It is common to hear about downsizing when the kids move out and the parents find a smaller house with fewer rooms. Would it be beneficial to downsize? In California, there are 5 reasons why you should consider downsizing your house.
Pay Off Debts
You could pay off debts if you downsize your house in California! You can pay off your balances with a nice chunk of change if you sell your house and buy a smaller one. Take advantage of the low-interest rates right now to save money every month. The extra cash will allow you to pay off your debt every month! Using your savings, you can also pay extra towards the principal of your new house loan and pay it off more quickly!
College Funds
A college fund could be set up if you downsize your house in California. The difference from the sale of your current house can serve as a nice starting fund, and then you can direct the extra money each month to the college savings fund, which will grow and benefit your family.
You Don’t Like Your House
The lack of enjoyment you get from your current house is another reason for downsizing your house in California. Your new, smaller home might be more convenient to live in than your current one. Perhaps your smaller house is located in an urban area where there is less room for sprawl. You might not have intended to downsize! A house with a larger environmental footprint may also make you unhappy. Many people are moving into smaller houses, which are less energy-intensive.
Save for Retirement
You would be able to increase your retirement fund quickly if you downsized your house in California. That large chunk of money could be put into a savings account, and you could add to it every month. This money could also be invested in mutual funds, IRAs, or Roth IRAs to make much more than if you deposited it into a savings account only. You can downsize even if you are currently retired giving your account a nice boost and allowing you to fund the big retirement trip you’ve always desired.
Too Much Upkeep
If you are having trouble keeping up with all of the housework, it would benefit you to downsize your house in California. Find a new house with less yard work required, or none if you find 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. If there is too much dusting or 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!
Reduce Costs
Reducing costs is the number one reason people choose to downsize their house. A change in circumstances may force you to downsize because of the rising cost of living. You might increase your funds for moving by selling your current home, and then your overall costs will be less. This is especially true if your new, smaller house features some green innovations to minimize household costs. It may have solar panels to reduce monthly utility bills.
The article above applies to all cities in Northern California including Stockton, Lodi, Turlock, and Modesto.