Money Matters: Benefits of downsizing your home

July 7, 2017 01:30

Sponsored by NEFE

When you think of someone downsizing their home, the first thing that comes to mind are empty nesters or retirees moving to a new city. But the benefits of moving into a smaller home can help other homeowners as well. The average new home is reaching record sizes in terms of square footage, but real estate companies are also noticing a trend of people moving to smaller houses. You don't need to be a retiree to see benefits like a smaller mortgage, lower utility bills, lower insurance and property tax costs and less upkeep.

As U.S. News Money explains, sometimes all that square footage in so-called "McMansions" is wasted space, because many people spend 80 percent of their time in just 20 percent of the house. Moving to a smaller home that has an open feel to the kitchen and the surrounding space can be just as livable, and creates an opportunity to sell off unneeded clutter. By reducing possessions, a smaller space won't feel smaller, experts suggest. A smaller home can also improve cash flow by freeing up equity.
 
To help your listeners/viewers/readers learn more about how downsizing homes can provide many benefits, talk with real estate agents in your community about how they try to match people with new homes based not just on their pocketbook, but on their lifestyle and their anticipated needs. They can also connect you with homeowners who have made the transition to a smaller house and can talk about their experience.

Sponsored by the National Endowment for Financial Education
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