While some folk remain obsessed with striving for the biggest, the best and the newest, more people than ever before are putting on their frugal caps in this time of austerity. It may just be tiny things that you are beginning to tweak such as buying the supermarket brand ketchup instead of the market leader or forgoing the early morning latte from your favorite high street coffee shop. By becoming more thrifty, we naturally take a step back and begin to reassess our lives. For many people, they look at the bricks and mortar around them and quickly realize that they don’t use two of the bedrooms and one of the reception rooms and could easily save a bit of cash on a mortgage and recoup some capital by moving to a smaller property. Take a look at why downsizing your humble abode may be the best decision you ever make.
Investing Your Money
As you are moving to a smaller property, there will be some financial rewards. The profit that you make from selling your larger home will need to be invested in a wise way to realize the benefit of downsizing. After paying off any lingering debts, you could consider your retirement planning. If you don’t have a pension, think about investing some of the proceeds from the sale into starting one. You may want to keep a strong foothold in the property market and buy another smaller flat or house to rent out. This will give you a steady income, hopefully cover the second mortgage and can enable you to have a solid investment in bricks and mortar.
Over the years, you will have collected a whole heap of things, stuff and junk. Most of it is probably packed away in plastic crates and boxes and stored away in your loft or garage and hasn’t seen the light of day for the past few years. And yet you keep it. You may be wondering how on Earth you’ll be able to downsize with so much stuff. You could, of course, take some of it to a charity shop, auction some of it off or simply give it away. However, you don’t have to. If you are keen to keep hold of your belongings, consider researching storage units in your local area. You’ll be able to hire a private space that has 24/7 security for a reasonable monthly fee. This will remove some of the inevitable stress of moving home and allows you to concentrate on searching for your perfect pad.
If you have always had your heart set on a location, but you needed a larger home, you may have settled on your current pad. It may have been in an up and coming area and had bags of potential. However, by downsizing, you may now be able to afford a property in your most desired location. Head back to the area and make some viewings. Does it have the same lure as all those years ago? If it does, you could find yourself living the dream in a smaller property.
Downsizing does not mean taking a step backward. It means you are taking the brave step of assessing your financial situation, your lifestyle and your plans for the future and using your property in the most sensible way to help make your dreams a reality.