Downsizing is something that a lot of people consider later in life. When you’re younger and have a family at home, buying a large home with a backyard makes sense, but later on, for various reasons, selling your home and downsizing to something smaller might make sense for you. If you’re thinking about it, here are some things to consider to determine if it’s wise for you to downsize.
Why are you really moving?
To figure out what the best downsizing decision is for you, the first step is to really think about why you’re thinking about moving and downsizing in the first place. Is it because you want to travel more? Is it because your current house is too big with too many empty rooms?
Is it because you no longer want to do the upkeep of mowing the lawn or shovelling the snow? Once you can answer the ‘why’, you can figure out the ‘what’.
What kind of life do you want to live?
Downsizing, in a way, is a chance to start over, so it makes sense to think about what kind of life you want to live. Before, you may have needed to live closer to the city because you need to commute or have easy access to city amenities, but now, you may not need to think about those things. Maybe you’ve always wanted to live on a beach near the lake, or maybe you’ve always thought about moving to one of those cute small town. Well, now’s your chance.
Think about the costs involved.
There are costs involved with selling, and there are cost involved with buying, but it goes even further than that. If you sell your home, and then buy a new one for the same price, you of course won’t have any extra cash; you’ll just be changing your lifestyle (which could be exactly what you want). And if you purchase something less expensive, then you’ll have extra cash on hand to put towards other things. There are also the other costs of selling to think about, like real estate agent fees, lawyers fees, etc. In short, you need to think about the costs so you can plan out what’s best for you.
Have you considered renting?
Once you know no longer need to worry about equity and saving for retirement, it might make sense to rent. If you’ve built a lot of equity in your home, you might want to think about cashing in and selling your home, and then renting so that you can use that extra money for travelling and ticking some things off of your bucket list. Renting can give you the opportunity to do that. In addition to using the extra cash from the sale of your home to enjoy life, you also won’t need to worry about having money set aside for the things that come along with owning a home, like roof repairs, etc.
Everyone is different.
It’s true. Everyone is different, and each person’s circumstances is different, so what works for one person might not work for another. The important thing to know is that if you’re thinking about downsizing, don’t rush into it. Take the time to think about what kind of lifestyle you want to live so you can make the best decision for you.
Are you thinking of down sizing? Call Sheldon today to discuss your options. – 778.835.5621 or email him at firstname.lastname@example.org