The average American homeowner spends around $1,030 a month on their mortgage payment. Of course, this average varies drastically state-by-state. In many other states, homeowners pay double that amount – every month!
Real estate experts are predicting that the prices of homes will rise gradually in 2019. They’re also predicting that, despite price jumps, more houses will be up for sale by the middle of the year.
So, it comes as no surprise that more homeowners are downsizing.
But why is moving to smaller quarters the best option for many families? In this article, we’ll explain the main benefits of downsizing.
The following benefits could ultimately mean more money in your pocket – and so much more!
A Smaller Home Means Reduced Costs
Mortgage payments typically factor in a number of things.
The property type, its location, and the economy affect mortgage rates. Your personal credit history and the loan you secure can also affect your mortgage rate.
Credit reports and loans aside. Smaller properties that cost less have lower mortgages. Which makes this the obvious reason why downsizing is a viable option for homeowners.
You’ll likely pay less in property taxes, as well as insurance. You’ll pay even less if you live in areas where the cost of living and property values are lower.
Research Before You Buy a Smaller Home
Before downsizing, you should check the average property value of the area you want to move to.
Unfortunately, you can still wind up moving to a smaller property in an expensive area. In these cases, you’ll downsize only to pay the same mortgage rates (or more).
In most – but not all – cases, the rule of thumb is this: The smaller the house, the smaller the mortgage payment. Just make sure to do your research beforehand.
More Money In Your Pocket
The ultimate goal of downsizing is to save money.
By living in a smaller house, you can significantly reduce your monthly bills and living costs. You can then use this saved money any way you please.
Some homeowners put the extra money towards going back to college or to pay off other debt. Some put the money towards their retirement, a new car, or for vacation.
Fewer Utility Costs
Most homeowners who downsize not only have smaller mortgage payments to worry about. They also enjoy having lower monthly utility bills and reduced living costs.
Less Stress & Better Quality of Life
Smaller homes tend to have smaller properties. The less property you have, the less maintenance you’ll have to worry about.
This not only means you’ll use spend less on water for your lawn. You’ll also have less yard work, fewer repairs, and fewer renovations to care of.
All in all, you’ll have more time for the things you love. Top that off with more money to spend or save, you’ll live a less stressful lifestyle overall.
Reduce Clutter
With less space, you’ll have less room for your belongings. By downsizing, you’ll have to get rid of things that you don’t have room for or have no purpose for.
This may seem like a disadvantage. After all, American society has long emphasized the importance of having material things.
But in a world that’s mired in economic strife, as well as the threat of climate change, minimalism is on the rise.
Having less is better for your mind and health. It’s also less stressful and gives you more time and freedom to enjoy the things you want to do.
Plus, having less means fewer distractions. Which means more time to focus on the things you want to do and with the people you love.
Downsizing doesn’t just mean moving to a smaller home. It also means simplifying your life.
Smaller Neighborhoods Mean Stronger Social Circles
Smaller homes tend to come in clusters. Smaller neighborhoods tend to be more close-knit than larger, or even gated, communities.
Downsizing could mean more for the future of your family. It could mean your children have more friends to grow up with. It could mean you and your spouse have more friends to grow old with.
A bigger house doesn’t always mean a happier family. With less housework to worry about and more neighbors to spend time with, you’ll live your best life.
Downsizing Is the Future of Home Ownership
15 years ago, owning larger, more expensive property was highly valued in our society. But after the market crash of 2008, Americans became smarter about mortgages.
Today, the housing market is stronger. Owning and living in a smaller home is also more embraced and encouraged across most of society.
Downsizing is becoming a realistic option for many homeowners – young and old alike. In many ways, it’s the best option.
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