Is It Time to Downsize?

When starting a family or moving from a starter home, you may have thought bigger was always better. But there are times in life when you may be considering a smaller home. Here are some questions to help you decide if downsizing your home is the right option.

Can you afford your home?

If your current economic situation is challenging, you might think that selling your home and moving into a rental or a smaller home might be your best option. But staying put and finding other solutions may be a better fit.

Check rental and home prices in your desired area to see if they would actually represent a cost savings. Factor in the proceeds you are likely to receive if you sell your larger home. If you’ve owned your home for a long time, you are likely to have equity built up that can help you make a sizable down payment on a smaller home, provide financial stability during a period of hardship, or help you pay the costs associated with moving into a rental.

Are your kids moving out?

The home that was perfect for your family when your kids were young may just be too much house now that they are starting their own lives. And with rising home prices, you might get a sizable payout when you sell, allowing you to move into a home that is a better fit for your smaller family.

Cost may not be the driving force here, but it is still wise to ensure that your new payments would be affordable and that selling would make financial sense. A smaller home with a higher mortgage or rent payment might not be a great option, although the reduction in maintenance might make it worth it.

Also, look at options other than selling. The rental market is hot, and you might consider buying a second smaller home and renting your family home. There are costs associated with renting, so speak with a financial adviser like those at HawaiiUSA Federal Credit Union to make sure this option is right for you.

How is your health?

Although none of us like to think about declining health, it is a fact of life. As we age, a multi-story home may be much less attractive when we consider the potential for falls. A smaller house with only one story could be a better option as you get older. Not only are you avoiding the dangers of stairs, but it can also be much easier to maintain a smaller home yourself.

If health concerns are your main reason for downsizing, make sure you look for accessibility features in your new, smaller home. Easy-to-use showers, accessible door handles, and other features may not be necessary now, but as you get older, you will appreciate having home features that are easy and safe.

For additional tips and information on downsizing your home with HawaiiUSA FCU, head to their website and learn more about the benefits of downsizing in our article, 5 Downsizing Do’s.