Tuesday 24 January 2023

Can Downsizing Help You Save More Money Every Month?

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Downsizing is the idea of moving from a large property to a smaller one. The whole concept is that you live in a smaller space, which should present you with some benefits. A lot of families find the weight of a large family home is too much to carry. The cost of running the property means you’re left with hardly any savings every month

So, can downsizing help you save more money? It certainly looks that way, but let’s see how downsizing could be a huge money-saver for your family.

Smaller spaces have smaller energy bills

Large family homes will have larger energy bills than smaller places. Why? Because there’s simply more space to heat up and power. In a smaller property, you don’t need to have your central heating on for a long time to make the place nice and toasty. Likewise, you should have fewer lights and electronics on the property. Overall, you can save a fortune on energy bills by downsizing to a house that’s a little bit smaller. 

Smaller spaces require less maintenance

A smaller house is much easier for you to look after than a bigger one. The chances are you can clean it all by yourself, negating the need to hire cleaning companies or window cleaners, etc. 

More to the point, there’s less maintenance in terms of buying or replacing furniture. With fewer rooms and smaller spaces, you won’t need to buy as much stuff for your home - nor will you need to spend money replacing the stuff when it gets old. Throughout the course of your life, these savings can add up and be put towards things like a family holiday or a new car!

Smaller spaces tend to have lower mortgage payments

If you are currently living in a three-bedroom home, the chances are you will find a two-bedroom home with less floor space for a cheaper price in your area. This will mean your mortgage payments decrease every month, saving loads of money. 

However, downsizing also introduces another idea to make money. Instead of selling your original home, take out another mortgage and buy a smaller one. You live in the small property but rent out the big one. There are loads of property management firms like Orana Property that can help you find good tenants and capture a decent rent each month. Effectively, the rental payments cover that mortgage while you only have to worry about the one on your smaller property. Eventually, you reach a point where your first mortgage is paid off and the original home now earns money to pay off your second mortgage. All in all, this can lead to some exceptional lifetime savings. If you can afford another mortgage for a smaller home, it’s worth looking into. 

With all things considered, we can safely say that downsizing will help you save money. This is based on the assumption that you downsize in the same area you’re currently in. If you buy a smaller property in a more expensive part of the country, downsizing will probably be more expensive. So, that’s something to keep in mind if you’re thinking about doing this!