There are lots of reasons to downsize. Many parents decide they don’t need so much space when the kids finally move out of the house, while some people simply realize the upkeep on their current property is too stressful. Could you benefit from downsizing? Here are 5 reasons to consider downsizing your house this year in Sacramento.
1. Pay Off Debt
Paying off debt is a major incentive to you downsize your house in Sacramento. As long as you have some equity, selling one home and buying a smaller one is likely to result in a windfall. Using that cash to pay off balances will leave your credit better off and can seriously relieve financial stress. You could also put extra money towards the principal of your new house loan with your savings and pay off your house faster.
2. Liquidate for College Funds
If you downsize your house in Sacramento, you could start a college fund for your children or grandchildren. The money you make when you sell your current house can be a nice starting fund, and you may even be able to add more money each month given your new (hopefully lower) house payment.
3. You Don’t Like Your House
Another reason to downsize your house in Sacramento would be that you just don’t like your current house. Maybe the new, smaller house has a better layout than your current house. Maybe a smaller house in a more urban area is a better fit for your lifestyle. Maybe you don’t like your house because it has a large environmental footprint. A lot of people are starting to live in smaller houses that do not use up as many resources as larger houses.
4. Save for Retirement
If you downsize your house in Sacramento, you could also quickly boost your retirement fund. You could open a savings account with that large chunk of money that goes pretty far! You could also invest that money in mutual funds or an IRA or Roth IRA account and possibly make way more than if you only make deposits into a savings account. Even if you are at retirement age, downsizing later in life can be a nice boost to your account and maybe fund that big retirement trip you’ve been dreaming about.
5. Too Much Upkeep
If you are having trouble keeping up with all of the housework, it would benefit you to downsize your house in Sacramento. Find a new house with less yard work required, or none if you find a house in a community that takes care of that for you. Maybe you don’t have as much time to garden as you once did. If there is too much dusting or sweeping and mopping, downsizing would be a good fit. With the money you save from downsizing, you could maybe even hire a cleaning company to help you with your general upkeep!
6. Reduce Costs
The number one motivator of most people when they choose to downsize their house is to reduce costs. Maybe you can’t afford your current situation because of unforeseen circumstances and you need to downsize to reduce your monthly costs. Selling your current house could give you a boost in funds to find a new place and move in, and then your overall costs would be more affordable. This would especially be true if your new, smaller house had some green innovations to help with the general cost of the household. Perhaps the new house has solar panels to help with the monthly utility bill.