Should you refinance your mortgage? Interest rates are trending up, but they're still at historic…
You might not actively think that it’s time to downsize your home, after all, it feels like just yesterday when the kids were running around and amuck with all their friends and you were throwing dinner parties inside and pool parties outside. Now your kids have grown up, many of your friends have moved on, and you find yourself with more space than you need.
Downsizing isn’t just for empty-nesters, though. Many of us are embracing the minimalist lifestyle, choosing smaller homes, and owning fewer material possessions. Others just don’t want to hassle with yard upkeep and cleaning a 2500 square foot home every day, no matter their lifestyle or the number of people living under their roof.
If you’re on the fence about downsizing, check out these signs to help you decide if you’re ready for a smaller home.
Along with the cost of the monthly mortgage, if your home has dramatically increased in value over the years, you may be experiencing a rising tax and insurance burden. Added to the monthly maintenance and upkeep on a large home, the financial burden of staying in a bigger place after your life got smaller can be unnecessarily overwhelming.
Cash Out For Retirement
If your home value has steadily risen over the years and you haven’t tapped into its equity, you might want to downsize and put that cash in your pocket. Or, if home values in your neighborhood have recently skyrocketed, you might want to think about selling now rather than later to take advantage of favorable market appreciation. Make your home’s value work for you by giving you cash to invest in your retirement fund or just to cross some stuff off your bucket list.
If your career no longer dictates where you live, maybe you just want to move out and move on. Did you have a major life experience such as a retirement, death, a divorce, or loved ones moved out from under your roof? Maybe your family moved far away for job opportunities and you would like to be close to them again. Any of these changes provides you the opportunity to move out of your neighborhood or state and downsize your residence.
Maybe you’re just ready to kick back with fewer responsibilities, like not have a big lawn to tend in the summer or not shoveling endless buckets of snow off your sidewalks in the winter. If the house is too big to clean or if you’re finding empty rooms, think about downsizing into more manageable square feet.
You’ve Outgrown Your Neighborhood
You bought your home in a kid-friendly neighborhood, near a park for exercise, or close to the city’s downtown, but as you’ve gotten older, you might not be interested in those perks. Maybe you’re ready for a small country home or a condo in the city. If you or your neighborhood has grown, it might be a good time to downsize.
The Bottom Line
Whether you’re looking for an eco-friendly, low-maintenance lifestyle, you want a major change of setting, you’re no longer tied to your career, or you’re making your home value work for your retirement, you might be ready for a smaller home. Check into downsizing your home. You might be surprised to find that less can really be more.