are the benefits of downsizing? Let’s talk about 5 reasons you should consider downsizing in your next move!
Hello, hello! I’m Lindsay, a proud Anthem resident and your local REALTOR® with the Wise Move AZ Team at Realty ONE Group. If you want to stay up to date on all things Anthem and Real Estate then you need to subscribe to our YouTube Channel. Pro Tip: You’re also going to want to hit that little bell icon while you’re there so that you’re the first to know when our new videos are posted every single Thursday!
When we think downsizing, we often think of retirees moving to a smaller home. But the truth of the matter is, there are a number of stages and phases of life where you might consider downsizing.
As your Anthem, Arizona REALTOR® I have worked with a number of families as they downsize and move to Anthem. I always love learning about the reasoning behind their downsizing. Often downsizing forces you to be honest with yourself about what’s most important to you in life and in a home.
What is Downsizing?
Put simply the definition of downsizing is to make something smaller. In the case of this video we are talking about downsizing your home. Making the decision to move is never an easy one and it can feel even harder when you feel like you have to give up space.
Rest assured that the point of this post is not to convince everyone that downsizing is the way to go, because that’s simply not true. The decision to downsize is uniquely yours and depends on a number of very personal factors.
Benefits of Downsizing
In today’s video I will be running through 5 possible benefits of downsizing. Some may apply to you, and some may not. Keep what’s helpful and let go of the rest!
I’m sure you saw this one coming, so why not address it first. There can be very tangible financial benefits to downsizing. For some clients we have worked with, they have been able to sell their current home, which has a mortgage, and purchase a new home with cash, from the equity they built up in their previous home. By downsizing, these people are getting out of debt. Even if downsizing doesn’t get you out of debt, it may still be worth considering if you are able to significantly improve the terms of your loan. That being said, there are factors beyond just the purchase price and the loan that you need to consider:
Will you owe capital gains tax on the sale of your current home?
How much will it cost to move?
What are the monthly expenses at the new place?
Ultimately, if downsizing frees up money to give you the lifestyle you want, it is definitely worth considering.
What do I mean by this? At the most simple level, I want you to think about getting a home that better suits your needs. If you’ve always dreamed about living in an urban setting within walking distance of the farmers market, then downsizing might be the only way to accomplish that. Alternatively, if you’re worried about aging in your home, you may want to ensure you’re in a single story home, so that you’re not confined to certain areas of the property. Think about what you truly want and need. If downsizing would get you into a home that better suits your needs, it’s worth considering.
There is no doubt that downsizing has the potential to free up your time. At the simplest level, you typically won’t have to spend as much time cleaning or on home maintenance projects if you move into a smaller home. Ask yourself this:
Would I have more time for myself and the things I love if I downsized?
#4: Reduce Stress
Having more house than you want or need can be stressful. There’s the obvious financial stress, but there’s also the hidden stress that can often come along with all the clutter we accumulate in our homes over time. Unfortunately, for many of us, more space means more clutter. Downsizing often forces you to look critically at all of your belongings, and in most cases you can’t keep everything. Getting rid of the clutter can greatly reduce stress. Now, don’t get me wrong, moving is stressful in and of itself, but you need to determine if the stress of moving outweighs the day-to-day stress of staying where you are.
#5: A Fresh Start
Downsizing is a great opportunity for a fresh start and to craft the lifestyle you want. As I mentioned above, it forces you to look critically at all aspects of your life, including what you need in a home and what you want for your life going forward. I know these are not easy questions. In fact, if someone asked me these questions, I probably won’t have an answer for them. It requires careful thought and consideration. You should think about how your decision will impact those closest to you, but you shouldn’t let them dictate your decision. You have to do what’s right for you! If the thought of downsizing and getting a fresh start gives you more excitement than anxiety, then I encourage you to put some thought into it.
So, there you have it! What do you think? Is downsizing something you feel that you could benefit from? Are there other factors you are considering? Let me know in the comments.
If you’ve been considering downsizing and Arizona is on your list of possibilities then you may want to download our free guide: Moving to Arizona: 10 Reasons to Choose Anthem.
See YOU, next Thursday!