Just as you have needs that require you to upgrade your home by purchasing something larger, there are also reasons as to why you should consider downsizing your home and purchasing something smaller. In fact here are a few of the top ones commonly cited by individuals and couples choosing to make that choice.
Having a lower monthly mortgage payment is one of the top reasons more and more people are opting to downsize into a smaller home. The shaky economy is causing more and more people to consider what they can do to reduce their monthly expenses. Mortgage payments for large homes can be more than $2,000-5,000 each month, whereas smaller homes may offer a mortgage payment of less than $1,000 simply because it is smaller and costs less.
Cutting back living expenses can also be a reason why you downsize from a large home to something smaller. Not only do large homes have mortgage payments that are much higher every month, but they also require more utilities to maintain them. Heating and cooling your home for you and your family will cost significantly less if you live in a smaller house than it will if you live in something bigger. In fact if you have a very large house and move to something smaller, you may find that your utilities are cut in half.
Retirement is another major reason for downsizing from your current house to a smaller home. Although retirement is a time of high activity for many retirees, most don't want the burdens associated with caring for and maintaining a large home. This is why many people choose to sell the home where they lived for many years and raised their kids and purchase something that is smaller and fits their needs. In addition, many retirees opt to move into retirement communities at this point in their life due to the features and amenities the community provides and its social opportunities.
Children entering college or the workforce can also be a reason to downsize your housing, although this reason is not as common as the first two. Empty nesters often sell their large home and downsize after their last child goes away to college or moves out into their own place in order to start their career. This is especially true for parents with several children, as their large house can seem too empty and too quiet for them. Moving to something smaller allows them to refocus their attention on each other and their marriage instead of their children.
Whether or not to downsize your home by selling your large house and moving into something smaller is a decision that only you and your family can make. However, you should carefully consider the benefits that a small house may provide as well as any drawbacks that could be a result as well. By taking the time to think it over, you can make the decision that not only benefits your family but also your lifestyle.