So You Want To Downsize, What Do You Need To Consider

Finalizing your decision to downsize is a big step. To help make the decision, here are some pros and cons to consider.

Advantages:

  • Have more time for leisure and other interests: A smaller home means fewer rooms and square footage to clean and maintain.
  • More disposable income:You will have more disposable income because:
    • A smaller mortgage or no mortgage at all leaves you with extra money each month for other needs or wants.
    • With a smaller home, storage is at a minimum therefore less money will be spent on consumer products such as furniture, clothing, etc.
    • The cost to heat or cool a smaller home is less.
  • Minimizing stress: Having a smaller home means a smaller workload, fewer household demands and more flexibility for leisure time.

Disadvantages:

  • Less space: Some rooms or areas may need to do double duty. Space maybe cramped so there will be a need for more discipline and organization.
  • Not a lot of room for guests: Having a smaller house means that you need to possibly rethink how you host or accommodate overnight guests.
  • Fewer belongings: Downsizing means that you will need to downsize the amount of furniture, supplies, books and tools – just to name a few things. It’s tough to sort through and sell, give away or throw out all the items that have been collected over the years and stored in a big home.

 

Buy or Sell First?

Rule of thumb: it’s often better to sell your current home before buying the downsized or smaller home. This will help keep the stress of the process to a minimum. But, some markets will dictate that it's better to buy before you sell. Discuss this strategy with your real estate agent.

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