There are many reasons to downsize. Families who have larger homes often find that once their children leave home, their family home feels too large and decide to downsize. Another reason people downsize is to save money and reduce stress.
If you still owe on your mortgage, downsizing may be a great way to save money. Depending on the equity in your current home, you may be able to purchase a home outright or drastically lower your payments by putting the earnings from the sale of your home as a down payment when purchasing a smaller home.
In addition to lowering your mortgage payment, downsizing will lower your tax bill. You can further decrease your tax bill by moving out of the city and into the suburbs. Instead of having both city and county real estate taxes, you will only have county real estate taxes in the suburbs.
Lower Homeowners Insurance
A smaller house also can reduce your homeowner’s insurance premiums. The premiums are based on the replacement cost of the home and its contents. A smaller home means that it will cost less to replace the physical structure and since you will be getting rid of many possessions, the cost to replace your items will be much lower.
Lower Utility Bills
Downsizing can also save you money on your utility bills. Why heat a bunch of unused rooms? If you have a four bedroom home and only use one bedroom, you are heating space that is not used. Instead of wasting money heating empty rooms, why not downsize into a home that is easier to heat and cool? Most empty nesters find that a modest one or two bedroom home offers them ample space while lowering their utility bills.
Decreased Maintenance Expenditures
Homeowners understand that routine maintenance must be done on a home to keep it up to date. With a smaller home, the maintenance that will need to be done will be diminished. Additionally, opting for maintenance free vinyl siding or brick on a smaller home can save you money as you will not longer need to paint or stain the exterior of your home.
Save Money On Health Care
Having a home that is too big can increase stress and can take a toll on your physical well-being. Stress can deplete your energy, raise your blood pressure and cause many other physical illnesses. If you are doing repairs yourself, this could result in injuries or result in more visits to your chiropractor.
Selling a larger family home and moving into a smaller family home will save on utility bills, maintenance, taxes, insurance and mortgage payments. You can simplify your life, reduce your bills and even, improve your health and well-being.