Downsizing is considered a wise move especially if your motive is to save money via real estate. There are different reasons that can make a homeowner start thinking of downsizing. Some of these reasons include kids moving out, parents thinking of traveling more and simply because one wants to become more frugal. As much as downsizing is considered a good move, you need to take time and think about what you are about to do. Here are some of the questions you need to ask yourself before you go ahead and downsize your property:
Will I actually save money?
You need to sit down and work out how much exactly you will get to save once you decide to downsize. Downsizing to save money at the expense of your comfort does not really count. You need to ensure that after downsizing, you are able to save money and also maintain a comfortable life for you and family.
Can I cope with small spaces?
It’s one thing to think of downsizing and another thing to move and have to deal with smaller spaces than you are used to. Ask yourself whether you are ready to move to a smaller place and if you will be comfortable with the changes. You should check out local listings and go for a property viewing so that you can get the exact picture of what you will be moving to. If you find that you are comfortable with the change then you can go ahead with downsizing.
Would renting or subleasing be a better option?
Before downsizing, know that you have the option of renting or subleasing part if your house to make some extra income. If you are really tight on your budget and you feel downsizing is the only solution, talk to a real estate agent and ask them to help you find a tenant. You need to calculate whether the amount of rent money will be enough to meet your needs as you pay your mortgage.
Should I sell my house or downsize?
You should answer this question by being honest as to why you need to a change of environment in the first place. Downsizing assures you that you will still have a home even after the change but selling the house may not guarantee you that. For people seeking to relocate to different cities, it would be wise if they opted to sell rather than downsizing.
Will I have dependents who will demand more space in the future?
Make sure that you will not have to regret your decision in future when some of your descendants need to rely on you. If your children are all grown up and independent, you can rest assured that chances of them moving back are minimal. To be on the safe side, plan to downsize to a space that can allow you to accommodate any extra company you may have in future.
If you are not really sure whether you should downsize your property, contact an NJ real estate agent to advise you whether it’s the best move or if there are any better options available.