Home downsizing is being opted by many, something that happens with retirees and empty-nesters once their kids have moved out after having built their own nests. Smart homeowners are now considering this option in an effort to downsize their expenses toward a comfortable life.
Chasing your Savings
The cost living is bound to go sky rocketing these days due to mounting home prices, gasoline prices and energy prices. In an effort to address this situation, the financial benefits of shifting to a smaller living space are abundant and are completely worth exploring.
Financial Dip in Mortgage Payments
The largest expense that most consumers face is paying their monthly mortgage and this account to 30 to 40 percent of their gross income. If you downsize your current house, you can be sure that your monthly expenditures will fall drastically, causing a direct impact on the increase of free cash and hence immense savings on paying interest for the remaining term.
Calculating Mill Rates and Taxes
The main expense for homeowners is to pay their real estate taxes and you cannot be done with them unlike the mortgage payment. In order to minimize your real estate taxes, you could downsize your house by moving form a home that measures 3000sq.feet to one that measures half of it. You still get to enjoy the same warmth and love of course with extra comforts.
Decide upon the Exact Location
A great way to reduce your real estate taxes is to downsize your house. You can actually take this as an opportunity to move into an entirely new neighborhood, preferably one that has lower income taxes. If you’re in Orlando, you can contact an Orlando real estate agent and get more details about smart house downsizing ways.