There comes a time in our lives where we don’t need as big a home as we used to. In these cases, moving to a smaller place can give you a boost financially while freeing up your time and energy so you can focus on what you enjoy. How can you tell whether now is the best time to move to something smaller? Consider the factors below and you'll know when it makes sense to downsize your home.
Use of Space
When you bought your current home, it was exactly what you wanted and had just the right amount of space to fit your whole family. At some point, maybe you even thought of moving because you didn’t have enough space!
However, as children move out or your lifestyle changes, you may notice you no longer need the space you once required. Bedrooms sit empty or are used only for storage, no longer serving the purpose of home office and kids' rooms like they once did. Unused space is a good indication it’s time to move on.
Home Maintenance
Are you spending a significant amount of time maintaining your home instead of enjoying it? Consider all you do to keep your home functioning and looking good – lawn and garden maintenance, cleaning every room, as well as maintaining your furnace, hot water heater, and important appliances.
One of the fantastic perks of downsizing is that it cuts down substantially on the amount of time spent on home maintenance, meaning you have much more freedom when it comes to your time. Whether you want to travel overseas, take up a new hobby, or spend more time with close friends and family, having less of a commitment to your home makes it all possible.
Maintenance Costs
A larger home can yield higher utility bills and costs more money to maintain. Downsizing is likely to save you a lot of money when it comes to mortgage, electricity, natural gas, water, landscaping, and general maintenance. How much are you spending now compared to how much you could be saving in a smaller home? What would you do with the extra savings each month?
Financial Gains
Downsizing your home presents a great opportunity to improve your financial situation. It’s possible, depending on your situation and what kind of home you decide to purchase, that you could pay off the remaining mortgage on your current home and pay cash for a smaller condo or townhome!
Other options here would be putting some of the money from the sale of your current home into your retirement savings, paying off debts, or planning an epic trip to somewhere you've always wanted to go. However you decide to spend this money, downsizing will free up the equity you’ve built in your home and allow you to redirect it where you want.
Functional Space
The ability to access your home with ease is a good reason to consider downsizing if you are retired and looking for a home that will serve your needs for years to come. If mobility becomes an issue, you may find single level floor plans with ease-of-use features appealing.
It isn't practical to live in a home that you won't have complete access to. Moving to a smaller home that is tailored to your needs will be much more enjoyable, and you won't have to worry about moving again shortly down the road.
Consider moving into a small condo or a single level bungalow, as this will be smaller space that is much easier to access. You also get the benefits of having neighbours nearby and can choose an area that is closer to services you need, such as banks, shops, and restaurants.
Downsizing to a smaller home has numerous advantages, and if any of the points above resonate with you, it may be time to consider a change. In the end, downsizing can improve your financial standing enormously, give you more time to do the things you enjoy, and provide you with a home you love that fits your current and future needs.
