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The Balance brings a Real Estate broker's opinion to the advantages and disadvantages of downsizing a home. Summary Advantages:
Increased Cash Flow: possible lower mortgage payment
More Time: less cleaning & maintenance
Lower Utility Bills: Smaller space cost less to heat/cool
Reduced Consumption: Less room to put consumer goods means less spending on optional consumer goods
Minimized Stress: With less work, lower bills, and greater cashflow stress is reduced.
Summary Disadvantages:
Fewer Belongings: Have to sell or give away furniture, books, and other consumer goods
No Room For Guests: Smaller home may have less bedrooms*
Space Restrictions: Less get-away space for those living with another
Less Prestigious: For those who place importance on how they are perceived by others, less size may not perceive financial success**
Lifestyle Changes: Changing a lifestyle is a challenge, especially for long-term homeowners
Rightsize Strategies' commentary: * While this may be true of some downsize to locations, a good real estate agent will be able to find new rightsize home that both is smaller and yet has bonus bedrooms for guests. ** While prestige of success may be associated with size for some, prestige of good success may also be associated with the smarts of the other benefits. Increased cashflow via less expenses, as well as increased time, may mean prestigious lifestyle choices; such as wintering in warm climates, more travel, more philanthropy, etc. Read the full article in The Balance Author Elizabeth Weintraub, Broker-Associate