Type the words “downsize your home” into an online search engine and see how many hits you get. The number is staggering. The reason why? Bigger isn’t always better and many people are opting to both simplify their lives and lessen their financial burden by seeking smaller living spaces.
People find themselves in big homes for a variety of reasons:
- They are building a family and need the space.
- They get a promotion or a job change with an accompanying salary increase.
- They wish to impress others.
- Having a large home is part of the American dream, is it not? We live in a consumer culture that mandates “you’re supposed to buy as much house as you can afford.” Or at least as much as you think you can afford.
More and more Americans though are choosing to “go small.” Retirees or empty-nesters often find smaller living spaces particularly alluring. With kids no longer living at home, there is often no longer the same need to have a large home.
Aside from that reason, here are eight additional reasons why downsizing might benefit you:
- You can make some additional money. If you downsize, you will likely need to sell off your old furniture and other unnecessary items. You can put that money into the bank.
- Less debt equals less risk. Have you ever asked a real estate agent, “How much home can I afford?” There’s a good chance the agent will reply, “You should spend about 28% of your net income on your monthly mortgage payments.” Wouldn’t a smaller home, with a smaller mortgage, give you more financial freedom? Besides, who came up with this 28% number in the first place? We’re guessing real estate agents since they want their clients in the biggest homes possible to enhance their sales commissions. What if you downsized into a home that only cost 10-15% of your net monthly income? Imagine the possibilities.
- Easier to maintain. Every homeowner knows the responsibilities and constant work that goes into maintaining a home. A smaller home will normally require less time in this area.
- Improve both your mental health and relationships. If you had a few extra hours each week, and you weren’t tied to home maintenance or other responsibilities related to your home, what could you do with that time? Here’s a start: get a hobby, play more sports, pursue leisure time activities or spend more time with family and friends.
- Travel more. If your house is eating up less of your money, you can spend this extra cash on travel. Take that cruise or go on that European vacation.
- Less impact on the environment. A smaller home equals smaller utility bills. Your heating/cooling costs and water usage will go down. Aside from the money saved in these areas, smaller houses also use less electricity, which makes your home more Earth-friendly.
- More options. Your dollar will go further when you downsize because you’ll have more home choices. You also don’t have to decorate or furnish as many rooms so you can better target your money to create the kind of living space that you desire.
- Put an end to any pack rat tendencies. The things you own often end up owning you. It’s a lot harder to accumulate unnecessary things if you have no place to put them.
If you’re exploring the possibility of downsizing to begin a simpler life with more financial freedom, you will likely need to sell your current home. If so, you may consider a real estate investor like All Cash For Homes PGH. Our process is fast and simple. After you contact us, we’ll present you with a free, no-obligation cash offer on your home. You are welcome to reject or accept our offer. There is never any pressure but, if you do accept it, we’ll pay you with cash and buy your property as-is. You don’t need to make any repairs.
Any decision involving your home-life obviously concerns a whole range of practical and personal considerations. If you haven’t done so already, please check out our website to see if All Cash for Homes PGH can help you achieve your goals.