.With the real estate market currently in a holding pattern many buyers and sellers are taking the opportunity to reflect on their real estate goals. Often the idea of downsizing comes up. Although disruptive, downsizing can be a liberating adventure and put more money in your pocket.
Lets explore some of the benefits …
Reduced your costs.
A smaller mortgage is the most immediate reason people decide to downsize but there are many other cost savings. In general, smaller homes can mean smaller mortgage payments, lower property taxes and insurance costs plus reduced quotes for future home improvements and renovations. If moving to a new city or community, be sure to factor the new home values and new cost of living into your decision making process.
Reduce your environmental footprint.
A smaller home and property uses less water, electricity and gas. Not only can you save you more money, you can be kinder to the environment. Higher density neighbourhoods generally offer better walk-ability and access to schools, parks and shops thus reducing your need to drive. Additionally, purchasing a resale home instead of building a new home helps reduce construction contaminants and the need for non-renewable resources.
Reduce your stress.
Less stuff means less stress. Downsizing can simplify your life by forcing you to re-consider your belongings. Getting rid of items that no longer serve a purpose or that no longer bring you joy can be a liberating experience in personal growth. Minimalism is on the rise as studies show less distractions can improve your mental health. Smaller homes decrease the amount of housework needed and free you up to spend your time in ways that bring you happiness. Furthermore, smaller homes tend to cluster in smaller neighbourhoods increasing your connection to the families and community around you.
Downsizing tends to be discussed more with our clients entering into retirement however as you can see from the points above there are many reasons a family might want to consider downsizing and counterintuitively, the earlier the better … physically, socially and financially.
Are you curious if downsizing is the right move for you? We would LOVE the opportunity to chat about your real estate goals!