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What is Home Downsizing?
What exactly does the term “Home Downsizing” mean? It will most likely mean different things to different people. Some definitions we’ve seen include:
- Selling excess personal property to make more room.
- Moving to a smaller, more manageable home.
- Collection of investments in personal property
- Lowering your mortgage payment and living expenses.
Perhaps the simplest definition of home downsizing is “making do with less.” It means getting rid of all the excess baggage you have in your life, including expenses, personal possessions, collections or junk… and living a simpler and less complicated life.
If you’re considering a major downsizing or relocation in the near future, you’re not alone. In fact, today, a significant portion of Americans aged 50-75+ are downsizing. And why not? You are most likely to experience one or more of the following:
- Your children are grown and gone.
- Your home has become an empty nest.
- You are retired or preparing for retirement.
- You are ready to move closer or live with your children.
- You live in a house bigger than you need now.
- Housework and the yard become too much maintenance.
- You are simply tired of working around the house and garden and would rather spend your free time doing something else, like traveling.
- Increased taxes and shipping costs are becoming too much of a burden.
- You have lost your spouse or partner and now live alone.
- You’re ready to move into your beach house, mountain house, lake house, or other smaller dream home.
- You would prefer to live in a year-round warmer climate.
- You are ready to use the home equity you have built up.
There are many reasons for downsizing. Each person’s life tells a different story, but many of us have reached the same point in life. What we are seeing is the “greying” of America and an entire generation that is aging, that is ready to downsize, and that is ready to move on to the next phase of life.
- Between 2010-2030, the number of Americans aged 65+ will more than double to 70,000,000. (Delaware Valley Regional Planning Council).
- In Philadelphia alone, 1 in 5 Philadelphians will be 65+ by 2025 (same source).
Never lose sight of the fact that “Downsizing” is usually about money. When a business “downsizes,” it lays off employees to reduce costs. It gets rid of resources you no longer need and cuts fat, all in an effort to increase operational efficiency.
“Home Downsizing” is no different. When you “downsize” your home, you’re basically trying to cut expenses, get rid of resources you no longer need, and cut fat, all in order to increase the operational efficiency of your home.
For many, the ultimate goal of home downsizing is to increase operational efficiency in your life, giving you more money, less work, and more time for the things you want to do.
Home Downsizing Tips and Strategies
Home Downsizing means different things to different people. what does that mean to you What are three things you would like to accomplish once Home Downsizing is complete?
- 1. ____________________________________________________________
- 2. ________________________________________________________________
- 3. ________________________________________________________________
Home Downsizing is similar to Business Downsizing in that it aims to increase operational efficiency by reducing costs. Home Downsizing is usually about money. How much can you save by downsizing your home?
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