When you buy a family home, you're buying for the benefit of all family members. But when you downsize, you're going to want a home specifically for your own dreams and ambitions. Downsizing doesn’t mean getting a less quality home, it just means getting a better home for your current needs.
Is it time for you to downsize? Here's how you can tell:
1. You're Retiring
Congratulations! You've decided to retire and live your retirement dreams! Whether you're looking to travel, spend more time with family or just pick up a few new hobbies, now is the perfect time to consider how you can free up time and income. For this reason, downsizing makes perfect sense as you can look forward to decreased taxes, fewer bills, and lower mortgage payments.
2. Speaking of Travelling...
If your current home has you worried about heading south for the winter, it might be time to sell. Not only are you likely to get back far more than what you paid initially, you can use the extra income to put towards that amazing holiday getaway. In addition, having a new, lock-and leave-style home (like a condo) ensures you'll have less to worry about when you're gone.
3. You Want to Take Advantage of Your Existing Equity
The neighbourhood in which you've raised your children is more established and has likely increased in value since the time you purchased. This means your home has also increased in value - not just because of the community but because of how long you've been making mortgage payments. The equity you've built up during this time is sure to help you make an easy transition into a home more suitable to your current lifestyle.
3. You Have an Empty Nest
If your kids have all up and flown the nest, it's likely you're now in a position where you're paying utility bills for spaces that are no longer being used (not to mention, still need to be cleaned!).
Now might be the time to consider moving into something new and easier to maintain. Of course, that's not to say you can't downsize to a home style that keeps your family connected. There are plenty of townhome and duplex options available that will still give your kids a place to come home to.
4. Maintenance Has Got You Down
There comes a point where you no longer want to have to deal with routine maintenance of a large home - especially if the kids are gone and there's no one to help! Taking care of a large yard (not to mention the property taxes) may no longer make sense. Maintenance also includes cleaning as well as keeping up with repairs - especially if your home is getting older.
This is where a motion to downsize can be especially helpful as you; a) can look forward to significantly less maintenance and; b) capitalize on home warranty that comes mandatory with all new home builds.
Putting it all into perspective, when it comes to moving to a new home better suited to your lifestyle, you're not downsizing at all - you're actually upgrading in time and financial freedom! So, if any of the above points sound familiar, it may be time to make your downsizing dreams a reality.