Downsizing is more common than we think. In 2020, we saw many families go from the hustle and bustle of the city to larger homes in the suburbs. People were opting for homes with more space and a higher comfort level. Although upgrading was a dominant trend, we still see many people looking to downsize. It isn’t rare when someone comes to Team Logue looking to reduce their home from ample space to a smaller accommodation such as a townhouse or condo. However, downsizing isn’t always a bad thing. Here are what we have found out when people downsize.
What is downsizing?
Downsizing means going from a larger home to something smaller. Reducing your space, whether inside or outside, can have its benefits. However, most people that downsize are either retiring or seeking a more simplistic lifestyle.
Why do people downsize?
The most common trend in downsizing comes from those retiring. As families grow, the need for more space becomes dominant. When children leave the nest, all that open space leaves room for clutter. Those who reduce their home are doing so for a couple of reasons. Firstly is the amount of care and maintenance. Large yards and homes are a lot of upkeep. There is much time spent keeping a home clean and presentable to family and friends. When there is no longer the need to, reducing to something more maintainable may be a better option. Another reason to downsize might be to invest in other homes. Some families downsize their homes and use the profit to buy something smaller with a smaller mortgage. A smaller mortgage combined with minimal upkeep leaves more of a profit in your bank account for other fun activities and investments. Lastly, the desire to downsize may come from an individual or family merely seeking a more simplistic lifestyle. Those who are outdoorsy and adventurous might not need a lot of space to come home to, seeing as they are never really home. The reason to reduce can be different for everyone, but the outcome is still always profitable.
When is it time to downsize?
Not sure when is the best time to downsize your home? There are a few minor and a couple of dramatic signs that it may be the right moment to rethink how big of a space you need. Signs include your expenses. Once they have gone above 30% of your overall budget, it may be time to rethink your living space. Once your costs have gone above that 30% threshold, the house is now considered a financial burden to your wallet. As people retire, that number rises even more due to reduced work hours. Reduced work leads to a smaller paycheck. From there, home expenses increase in your budget, which results in less cash to put towards other areas in your life.
Another sign it may be time to downsize is when house maintenance becomes a challenge. Those falling behind on home maintenance may want to reconsider their living space. If it is too hard to keep up with, maybe it is time to reduce to something with easier upkeep. Lastly, equity. Opting for a smaller home and using the equity from the larger house can play a positive role in retirement. Those who have a home reduction invest the equity they gained in a low-risk retirement account that pays out monthly dividends. The outcome is a more enhanced lifestyle during retirement. There are a couple more reasons for downsizing, all with positive results.
Benefits of downsizing.
Although the goodbye to your old house could bring some memories back, downsizing to a smaller home has many incredible benefits. Firstly, a smaller home means a happier home. The upkeep is relatively minimal compared to a bigger space. House cleaning takes a fraction of the time, which leaves an open schedule for adventure. With a smaller space also comes smaller bills. Energy, water and gas are all a fraction of the price as the amount needed for a smaller area is way less by comparison. On the more creative side, reducing your home could open a new chapter in your life. A new space at a fraction of the price leaves room to customize the home to something fresh. Use the money saved to splurge on a few key pieces, such as furniture and décor, to complete the new house. Lastly, the less money spent on a bigger home may open up opportunities for travel and other interests that have been set aside with a bigger house. Downsizing reduces the amount spent on upkeep, bills, and mortgage payments, allowing more freedom in every other aspect of life.
How can we help?
Downsizing isn’t all that bad. From lower bills and maintenance to more room for adventures and fresh starts, going from ample living space to something smaller can enhance your life. So if you are looking to downsize today, reach out to Team Logue, and we can find a new house or condo suited to your lifestyle.