Life moves quickly, and before you know it, you have little children running around your feet and multiple mouths to feed. Children grow equally at the same rate and you’ll just begin to notice a decline in the amount of space that you have. In result of your exponentially growing family, you may have to upsize and search for a new home. But not all homeowners who want to upsize have children – some just want to experience a larger space or want to retire in a larger home. No matter what case you have, upsizing can be a viable method to achieve that space you wanted and to get out of the claustrophobic atmosphere of the home you’re currently living in. Obviously if your budget can’t handle it, then waiting to save some money to upsize is a good decision. But if you have been saving up for this for awhile now or finally landed that promotion at work, then you may want to consider upsizing.
Consider the Reasons
The decision to buy a new home is difficult, time-consuming and requires a lot of attention and effort. You can’t just wake up one day and decide to buy a house – you need to be justified in your reasoning. If you’re thinking of upsizing, sit down with your partner and go through this carefully. Create a master list of the reasons why you feel you should move and the reasons of why you can move. For example, a reason of why you should move would be that you have four children living in a three bedroom home. A reason of why you can move is that you opened up a savings account ten years ago and have been saving money. Be sure that you’re able to make the step to a larger home – it’s going to be expensive. There’s a difference between want and need and you’ll need to have both desires in order to justify your decision to upsize.
Why You Should Upsize
Some homeowners might just go through their home thinking that its fine, but you may be dealing unnecessary issues that you may not completely notice. Here are some commons things of why people decide upsize:
- More space: This is the most obvious factor. If your lifestyle warrants more space then you may need to upsize.
- Growing family or the potential of a growing family: If you’re family is just getting larger and larger, or if you plan on having a family, then upsizing to a larger home will make life more comfortable for you and your children.
- Prefer an open-flow lifestyle: Even for retired couples or empty nesters, some people just prefer more space. More space is ideal for dinner parties and get-togethers.
- Lots of family. And they live far away: In some cases, a family or a couple have lots of family but they live far away. In result – because you’re so nice and want to make their stay comfortable—they will have to stay at your house. Some people upsize so they have an extra room or two when their family visits, they have a place to stay.
- Change in income: If you received a generous bonus, won the lottery or finally got that promotion you’ve always wanted, then you may have some extra cash to upsize.
So if you think you can do it and if you want to, upsizing can be a great way to change your lifestyle to be more open and less-claustrophobic. Discuss with your real estate professional to view your many options.
In a world of where there is a preconceived notion that “bigger is better”, most homeowners underestimate or don’t understand the advantages of downsizing to a smaller home. For many soon-to-be retirees and “empty nesters”, their large home is just too much for them to handle. And since the children are gone, downsizing or even going back to renting can be viable way to save money and to have a more manageable home. But you don’t have to be ready to retire to downsize. Downsizing your lifestyle as a whole, even when you have a family or if you’re a young couple, can be a great way to save money, cut expenses and live simpler. Ever since the markets have been struggling, more and more people are turning to renting or smaller homes as a way to save money and be more financially efficient.
Like stated above, there are many reasons for downsizing. If you’re considering downsizing, then here are some of the reasons why you might:
- Retiring soon: The house you have lived in for years is just too big for you, and you can’t afford to use so much effort and money maintaining it. Moving into a smaller home, an apartment or a condo can be a way to cut down on the space and make living a bit more comfortable.
- “Empty Nester”: The day has come. Your children have all moved out and you’re feeling pretty empty and down. You may be suffering something called “empty nest” syndrome, and it’s perfectly fine. You probably don’t need the home that you’re currently living in, and you and your partner, instead, can enjoy something a bit more manageable.
- Change in income/ tight financial situation: Feel like you’re paying too much? Loss a bit of income? If you’re feeling the squeeze of a declining economy or you’re just not doing too hot financially, then a great way to immediately cut costs is to downgrade to a smaller home. This shouldn’t be a shameful decision – a lot of people decide to downsize and most of the time it’s the responsible thing to do. Plus, you may like your new lifestyle.
- Want to live a simpler lifestyle: There have been many success stories of previous homeowners who cut down their life dramatically, not because they had to, but because they wanted to. They didn’t just move into a smaller place, but also cut down on their spending, their consumption and their belongings.
- Travel a lot: If you have a job that requires you to travel for long periods at a time, then having a smaller place is probably the best bet to save money.
- To avoid that tedious commute: Spending way too much on gas? Moving to a smaller property that is closer to your place of employment, then you could save some money.
The Benefits of Downsizing
There are a lot of benefits for downsizing to a more affordable home. The obvious advantages have to do with money and how much of it you will save. If you were to go to a smaller home, or decide to rent an apartment instead, here are some of the ways you’ll save money:
- A smaller mortgage: If you decided to downsize, you’re obviously going to have a smaller mortgage loan. This can be definitely better because you could also put down a larger down payment. Once you pay off the home you have more freedom to spend money on what you would like to spend it on.
- Cheaper taxes: With a smaller property, you’re most likely to spend less on your property taxes.
- Cheaper Utilities: To heat or cool a smaller home won’t cost as much. Also, you may be able to save on electricity costs because you’ll have less space to light up and use.
- Less maintenance: Vacuum less, mow less and shovel less. Don’t worry about breaking your back any more.
- Renting: Most people believe that renting is not a good option, especially if you’re a bit older. For some reason, renting has become frowned upon and seen as an inferior form of residence. Especially if you’re tight for cash, renting an apartment or a home is a great way to save lots of money until you have enough for a full mortgage. Buying a home in today’s market doesn’t guarantee you that you’ll save more money in the long run, and home values are not necessarily going up.
There’s nothing wrong with downsizing to a smaller and more affordable home. For many, it can be a good financial decision that will enable you to save more money in the long run. With all the money saved up, that vacation to the Bahamas or Europe looks more like a possibility, doesn’t it? Contact me and we can find your dream home!