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5 Benefits Of Downsizing To A Smaller Home
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All around Australia people are adopting the small home trend and electing to downsize their homes. With house prices continuing to rise and the average Australian homes achieving above 13% growth rates annually, there is little wonder why the trend for smaller housing is growing. While downsizing has previously been associated with ‘empty nesters’ and those approaching retirement, it has several key benefits and is now being considered a sensible option for a wide range of people. If you like the idea of saving money, energy, resources and time on the up keep of your home, downsizing to a smaller home may be the answer for you. Here are some of the many benefits to downsizing-
Save money
Reducing the size of your living space has a number of financial benefits including a smaller mortgage, lower gas and electricity bills, reduced council rates, less maintenance costs and lower insurances rates. All of these reductions can lead to significant savings and greater financial freedom.
Save on energy
With energy prices continuing to rise, having a small home means that you will be saving on energy. From cooling and heating costs through to water savings, the cost to run a large home can be significant. By downsizing to a smaller home, you will have the benefit of reducing your carbon footprint while also enjoying lower energy bills throughout the year.
Pay off your mortgage faster
When you build or purchase a smaller home, one of the biggest advantages that comes with it is a smaller mortgage. By eliminating or drastically reducing your mortgage, you will have the opportunity to pay your home off faster and have more financial freedom to do the things that you enjoy, such as travelling. Not to mention lower stress levels due to debt. You could also put the extra cash towards investments, paying off any outstanding loans or credit cards, or making extra contributions to your savings or superannuation.
Reduce your clutter
Downsizing is a great way to embrace simplicity and eliminate anything from your life that you may no longer need or value. While the process of decluttering can sometimes be overwhelming, moving into a smaller space means that you will only have room for the things you need and really love. This will help you to save money as you will have much less space to fill and by de-cluttering you will also improve your overall wellbeing and mental health.
Simplify your lifestyle
Although not one of the main factors for downsizing, one of the positive flow on effects of downsizing is a simpler more stress-free lifestyle. By moving into a smaller home this eliminates a lot of tasks that stop you from doing the things you enjoy, such as spending time with your family. By having a smaller home and fewer belongings this means you will spend less time cleaning, working in the garden and performing maintenance on the building. This can result in you having more time and money to enjoy the activities that you want to do you will enable a more balanced and simplified lifestyle.
For many homeowners downsizing can mean the start of a new chapter. Whether you are an empty nester who no longer has any children living at home, a retiree looking to spend more time doing the things they love, or a first home buyer looking to save money, downsizing can represent a new start.
Key Takeaways
- Downsizing to a smaller home can lead to significant financial savings, including lower mortgage, utility bills, and maintenance costs.
- Small homes contribute to energy efficiency, reducing the carbon footprint and energy expenses.
- Achieving mortgage freedom sooner is possible with smaller homes, allowing for more financial flexibility and lower stress.
- Downsizing encourages decluttering and simplifies lifestyles, leading to improved well-being and more time for enjoyable activities.
- The shift towards smaller living spaces reflects a broader trend towards sustainability, practicality, and prioritizing experiences over space.
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