Downsizing your home can be more than a measure to relieve financial straits. Instead of something that is dictated by circumstances, it can be a strategy towards a better quality of life – financially or otherwise. We have already written about how to go about downsizing. This time, we want to take a closer look at the financial benefits of such a step.
Reasons for downsizing your home
When you downsize your home it helps with future savings. After all, you will likely save on utility costs for heating, air conditioning etc. Other factors like the new location aside, you might also be able to save on property taxes and home insurance (or rent) for a smaller home.
If your mortgage has not yet been paid off yet, downsizing offers you particular financial benefit: You can become debt-free earlier than originally planned. Paying a lower mortgage for a smaller home alleviates the financial burden. This means you can use the money to pay off other loans (i.e. student loans or credit cards). Alternatively, you might decide against a reduction of monthly mortgage payments for the sake of paying it off earlier.
In case the mortgage from your old home has already been paid off, downsizing frees up capital for further use, even for making financial investments.
A few points to consider
To get the greatest benefit out of downsizing your home, it is important to consider the time of sale, i.e. the current housing market. After all, you want to sell your current home with a profit, if you can.
If your move is not time-sensitive and you have a bit of money to spend, consider taking care of some renovations/upgrades of your current home for the sake of increasing its market value.
There is another good reason, even if freeing up capital or immediate savings are not your priority: Downsizing your home might put you in the position to move to a more desirable neighborhood or even city. This means that the decrease in size might still lead to an increase of your quality of life.
Whichever your motivation for downsizing might be: Start this new chapter of your life the right way by reducing the stress of moving and hiring a reliable, affordable and competent moving company to take care of your move.
You have found our website, which means that you are already at the right place with Brothers EZ Moving. Now, simply take the next step by contacting us to request your free quote!
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