The popularity of self-storage units has increased, especially for homeowners planning to move or simply decluttering their homes. Self-storage units provide unmatched affordability, convenience, and security to most homeowners looking for where to dump their clutter. You should consider using a self-storage unit when downsizing to enjoy more space with less clutter, store seasonal items, organize your belongings, and seamlessly downsize with ease. Self-storage units are also a perfect buffer for those switching homes and renovating or decorating them.
There are several reasons for buying a smaller home or downsizing from your current home. While the idea of "less is more" might hold some truth, it isn't the only reason homeowners buy smaller homes. More than 69% of homeowners agree that saving money is the primary reason for downsizing. However, there are other reasons for downsizing, which include:
Choosing a property with less square footage significantly reduces your total mortgage costs. Apart from the low total cost of the property, you'll also pay less mortgage-related costs, such as down payment and closing costs. Depending on your chosen mortgage program, a down payment for a property with less square footage might be 3.5 to 5% of the selling price. With this, downsizing from a $300,000 to a $200,000 property saves more than $3,500.
Most homeowners also downsize to reduce their energy and gas bills. Smaller properties typically consume less utilities. For instance, with few bedrooms in the house, you'll spend less on heating and ventilation needs because conditioned air is contained in the small space. You'll also save on electricity because there are few rooms to light. A Forbes survey found that downsizing from a 3000 to a 1000-square-foot property reduces monthly electricity bills by almost $200.
Most people approaching retirement age downsize to fund their retirement lifestyle. If you haven't saved much for your retirement or have little disposable income, you should consider reducing your expenses before retiring. You can channel more money into your retirement account by reducing expenditures.
Most people buy bigger homes as their income increases to satisfy the status quo. However, large homes can eat into your savings and accumulate debts. Downsizing into a smaller home reduces financial burden and maintenance costs and allows you to be free from the materialistic burden. You can improve your bottom line by going against the status quo.
Downsizing your home is beneficial in the following ways:
Having more space in your home forces you to make unnecessary purchases to fill every corner. The main benefit of downsizing is the ability to avoid wasting money on household appliances, furniture, and other unnecessary items. Moving into a small home helps you prioritize and purchase only what's necessary.
Downsizing to a smaller home has the following financial benefits:
Combined, you'll save a lot by reducing these expenses. While you have the leverage to decide what to do with the saved cash, consider investing it in your retirement, pay off credit card debt and loans, or travel.
Downsizing is a motivating factor and presents an opportunity to embrace simplicity. You shouldn't perceive it as parting with important memories. Consider it an opportunity to move into a less stressful and relaxing phase of your life. Unfortunately, the process of decluttering can prove overwhelming, especially because you'll be discarding what you've accumulated over the years. To ease it, categorize your belongings into items to keep, sell, donate, recycle, or trash.
As mentioned, downsizing means you'll spend less on mortgage payments and other associated costs. This means you'll have more money every month to channel into other needs. You can use this cash to pay off debts, boost your retirement fund, or invest in other projects.
Downsizing makes it easier for homeowners who like taking on home improvement tasks and decorations to complete their projects. Renovation projects, such as floor replacement, exterior painting, garage improvement, and other little touches, become easy, simplified, and cheaper in smaller homes.
Most people think that living in large homes with several bedrooms is comfortable. However, this isn't always the case. Living in massive houses reduces contact, as family members spend time in their rooms. Moving to a smaller home is a receipt for a cozy, intimate, and homely living experience.
Reduced mortgage payments, energy efficiency, clutter, and a simplified lifestyle make downsizing attractive. However, you should consider whether downsizing is the right option for you. Always think long-term, consult experts, and prepare for hidden costs when planning to downsize. Consider using self-storage units for your storage needs when downsizing.