Not long ago, big homes were more popular among home buyers. Now, with rising costs and populations, the extra space and maintenance demands have caused another shift in thinking, to one that prefers smaller homes. Oftentimes, it is more financially draining to keep up with taking care of a larger home and paying related taxes or outstanding mortgage loan balances. With the new minimalist trend, downsizing has more popular appeal, both for those starting out and for others looking to reduce their stresses of owning a large home.
Canadian homeowners are scaling back and focusing more on experiences rather than “stuff.” This approach generally saves homeowners money and reduces the time spend on maintaining their many purchases. Homeowners can easily get started on the path to downsizing, but first things first: What are a few considerations to decide whether or not downsizing would benefit a homeowner?
Are You Feeling Overwhelmed?
Some homeowners are not saving as much as they would like as they take care of a large home. Heating and cooling bills can easily bite into a budget, as well as emergency repairs such as busted pipes or necessary roof repairs. Those that would like to reduce their time attending the maintaining and repairing a large home or would like to cut many of the costs of owning a home find a downsizing an attractive solution. Many who downsize later in life can tap into their old home's equity, find a suitable condo or smaller home, and put extra money toward some of their other goals.
Do Homeowners Need to Let Go Right Away?
First of all, it may take time to sell a primary residence. However, households can begin to pare down their possessions before the home ever goes on the market. Those who have strong emotional attachment to their possessions or living space can ease into letting go rather than doing it all at once when the home sells. They may find it useful to sort items into categories, such as a category for the items that will be kept; the items to be tossed; and others to be sold, donated or given away. For some, it is useful to reduce possessions in a single room before moving to another.
Will Downsizing Provide an Expected Cushion?
Downsizing does not always work out as planned. Those with homes valued at a high dollar amount may enjoy a relatively large nest egg when they downsize. Others who have a lesser difference in the value of homes may find they have a smaller nest egg after commissions and fees are paid out. The best way to find out if downsizing will be a good choice is to get clear on the personal reasons for downsizing.
Those who want a maintenance-free home, would like to live closer to friends, or travel often may find downsizing better suits their desired lifestyle. Meanwhile, others who are more concerned about the sustained financial impact may also benefit from the change, whether they live in a Beaumont home or elsewhere.
Go Small and Live Better
Many who choose to live small benefit from added flexibility, extra funds and a simpler lifestyle. Some choose a condo with a well-run association in order to enjoy additional opportunities to socialize as well as on-site pools and gyms. Get clear on personal reasons to downsize and look for a smaller home that will help in achieving lifestyle and financial goals.
By Justin Havre