Question 1: Do you want to reduce expenses?
Cost is the top reason why people downsize. Even if your home is paid for, property taxes, utilities and upkeep can take a big bite out of a modest budget, especially if you’re on a fixed retirement income. If you’ve owned your home for many years, you probably have a lot of equity and selling your home could give you a comfortable nest egg to put toward a smaller home, and still leave some money for retirement savings and leisure pursuits.
Question 2: How do you entertain?
Downsizing to a condo or an apartment will affect how you entertain. Do you need lots of room to host your family and friends? If having large dinner parties is important to you, then downsizing may not be ideal. But if you’re happy with small coffee dates and the occasional overnight visit with children or grandchildren, then a smaller home may be just right. In addition, if only 1 or 2 people live in your home, you may only need 1 guest bedroom or an office most of the time. Having too much space is not only unnecessary, it may also make you feel lonely.
Question 3: How important is your outdoor space?
Do you have the energy to maintain your current home and garden? If creating a relaxing outdoor retreat or cultivating a lush garden is important to you, it may be difficult to give up your outdoor space. But if maintaining your yard just feels like work, then consider moving to a condo or a home with a low-maintenance property.
Question 4: What kind of lifestyle do you want after you downsize?
What gives you the greatest sense of well-being? Perhaps a simple life focused on family and a few close friends is all you need. Or maybe an active adult community appeals to you most. Would you rather choose a bungalow, a smaller yard, or a closer proximity to city life? Before moving on with this project, decide on the lifestyle you want so you can narrow down your best housing option.
Question 5: How do you want to spend your time?
Are you looking for more leisure time or the freedom to travel? If so, downsizing might be right for you. Plus, it will free up some money so you can fully enjoy yourself!
Is it time to downsize?
As with any major decision, it’s helpful to create a list of pros and cons. Evaluate your cash flow, retirement plans and family needs before you decide. In general, you might benefit from downsizing if:
- You use just a small portion of your home most of the time
- You don’t enjoy spending most of your time outside weeding and doing lawn maintenance anymore
- You travel many weeks of the year or spend a significant amount of time at a vacation home
However, downsizing may not be right for you if:
- Your home is where the family gathers for celebrations
- You are an avid gardener or need lots of work space for hobbies or collections
For more on this topic, visit:
Thinking of downsizing your home? 5 questions to consider
Are you considering selling your home and buying something smaller? Maybe you are an empty nester, or you’d rather travel than spend time and money maintaining your home? If you’re actually thinking about downsizing, ask yourself these questions first!
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The information and advice in this article are provided for informational purposes only. The Personal shall not be liable for any damages arising from any reliance upon such information or advice. The Personal recommends using caution and consulting an expert for comprehensive, expert advice.