Buying a smaller home may feel like a downgrade, but many families actually experience an increase in happiness when they move to a smaller home. Why? Because there is less financial pressure, plus more emotional connection with family members.
Here are a few great reasons to consider downsizing your home.
You want less maintenance.
According to daveramsey.com, the average new single-family home is 2,700 square feet—more than double the 1,000 square foot size of 1950. That means twice as much cleaning, repairs, and maintenance (both inside and outside the home) as our parents and grandparents did. By cutting your space in half, you could spend half as much weekend time—and half as much money—taking care of your home.
You stopped working from home.
If you’ve stopped using the extra garage, bedroom, basement, or workspace to run a business (or simply a home office for your job), then it’s time to downsize—especially if you’re losing that important tax deduction.
You can spend more quality time with your family.
With fewer rooms to spread out in, your family will actually spend more time together in the living room, dining room, and kitchen—sharing meals, conversations, and screen time.
Your kids are moving out.
Once your kids move out permanently, it may not make sense to continue paying for a four-bedroom home. If a two-bedroom house meets your new space needs, your wallet will thank you.
You can retire earlier.
Daveramsey.com reports that by reducing your monthly mortgage by $500/month, you’d have an extra $1 million-$1.6 million in your retirement fund over the life of a 30-year fixed mortgage. Wouldn’t you love to retire one year, two years, or even five years earlier?
You want more discretionary income every month—for other pursuits.
Or maybe you’d just rather use that extra $500/month to pay off credit card debt, take trips, buy antiques, or pay for college tuition. That’s $6,000/year of extra income—plus less money spent in utilities, repairs, and upkeep. It’s almost like getting a raise!
Considering buying a smaller home? AReeceNichols agent is in your neighborhood, ready to help!