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