If you live in a large or midsized home, it may pay to evaluate your situation and decide if you really need as much house as you currently have. Here are eight advantages to downsizing your home.
1. Saving Money
Larger homes usually cost more, for a variety of reasons. "Downsizing might not be the right choice for everyone, but it’s worth a look if you want to save money and lower your monthly expenses," says Elliot Chalme at Cubesmart.com.1 "Home-related costs such as insurance, property taxes, and interest payments all increase with the size of your home. When you buy a smaller house, you’ll save on heating and cooling costs and overall home maintenance. If you end up needing a new roof, for instance, a smaller home is going to prove much less costly than that suburban mansion."
2. Less Debt
Since a home mortgage is the largest debt most families have, moving to a smaller, less expensive home will likely mean lower mortgage payments. Having less debt will improve your credit score, and having more available cash each month may help you fund your retirement or the kid’s college tuition, and pay off other, higher-interest debt.
3. Less to Take Care of
When you have a smaller property, by default, you have less property to take care of. This means saving both effort and money. It will probably mean fewer repairs you'll have to make (and pay for). It's fewer rooms you'll have to clean on a regular basis. It's also less space that you'll have to fill with furniture, decorations, etc. The less you have, the less you have to worry about.
4. More Time
Because a smaller home requires less effort to clean and maintain, you may find yourself with a great deal more time on your hands, to enjoy doing things you like. If you don't have to clean as many rooms, mow a large lawn, make improvements to as many parts of the home, etc., you can spend time in more leisurely ways.
5. Less Energy
A smaller home also means that you will use less energy. You won't have to heat/cool as many rooms, and your utility bills will be much lower as a result. Using less energy also means you are living in a home that is more environmentally friendly.
6. Fewer "Things"
Downsizing is a great way to motivate yourself to get rid of the things you don't really need. Most people have things they don't use, taking up space and causing clutter. If you don't have the physical space for such items, you are likely to get rid of them, which saves money, and can even cause you less stress. A home with less clutter is a happier home.
7. Greater Accessibility for Aging
As we get older, mobility gets more difficult. If you live in a large home with lots of stairs or even one that just requires a lot of back and forth to get from room to room, you may find yourself having more trouble as you age. Downsizing can solve this problem and make it easier for you to “age in place.”
8. Easier Relocation
Having a smaller home also makes it easier to pick up and move again if you need to relocate in the future. You'll have less to pack and to move to a new residence, making the whole moving process less of a headache and less expensive. A big home may be right for you, but consider the reasons above to help you decide whether you'd be better off downsizing. Then, talk to your banker about how to finance that smaller home and check out all your mortgage options.
1. https://www.cubesmart.com/blog/tips/cleaning/7-reasons-to-downsize-your-home
The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank. Nevada State Bank is a division of Zions Bancorporation, N.A. Member FDIC