Time to Downsize to a Smaller Home
Perhaps the kids have gone and there’s just too much house for your needs. Maybe you’re taking a new minimalist approach to life. Or, perhaps you just want to reduce your time commitment and expenses by living in a more modest home. If you’re considering downsizing, see Apollo Trust first.
As with any major transaction or life change, it’s best to not make an emotional decision. Try weighing the pros and cons of moving. Distance yourself from the decision so outlook doesn’t overrule common sense. After taking the time to consider your needs and possible life changes, it’s important to feel assured that now’s the time to downsize.
What to Consider:
“How are the homes selling in your area? Will your home sell easily and for the amount you need? Will you come out ahead or at least break even?” It can be costly to move, even when you’re downsizing. Consider the benefits or drawbacks of moving. If you don’t think you’ll break even from the sale of your home and could lose money, it may be wise to reconsider your decision. What are your true reasons for wanting to move?
According to Joshua Becker, minimalist expert and blogger, there are a plenty of reasons to downsize, even if you’re not an empty nester. Here are Becker’s top 12:
Reasons to Downsize:
- Easier to maintain. Anyone who has owned a house knows the amount of time, energy, and effort to accomplish that task.
- Less time spent cleaning.
- Less expensive. All things being equal, a smaller home requires less of your time, energy, and effort to maintain it.
- Smaller homes typically are less expensive to purchase and less expensive to keep (insurance, taxes, heating, cooling, electricity, etc.).
- Less debt and less risk. Online calculators will help you determine “how much house you can afford.” Formulas are based on net income, savings, current debt and monthly mortgage payments.
- Mentally freeing. As is the case with all of our possessions, the more we own, the more they own us. The same is absolutely true with our largest, most valuable asset. Buy small and free your mind.
- Less environmental impact. A smaller home requires less resources to build and maintain.
- More time. Many of the benefits above (less cleaning, less maintaining, mental freedom) result in the freeing up of our schedule to pursue the things in life that really matter.
- Encourages family bonding. A smaller home results in more social interaction among the members of the family.
- Forces you to remove baggage. Moving into a smaller home forces you to intentionally pare down your belongings.
- Less temptation to accumulate.
- Less decorating.
- Wider market to sell.
Don’t Make a Snap Decision
As with any key decision, it’s prudent to take your time reviewing the possibilities. Consider potential life changes. And avoid making a change if you’re experiencing emotional turmoil. Also consider the evolving needs of your family. Are other family members moving out or even potentially returning home? Is your mobility an issue? Do you need to be located near certain conveniences, like shopping, offices, hospitals, or other family members? There are many variables to consider.
Will You Downsize?
- List the pros and cons of a possible move.
- Determine how and where you want to live.
- Do you want to relocate to a new city or state? Is climate important?
- Make a list of priorities for your new home. Consider things like hobbies, budget, and lifestyle.
- How will you pay for your new home?
- Don’t underestimate the cost of owning or building a smaller home.
- Sell your current home first.
- Don’t miscalculate prospective gains/losses when selling your home.
If you’re looking to downsize, Apollo Trust can help provide the expertise and guidance you need. We provide choices for all types of financing for most any type of home. Let us assist you with every phase in life.