4 Signs That It Is Time to Scale Down

Do you have more home than you need?

Here are four signs that it may be time to simplify your life..

Sign No. 1: You Have Rooms You Rarely Use

Many of us like big houses. As we upgraded our job or our family grew, we might have even gone from a smaller house to a bigger one.

But at some point, your big house may have become an unused houses. If you have rooms that you haven’t entered in years except to dust, if you rarely venture up to the second floor or down to the basement, if you have a room that has not had furniture in it for years, you probably have more space than you need.

But you still have to heat them, cool them, clean them, and maintain them.

Yes we become attached, but do you need it anymore? It may be time to consider a smaller place. It will lower your utility and maintenance expenses, and save you time on cleaning, giving you more peace of mind.

Sign No. 2: Retirement

This is a time you may start planning your income change and you may want to stretch out your retirement savings for as long as possible. Less maintenance expenses and lower utilities go a long way to helping with that.

Selling your larger home and getting a smaller one is a smart plan. If you decide to you may take out another mortgage, if you can, start the process before you leave your full-time job. If you wait until after retiring, your debt-to-income ratio will be much higher and lender unfavorable to a lender if you’re without a steady paycheck.

Sign No. 3: You Want to Travel

If you are going to be home less, than maybe you can do with less home?

A smaller home can help lower some expenses, so you have more funds available for the traveling you would like to do. And downsizing is NOT downgrading. If you are going to be spending more time out, you might look at living communities with secure condominiums or apartments and security on the premises. With no worries about maintenance and security, you can live very well.

Sign No 4: This Is the Right Time for the Housing Market

Timing can certainly be a factor when it comes to making a good deal on selling [or buying] a home.

If your home's value has increased during a healthy housing market with low interest rates (hint: right now), you could cash in on a bigger payday than you might think. Check with a financial advisor to see if you should take advantage of selling your home now. If you have a good amount of equity or you own your home outright, you can use that value to help fund your next home.
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