How Downsizing Can Help Homeowners Save Money and Reduce Stress
As people reach retirement age, downsizing has become a popular option. However, downsizing may also be a viable solution for homeowners who have undergone changes in their lives or feel like their current home no longer suits their needs. According to U.S. News, downsizing is not only common among retirees but also among younger people who seek to save on housing expenses.
“Downsizing is somewhat common among older people and retirees who no longer have children living at home. But these days, younger people are also looking to downsize to save money on housing . . .”
Given the increasing inflation of most things, finding ways to save money has become more appealing than ever. Downsizing may be a practical way to budget differently and save money. Although people usually think of grocery and other frequent purchases when they think of cutting expenses, downsizing a home often reduces bills like mortgage payments, energy costs, and maintenance requirements. Realtor.com suggests that selling a larger home and buying a smaller one can lead to a potential windfall.
“A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something smaller.”
When downsizing, homeowners can use the equity they have developed in their home as an asset to buy a new home that meets their current needs. Real estate experts can assist in the process of selling a house, finding the perfect location and size for a new home, and understanding what mortgage rates can be afforded.
If you are considering downsizing, ask yourself if the reasons for purchasing your current house still hold true or if your needs have changed since then. Consider if you require and want your current space or if a smaller space may be a better fit. Take into account your current housing expenses and the amount you would like to save by downsizing. Meeting with a local housing market professional to discuss your equity and options in the current market can provide clarity.
Downsizing a home can be a valuable way to save money. If you want to discuss your housing market goals this year, let's connect.