Downsizing (moving into a smaller home, condo, or apartment) is a move that’s usually associated with retirement.

But downsizing doesn’t only have to be empty-nesters and those who are no longer physically capable of maintaining a large home.

Why downsize?

Downsizing isn’t for everyone, but if it is an option you are willing to consider, then you will find that there are a number of advantages, such as less work and fewer (or smaller) expenses.

Here are 7 reasons why you might want to consider downsizing your home:

1. Your current house is too big.

This is a common problem of empty-nesters and elderly homeowners. Over time, what you need from your house changes. You may find that your house is too large, and takes an unnecessary amount of time and effort to care for, especially considering that not all areas of your property are getting much use.

If you are finding it hard to maintain your current property, or you simply find that you don’t need as much space as you have, then now is the time to consider downsizing.

2. To put money towards other things.

Mortgages can be expensive. But, if you sell your home and move into a smaller place, you may be able to make enough on the sale of your house to fully pay off for the new home, meaning that you now have money for other expenses. Plus, a smaller home also comes with smaller utilities bills, giving you even more savings.

You might consider downsizing in order to fund their retirement. Downsize early to save up, or buy a smaller home upon retirement in order to have more available money to fund your new lifestyle. And don’t forget about the possibility of long-term care costs in the future - having a little extra money to put towards that could be a big help.

Another reason to downsize is so that you can help put your children through university. As they move away to school, you can find a home that suits your new child-free lifestyle while also helping them to get an education and pursue their dreams.

Or, if you prefer, put your money towards something more fun. It’s up to you what you do with all of those savings.

3. To have debts paid off.

Debt can have a negative impact on your life. It can stop you from doing the things you want to do, and even make living unaffordable. Not only will a smaller home mean less debt in terms of mortgage, but some of the cash that is freed up by the smaller mortgage can be put towards paying down any other debts.

4. To buy a second property.

Do you dream of having a vacation home somewhere warm, or a cottage for your family vacations? By downsizing, you might be able to take out a new mortgage on your dream holiday home after purchasing your main residence outright.

5. To reduce your environmental impact.

It takes more energy to power a large home than a small one. There is more space to be heated/cooled, more rooms to light, and potentially more appliances and technology plugged in. A smaller home will result in a smaller carbon footprint, so those who are conscious of their environmental impact might want to downsize.

6. To simplify your life.

A smaller property means less space. Less space means less clutter. But you don’t have to be a minimalist to downsize. If you feel like you have too much stuff, downsizing forces you to think about how much you really need and want to have in your house. It will also restrict the amount of spending and consuming you do, leaving you a bit more money for the things that really matter.

Another benefit of a smaller property is that it takes less time to clean and repair. That, in turn, gives you more time to do other things. You can simplify your home life and give yourself the opportunity to be more involved in other activities, or to take up hobbies that you never could before.

7. You don't want all your capital tied up in one house.

As you know, houses are costly. Your house will very likely be the most expensive purchase you ever make. But, for some, having all of that money invested in one thing feels risky. Some people prefer to have cash set aside in case of an unexpected urgent expense such as major home repairs, injury, illness, or job loss. You might choose to downsize so that you can set aside the savings, or so that you can invest your money in something else.

Disadvantages of downsizing

Downsizing isn’t for everyone. Some people will find that they simply can’t maintain the lifestyle they want while living in a smaller home. And that’s okay.

Before you sell your house and buy a smaller one, take a moment to consider whether this might create any problems for you:

• You will have limited space. You will need to get rid of stuff – possibly a lot of stuff. Are you willing to part with tools that aren’t getting much use (even though you might need it someday), or clothes you only wear once or twice a year? Not only will you be getting rid of stuff, but you will be consuming less because how much you buy will be restricted by the amount of available space in your home.
• You might not have room for guests. If you choose a home that is just big enough to suit your needs, then you won’t have much extra space for things like family visits. When your kids come home, or your in-laws pop by for the weekend, you might not have a room available for them to sleep in. Will you or your guests be inconvenienced by the lack of spare rooms in the house?
• You won’t have as much privacy from other people in the house. Do you live alone? If you don’t, remember that downsizing means that there will be less room for everybody. You won’t be able to spread out as much, or get as much privacy as you could with a big property. This isn’t a problem for everyone, but could be a deciding factor in a family where tensions can run high in close proximity.

Is downsizing right for you?

Moving to a smaller home is not the right choice for everyone. But, if you are looking to simplify your life, save some money, or reduce your environmental impact and consumption, then it could be the right move for you.

And think about this: if you are already planning to move, then downsizing makes the whole process easier because it requires you to declutter and sort out your priorities before you move into your new home.

Are you considering downsizing your home? Call 613-256-7285, and I can help you figure out the best options for you.