Our lives are dynamic, and it may be hard to predict our future needs. What may have at one time been a perfect home for you and your loved ones may begin to feel too large for your current needs as time goes by.
If your home doesn’t match your current needs, budget, or lifestyle anymore, it may be time to downsize. Besides cutting costs, downsizing will help you stay organized and make it easier for you to relocate to another area every time you want to.
Five Signs That You are Ready to Downsize Your Home
1. The Cost of Housing Is Causing a Strain on Your Finances
According to financial experts, your housing expenses should not exceed 30% of your monthly budget. That means mortgage payments, maintenance costs, property taxes, and homeowners’ insurance should not exceed a third of what you spend every month.
If you are finding yourself dipping into your savings to compensate for the cost of housing or having to work multiple jobs to keep up with your mortgage payments, going for a smaller house may be the best option.
2. Your Kids Have Moved Out
When you are raising kids, it is possible that you will need a larger space to accommodate them, their pets, and friends when they visit. However, as they grow up and move out to college and homes of their own, you may realize that you do not need all that space anymore.
If you find yourself with too much space that you do not know what to do with it, it may be time to rent out that property or put it on sale so you can look for a smaller, manageable home.
3. You are Rarely at Home
There is no point in having a big home if you are never home. Today, people’s lives have become more flexible than ever before. It is possible to work from virtually anywhere. This means that one can work while visiting with family and friends or traveling by themselves across the country.
If your lifestyle allows you to be away from home most of the time and you feel like you are not making the most of it, downsizing to a smaller home may be a good option. After all, it doesn’t make sense to spend so much on a home you barely spend time in.
4. You Can Make a Good Sell
When deciding to buy a home, most business-minded people will calculate the home’s appreciation potential based on the prevailing market factors.
If you are the kind of person that is always looking to make a profit, you can opt to downsize if you feel that your home has appreciated, and cashing in on its value is the best thing to do.
5. Your Homes Responsibilities are Overwhelming
Owning a home comes with its own set of responsibilities that you must be prepared to bear as a homeowner.
Besides the financial obligations, you will be responsible for cleaning, front yard and backyard maintenance, updating the décor, etc.
If you realize that you can no longer keep up with the demands of your home, it may be time you considered downsizing. A smaller home means you will have fewer responsibilities and more peace of mind.
Get the Best Home Insurance to Protect Your Home
Owning a home, big or small, is a huge achievement. However, its homely atmosphere, value, and the convenience it offers may become affected if perils such as fire, theft, or hurricanes damage the property.
But no homeowner ever wants to lose their home. That is why it is important to carry a home insurance policy on your home to ensure that it is protected against structural damage and any loss to personal items.
If you are looking to have your home insured and are unsure where to start, iSelect can help you compare home insurance providers so you can find the most suitable policy on the market.
That way, you will have peace of mind knowing that your home is protected even in the event of a fire, flood, storm, theft, escape of water, or any other risk that your home insurance policy covers.