Money | Should you downsize your home to save money?

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During the Celtic Tiger years, everyone was obsessed with trading up to a bigger home. This time, more people are looking to downsize their home to save costs and live more smartly.

Downsizing to a smaller home is not just for retirees or empty-nesters anymore. Living in smaller spaces to save costs and live a more ‘lean’ life is gradually becoming a global phenomenon. Less is more, and now that includes our living spaces.

In the face of never ending energy prices and other household charges, such as water and waste, downsizing makes more sense. The larger the home, the greater the consumption and running costs.

Less space also means less maintenance, which is great for saving costs and time. Costly maintenance jobs like painting, landscaping and resurfacing can all be reduced.

A larger home naturally means a larger mortgage. Having a smaller mortgage allows you the opportunity to pay it off quicker, giving you greater financial freedom sooner. If you already have a large house, downsizing may also give you additional cash.

Size Matters

Before you decide to sell up and downsize, you need to ask yourself a few question. First, does size matter to you? Some people simply require a big home, especially if you still have children at home. For others, it is a life choice to downsize. Will you be happy in a smaller space, with less belongings?

Will you miss some important things about spacious living? Will moving into a smaller living space, like an apartment, be a step forward because it is simplifying your life and being more environmentally friendly? Or will you view it as a step backward? There are some things you may miss but with some clever decorating and styling, you can create the illusion of a larger space within a small square footage.

Downsizing may also require new furniture that is more suitable for smaller spaces. Are you prepared to get rid of your furniture and start afresh? Are you willing to move to a different area if you cannot find the right size of house in your vicinity?

Once you have answered these questions and checked out your local real estate market, then it is time to make the big decision or move.