Are you still living in the home where you raised your children? Is it starting to feel a little empty now that they are grown up and have their careers? Has it occurred to you that a smaller home could be more suited for you?
Many couples like Dale and Barb, and Sandy and Ben - two couples we'll be exploring in this article, have chosen to leave their existing family homes for changing lifestyles and financial reasons.
You would be amazed how freeing up your time for leisure activities, getting more rest, spending time with your family, and perhaps even liking your house rather than hate it is when you reduce your everyday duties and upkeep can inspire you to make a big change. Consider condominiums or townhomes if you are thinking about selling your single-family property like Sandy and Ben. Association fees frequently cover the expense of maintaining the fence, roof, exterior landscaping, and siding on these properties, which often have smaller yards.
Some retired couples like Dale and Barb would choose an apartment building with an elevator and a superintendent to not have to worry about house maintenance and can even get help changing a light bulb. When you have less responsibility, a lower workload, more cash flow, and more freedom, you have less stress like Dale and Barb. When the duties of a larger house no longer burden homeowners who have successfully downsized, they look happier.
Here are three motivating factors that are driving many of today's homeowners to downsize their current family home, see if any of these resonate with you, too.
You Want to Travel More Freely
Some individuals live a life of work and no leisure, and they are quite content with it. Downsizing can help you afford more adventures if you want more out of life but are stuck because you have a huge mortgage payment hanging over your head. Homeowners like Sandy and Ben have successfully raised their kids and now have lots of time to live out their active lifestyles.
Spending less of your salary on a mortgage, house upkeep, and property taxes mean you have more money for life experiences, such as travel, delicious local food at restaurants, wine events, or investing in your hobbies. You may not have realized it but traveling may be a strain when you have a large house.
When you leave town, your house takes a lot of labor. From ensuring doors and security systems, and windows are properly maintained to keeping your grounds up and monitoring outside lights. For retired couples like Dale and Barb opt to downsize, traveling will be less of a bother when they need to leave home for a long period, especially if they downsize from a single-family home to an apartment or condominium unit.
Dale and Barb had enough savings thanks to previous planning and great decision-making. Their success story is no secret, and here's how you can do it too. You can divide the money you save after downsizing into two different accounts. For example, save half of your money for an emergency fund and the other half for making memories and living life to the fullest. Consider how many different experiences you will experience each year if you have thousands of dollars in the latter fund.
Cleaning and Maintaining a Home Take Less Time and Effort
Many homeowners believe that having a larger house causes more stress and maintenance. Cleaning, furniture, maintenance, operating costs, and outside house care are all aspects that might contribute to a stressful home for a couple like Dale and Barb, who want a peaceful retirement. Downsizing your house is the first step toward a simpler, more minimalist lifestyle.
Cleaning and maintaining fewer rooms and smaller places takes less effort. Retired couples like Dale and Barb can opt to live in a smaller house that will free up more time in the day to accomplish something more pleasant through the reduction of time spent on domestic duties.
You would be amazed how freeing up your time for leisure activities, getting more rest, spending time with your family, and perhaps even liking your house rather than hate it is when you reduce your everyday duties and upkeep.
Consider condominiums or townhomes if you are thinking about selling your single-family property like Sandy and Ben. Association fees frequently cover the expense of maintaining the fence, roof, exterior landscaping, and siding on these properties, which often have smaller yards. Some retired couples like Dale and Barb would choose an apartment building with an elevator and a superintendent to not have to worry about house maintenance and can even get help changing a light bulb.
When you have less responsibility, a lower workload, more cash flow, and more freedom, you have less stress like Dale and Barb. When the duties of a larger house no longer burden homeowners who have successfully downsized, they look happier.
Financial Goals and Concerns Top the Reasons for Downsizing
Here are the top three financial benefits to downsizing your home in today's market...
(1) Extra Cashflow - Homeowners may have the potential to free up their equitable position in their home when they sell and reduce payments
(2) Lower Utility Bills - Smaller spaces typically equate to lower utilities in terms of heating, cooling, and even electrical lighting use
(3) Investment - Another cash flow benefit; some homeowners are able to reinvest that equitable position into their retirement planning
And,
this is just the beginning. Reducing the amount you spend on luxuries is another financial motivation for downsizing. Stop wasting money on furniture, appliances, gadgets, and other household goods that are only decorative rather than functional. You are far less inclined to buy anything if you do not have a place to keep it.
Downsizing to a smaller house can allow couples like Sandy and Ben to better focus their lives and bring just what they need into a new home. It is a matter of living a simpler life centered on family for some people. Some people like Dale and Barb may wish to check off places on their bucket lists. Dale and Barb may choose a low-maintenance neighborhood with high-end improvements and social activities to transition into their retirement.
If you are considering downsizing, keep in mind that a smaller house may not be able to contain all of your possessions. You will probably have to get rid of things you do not need or use to make a smaller place function for your family. You may be able to put more money in your pocket as a result of this.
Many homeowners like Sandy and Ben have divided the earnings from their existing house sales to place down payments on smaller properties at their present locations and vacation or retirement homes where they expect to dwell when they retire. It allows them to lock in the current home price and mortgage interest rate, making financial sense because both property prices and interest rates are expected to climb.
If you save money on your mortgage payment, you will have more money left over each month to spend on other necessities or wants. Alternatively, you may use the money from your current house to purchase a smaller home outright.
But, downsizing is not only for retirees like Dale and Barb or empty nesters like Sandy and Ben.
It is beneficial to many individuals for a whole host of reasons. One thing we think is most important to anyone on a journey like this, is that there is an important conversation to be had with not only your trusted REALTOR so we understand the end-goal and motivation, but also with a trusted accountant and bookkeeper, as well as with an experienced and trusted financial advisor or planner because there may be financial ramifications with untransferred or utilized equity from the sale of your existing home – capital gains.
If you’re not already working with trusted professionals in these fields of expertise, please reach out. We know of several amazing resources we can put you in touch with.
SO! Are you ready to downsize?
Now could be a good time to consider buying a smaller home that better meets your needs today. Start by scheduling a complimentary market analysis of your home when you visit www.homesbyash.biz today
Let Team Homes By Ash and our award-winning REALTOR®, Lisa Ash, help you sell your home for the best available market rate today. Contact Homes By Ash at 612-701-8368 now – or start by filling out our Home Evaluation Assessment online to start your free CMA today at www.HomesByAsh.com.
