The idea of relocating to a smaller home might seem strange to many people – isn’t bigger always better? No, not always. In fact, there are many huge perks to downsizing that few people consider. Here are some of the main reasons why moving to a smaller property can be advantageous.
Lower living costs
A smaller home will result in less mortgage/ rent. It could also result in fewer bills, particularly when it comes to heating in the winter. For those that are financially struggling or simply want to more money to spend on other things, downsizing can be a great solution. In tragic circumstances such as a bereavement or a split with a partner, it may even be a necessity to move if that person previously paid towards bills and you cannot pay for all these bills alone. Ensure that when looking for a smaller home to locate to, you also consider sustainability as well as lower rent/mortage rates as a sustainable home will result in lower energy bills.
A chance to pay off your debts
If you’ve got lots of debts to pay off such as mortgages and other loans, downsizing could allow you to sell your old property for profit and pay off these debts. You may then start to repair your finances such as fixing of a low credit rating, giving you more financial freedom in the future. Downsizing may seem like a drastic way to eliminate debts, but may only have to be a temporary solution whilst you rebuild your finances. The likes of debt charities such as Stepchange give more information on this strategy.
A temporary saving option
Moving to a smaller home could be a temporary way of saving up for something. Some people may use this strategy to even buy their first house, moving somewhere smaller where the rent is less high and they are able to put money aside for a down payment on their first property. A self-storage company such as Amber Access can be used to store your possessions in the meantime, saving you from having to sell them when downsizing. Alternatively, you may see downsizing as a chance to declutter.
Bigger homes require more cleaning and more maintenance. For those living busy lives or simply wanting less stress at home, a smaller home can be less time consuming when it comes to general upkeep. Downsizing can also be a good option for those that may have developed physically debilitating conditions that could make getting round a big home too strenuous. Moving to a bungalow or first floor apartment for example could result in not having to take stairs.
Less empty space
If the kids have moved out, all that empty space could be going to waste. It may seem more practical to downsize and do away with those extra bedrooms, giving your home a cosier feel. As a result, downsizing can often be an ideal retirement strategy. On a related note, paying off your mortgage on your old house and potentially making a profit from downsizing may even allow you an extra sum of money to fund your retirement with.