Downsizing is a decision that many will ponder at some point in their lives, but often it is hard to know whether this major move is the right move for you and your loved ones. A decision such as this can make life easier and more enjoyable, but only if done when you are truly ready. While the reasons may vary, there are six signs that downsizing may be in your near future.
1. Your Costs Become Overwhelming and Leave No Room for Savings
If you find that you are living paycheck to paycheck or have to rely on credit to finish paying the bills, it may be time to downsize. Dipping into savings to keep the lights on is a sure sign that it’s decision time. On top of a large mortgage, bills can often provide more stress than enjoyment. By moving into a smaller home, you will be saving on electricity, power and property tax expenses. You may even have room to increase your savings.
2. You Find You Have Too Much Space and Cannot Make Use of it All
Do you find yourself only using a fraction of the rooms in your house? Do you have multiple rooms for storage? This is a sign that moving into a smaller home might be a good option. If you’re not using the space, it may no longer make sense to continue paying for it.
3. Home Maintenance Becomes Too Much
If your grass is becoming way too long, you can never seem to keep the snow out of the driveway or things around the house just aren’t getting done because of physical limitations, downsizing could be the solution. Investing in a condo, or something of the like, will allow you to relax and enjoy your home without the pressure of home maintenance.
4. You Are Experiencing Major Life Changes
Retirement, divorce or becoming an empty nester are all reasons that someone may choose to downsize. Having less income or bodies in the home may remove the need for excess space. Downsizing often accompanies a major life change and may be something you need to consider.
5. You Have Different Priorities Than Before
Often, people have the goal of owning a large house in the future. For many, this is a sign of success, but for others, priorities may change down the road. Some people choose to travel, others decide to start a business, but whatever your priorities are, a large home may not be in the cards anymore. Downsizing to accomplish other goals and have different priorities is not a failure, simply a life shift.
6. Selling Will Benefit You More Than Hinder You
If you have built up equity in your home and realize that selling may be more of a benefit than anything, downsizing may be a smart move. If you have already completed renovations to your home, chances are the value has continued to climb over the years making the selling process an obvious choice. For those who want to sell, but need to complete some renos, Graysbrook offers renovation mortgages to help increase your home value prior to listing.
Whatever the reason, whatever your decision, downsizing is a choice that has to be made by you. Some will do it early, some later and some not at all, but by looking at these six signs and weighing your pros and cons, you will be sure that the final choice is the right one for you and your family.