Is It Time To Downsize Your Home?
When we have young children, downsizing often doesn’t come to mind – but once your little ones fly the nest and you have some empty rooms? It can be the perfect time to free up some of the cash that is tied up in your home and like a simpler and more quiet life.
Downsizing, what is it?
Most often, the idea to downsize comes when parents have ‘finished’ raising their children and find themselves with a much bigger home than they need. Other times downsizing happens when health issues arise and extra stairs and space aren’t required.
Downsizing also happens when people want a new start and often move out of the city or into a village or even into the woods.
Are there advantages to downsizing?
One of the best things about downsizing is that if you have almost paid off your current home, you can potentially have a nice amount of cash freed up.
And, if you have lived in your home for a while, your home is likely to have increased in value, and you might be surprised just how much money you have available to you now.
When you swap to a smaller home and maybe a mobile home from Top Notch Homes, you are likely not to need a mortgage and can live a debt-free life due to your downsizing.
So how can you tell when it might be time to downsize your home?
If your housing expenses have risen dramatically, it might be time to look at if you can afford the home. It is recommended that 30% is the number you should look for.
Ever since the United States National Housing Act of 1937, the government has used 30% as the threshold for housing affordability. Since then, households spending more than 30% of their housing costs have been deemed financially strained.
If you find that you do not have enough money to do what you want to do at the end of the month, i.e., no fun money, then this is a sign that if there are unexpected costs one month, things can go wrong pretty quickly.
If you find that your home doesn’t seem to fit the life you want or that it doesn’t suit your lifestyle anymore, it is essential to consider if a different, smaller home would be more suitable.
Perhaps your children are still at home, but some rooms in your home don’t seem to be used well. Attic space, basement space, outhouses, anything that isn’t being used is a reason to consider downsizing.
There is a smell in the bathroom, the roof needs to be inspected, and the washing machine isn’t working 100% of the time.
If your repairs and maintenance are on a never-ending list because you need to keep adding things to the list and saving to pay for them.
These can signify that the house is out of the budget, or that you have lost the love for the house.
Downsizing can be beneficial to your lifestyle and your bank account. Ahead of selling your current home, you can increase the value to maximize your potential profit: How To Use Your Yard To Increase Your Home’s Value.