Work through downsizing decisions with a team on your side - financial, tax, real estate and mortgage advisors – to ensure you take the best course of action for your future. Why do so many of us end up in large homes in the first place. It could be because we’ve outgrown a smaller house, our income and status has increased, we hope to impress others and can afford it, or it is the home of our dreams. Or perhaps it’s because nobody has told us not to, or even that we might be happier in a smaller home… at any point in our life.
How might living in a smaller home contribute to happiness?
Could you be happy
with less? IS A SMALLER HOME IN YOUR SIGHTS? CAN YOU PICTURE YOURSELF DOWNSIZING IN THE FUTURE? Do any of the following scenarios sound familiar? “We have a much bigger house than we need. We still have a mortgage, but we would prefer not all our money to be going into that.” “We spend all our time cleaning and maintaining rooms we never go into.” “We want to be able to lock up and travel more, without having to worry about the pool, the gardens, etc.” “Our house needs a lot of upkeep and the yard is high maintenance and taking up too much of our time.” “We are not as mobile as we used to be and struggle with too many levels and too many steps.” “I’m a single parent of two kids. If I sell this house, I think I could pay cash for a smaller home with the equity. I have a good job, but I worry that I won’t have enough for retirement.”
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• Smaller homes need less time, energy, and effort to maintain. • Less time spent cleaning and maintaining means more time to do the things you really want to do and that matter to you most. • Living in a smaller home can bring a family closer together through more social interaction. • Smaller homes can be less expensive to purchase and keep in terms of insurance, taxes, heating, cooling, electricity, etc. • Smaller homes will generally have less environmental impact as they require fewer resources to build and maintain. • Buying a smaller home may mean less debt and less risk.
The truth is that once people decide to start living small, they often find there are many advantages to downsizing, including smaller bills and a smaller set of responsibilities.
• A more affordable home might mean a wider market should you choose to sell.
Downsizing is best not done on a whim.
• Smaller homes decrease the temptation to accumulate.
Ideally, plan at least a couple of years in advance. Explore different housing options and locations. Do you want/need to be close to family or certain facilities? What’s the cost of living likely to be? What about the weather? Try and create a clear vision of your down-sized home and how you will interact with it. You know the idiom about death and taxes… almost as certain are the impacts of aging and the chance that in retirement, many may not have the same disposable income previously enjoyed.
• A smaller home means less to decorate.
• Minimalisation is said to free up the mind. • You spend less time decluttering.
TIP:
Don’t keep your downsizing plans a secret. Family and friends may need time to adjust. Even adult children can become emotional about the family home being sold.
