Many homeowners come to a point in their lives where their current house is simply too big. Whether it be the maintenance, cost, or simply the hassle of trying to clean it, people are looking for ways to downsize. Downsizing can potentially save you a lot of money, but there's more to consider than just the monthly cost and how much space you're getting in return.
Below are 5 things to consider before you downsize your home.
How Much Space Will You Need?
Before you begin the downsizing process you will want to have a clear idea of how much space you will need. You'll want to look at your current living situation and ask yourself some simple questions:
- How many bedrooms do I need?
- Do I have enough room for my bedroom furniture?
- Do I require extra storage space?
- Will anyone be living with me in this new space, if so, how many?
- Where will visitors sleep if they stay overnight?
- How much room do I have for socializing with guests?
- Do all the appliances in my new home fit into the current space available to me?
A lot of people don't think about how much space they really need. When you're downsizing and getting rid of a lot of your larger items, it's easy to think you need a smaller home when in reality you do not.
What Items Do I Want To Take With Me?
As you look at downsizing your home, you'll want to consider what items are important for you to take with you. For many people, it's the family heirlooms that are important while others will want to keep certain pieces of furniture or sentimental items.
You will want to plan out exactly what items are most valuable and how they can fit into your new space.
What Type of Home Do I Want To Downsize To?
As you think about downsizing your home, you will want to look at different types of homes that are available on the market. There is always an option for people who downsize to move into a smaller condo or bungalow.
When considering which type of home you want to move into, it is important to reflect on your lifestyle. Are you looking at retirement? Wanting to be free to travel? Do you enjoy gardening? All these things will help determine the type of property that may be best suited for your needs.
What are My Financial Considerations?
When you move from a larger home to a smaller one, the costs will always be significantly different. You'll want to look at what type of financing could work for your situation if you are planning on purchasing a new property.
A lot of homeowners who move from a large house into something small often use their equity from the larger home and trade it in for a down payment on the smaller house.
If you choose to rent your old property out, or if you opt to make it into a business, it is important to factor in what all the costs will be and how long before you can start seeing them pay off.
What Will My Lifestyle Be Like After Downsizing?
After you decide to move into a smaller home, you will want to consider the lifestyle that comes with it as well. A lot of people like to remain active and do not like feeling "boxed in" by their surroundings. If you are someone who likes to travel often, you may want to look at a smaller house that is near the city center.
Retirees who are downsizing their homes may want to be closer to different amenities like transportation, medical care, and grocery stores. This will make it easier for them to live independently without the assistance of others.
Downsizing your home can be a difficult decision to make, but it doesn't have to be. There are many factors you will want to consider before deciding what type of property may work best for you and your lifestyle. Whether you're looking at retirement or simply wanting more space in the city center, there is an option that is right for everyone.
