Is Your House Too Big For You? Consider Downsizing!
Who doesn’t like live in a big new house? If you are also thinking of trying to move up in life and buy a bigger house, you need to set the record straight. Downsizing might be the better choice.
There are many families which have a lot of extra space in their house that they can downsize without compromising their style.
Contrary to a common belief, moving into a smaller house is not a step-down. In fact, if you take a closer look you will see that this move comes with a few upsides as well.
This may include saving time, saving money and having less clutter in life.
You may not accept this fact but oftentimes, downsizing is the only fresh start that you and your family require for a better future!
Still not convinced? Here are some of the financial reasons to downsize. But before we dig deeper into the reasons, think for a second if you could just reduce the mortgage by almost $500/month and put all that cash towards other important financial goals. Sounds interesting?
Fight off the debt snowball
Downsizing your home is the most convenient way to kick debt to the curb. For instance, if you have $18000 in debt and at a 6% interest rate, you are making around $200 per month as the minimum payment. In other words, you will have to keep making payments for 10 more years.
But if you could just put in $500 towards your loan every month, you can easily cut down the loan period up to 7 years and 8 months!
Increase retirement fund
As soon as you get done with debt in addition to the funded emergency fund, take the opportunity to build wealth for a better future. Simply invest 15% of your income into the retirement fund plan. Even if you start with $500, this small amount can easily make a huge difference. In 30 years’ time, you will have an additional 1.6 million in your bank account. Isn’t it enough to spend your golden years well?
Where to Start With Downsizing?
Maybe downsizing won’t make sense in each situation but it certainly worth a look if simplifying life and saving money appeal to you. All you need is to get in touch with an experienced realtor and let them determine the actual worth of your house while presenting options to cut cost.
An experienced realtor is well aware of the market trends and can help you get the top dollar for the current house whilst negotiating the best deal for the new house.
Don’t Forget the Hidden Cost
As you now know downsizing is a great choice to save some money but never forget the hidden cost. For instance, consider if your house needs repair to become market ready, if appliances will fit in the new smaller house or if you require more budget to get space efficient pieces.
While you decide, get in touch with an experienced and reputed realtor by visiting https://RyanDeLaUz.com.