Living in a big house seems like a dream. You have plenty of space, you won’t be too close to your neighbors, and you can have people come and stay whenever you want. However, a big house requires a lot of maintenance and can be super costly. Here are 15 signs that it’s time to downsize.
1) Your monthly housing expenses have risen above 30%
Paying more than 30% can strain your finances and make you start compromising on other things. For example, if you have a bigger house, chances are electricity or water consumption will be higher compared to what they would usually be in a smaller house. What’s even worse is that the proportion of expenses for your property tax, maintenance, and insurance will be higher as well.
2) Your kids have flown the nest
The time has come when your children have flown the nest. If you continue to live in a large house, chances are that most of the rooms will be empty and unused. It’s not like you can have them rent out their rooms to earn some cash, so it’ll just be an extra expense for heating or cooling those big rooms.
3) You have a big mortgage
Your mortgage is not getting any smaller just because you’re living in a big house, so it’s best to save money by downsizing. You might realize that your monthly payments are higher than what they would be if you lived in a smaller place. If you move to a smaller house, you’ll get rid of this burden and start saving money.
4) You are experiencing health problems
After moving into a big house, some people suddenly experience anxiety or sleeping issues. One way to cope with this is by moving to a smaller place so that you don’t have such an empty feeling when you walk around.
5) You have a big yard but don’t use it
If your children are grown up, chances are that nobody will be using the backyard for playing or hosting barbecues anymore. It’s better to make good use of this space by downsizing or selling the house. You can always buy a smaller house with a smaller yard, but it’s not like you can go back in time and buy a bigger yard for your current home.
6) You can’t afford to save
When you live in a big house, your expenses tend to grow. This means that it will be harder for you to put some money aside each month and save for retirement. You should downsize or sell your home and buy a smaller place, but one that is still affordable so that you have more cash left over every month.
7) Your commute has become a drag
Living in the suburbs can be convenient since you have less of a commute to work. But moving into a big house and then having to commute to work for hours will add up in terms of time wasted and stress experienced. It’s better if you move closer to where you work or have a smaller house in the city.
8) You want to move into assisted living
As you age, you might want to consider moving into an assisted living like Belmont Village Fort Lauderdale. However, with a bigger house, it can be difficult for the owner to sell a property in such good condition and at an affordable price. It makes sense to move most of your stuff to another place and downsize to make room for more occupants in less space.
9) You’re falling behind on home maintenance
If you don’t have the money to fix things in your house, it might be a sign that you need to downsize. Maybe you bought a bigger place and now it’s difficult for you to keep up with all repairs and maintenance. Additionally, if an issue has been happening for a while and is not getting any better, it might be a good idea to move.
10) The features that no longer fit your lifestyle
Maybe you bought a large place with a huge kitchen and lots of space but then you realized that there’s no room for the dining table because everything is so big and spacious. Maybe a smaller house would be better since it will force you to make more efficient use of the available space.
11) You’re the oldest resident in your neighborhood
If you’re in an area where the others are all younger than you, then it might be a good idea to move somewhere else. This might mean moving into a smaller place since the older generation tend to live in houses that are more affordable.
12) You want to convert your home equity into income
If you already have enough money in savings, then it makes sense to convert your home equity into income. This means selling your house and buying two smaller ones so that you can start receiving monthly rent for one of the properties. You can then use this money to supplement your savings.
13) Your career no longer ties you to your location
You might have a career where you need to be in close proximity to your office, so this means that you can’t move far away. However, if your job has nothing keeping you tied to your location and the commute is becoming too much of a hassle, then it makes sense to relocate. This could mean moving into a smaller house.
14) You want to travel more
If you feel like homeownership is keeping you from traveling, then it might be a good idea to consider moving so that you can have the freedom of exploring more places and meeting new people. You could either sell your current house or rent it out while having some cash in hand that will help you during your travels.
15) You don’t want to entertain anymore
If you’re getting older and you don’t want to be hosting large gatherings that involve plenty of people, then it makes sense to move into a smaller place. You could either dedicate one room for this purpose or buy a house with fewer rooms so that there is less space needed.