Home Downsizing – Downsizing is an employment term, but many people are using it now in relation to their home. Downsizing the size of your home has become a popular topic in today’s crazy economic market.
Making the move to a smaller home is starting to make sense to more and more people. They are seeking stability in this market and realizing the home they have may not be worth the pain and suffering they are going through to keep it. Especially when you factor in the fact that many homes are underwater these days, people are looking for a way out.
Home Downsizing
Home Downsizing
Home downsizing is gaining popularity among the financially conscious. This is something those into real estate investing should be aware of as well. The trends show people are looking for less home to make sure their mortgage payments and expenses are inline with what they can afford.
Let’s discuss a few of the things you should consider when downsizing your home. You just may find it is the best financial move you can make….if you can get rid of your current property for what you paid or more.
Smaller Mortgage Payment – The obvious advantage of downsizing your home would be the mortgage payment. Most homes that are smaller in size are also small in mortgage payments. This is definitely what you would be looking for if you had an opportunity to downsize your home. A smaller mortgage payment in this economy is something everyone is interested.
Buyers Market – Don’t forget, this is a buyers market. Therefore, you may be able to get a home with many similar amenities you have now for much less. The sellers in the market are very desperate to move their properties. And with more and more properties coming online for sale everyday, it doesn’t seem like this situation is getting any better any time soon.
Lower Utility Expenses – The dream of all money conscious people is to lower their expenses. Moving to a downsized home will definitely help you lower your expense. There will be less area to heat and cool during the various seasons. You won’t need as much water for the lawn. The electric bill should go down a bit as a well. All these things can add up to significant savings over the long run.
Lower Taxes – Downsized homes with downsized mortgage rates, typically mean downsized taxes. You want to make sure you are moving into an area that is right for you, but also right for your tax burden. Many communities are cash strapped these days, so they are heaping that burden on homeowners and placing higher and higher taxes on them. Be alert of this situation and make sure you take the measures necessary to secure a reasonable tax burden.
The Right Location – Location is everything in real estate, even when you are downsizing your home. You want to make sure you are moving into a safe, affordable neighborhood. I think you will find many of them available around the country. Especially as home price continue to recede, there seems to be good opportunity to move into areas that were once overpriced, but not the cost of homes are lowering. You just might find yourself the deal of a lifetime.
Less Maintenance - Small homes mean less to take care of. If you want to cut the grass, there isn’t as much. You need to sweep the floors, mop, vacuum, dust or any of the other 10,000 things that need to be done in a home. It all should be much easier.
My wife and I have always said we don’t want to live in a monster sized home because we don’t want to clean it. Downsizing to something more reasonable and acceptable might even give you a better quality of life in the long run.
There are many benefits to downsizing your home. You should slow down to consider it. Do you really need 5,000 square feet for your 3 or 4 person household? This is something I would call excessive, but to each his own I guess.
Do yourself a favor and at least consider it. The savings could be significant and the benefit on your future tremendous, but I would love to hear from you. What are your thoughts on home downsizing?
I downsized 14 years ago when I moved from a 5 bedroom house to a 2 bedroom townhouse. All my expenses went down and I no longer need all that space.
Sounds like a good move. All the kids must have moved out!
I belive in staying well within means. I shouldn’t buy a house which I have to downsize in futre. Only exception is when you lose job then thers no other option but to down size if your home is still not paid off. For those people your article will be very useful
We also saved on furnishing and other house hold items as well. We downsized to a 1,000 sq feet condo and we don’t have room to buy junks anymore.
Great point! That is something I left out. Less space = Less junk in the house!!
We’re getting closer and closer to being empty nesters, so we talk about downsizing a lot. It’s probably about ten years away for us though.
You’re right about the maintenance. We are 1/3 owners of a lake condo and I LOVE being there because it’s so easy to keep picked up and cleaning it is a snap.
Empty nest is kind of exciting…and frightening as well, but it is part of life. My kids will all be in college in 9 years, but you have to have the home for them to come home a few years, so we are about 14 years away. I can seem us downsizing to a condo and just travelling the world.
Can’t wait!
Home downsizing is a very practical decision these days. It is very beneficial to the owners since expenses are lessened.
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It is something many people have to consider. I definitely could see my wife and I downsizing in the next 15 years. Our children will be out the house in 9 and that gives them a few more holidays to come back home. After that, we cut our expenses and see the world.