What does downsizing a house mean?

Reducing the size of your home means that you change your current home to a smaller or less expensive one. For example, you can move to a condo or townhouse, or you can move to a house similar to yours in a more affordable area of the city. Reducing staff may mean buying a smaller home or moving to a less expensive area. Alternatively, you may decide that it would make more sense to rent.

Every time you sell your home, your mortgage is likely to change. By reducing staff, this often means that your current mortgage is higher than your new one. If you are the full owner of your home, you can sell the old one and keep the difference. However, most people still own at least part of their mortgage when they decide to sell and downsize to a smaller home.

If done right, reducing staff may still be a good idea. Not only will you be left with more money, but it may also simplify your life and reduce your home's maintenance and utility costs for years to come. To achieve that happy outcome, you must avoid the unexpected difficulties that make downsizing so risky. Here are four traps that await size reducers, with ways to avoid them.

Reducing staff refers to moving from a larger home to something more manageable. This can mean a house with fewer square feet, a house with less land to care for, or a house with fewer bedrooms. Despite all the benefits, the actual downsizing process is stressful, both in terms of the to-do list and the emotional impact. It's easy for a new two-bedroom condo in some areas to come close to the price of a four-bedroom home, especially if you decide to enjoy the latest amenities.

Reducing the size could also mean reducing the volume of clothes and the number of appliances you have, drastically reducing washing time and potential maintenance problems. If you have more space than you need, would like to save money, or are planning to travel more, downsizing could be a big step in helping you achieve your goals. If you're wondering when you should downsize your home, understand that it can be a long process. While for some it may be an empty nest and a house that requires too much maintenance, for others it may be loneliness, divorce, accessibility or the loss of a loved one that causes the move.

If you're not sure if downsizing is right for you, consider all the benefits of enjoying a smaller living space. From the extra expenses for home care or security systems to the added worry that something will happen while they're away, many travelers choose to downsize. When asked why they would want to buy a smaller home, 69% of homeowners who had downsized in the past said that saving money was their main reason for doing so. You can downsize at any time, but it's worth doing some research on where you want to live, what type of property you'd be satisfied with, and being realistic about how much you own.

Many homeowners feel that the time they spend on household chores interferes with their ability to spend time with family and friends. You may be at a stage in life where your children are away from home, or you may be just looking for a change and want to reduce the size of your home. Reducing the size could also mean smaller or no outdoor space, resulting in little or no cost to maintain your patio.