Baby boomers and Younger homeowners who may have bight more hose than they could afford should also consider the benefits of downsizing.
Homeowners contemplating moving to a smaller home should not view the choice as giving up a comfortable lifestyle. However, it does mean when looking for a new home, you need to focus more on finding a home, which has the features you most desire, such as storage space, and rooms for entertaining and relaxation, but on a smaller level.
Looking at the Benefits
Lower your anxiety by relieving many of the financial pressures of owning a larger home. More cash flow, smaller workload, and less responsibility are all good ways to reduce stress. A better cash flow put more money in your pocket to spend on other needs and desires. Depending on your home equity and proceeds from selling, you could have enough money to pay for your new home in cash.
A smaller home will also lower your utility bills. Energy bills rates near the top of the list for consuming more household income than any other expense besides mortgage payments. You will also reduce your cost for insurance and taxes.
Making the Move
Plan and organize your move to a smaller home. This means sorting through personal items and deciding what you need and getting rid of excess baggage. Organize a yard sale; sell goods on Craigslist or eBay. For anything you can’t sell, donate those items to your favorite charity.
The process of preparing to move to a smaller home can drain you physically and emotionally. If you have gotten use to accommodating large family gathering and taking in overnight guests, downsizing may means hosting fewer events and relinquishing some privacy.
Many homeowners made the mistake of getting caught up in appearances and trying keep up with the Joneses” when they purchased their oversized homes, but their financial circumstances changed over time. Downsizing can bring financial relief and alleviate constant worry. What better time to break away from the need to continue projecting a certain image in exchange for better health.