Finding Room for a New Mortgage Option

Guest post

The prospect of moving to a smaller place may not sound endearing; however, the reasons behind such a move may make it a sensible decision. Could the simple phrase ‘Better things come in smaller packages’ be reason enough behind downsizing your home to a smaller one? In the past, downsizing was more prevalent among those nearing retirement or whose children had flown the nest and so who did not need a large space anymore. Possibly a change in employment circumstances demands migration to another area, with a smaller property the only viable option. However, it is now perhaps a purely rational choice for all of us as well, with both practical and financial benefits.

Practical and Lifestyle Advantages

The advantages of downsizing can actually be quite a long list, some aspects include:

·         Get more time for self and family – Less space and fewer rooms implies less time spent on cleaning and doing various household chores!

·         A smaller home also gives you freedom from things you do not need, as it forces – or rather encourages – you to de-clutter.

·         Reduced stress – Less responsibility and workload along with more time at hand and a likely increase in cash flow help reduce stress. Homeowners who move to comparatively smaller homes seem happier and relaxed, as they are not burdened with demands that accompany larger homes.

·         With this extra time, spending it (and the money you are saving) on recreation, travel or just enjoying a night in will be more regular treats.

·         If you still have family in your smaller space, there will be more time that you spend together with the bonding that this will promote.

·         The Eco feel-good factor – Using fewer resources is a major plus for the environment, something that most of us would perhaps like to do. Additionally, government incentives are only likely to continue to nudge us in that direction, certainly in an economic manner…

Financial Advantages

As already implied, moving to a smaller property also opens a host of potential financial opportunities, such as:

·         Savings in utility bills – In a larger home, you might be paying a substantial amount for electricity, gas and heating, all of which may not be being used either for example in empty rooms. And though the monthly outlay may be seemingly small, these individual bills can add up to quite an amount every year.

·         Reduction in maintenance costs – The on-going tasks of decorating, repairing and maintaining a bigger place will fall with less physical space.

·         Reduced incidental expenses – With no place for new things that aren’t essential, there are fewer chances of you purchasing on impulse.

·         Increase in cash flow – A smaller home, in a similar type of location, may well mean spending less on the mortgage and consequently leaving you with more money at the end of the month. You could even consider paying in cash for more of your new small home from the amount you receive for your existing one. In recent times the number of flexible mortgage types targeting every home-buyer and their individual circumstances has grown and with a little planning and consideration can really have the potential to magnify the financial advantages of a smaller property.

Downsizing your home would make a great decision if all factors and parameters are kept in mind. If some of these the pros outweigh the perceived disadvantages a smaller home might pose, moving to a smaller place might just prove to be a big idea.





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