Most Americans feel that moving up in life and showing their wealth is in the size of their home, the type of car they drive, and the landscape of their property. But what most people fail to realize is that after the kids have moved and the bills are paid, the can be little wiggle room to start getting out of the old daily routine and start ‘living a comfortable’ retired life.
Many people also feel as they hear words like ‘downsizing’ that it is a step down from their lives, but in reality, getting rid of unneeded space, expenditures and upkeep can ‘upsize’ the quality of life.
Let’s use an example where you have extra rooms, bedrooms, furniture and property that has maintenance cost, monthly bills and expenses that are as what they truly are, being wasted. If your monthly bills were broken down on a room by room basis, and you no longer needed three bedrooms, a large landscaped property, and lived in a moderately priced neighborhood. How much would you save to let go of those unused rooms and space? Let’s just moderately say for examples sake that each room, including its electric cost, heating usage, air conditioning and your time of cleaning, maintaining the room, costs around $200 per room per year not including homeowners’ insurance. Homeowners insurance on average of a $250,000 home we will estimate at $800-$1000 per year. And let’s pose the real question, when all said and done, do you still need the 2600 square foot average single family home size now that the kids are gone?
We at My Home Downsize are not in the business of added life luxury, but maybe we should be. With the savings, equity in your home, and the ability to build a safety net and holiday/vacation expenses some of your life dreams of adventure and getting out of the house literally starts…with getting out of your house!
But face the facts, everyone’s individual needs are their own and that is what we are here to help consider. Smaller mortgage payments and spending less time dusting those spare rooms may sound like a dream come true, but is downsizing really the right move for you?
- Think Long-Term
If you’re thinking about downsizing your house, planning ahead will help ensure your transition is a success. Do you need extra space for that freelance business you’re planning to start? Or were you left you with more than enough room to spare after the kids headed off to college?
- There can be FUN in Functional
Remember back in college when your entire life fit in that tiny dorm room? Somehow you had everything you needed within arm’s length. Sell what you don’t need and take that money to the bank! Or donate it to a local charity and get the added bonus of a tax benefit. Less to clean…more money…where do I sign up?
- Consider Hidden Costs
Downsizing may save you money in those monthly mortgage payments, but what about the hidden costs? Does your home need any repairs to get it market-ready? What about your old furniture and appliances—will they fit into the smaller place, or do you need to bump up that budget for more space-efficient pieces?
And don’t forget to take into account the cost of moving, property taxes, storage, or even higher HOA fees. When it comes down to decision time, you may find that taking that leap to a smaller space will save you BIG time—or that you can save just by staying right where you are.
At My Home Downsize, we are here to assist you with tackling these questions and tough decision that will truly give you the big picture of if downsizing is the right option for you. Please contact us with no obligation by visiting our contact form, or emailing us directly at email@example.com