Buying a family home is expensive, with the average mortgage costs running to $1,030 a month. Moreover, owning a home also means maintenance and repair expenses, with the average American spending 1% to 4% of their home value in a year. The bigger your home, the higher the costs of its upkeep, including payment of property taxes and insurance. Downsizing is a sensible option that can save you a lot of money on loan payments, maintenance and repair costs.
Buying The Home And Financing
Before downsizing, it is vital to find another home that will be suitable for your family. To do this, you must first figure out how small you are going to go. Downsizing does not equate to moving into a tiny home where you can’t fit your brood or your stuff. Decide on the minimum number of rooms and bathrooms that are necessary to live seamlessly without making major disruptions to your family life.
Financing is also an important aspect of downsizing. There are several ways to pay for your new dwelling. You will need to sell your current home to fund the costs of a smaller abode. If you’re lucky, you might be able to afford a small home without a mortgage. Even if you cannot pay in cash, a smaller loan can be paid quicker, leaving you debt-free earlier. The point is, downsizing has many benefits, including lower debts, maintenance or repair costs, and energy use. In this regard, it makes sense to go with a realtor that you trust and who can get you a good deal when you sell your house and move into a smaller place.
Get Everyone On Board
Hand in hand with the buying process and house hunting, it is vital that everyone in the family knows why you’re getting a smaller house. Maybe, your kids love the extra space or will resist sharing a room with another sibling: it is important that everyone is on board with downsizing. Offering a concession can sweeten the deal: for example, having an additional bathroom instead of a game room.
Another factor that plays an important role in downsizing is to remove unwanted clutter before moving into your new home. This means that everyone should make the effort to reuse, recycle or give away stuff that is hardly used so that you can enjoy the benefits of an uncluttered space. Designate a specific space for storage, and make it a chore to tidy up and purge clutter at regular intervals.
Living in a smaller house can save you money, and might even free you from debt. With less space and storage, it also helps you keep a neat space that everyone can enjoy.