If your kids have finished college and moved out on their own, then you might want to consider downsizing your living quarters. As you find yourself rambling around your large family home and paying for its high monthly expenses, you will soon realize that you can greatly reduce your monthly living expenses in a smaller home. Once your living expenses have been lowered, then you will have more money to spend on travel and hobbies.
If you are on the fence about downsizing your home, here are some important aspects of this type of move for you to consider:
Lower or Eliminate Your Monthly Mortgage Payment
If your larger family home still has mortgage debt, then downsizing will allow you to eliminate your monthly mortgage. As long as you have enough equity, you can sell your existing home and pay off its mortgage while having sufficient capital left over to pay cash for your next home. Alternatively, if you would like a larger bank account and to take advantage of low-interest rates, then you could park your equity into a bank account and make monthly payments on a new smaller mortgage.
Lower Your Utility Bills and Maintenance Costs
Having a smaller home with less space to maintain and control the temperature of will greatly lower your monthly utility bills and annual maintenance costs. Even major repairs such as roof replacements will be less expensive for a smaller home.
Move to a Lower Cost of Living Area
If you currently live in a high cost of living area, then moving to a lower cost of living area will save you a lot of money. Many places where properties are cheaper also have the added bonus of having lower prices on gasoline, groceries, and utilities. This can save you a ton of cash over the years you live there.
Hire an Experienced Real Estate Agent to Get the Best Deals
Finally, when you have decided to pursue downsizing your living space, then you should hire an experienced real estate agent who specializes in smaller homes in the area you want to move to. To find the agents who most often work with smaller homes, you can look at property listings online and make note of who has the majority of the smaller homes listed. These are the agents who will be most up to date on the area's smaller house listings and are the best agents for you to interview.