In tougher times and especially with the issues that face our economy today, families should consider downsizing to a smaller home as an option to deal with a shortage of funds. Many families have been hit hard in this economic downturn, and can’t afford the hidden costs of owning a home. For those who don’t want to move in apartments or condos, downsizing is one way to stay in a house, but cut costs.
If you don’t already own a home now is not the best time to buy, especially if you’re unsure whether the house is a long-term commitment.. Buying a home isn’t necessarily a bad thing. There are many benefits, such as building credit through payments, tax benefits, and no noisy apartment building neighbors. However, there are costs for maintenance of a home and insurance coverage,
Larger homes have more space, but these can be hard to keep clean over time. If you just take into account the cost of energy it takes to heat a larger home the downsides start to become obvious. The cost of gas is only going to rise in the coming years so you should consider this fact before deciding on your next living space. Also consider the other expense like property tax, insurance, and maintenance. These factors can make your living situation economically unbearable.
Once you decide decide to downsize there will be items that you don’t want to throw away. They might be belongings that you don’t want to part with or family heirlooms. If this is a concern, there are options, such as storage facilities that can accommodate any storage needs you may have – from extra bookshelves to the family boat.
Renting is a cheaper way to live, but you’re getting nothing back from your investment. If you still want to own your own home you can still downsize and have all of the investment benefits that come along with ownership. Take a look at the market and see what’s available. It may be a decision for you that has more pros than cons.