Top-rated Nanaimo Realtors will tell you that bigger isn’t always better when it comes to home ownership. If you’re just starting out and need room to grow, or already have a family, then having some extra space can be a big bonus. But all homeowners reach a point in their lives when the time comes to downsize and move into a smaller place. Here are five signs that you might be ready to downsize your home.
1. Too Much Extra Space
One of the clearest signs that you’re ready to downsize your home is if you’re what real estate agents call an ‘empty nester’. All of the kids are gone, and only you and your spouse are left. You’ve got a lot of space in the house that you don’t need anymore. Not to mention all of the time and extra money being spent on keeping the yard neat and trim. Downsizing to a smaller house can lead to more simple, carefree way of living. You’ll also have more time and money to spend on the things that you really enjoy doing.
2. Too Expensive
Even if you have your mortgage paid off, owning a big home can still cost a lot of money. There are always unexpected repairs, taxes and insurance, and the routine living expenses like utility bills for heating, cooling, and water. Many people who decide to downsize their home reach the point where they realize that the money going toward paying all of those bills is better used for family, savings or travel.
3. Retirement Funding
Many empty nesters have a large amount of equity built up in their homes. But equity doesn’t turn into real money until you decide to sell your home. Nanaimo Realtors who specialize in working with sellers that are downsizing find many are doing so to fund their retirement. Homeowners turn the equity in their home into cash to take an early retirement, reduce debt before retiring, or simply to work a little bit less and travel a little bit more. Downsizing to pull the equity out of your home can also be a good way to diversify your investments. For most people their home is their biggest asset. But real estate markets can go down as well as up. Today’s large amount of equity can unexpectedly turn into something much smaller should the market take a turn for the worse.
4. Vacation Home
Have you always dreamed of living abroad to escape those cold Canadian winters? Many homeowners downsize to buy a vacation home in the U.S., Mexico, or the Caribbean. Downsizing doesn’t mean having to leave Nanaimo completely. But having a smaller home in BC and a second home in a warm weather climate is another great way to diversify your investments and turn your dream of living in another country into reality.
5. University Tuition
Do you have an up and coming doctor, lawyer, or professor in your family? Today’s university and graduate programs can cost much, much more than just a few short years ago. Rather than seeing their children burdened with student loan debt, many people choose to downsize their home to help pay for their children’s university tuition. They think of this as another way of diversifying their investment by investing in the future of their children and the next generation.