Is now the right time to downsize?

Is now the right time to downsize?
When I suggest the idea of downsizing, I sometimes get funny looks. After all, isn’t the American Dream all about moving up in house? Always moving on to bigger, nicer, newer? Downsizing can definitely have some benefits.
A smaller house means less stuff. Less to clean, less furniture sitting unused in the room no one goes into. Smaller also can mean lower utility bills, less maintenance, and less time spent in upkeep and cleaning. Sell off the stuff you no longer really need and put some cash in the bank!
Small might also mean more family time. Not having extra space for family to disappear to can be a good thing. Spend time together, you’ll be glad you did.
A smaller living space will encourage you to get out more. Spend time meeting your neighbors. Get out of the house.
And then, of course, is the money piece. What could you do with an extra $500/month? Invest that for your retirement for 30 years and you’re sitting between $500,000 and $1.2 million. Better like that extra living room! What about college expenses? Five hundred dollars a month sounds suspiciously like six thousand dollars a year. At today’s rates that’s just about a year’s tuition at a state university. Now, not only are you benefiting from the smaller footprint house, but you’re setting your kids up for success by not saddling them with student loan debt!
If you have a lot of equity, what about the 100% down method? Paying cash for your new home can allow you to make money on the buy. You’ll also enjoy the freedom from worry with all those bills. Put your income to work for you instead of enriching a lender. If you’re carrying personal debt, this is even more important. Living debt free allows compound interest to be your friend instead of a burden.
One of the best parts is that the market is ready for you! Right now there is a shortage of “move-up” homes. If buyers with growing families don’t have options to move up, they won’t sell their smaller homes. Then, the new home buyers have fewer options as well. Selling off your house that is too large (and probably has equity) and moving down gives you lots of options. Of course economics is all local. I’ll be happy to provide an opinion of value for your home and explain your options for moving down. Then, armed with knowledge you can decide what is right for you -none of this matters if it isn’t in your best interest. Let’s chat!

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