When you’re considering a smaller home, the sound of “downsizing” as a word may seem a little daunting. However, many people who no longer have children living at home actually experience a host of benefits from downsizing. First, the benefits of the budget can be very comforting and help you to focus your finances on what matters most to you. Second, maintenance tasks and cleaning on a larger-than-needed home are often both a waste of time and resources. Finally, the chance to “right size” your retirement home means re-evaluating what matters most to you: do you want to be close to an airport for travel, right next to a pristine beach, or in the perfect neighborhood to drive over to the grandkids’ house? However, if you’re downsizing in St. Petersburg, FL, here are some smart ways to think it out.
Consider Your Common Paths Through the Home to Calculate Square Footage
One of the ways to figure out how much to downsize is to really look at which parts of your home are most used. Do you end up sitting on just a couple of chairs in your large living room? What about bedrooms – could you use one room as a guest room and office, for instance, if you won’t be working as often? These questions can help you arrive at a target square footage that doesn’t deprive you of your daily rhythms but does help you to get your costs down.
Consider How A HCOL or LCOL Move Will Impact You
If you’ll be moving from a higher-cost of living area to a lower-cost area, you may be able to downsize while strategically gaining in a few areas: higher-end kitchen materials, for instance, or a newer, low-maintenance space. If you’re moving from lower cost to higher cost, reducing your square footage will often be a benefit, but you may also want to think through whether you need to adjust the budget in other areas since housing costs could still be similar even for a smaller home.
Will You Rent or Sell Your Current House?
One question mark when downsizing is what to do with your current house. If you’ve looked at the housing market and realize that you could sell now and get multiple good offers, this might be the time to just simplify and get out of the house. However, if you know that the rental market in your neighborhood is strong and the prices have plateaued for sales, you might consider just waiting and renting until you’re certain about your sale.
Think Outside the Box to Reduce Costs
If you’re not sure how affordable your move will be, given all the other factors, you can consider other methods of downsizing. Some people choose to rent out rooms or sections of their homes to offset costs while also removing some of the space they have to clean and maintain personally. Others opt to move into a home with other friends or family where they can gain community while also splitting costs. Getting creative can help you to reduce the time you spend on housework and the money you spend on your home, all while enriching your retirement years.
