The Benefits of Downsizing Your Home
Our modern lives change in unexpected ways. We may become empty nesters, approach retirement, get divorced, or simply decide to embrace a simpler lifestyle due to personal or financial circumstances. In any of these situations, downsizing your home opens a world of new possibilities. Here are some positive aspects that may help you consider this option.
Profiting by selling your current home
Selling your current home may mean paying off your debts, but it also could see you turning a profit. Real estate markets change over time. Downsizing your house at the right time can result in paying off your mortgage, affording a new domicile and keeping some profit for the future at the same time.
Downsizing doesn’t only mean a smaller place. It can also imply moving to an area or city where current house prices are lower, but where your lifestyle can still be enjoyable and prosperous. Doing the proper research before taking the challenge is important, as your new home is the place where you may be spending the rest of your life.
There are a few factors to consider when thinking about downsizing. These include the value of your current property, the amount left owing on your current mortgage (if any) and the type (and location) of your future abode. These variables will ultimately dictate whether you’ll be able to financially cover all of your expenses or if you’ll need to investigate your loan options with available lenders. Thanks to the proliferation of brokers and lending institutions online, regardless of your location (as long as you have a working internet connection) you can now easily gauge just how fiscally buoyant you might be in your downsizing endeavour. Everything from mortgage insurance to interest rates, lenders offer tools and calculators which can assist you in deciding what is the most financially correct course of action for your situation.
One of the first things that you will notice after moving to a smaller residence is a reduction in expenses, such as reduced mortgage payments and real estate taxes and rates, lower insurance costs, and savings in utility costs.
Lower maintenance costs can also represent a source of savings. A smaller garden, or the lack of it, results in reduced electricity cost and water use. Reduced living space means lower expenditures in repairs, maintenance, modifications, decorating and furnishings. It can also mean that you can cut back on tasks such as cleaning or mowing, thus reducing your services expenses.
Depending on the size of your new home, sometimes these savings can be significant, particularly when considered over a longer period of time. While your initial savings may not look great, think how much you will save over ten years or more.
A better lifestyle
Choosing a new home gives you the opportunity to live closer to the type of environment that you love. Be it a country style or a busy city atmosphere, your smaller place may mean that you will be able to enjoy more of those little things that make life more pleasant.
From long walks in parks or at the beach, to being closer to those shopping malls that you love, your new location can bring new light to your life. Think about the extra money and time at your disposal. What would you like to do with them? Think about all those dreamed up activities that never happened. A differently located and smaller place may imply more time for your family, a healthier lifestyle, more socialization, the opportunity to travel, and why not, the capacity to enjoy more of your new accommodation.
Less financial stress
By embracing the Zen effect of a less-is-more lifestyle, you will enjoy not having to worry about many expenses. Downsizing can not only reduce your bond payments, but help you trade in your mortgage for a fully paid home, and pay other obligations that you may have. Imagine a life free of debt! Besides, your increased cash flow will undoubtedly make you feel more secure and capable of facing the uncertainties of the future.
Opportunity to create a new interior style
A new home welcomes in the opportunity of renewing your home interiors with ease. Smaller rooms may require new furniture and adornments. A different architectural style may entail the fun of researching what goes with it, and the buying excitement that accompanies it.
When designing your new surroundings, make sure to choose options that are easy to maintain, are cost-effective, durable and pleasant to you and your home companions. Remember, a home is a long term investment. You will probably spend many years to come there. If you can afford it, spoil yourself a bit, and make sure that you create a comfortable space.
Stronger family ties
Reduced space can bring many opportunities to strengthen your family ties. Smaller homes create an environment that demands more organization and coordination. Sharing living arrangements means considering others and their needs. For example, knowing that a member of your family requires concentration to study implies that you cannot enjoy your music at a higher volume, but it can also bring you the happiness of sharing and somehow being part of the exam successes.
Downsizing can also imply that you move closer to your important ones. Thus, your children and grandchildren will find it easier to visit you, bringing the joy and companionship that is so important in life. And, it can also result in shorter distances or better transport for you to visit them!
Create a new chapter in your life
Whether you downsize your home due to divorce, or your grown-up children moving out, or any other reason; the change can help create a new chapter in your life. New beginnings in a different location can help you to meet new people, join different organizations, and be closer to significant ones and places that you enjoy. Besides, your increased savings and better time availability can help you decide to undertake those dreamed about projects, such as travelling or starting a hobby. And even more importantly, your reduced home chores will mean that you can enjoy your home instead of worrying about its daily maintenance.
Although, like most changes in life, downsizing your home can be hard and difficult. Seeing the positive aspects of it can help to undertake this project with hope and optimism. There are great advantages to a smaller house, such as increased financial freedom and a relaxed lifestyle. Taking change as an opportunity may result in a richer life full of exciting experiences. And before taking your final decision, just remember that
“Only I can change my life. No one can do it for me.”
Author ~ Bethany Seton