So the kids are finally off your hands at University or starting their own families and you’re finding yourself, for the most of the year that is, rattling around the house.
At some point there comes a time when you start to consider downsizing not only from a lifestyle sense but also a financial and practical sense.
You might not have retired yet so your pension isn’t quite in the bank so releasing equity would provide the extra funds you need to start doing all those little and big things you’ve been putting off.
Swapping your 5 bedroom home for a 3 bedroom dwelling would up the bank balance for sure. It would also reduce your cost of living which is another benefit. Why pay for extra space you don’t use or even need?
Let’s do the maths to show you what we mean.
Be Financially Free - Releasing Equity
So at the moment you own a 4 or 5 bedroom home. The current valuation of your home is coming in at approximately $850,000. If you downsize to 3 bedroom home for example at approximately $630,000.00 as a house and land package you have just released $200,000.00 to pop into your bank account and enjoy. *
Apart from the fact you are a) enjoying a brand new house you will also b) save more in heating and cooling costs. You’re probably also enjoying a whole new vibrant location to explore which in itself is like a breath of fresh air.
Where Else Can You Make Savings?
Even if you aren’t mortgage free having a smaller mortgage saves money and let’s face it - you can finally see that mortgage light at the end of what was a very long tunnel.
Having a smaller dwelling means a nice decrease in utility bills like heating, lighting and air conditioning. Having a smaller property means less cleaning and less maintenance.
You can even make further savings in fuel and car maintenance bills if you have chosen a location where it’s an easy walk to local shops, cafes and restaurants.
Downsizing gives you the opportunity to make your money work for you; not the other way around. For empty nesters it’s certainly less stressful and a lot less costly. Maybe now is a good time to run those numbers.
* Please note these figures are examples only