Cutting Costs by Home Downsizing

There comes a time in everyone’s life when downsizing may be considered, regardless to whether that means downsizing your work life, downsizing your lifestyle or downsizing your home.

Home downsizing is usually associated with retirees looking for a smaller property now that their children and dependents have flown the nest. However, with the tough financial times seen in recent years, home downsizing is becoming increasingly evident among individuals in search of money savings, lower mortgage repayments and increased cash flow.

Although home downsizing may seem like a “no brainer”  for those who are in a difficult financial situation, consideration should still be given to the pros and cons of such decisions prior to making any full commitments.

It is important to remember that home downsizing will not only affect the amount of money in your pocket but it can also affect your social life and family life, therefore it is imperative to consult other household members who may be affected by the change in property.

Benefits

The obvious benefit of downsizing is the extra financial savings attained each month through reductions in mortgage repayments. Furthermore energy expenses are also likely to be reduced due to the fact smaller properties will require less money to heat and power. This will come as great news for those struggling with the soaring hikes in energy prices. As a result the spare cash can be used for savings, holidays, or even an early retirement.

If you look beyond the financial benefits, moving to a smaller property can also increase the amount of free time you have due to substantially less maintenance work to do around the house. The lighter workload can free up time to be spent relaxing, starting a new hobby or with loved ones.

Negatives

Moving is stressful at the best of times and the thought of moving into a smaller property can add further to this. Unfortunately this is an unavoidable downfall of moving.

Furthermore, a reduction in available storage space is one of the major downsides of moving into a smaller property. It can be very difficult to give up loved possessions, large furnishings and items that have sentimental values in an effort to fit into the smaller property. To prevent the loss of larger pieces of furniture it is important to start planning early as this will allow you to measure up furnishings and visualise where they will fit in the smaller property.

Downsizing can also present an issue if you enjoy using your larger home for social gatherings and parties.  A smaller home will mean fewer large gatherings, however with the purchase of a more compact range of dining chairs and dining equipment, having guests over for dinner will still be possible. Less space can also result in family crowding and less personal space, which in turn can have a negative effect on home life.

Like with any major life decision planning is key to success. Reframe from panicking and making rushed choices as this can only add to stress further down the line. Stopping to think first will make the move transition smoother.