While a big and roomie home is something that almost any young person or family dreams of buying, the space often becomes burdensome when the homeowners age and no longer need it. Sure, it might seem like a waste to give up your big house, especially if you’ve paid off your mortgage, but that’s far from the case. You see, selling your home and moving into something smaller and cozier is one of the smartest decisions you can make. If you’re wondering “should I downsize my home?” the answer just might be yes. Here’s why.
You’ll make money off of the equity
A good chunk of the United States, is in a seller’s market. What this means is that the need for homes outweighs how many homes are available for purchase. If you bought your home over a decade or two ago, then chances are its value is much higher than it was when you first bought it, as long as you’ve been taking care of it. Selling your home in this market can leave you with a nice profit. However, we do recommend hiring a professional real estate agent who can help you sell your house in the smartest way possible and help you figure out the best time to sell your house.
You will save money
Let’s face it: owning a large home is expensive. Even if you’ve paid off your mortgage in full, you still have to pay for insurance, property taxes, and utilities. Downsizing, as long as you do it smartly, will inevitably save you money. Your cost of living will go down and, instead of wasting your money on a home with unnecessary space, you can put it towards something more useful. In addition to the money you’ll be saving from lower monthly bills, you’ll also make money off of your home’s equity.
You can put your money towards better things
Now that we’ve touched on the financial benefits of downsizing into a smaller, more efficient house, we can dive into discussing smart things to put your money towards instead. To start, retirement isn’t cheap, and it’s necessary to have as much money saved up as you possibly can. Regardless of if you retired years ago or if you’re itching close to that sweet age of 67, you should always be cognisant of how you’re spending—and saving—your money. Downsizing gives you the ability to both save and earn money that can make retirement a whole lot more comfortable. Large homes are nice, but being able to hit the golf course, travel, and enjoy your free time is a whole lot more satisfying.
If downsizing seems like something that’s in your future, we highly recommend bringing on the professionals to guide you through the process. An experienced real estate agent can make sure you make the most profit possible off of the sale of your current house and help you find a new home that will save you money and you’ll love.