4 Reasons to Downsize Now

People downsize to a smaller home for many reasons. Here are 4 important reasons for downsizing.

Sometimes, more square footage isn’t a good thing. Many realtors find a good portion of their business is helping homeowners downsize from too much house to something more manageable for the owner’s current phase of life. It might be your season to scale down your living space if you find any of the following scenarios apply to you. 

Too Much Maintenance

If physical changes, lifestyle alterations, or loss of help as household members move out have made property maintenance increasingly difficult, it may be time to downsize. Even if you find yourself physically capable of maintaining your home, you may have decided you’d like to spend your time on other things. If so, now is the season to make a change, before keeping your property in good shape becomes overwhelming. Easier maintenance is a frequently cited reason to switch from a single-family home to a condo or townhouse. Downsizing sooner rather than later is also beneficial for sale. If you wait too long to sell and the repairs stack up, your home can start to deteriorate. This means you’ll be spending equity on costly repairs instead of keeping it in your pocket. Sell while your home is in good shape for the listing.

Housing Budget Is Too High

While the cost of living and property prices vary by region, most financial analysts agree that, ideally, your home budget should not exceed 30% of your expenses. If your income is due to lower or already has, it could be a good time to downsize. Many retirees make the downsizing change for this reason, as they approach a season of fixed income. Even if your income keeps you to the recommended budget, you may find your current budget doesn’t allow for the travel or fun you’d like to pursue. Downsizing can quickly change your budget and savings, allowing for new adventures.

Features of House No Longer Fit Your Lifestyle

If you have rooms you aren’t using every week, mobility issues, or need different amenities in your home, these are signs it’s time to downsize. A survey conducted by The Demand Institute found that aging-friendly accessibility was a key factor among baby boomers looking to move. Your family will also be grateful if the move creates a safer environment for you. 

With recent changes to policies about remote working or impending retirement, you may also find yourself in a place where your work’s location is no longer tied to the location of your home. This is another lifestyle change that allows for new opportunities to find a property that suits your current needs better.

You Want to Convert Equity to Income

Does your retirement savings currently look like they will give you the kind of lifestyle and flexibility you want for your future? A 2018 Retirement Confidence Survey by the Employee Benefit Research Institute found that only 1 in 3 retirees are “very confident” that they have enough money to live comfortably throughout their retirement. If you’re ten to fifteen years out from retiring, it could be a good idea to sell your home now and use the equity for savings or investments. Selling your home now plus downsizing will give more space for savings in your monthly budget and allow more time for investments to do well.

Let Us Help

The decision to downsize is best made before it becomes a necessity. For less stress and a better outcome, start considering how you want to spend the next few decades when it comes to managing your home and finances. When you decide to move forward, we can help you get the right mortgage for your needs. If you’d like to learn more, or have any questions, reach out to us at (877) 699-0353. We look forward to helping you get the right-sized home for your next season of life.