Myths About Downsizing
Myth: You Will Reduce Your Living Expenses if You Live a Smaller Place
Fact: Many people want to downsize because they want to save money. However, you may not necessarily save money if you move to a smaller space. For example, if you move from a rural place to a city, then you may end up spending a lot more money. You may have to pay higher property taxes.
Myth: Your Place Will Feel Crowded After You Downsize
Fact: Downsizing does not mean that you will feel crowded in your space. In fact, you may have space in your home that you do not use.
Myth: Everyone Should Downsize if They are Getting Ready to Retire
Fact: Many people plan on moving to a place after they retire. However, you do not necessarily have to downsize just because you are retiring. If you do not have any health or financial concerns, then you do not necessarily have to downsize. Some people are more comfortable in a large home.
Myth: Downsizing is Just for People Who are Getting Ready to Retire
Fact: Most of the people who downsize are between the ages of 50 and 64. In fact, 29 percent of people in this age group plan to move within the next five years. That number drops once people reach the age of 65. Only 14 percent of people who are over the age of 65 plan to downsize.
Downsizing is very popular among couples who have children who have moved out of the home. Many older people are comfortable staying in the home that they have been in for several years.
Myth: People Only Downsize to Save Money
Fact: Saved money is one of the potential benefits that can be reaped from downsizing. However, it is not the only reason that people choose to downsize. Some people will downsize because they want to move from the city to the country or vice versa. Others want to move to a community with more amenities.
Myth: You Can’t Downsize When You Have Children Living at Home
Fact: Many people downsize when their children move out of the house. However, just because you have children living in your home does not mean that you cannot downsize. There are several reasons that people may choose to downsize even though they have children still living at home.
Some may choose to downsize because they want to have more money for things like college and vacation. Others downsize because they do not need all of the space.
Myth: It Takes a lot of Time to Downsize
Fact: You will have to do some planning in order to downsize. However, it will not take a lot of your time. The only thing that you really have to do is prepare to move from your home to a smaller one.
Myth: Your Mortgage Will be Eliminated
Fact: You probably will still owe money on your mortgage unless you have a significant amount of equity. You may have a smaller mortgage after you downsize. It is a good idea to review your mortgage options before you decide to downsize. It is also important to note that your mortgage may not be the only expense that you have to worry about. For example, you may have to pay higher maintenance costs after you move to your new home.