The Right Time to Downsize: When to Let Go of Your Large Real Estate Property

Most homeowners want a home big enough to fit their family. But there are times when downsizing is a much better option.

Experts say that owning a big home has its benefits. But there are a few responsibilities that might be too much to handle for some people. Owning an expansive home requires a lot of upkeep. Even more, the utility bills could be high too. Combine this with growing children and a need for peace, then downsizing might be an option.

But how will you know if it’s already time to downsize your home? Here are a few questions that you can ask yourself to see if it’s the right time to move to a smaller house.

Have my housing expenses increased?

When it comes to budgeting your monthly income, you need to focus on your housing expenses. You need to see if your house expenses are already taking 30% of your monthly income. Although you may not feel the costs now, it’ll soon become a burden once you reach your retiring age.

The costs to maintain a house increases with time as expenditures continue to rise. What makes it problematic is that the income often reduces once you reach your retirement age. That’s why most people in Ontario, Canada often ask help from a property realtor to find a property in a city like Guelph that’ll fit their needs.

Am I falling behind on my house maintenance?

Running a house requires regular upkeep. Undoubtedly, every corner of your home holds a lot of memories for each and everyone in the family. After all, you’ve lived in the same house for several years. But moving out too late will only make it harder for you to sell it in the future. All structures deteriorate over time, and any delay with its maintenance can cause you to have even more expensive repairs in the future.

Does my home still fit my lifestyle?

unboxing stuff into a new house

For homeowners who have children to raise, having rooms for each of their kid is their top priority. But things change as the years pass, and most of those bedrooms will soon become extra storage space. If you’re using only a few rooms, it’s no longer practical to pay for cooling, heating, and electricity that’s more than what you’re using. The Balance says that downsizing can help you cut down on the utility bills that you spend for heating or cooling a large home.

Am I confident with my retirement savings?

A few studies show that one in every three retirees are “very confident” that they’ll have enough funds to live comfortably throughout their retirement. But if you’re not a part of this percentage, then you may want to consider relying on your current home equity linked to your retirement income. For most people who own a home, their property’s equity is their most priced position. However, it’s hard to maintain. Most people would instead choose to downsize their home to reduce their equity.

The decision to move to a smaller home can be difficult, especially if it means moving to a new place or city. It’s crucial to give yourself enough time to think things through and meet with your lawyers and real property agent to weigh the pros and cons to come up with the best decision.

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