Is It Time To Downsize Your Edmonton Home?

Posted by on Monday, April 1st, 2019 at 2:06pm.

Homeowners can easily get started on the path to downsizing. What are a few considerations to decide whether or not downsizing would benefit a homeowner?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?

Why Do You Want To Downsize?

It makes perfect sense if you have some aggressive financial goals. A smaller house can, but not always, mean your mortgage is smaller, or utility bills and maintenance costs are lower. Extra cash when invested elsewhere can help fund your children’s education or accelerate your retirement savings.

Maybe your children have left home and there’s too much empty house to clean. Some folks downsize because they’re concerned about the environment and want a smaller, more energy efficient home.

Ask yourself what you need and what you want in the future and if a smaller or less expensive home will help you achieve your future goals.

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.

What Are Your Needs for a Home?

If you’re an empty nester with a huge home, think about whether you actually need that extra space. Does family visit often? Do you have hobbies? Do you need to store antiques or display your art? Do you need separate spaces for watching television? Picture your current lifestyle, with all of your possessions, in a smaller space. Will you regret your decision if you change your lifestyle?

What Is Your Lifestyle?

Perhaps trading in your antiques and your sewing room for the extra cash to travel fits in better with your lifestyle. Perhaps the art you really only enjoy occasionally can be traded for experiences you can enjoy on a daily basis.

Do you want to eat out more, spend time shopping or going on road trips? Do you love cutting grass and gardening or is it really a chore? You don’t want to downsize and impact your lifestyle negatively.

What Can You Part With?

Sometimes our possessions can define who we are. Family heirlooms and children’s artwork can have sentimental value. How much space are these items taking up? Your desire to live a less cluttered, simpler life might guide you in some decisions about what can go and what is simply being hoarded.

What Will It Cost To Move?

Professional movers, time away from work, moving a vehicle or two can be expensive. Perhaps downsizing means you need smaller furniture as well. If your reasons for downsizing are to cut costs, do the math and see if this idea will serve you in the long run. Will downsizing save monthly utility bills? Will your mortgage payment either disappear or be cut significantly? Is your commute to work shorter now? Do you have to pay for maintenance?

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.

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