The Benefits of Downsizing your Home
Life is all about seasons. In those seasons of growth and change, we make decisions that benefit us. Sometimes they’re easy decisions like changing your diet in order to try and live a healthier lifestyle. Sometimes they’re harder decisions like moving out of the home that you’ve lived in for your children’s whole lives. While change can be scary, it can come with some serious benefits. You may have some hesitation in downsizing your home, but there are some fantastic perks. Keep reading to learn more about the benefits of downsizing your home.
3 Benefits of Downsizing your Home
Better Use of Space
Living in the same home for a long period of time allows for the accruing of many things. From closets that are filled with miscellaneous items to a garage space that hasn’t been addressed in years, bigger homes tend to be filled with a lot of things we don’t necessarily need. Couples with kids see this when their kids are old enough to fly the coop and they’re left with all of their children’s items to store. But clutter can lead to disorganization and more clutter. If you take an honest inventory of your home, and you feel that you have too much space or that your space could be better used, it could benefit you to downsize. There’s something very liberating about having the right amount of living space.
Before you decide if it would benefit you to downsize your home, consider how much equity you’ve built up in your property. If you have a large amount of equity in your property and you can sell your home and downsize with a substantial amount of money left over, downsizing could be a great investment opportunity for you.
If you downsize your home, there are a variety of ways you can reinvest the money:
· Retirement Account – Contribute the remaining money to a Roth IRA or self-directed 401k. That way, you have full control over the money and how you want to allocate it’s spending.
· Financial Advisor – Put it in the hands of a financial advisor that can help you decide how your money would be best invested. Often times this includes stocks, bonds, mutual funds and even annuities. There are plenty of options that you can discuss with a professional.
· Purchase Rental Property – Generate passive income for yourself by purchasing a rental property in a desirable area. The monthly income you receive from a rental property can cover the mortgage for that property while you are building equity in two properties.
The most obvious benefit to downsizing your home is that you have less overhead cost. From utility bills to cleaning supplies, the amount of money it costs to run your household significantly decreases and can help you save money. That money can then be spent on other items or you can save it and use it for a rainy day. The less overhead you have, the less stress that’s associated with running your household. The less stress that you have, the more enjoyable your life is, which is an obvious benefit of downsizing.
Work with a Local Orange County Realtor Specializing in Downsizing
Orange Countyis filled with so many different real estate opportunities. If you decide it’s the right time to downsize your home, we can find you a new place to start the next season of your life. There’s something for every lifestylein Orange County, whether you want to live near the beach or up in the hills of Rancho Santa Margarita, I can help you find a home that fits your needs. Contact me today to find your next home or investment opportunity.