Large houses = Large expenses. It�s as simple as that. As utility
bills rise to heat bigger homes just as wear and tear on the house
increases with the houses size. All homeowners are finding ways to save
money nowadays with the crazy expenditures we have every month. If you
stop and think about it, downsizing can save you money.
There are four things a house costs. The mortgage, the insurance, the
taxes, and the utilities. By starting with the mortgage, you can save
money just by moving to a smaller home with less of a payment. The
larger home usually costs more so the mortgage will be bigger. By opting
to sell and buy a smaller home, you can save some money on the monthly
mortgage payment. Not to mention if you have equity built up in the
larger home, you can really have a great down payment on the new place.
This would allow you to pay it off earlier than the larger home, saving
you even more money in interest charges.
With the smaller home, the insurance premiums would be less. Again a
savings you would be able to see. This can really add up over the years.
The reason the premiums are lower is because it would take less money to
rebuild or repair if something were to go wrong.
Usually the taxes are based on the appraised value or sales price of a
home. They can also take into consideration the square footage and the
road frontage of the yard. The taxes in some areas are astronomical. By
downsizing you can save money because the taxes on the new property will
be significantly less. The square footage will be lower. The appraised
value will be less. Generally in a smaller home the yard is smaller too.
This is not always the case, but it can be true in some areas. Either
way the lower taxes will definitely be a positive thing for downsizing
to a smaller home.
Downsizing can save you money with the utilities just because the home
is smaller. You do need to make sure the property is weather tight. This
means you will want to insulate where you need to, caulk any leaky
windows, or even restore them, and make sure weather stripping is in
place. The furnace or heat pump should also be checked to make sure it
is operating at full efficiency. This will ensure you will save money on
the fuel bills in the winter. The electrical system should be up to code
and as efficient as possible. If you have fuses instead of breakers you
may want to change over. When you have completely weather proofed your
home you will see a marked difference in the utility bills.
Many people have started to downsize due to a loss of income or illness
in the family. This is becoming more and more common with the economy
the way it is right now. If downsizing can save you money it may be
worth looking into. Sit down and calculate how much you could save over
the next five years if you lived in a smaller home. The figures may
surprise you.
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