You often hear of downsizing when the kids move out of the house and mom and dad are out to find a smaller house with fewer rooms. Maybe you could benefit from downsizing? Here are 6 reasons why you should downsize your house in Minneapolis St Paul now.
Pay Off Debts
If you downsize your more expensive house in Minneapolis St Paul, you could pay off debts! By selling your larger or more expensive house and buying a smaller, more inexpensive one, you can have some extra money to help when you need to pay off your balances. We know of people who raised their families nest to lake Harriet in South Minneapolis, and once the kids went off to college, the parents wanted to downsize. They sold their higher-end home and moved into a condo downtown. You will also be saving money every month not having those bills to look at and by taking advantage of the low-interest rates right now when you buy your smaller inexpensive home. You can commit to paying off your balances every month with the extra cash! You could also put extra money towards the principal of your new house loan with your savings and pay off your house faster!
If you downsize your house in Minneapolis St Paul, you could start a college fund for your children or grandchildren. The difference made when you sell your current home can be an excellent starting fund from the equity of the sold house. Then the extra money each month you save can go straight to the college savings fund, which will build up to benefit your loved ones. The kids or grandchildren will appreciate the money, as college is getting so expensive to attend.
You Don’t Like Your House
Another reason to downsize your house in Minneapolis St Paul would be that you don’t like your current residence. It amazes most of us that we stay in a home for years, even though it does meet our needs or we don’t like it anymore. Life gets busy, and before you know it, 15 years have gone by, and you are still in the same place. So, you decide that now is the time to make the change. Maybe the new, smaller house has a better layout than your current house in Minneapolis St Paul. Maybe your smaller house is in a more urban area, like downtown Minneapolis or in the warehouse district, where there is less room for sprawl. Perhaps your downsizing is unintentional! Maybe another reason you don’t like your house is that it has a larger environmental footprint, and it bothers you that you want to do your part. A lot of people are starting to live in smaller houses that do not use up as many resources as more substantial houses. Look at the tiny house movement. Even if you don’t get the whole tiny house movement thing, you do see the need to downsize into something different than what you have now.
Save for Retirement
If you downsize your house in Minneapolis St Paul, you could quickly boost your retirement fund by putting in the equity. You could open a savings account or max out your IRA or 401k with that large chunk of money and keep adding to it every month with the difference. You could also invest that money in mutual funds or in stocks to have the opportunity to make than a savings account deposit. 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. For most people, their home is the largest asset they own, which can be used to support a more enjoyable retirement.
Too Much Upkeep
If you are having trouble keeping up with all of the housework, all the projects and maybe the house is outdated. Those are all real parts of owning a home. It takes effort to clean and keep a house repaired and in good working order. Even letting the looks of property get too outdated becomes a real downer if you want to sell fast. It would benefit you to downsize your house in Minneapolis St Paul sooner but then later. Find a new home with less ongoing yard work, maintenance-free components, or maybe you may be interested in finding 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 or even the interest to do so. If there is too much dusting, 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! wouldn’t that be great
The number one motivator of most people when they choose to downsize their house is to reduce overall costs. Maybe you can’t afford your current situation because of unforeseen circumstances, and you need to downsize to reduce your monthly expenses. Medical bills, divorce, Tax liability that needs to be taken care of. There are good folks who are going through terrible times and the bank is foreclosing on them and most likely will be giving the house back to the bank. There most likely be no funds that will be taken out of the house if that happens. Selling your current house could give you a boost in dollars 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 home has solar panels to help with the monthly utility bill.