When is it Time to Downsize my Home?
When you’re first starting your family, you buy a home for your future. You plan to fill the rooms with children or a couple dogs. As you start to move through life, those kids grow up. They go on to live their lives and you’re left with a big empty house when they leave. That’s when most people start to discuss downsizing. But there are a couple other reasons as to why you might want to downsize your home.
3 Signs It’s Time to Downsize Your Home
Your Mortgage, Insurance Property Taxes Exceed 30% of Your Take Home Pay
When it comes to owning a home, there are certain things that you want to avoid. One of those things would be taking on too much house. Overspending on housing is one of the easiest ways to set yourself up for failure should something unexpected come up like a loss of job or change in health. A general rule of thumb is that your total expenditure on mortgage and property tax doesn’t exceed 30% of your take home pay. This allows you to save and have money to live on. As soon as your total spend on your home is higher than that 30%, you could start to consider downsizing to something smaller.
You’re Not Using The Space
If you have kids, you’ve probably heard of the empty nest stage. That’s when all the kids have fled the coop and you’re left with your spouse to live in your home without your children. For some, you may be able to handle the space, but for others, it might start to be too much to maintain. With two or three rooms vacant in a home, it can seem a lot less homey. That’s when many people start to consider downsizing their current living situation. If you’ve lived in your home for more than 15 years, the chances are you’ve built up some equity in your home. If you were to decide to sell your home, you would be able to find something smaller that would be more spatially appropriate and cut down on your overhead cost.
The Maintenance Is Too High
Owning a home comes with financial responsibility. You don’t just have to pay the mortgage, property taxes and insurance fees, you also have to cover the cost of any and all maintenance repairs. Minor issues and repairs don’t seem so bad when they happen. But when you’re having to pour massive amounts of money into maintenance repairs, it may be time to cut the loses and downsize. Maintenance issues are expensive. And if you own an older home, the chances are that the maintenance issues that will come up along the way will be costly. If your maintenance costs keep rising, it’s time to think about downsizing.
Downsize Your Home in Orange County
If you’ve been thinking about downsizing your home, it’s time to talk to someone who can help you discuss your options. I have helped countless retirees and couples find a space for the next chapter in their lives. Whatever your reasons for downsizing, I can help you. Contact me today to plan for the next stage in your life and start the downsizing process.