The kids have long moved out of the house, leaving behind vacant rooms. The garden is starting to grow wild from disregard, sprouting weeds faster than you can pluck them. And trudging up and down that long staircase is getting a little tiresome. It’s at this point that several retired people look toward a pragmatic, small-scale solution: downsizing. By moving to a smaller home, retirees can look forward to a more convenient and less effortful living situation.
But did you know that downsizing can also save money? According to a recent study, the majority of downsizers across demographics cited cost savings as a primary motivation for downsizing.
Especially once you start dipping into retirement savings, every dollar counts. And downsizing can potentially save (and make) money in several ways. Here are a few ways that moving to a smaller home can help divert funds toward the more meaningful things in life.
Lower Mortgage Payments, Property Taxes and Utility Bills
Let’s start with the obvious. If you haven’t yet paid off your home, moving to a smaller one can significantly lower your monthly mortgage payment. Provided you move to a similar (or cooler) market than where you sell, you stand to pocket a significant difference each month – money that can be used to travel, buy good wine, or fly the grandkids in for a visit.
And if you have paid off your mortgage? Well, then the sum difference in the selling/purchase price is simply money in the bank. Moreover, moving to a smaller home in a different community can lower your property taxes.
In either case, you will likely enjoy reduced utility costs. Most downsizers (though not all) move to newer homes with more efficient plumbing, electrical wiring and appliances.
Selling Unused or Excess Items with a Professional Downsizing Company
As you start downsizing your home, you will need to pay special attention to culling and organizing your belongings. The new space probably can’t accommodate that spare sideboard you have in the basement nor those boxes of old clothes in the attic.
Most retired downsizers benefit from partnering with downsizing professionals, who can help organize your belongings, coordinate your move and – importantly – sell any unused or excess items. A quality downsizing company will compassionately help you plan the sale of your belongings, strategizing how best to wring value from the items you aren’t taking. They will advise on whether auctioning, consignment, direct sales or donation make the most sense.
This process of letting go can be emotional. But in the right hands, it can be a compassionate, rewarding and potentially lucrative experience.
Saving on Maintenance and Landscaping
Finally, you can remove that costly landscaper and snow removal company from your speed dial. And the next time you need plumbing help, your modest new home won’t break the bank. (In fact, many downsized homeowners pay most maintenance fees through strata levies).
These maintenance and landscaping savings add up, going a long way toward helping you save money in retirement.
If you’re considering downsizing, think about the idea from all angles – convenience, security and cost savings. Talk to your loved one about the idea, and contact professional downsizers to get the ball rolling.
