Downsizing, simply put, is the move from a larger home to a smaller one which usually occurs when one does not have dependents living with them anymore or at retirement. There are many significant benefits to downsizing, including; financial incentives, decluttering your life, and a simplified lifestyle.
There are many financial benefits to downsizing your home. Even if your home is already paid for, there are still significant costs associated with owning a larger property such as taxes, utilities, insurance and repairs. Ultimately downsizing will reduce any mortgage payments you have, lower real estate taxes, lower utility costs, lower insurance costs, as well as lowering your properties maintenance costs.
Decluttering Your Life
It is amazing how much “stuff” you can accumulate throughout your life. Downsizing allows you to take stock of what is important and embrace the idea that less is more. This can be a strenuous process but also a very therapeutic one; think about organizing your possessions into six categories:
Keep – Items that you consistently utilize or hold significant sentimental value.
Give to relatives - Anything that you know that they would love for their homes.
Sell – Items that you are no longer attached to and earn cash (try an auction, ebay, estate sale, etc).
Donate – Anything you cannot sell but is still usable (get a tax deduction).
Recycle – Everything that does not fit into any of these above categories.
Trash – Only what you cannot recycle.
Downsizing will leave you with a property that takes less time to clean, needs less maintenance, and costs less to maintain. Ultimately, this allows you to pursue doing what you love (unless that is cleaning), such a travelling, artistic endeavors, community work, etc.
Is Downsizing Right for You?
I’m happy to speak with you about downsizing and whether or not it is right for you. As a downsizing specialist, I have recently sold three waterfront properties where the client was looking to downsize. To find out how I’m uniquely qualified to assist you with all of your real estate needs, please click here to contact me.