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A Smaller Home Means Smaller Bills
Downsizing is hardly a dirty word these days, especially as Baby Boomers begin to question the size of their home, and more Millennials are finally making their way into the world. Homeownership is a good investment of any size, and if you've ever wanted to free up some cash for the rest of life's joys (travel? new hobbies? investing?), downsizing can be a great way to rightsize your budget. Here are seven ways downsizing can foster a bit more financial freedom:
1. Utility costs. If your gas and electric bills have been climbing year over year, consider the pleasant surprise of heating and cooling 1,200 sq. ft. instead of 3,500. Controlling the climate in empty spare bedrooms is pointless when you don't need the room. What's more, you can count on fewer houseguests with less space, and this, in turn, can decrease utility costs.
2. Maintenance costs. How big is that lawn? How many rooms need refreshing with a coat of paint? How many windows need washing, and what about the oversize driveway that must be repaired and sealed?
3. Insurance. Your insurance bill relies in large part on your appraisal, and if your new home is smaller, your insurance bill should shrink as well. (This can vary based on location and levels of coverage, of course, but you would be hard-pressed to insure less for more!)
4. Property taxes. Much like insurance, tax rates are based mainly on a percentage of assessed value. So here are a few more dollars back into your wallet.
5. Repairs. How many toilets do you need to have fixed? Appliances? Light fixtures to keep lit? The smaller home has fewer leaking faucets and a smaller roof to replace. Your overall spending on maintenance goes down when you have fewer houses to maintain.
6. Furniture. Downsizing is a perfect opportunity to sell excess furniture and keep only those pieces well-loved or essential for your new smaller space.
7. Hosting and entertaining. When you've got that sprawling home, your place is ground zero for out-of-town guests, relatives, and holiday parties. As your space shrinks, so do your annual hosting and entertaining budget. Besides, if you want to throw a shindig, you can take some of that downsizing cash and pick a perfect venue.
Post by Eric Slifkin, a REALTOR® serving South Florida's Treasure Coast. You can reach me at 772-678-1600 or As your resource for information on new or resale homes throughout the Treasure Coast, please be sure to contact me about any home you may find on the Web, yard, sign, or ad, and I will research the property, arrange showings and handle all the details.
