It is quite common for one to decide to downsize their home. This could be because they wish to lead a nomadic lifestyle in a free school bus they turned into a caravan or they just want to cut down their debt. Sounds easy right? Well unfortunately, there are some mistakes that could completely hamper this process if not properly navigated. Listed below are some common missteps that you want to understand before downsizing your home:
Lacking a Budget for the Move
This might seem like a no brainer when in fact, it is an overlooked factor. Most people forget that they actually have to move to their new addresses and therefore, require movers. They only think about the money they are about to save from moving to a smaller house and fail to even consider downsizing their belongings which most likely will not fit in the smaller houses. Moreover, one needs to cover the cost of a number of things including packing and unpacking items, as well as insurance of the items in case of breakage, all of which require proper budget allocation.
Failing to Set Clear Downsizing Goals
The financial merits of downsizing your home should not distract you from setting achievable goals before actually moving to a smaller space. In most cases, people choose to downsize their homes to combat debt. Moving from a bigger house to a smaller house reduces mortgage payments or even just eliminates them all together. Furthermore, the proceeds from selling the bigger home could be used to pay off other debts or even just clear the remaining mortgage payments.
Downsizing your home also allows you to invest in your retirement fund since the money that went into paying mortgage and bills could go straight into the retirement account. In addition, downsizing your home allows you to reduce home upkeep and maintenance. This comes in handy when one gets older and is unable to do all the house chores.
Paying for Rooms that You Don’t even Use
When downsizing your home, it is essential to ensure that you choose a house that specifically meets your needs while also being efficient. If you do not use a dining room in your current home, why buy a house with one? You will find yourself paying for extra room that you don’t even need.
Disorganization
Being disorganized could pose a great challenge to downsizing your home. It is quite common for people to hold on to items that they do not need or use. When downsizing your home, you should check for the belongings that are not in constant use and do away with them to avoid carrying dust-prone items to your new house. Check your garage, spare rooms and closets for such items or even create a system to decide which ones to keep and which ones to donate.
Are You Ready to Downsize?
Are you looking to downsize your living space? If yes, look no further than NJLux! We have a wide array of properties for you to choose from within New Jersey.
