In the past, downsizing was more suitable for young adults who had just left home and were about to start living independently. However, one of the recent trends in homeownership is downsizing. When you move up in life, it doesn’t always mean you have to live in a big home. There are many reasons and advantages of moving to a smaller home, and some include.
A bigger house means more utility bills such as heating and cooling due to more floor space. For smaller homes, the costs of air conditioning are lower because there is less space. Although downsizing isn’t for everyone, during tough times like a recession or the COVID-19 pandemic, it’s worth looking into estate sales for a smaller home that will save you money. Apart from monthly utility bills, you can save on home-related costs such as interest payments, insurance, and property taxes.
Buy Another Property Abroad
Many people dream of owning a second home abroad, either for vacation, work-related purposes, or retirement. You can realize this dream by downsizing your current home to save on expenses and boost savings for another home. If you need to spend more time with your family in another location, downsizing can help you enjoy both sides without having to move completely.
Pay or Avoid Debt
A big house can have you paying a mortgage well into your retirement. Every month, many homeowners spend close to thirty percent of their income to pay the mortgage. In addition to other household expenses, it’s easy to go into debt trying to keep up. Downsizing frees you from the mental stress of paying debt, and in some instances, you can avoid it by starting small with what you can afford to pay for with your savings.
Reduce the Carbon Footprint
A large percentage of greenhouse gases result from households and their use of appliances. When you own a big home, you need more household appliances. Also, there is more wastage and the use of more air conditioning and lighting than you may need. Downsizing reduces the environmental impact because there’s a need for fewer resources to keep the home running. It also becomes affordable to go green with energy-saving appliances, solar, and LED light bulbs.
Increase Bonding Time
In today’s digital era, most millennials spend their time locked up in their rooms playing video games or surfing the internet. Sometimes, this results from the size of the home, where there are fewer chances of meeting or interacting. Downsizing encourages families to bond as there are higher chances of running into each other often.
With downsizing, there is less space to accumulate stuff. When you move into a smaller home, it forces you to reduce your belongings and the temptation to purchase more. If you find a simple life more appealing, downsizing may be the right choice for you.
Although downsizing isn’t for everyone, it has many benefits that are worth considering. Determine the right home for you to save you money, reduce baggage and potentially reduce the carbon footprint. If you’re looking to buy a second home, pay or avoid debt, and increase bonding time with your family, downsizing might be the best option.