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Guide To Downsizing
Whether
the goal is to cut costs, simplify life, or to live
in a smaller space once children have moved on to
homes of their own, it can be exciting and liberating
to downsize one's home. Here we take a look at some
of the elements of downsizing to consider when contemplating
a move to a smaller home.
The Finances
Downsizing almost always lowers monthly expenses. Generally the mortgage payments, property taxes, insurance, and utilities are all lower in a smaller home. If the home you're selling is worth significantly more than the one you're buying you may want to discuss what to do with the proceeds of the sale with your financial planner. Even if you could buy the home outright it might make sense to finance the home to take advantage of low mortgage rates and let your money work for you in other investments.
By buying a smaller property you may be able to afford to live in a more desirable area. For example you may find condos with water, mountain, or skyline views in your price range, when during your years of owning larger houses these prime locations were out of reach.
The Stuff
One of the toughest things for many downsizing homeowners is going through all the possessions accumulated through a lifetime of moving into bigger and bigger homes. Offer heirlooms and sentimental pieces to members of the family or close friends, but resist the urge to pass along everything that is still useful. Most of the people you love probably already have too many things of their own, but it can be tough to say no. Of course if you know a young person or couple just starting out they may be thrilled to take some hand-me-downs off your hands. Unwanted clothing and household items can be donated to local charities. Contact a local auction house or upscale consignment shop for more valuable pieces.
Guests
Not having a place for visiting friends and relatives to stay can be another hard aspect of downsizing to get used to. Scope out the area for a nice hotel, bed and breakfast, or vacation rental property near your new home. Some condo units will even have guest accommodations on site.
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