You often hear of downsizing when the kids move out of the house and mom and dad find a smaller house with fewer rooms. Maybe you could benefit from downsizing? Here are 5 reasons why you should downsize your house in Toronto.
Pay Off Debts
If you downsize your house in Toronto, you could pay off debts! By selling your house and buying a smaller one, you can have a nice chunk of change to put towards paying off your balances. You will also be saving money every month by taking advantage of the low-interest rates right now. You can commit to paying off your balances every month with the extra cash! You could also put extra money towards the principal of your new house loan with your savings and pay off your house faster!
If you downsize your house in Toronto, you could start a college fund for your children or grandchildren. The difference made when you sell your current house can be a nice starting fund, and then the extra money each month can go straight to the college savings fund which will build up to benefit your loved ones.
You Don’t Like Your House
Another reason to downsize your house in Toronto would be that you don’t like your current house. Maybe the new, smaller house has a better layout than your current house. Maybe your smaller house is in a more urban area where there is less room for sprawl. Perhaps your downsizing is unintentional! Maybe another reason you don’t like your house is that it has a larger environmental footprint. A lot of people are starting to live in smaller houses that do not use up as many resources as larger houses.
Save for Retirement
If you downsize your house in Toronto, you could quickly boost your retirement fund. You could open a savings account with that large chunk of money and keep adding to it every month with the difference. You could also invest that money in mutual funds or an IRA or Roth IRA account to possibly make way more than if you only make deposits into a savings account. Even if you are at retirement age, downsizing later in life can be a nice boost to your account and maybe fund that big retirement trip you’ve been dreaming about.
Too Much Upkeep
If you are having trouble keeping up with all of the housework, it would benefit you to downsize your house in Toronto. Find a new house with less yard work required, or none if you find a house in a community that takes care of that for you. Maybe you don’t have as much time to garden as you once did. If there is too much dusting or sweeping and mopping, downsizing would be a good fit. With the money you save from downsizing, you could maybe even hire a cleaning company to help you with your general upkeep!
The number one motivator of most people when they choose to downsize their house is to reduce costs. Maybe you can’t afford your current situation because of unforeseen circumstances and you need to downsize to reduce your monthly costs. Selling your current house could give you a boost in funds to find a new place and move in, and then your overall costs would be more affordable. This would especially be true if your new, smaller house had some green innovations to help with the general cost of the household. Perhaps the new house has solar panels to help with the monthly utility bill.