Downsizing Your Home: When is the Right Time to Downsize?
Looking at several cases by case studies. You would be surprised that many Americans are living in a much larger home than they need. We meet with clients all the
time that are thinking about moving from a big home to a smaller one. We have put together a list of the top 5 sings it might be time to downsize.
1. Your mortgage, insurance, and property taxes exceed 30% of your take-home pay
Taking on too much house is one of the easiest ways to set yourself up for disaster. When you overspend on housing, you make it harder on yourself to save money, and you give yourself limited wiggle room when unplanned expenses arise.
2. Your maintenance and repair costs keep climbing
The average U.S. homeowner spends anywhere from 1% to 4% of his or her property's value on annual upkeep. But if you find that your costs are exceeding the upper end of that range, it may be time to move to a smaller home that's less costly to keep standing. Review your bank and credit card statements for the past two years, see how much your home costs you to maintain, and decide if that figure is reasonable. If it isn't, then you'll want to consider a move.
3. Your housing costs leave no room for savings
Maybe your housing costs don't exceed 30% of your take-home pay, and your maintenance costs are minimal. But be that as it may, if you find that you're not saving money month after month, and housing constitutes your greatest monthly expense (which is the case for most people), then you may need to work on trimming that figure.
If you move to a smaller home in the same area, and that home is in similar condition to your current one, then there's a good chance your costs will go down by virtue of having less space to maintain. Think about it: It's cheaper to heat and cool a 1,500-square-foot house than one twice that size. And if your home is large enough to require two separate air conditioning systems, that's two individual units to maintain -- whereas a smaller home might have just one.
4. You're tired of not having options
Another reason to consider downsizing is if you come to realize that your housing costs are preventing you from enjoying too many of life's luxuries. Maybe you're swinging your mortgage payment just fine, and are managing to save responsibly all the while. That's all fine and good, but if you find that you're mostly unable to dine out, take vacations, or treat yourself to the occasional electronics upgrade because your home monopolizes too much of your income, then it's time to consider a smaller -- and cheaper -- place to live.
5. You're no longer using all that space
One final argument in favor of downsizing boils down to whether or not you really need all the space you have. If you're older, and your adult children have moved out, then it may not pay to spend all that money on maintenance and the like when you don't actually need the room. Though letting go of a beloved home can be difficult, you can focus on building memories in your new home -- and one that's more affordable.
Housing can be a huge expense, so be honest with yourself about whether the cost of your home is really worth it. You may come to realize that downsizing offers you the best of both worlds -- a comfortable place to live, and a lot more money in your pocket.
If you are thinking about selling we would love to help!
Author:Phillip Gonzales Phone: 480-540-3911 Dated: March 19th 2019 Views: 147 About Phillip: ...
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Mojica & Associates Real Estate has over 55 years of combined real estate experience here in the Valley. Concentrating on evolving trends in a rapidly growing market, we specialize in finding the perfect opportunity for first time buyers, families looking to upgrade their home, 2nd home buyers and investors. Whether you are looking for the perfect place to hang your hat or finding qualified buyers to purchase your current property at top market prices, we can get it done for you.
Mojica & Associates Real Estate professes that the only way to best serve our clients’ needs is to continually educate ourselves and our agents on the most current and future market trends. Whether it is cutting edge technology to showcase or find the perfect home, making sure our staff is the most knowledgeable in the Valley on contracts, curre nt laws governing real estate sales, short sales, or simply updating our listings throughout the day, we deliver.
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