10 BENEFITS OF DOWNSIZING
1. Profit
Simply put, you could make a profit by selling your current home and moving into a smaller home—bonus points if you’ve already paid off your mortgage you might just be able to purchase your next home outright. You might even stand to make a sizable profit (your options will depend on your local market and the value of your current home). If you’ve been putting off retirement because it feels out of reach, selling your larger home and downsizing could let you finally retire in comfort and peace of mind.
2. Lower Bills
Downsizing also presents another money-saving opportunity: lower (often significantly lower) energy or utility bills! Who doesn’t want to save on bills? Choosing to live in a smaller dwelling space can reduce housing costs. Think about it: It costs significantly less to heat and cool a smaller home. Smaller homes also typically have less wasted space. Less square footage decreases the amount of overall energy expended. Something else you might not have considered are the potential tax benefits and savings that you could be eligible for, if you’re over a certain age. This will, of course, depend on not only your age but also your location, as there are different rules and requirements and benefits in each state. Before selling your home, it’s wise to consult a CPA or financial advisor who can explain the tax implications and any tax-saving options available to you in your state.
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