If you’re an empty-nester, or you’re nearing retirement, the idea of downsizing your home can be very appealing. But is it the right decision?
Here are some pros and cons to think about if you’re thinking of downsizing to a smaller home.
Advantages
The most obvious advantage to downsizing is that (in most cases) it leaves you with more money in your pocket. The combined factors of a smaller mortgage, lower home insurance premiums, and less maintenance all free up more cash that you can use towards other goals, like retirement or college tuition.
Another cost-saving benefit is less space to heat or cool, meaning lower utility bills every month. And membership in a condo association or a senior living community means that you can access amenities like a swimming pool, tennis court and/or gym without having to pay extra for them.
Disadvantages
It’s important to be realistic about the potential disadvantages of downsizing. You may have to donate, sell, or throw away special items to which you’re sentimentally attached. It also means you have less space to entertain, so hosting a family dinner over the holidays may no longer be an option.
In addition, it can be tough to get used to the lack of privacy and space in a smaller home. If you like having your own space where you can enjoy some quiet time, downsizing may not be the right choice for you.
Additional Considerations
There are many factors to consider if you’re thinking of downsizing to a smaller home. First of all, take stock of your reasons for the move. Does the thought of it make you happy, or are you doing it out of necessity?
Once you’ve made the decision to downsize, you’ll want to give serious consideration to the place you want to live. Maybe you’ve always wanted to live close to the mountains. Or maybe it’s important to you to remain in the same area, close to friends and family.
Whatever you decide, make sure you have the help of a trusted realtor like the team at D Realty. We can guide you in the process, no matter what your goals.