Whether you’re a first-time homebuyer or retiree, downsizing offers substantial benefits. There are several ways you can improve your life by moving to a smaller home. Here are some reasons to make that change and advice for how to do so successfully.
Save money. More money in your wallet is a big reason to consider downsizing. Usually your purchase price is greatly reduced by buying a smaller home. Some experts note other significant financial savings linked with a smaller property, such as less expensive homeowners insurance, lowered property taxes, reduced heating and cooling costs and lowered electricity bills. Downsizing can be a key to happy homeownership
Added income. Perhaps you're thinking about renting out your current home to increase your income. Follow these tips to see if renting your home is the best idea given your situation.
Local move. If you will be close enough to tackle the role of landlord, it may be viable for you to rent your home. If distance necessitates hiring help, the service could eat up any financial gains. Calculate carefully before deciding.
Enough cash flow. Do you need to sell in order to afford the new abode? Talk with your mortgage company to see if you can manage the debt with your income level.
Financial resources. Being a landlord doesn’t necessarily equate to a steady inflow of money. You incur the costs of maintaining two properties, and sometimes tenants - and their payments - are unpredictable. You need pockets deep enough to accommodate times when income is weak or outflow is high.
Freed funds. Downsizing means the money you save each month that would otherwise be obligated to a larger home is freed up toward other financial goals. As Dave Ramsey suggests, you can use those funds to pay off debts, save toward your retirement, and even eliminate the burden of a mortgage payment altogether.
Less stress. The reduction of financial burden equates to less stress. Worrying about making ends meet can strain even the strongest of homeowners, so it’s natural to feel more at ease with less money obligated to your home. With a smaller home holding fewer belongings, you reduce your attachment to “stuff” and alleviate the associated anxiety.
More time and togetherness. Having less space to clean and maintain frees up your time to do other things. You can spend time enjoying your hobbies, traveling, or start up that home-based business you always dreamed of pursuing. You’ll also be in close proximity to your loved ones, so you can find more opportunities for bonding.
Reduced clutter. Less space means less storage and clutter in your home. With less clutter, some studies show you will feel better and experience improved mental health. Being surrounded by less “stuff” can mean reduced stress, less anxiety, more self-confidence, improved decision-making, and improved physical health, including a healthier sleep pattern. Also, decluttering can help sell your home since potential buyers won’t need to overlook your items to envision themselves living there.
Here are some tips from Reader’s Digest to help you reduce your belongings before making the move:
● Give every item a designated space. If it doesn’t have a place in your home, discard it.
● For every new item entering the home, discard an old one.
● Simplify your decor. Instead of every room having a theme, eliminate the variety and aim for one overall look.
● Many sellers rent a storage unit when staging their home to sell. Instead of renting a storage unit, reduce your items to the point one isn’t required.
Think small, enjoy big. Downsizing benefits people from all walks of life, from those new to homeownership to those searching for the right home for aging in place. Whatever your situation, you can reap big benefits from a smaller abode. Set your sights on a smaller home so you can save money and enjoy a better quality of life.
Article provided by Gene Ramsey from DownsizingDad.com.