6 Signs It’s Time To Downsize

The idea of living in a spacious home on a sprawling lot may have sounded great years ago, but today, you might have different goals. It’s common for homeowners to eventually consider downsizing to a smaller home. And there are plenty of reasons for it.

Here are 6 tell-tale signs that it might be time for a move to something smaller and more affordable.

Your Housing Costs Are Rising Over a Certain Threshold

There’s a general rule of thumb that suggests that homeowners should spend no more than 30% of their monthly income on housing. Any more than that and you’ll find yourself strapped for cash and wid up “house poor.”

As you’ve already noticed, the cost of just about everything has skyrocketed, so you need to pinch your pennies now more than ever. Crunch the numbers to see how much of your monthly income is dedicated to your housing costs. Add up all your expenses and compare it to what you bring in.

If more than one-third of your income is going towards housing, it might be time to downsize to something more affordable.

You Want To Tap Into Your Home Equity

If money is tight and you need extra cash to cover big expenses, you may be able to use the equity in your home to cover these pressing costs. While you could refinance your mortgage or take out a home equity loan, you could also downsize to something more affordable to free up money upon the sale of your home.

The difference between what you sell your current home for and the purchase price of a much less expensive home can translate to tens of thousands of dollars that can be used to fund your retirement, buy a vacation home somewhere where you frequently travel, or to pay for all sorts of other major expenses.

Your House Doesn’t Suit Your Needs

Your current home may have been perfect for you when you first bought it, but as time goes on, things change. Maybe your current lifestyle is much different than it was years ago, and your home is just not meeting your needs anymore.

Perhaps you’re an empty nester and have no more need for all the bedrooms and additional space in your home, or maybe you need a one-level bungalow instead of a two-storey home to make it easier for you to get around your home. Whatever the case may be, changing needs is a big reason to start looking for another home and downsize.

Maintenance Has Become an Issue

Depending on the type of home you own and the property it sits on, you may be finding that keeping up with maintenance has become a major nuisance. Whether it’s because you simply don’t have the time or your body just can’t handle the physical nature of home maintenance, owning a big house on an even bigger lot can be a problem for you.

If that’s the case, it may be time to move to a smaller home with less work required in the yard. Even better, downsizing to a condo will essentially remove maintenance altogether, leaving you with more time and less physical work.

You’re Not Home Very Often

If you’re finding yourself with a lot of time to travel, you may not be home very much. In this case, there’s little point in paying for the bigger expenses of a larger home.

Instead, it may be worth downsizing to a smaller home that requires less keep-up and has much lower bills. All that money you otherwise would have spent on extra housing costs can be put towards your travels.

You Want To Live Closer To Loved Ones

Maybe where you live right now is a bit farther away from family than you’d like.

If you’re retired and have more time on your hands, you might want to live closer to family, such as adult children who may need some help with babysitting. Or perhaps you’re in need of extra attention due to health or mobility issues, in which case it may be nice to have family close by to help you out. Many Baby Boomers and seniors are downsizing specifically to move closer to loved ones.

No matter why you’re considering downsizing, you need a team of professionals to help guide you along the way. When you’re ready to make a move, reach out to the experts at The Lotus Group!