Fill in the blank:
“Home is where the _______ is.”
There’s no need to to even give multiple choice answers for this. Pretty much everyone knows the answer is “heart.”
But it’s also where the money is for many people. So, if you got creative or somehow knew where this little “test” was going, and you filled the blank in with “money,” then you get an A+ and a gold sticker.
For many people, their house is their largest asset. It’s part of the reason why many people buy a house to begin with — to pay themselves instead of paying someone else rent, to save money over time, and to be able to someday capitalize on their accrued equity and wealth.
But because a house isn’t just an asset (it’s also home) and because home is where the heart is, people often make some mistakes that cause them to lose money or not fully capitalize on their largest asset.
So, let’s take a quick look at a couple of downsizing mistakes you want to avoid if you want to get as much out of your house as possible when it’s time to move…
Many people simply put off downsizing for longer than they should. This is understandable since it can be an emotional decision. And with people living longer, healthier lives than ever before, staying in their home for longer is not always an issue.
However, staying in a house that’s too big — and for longer than they need to — costs money they would have otherwise saved on utilities, maintenance, taxes, etc. They essentially pay for more than they need, which adds up over time and diminishes the wealth they’ve accrued in their house.
Lack Of Planning
Anyone selling a house for any reason should plan ahead, rather than just make a rash decision or wait until the last minute and just put their house on the market.
But when you’re downsizing, there’s often more to consider (and do) to prepare. Too often, people avoid thinking about downsizing, let alone planning, and only do so once they absolutely have to. This can easily lead to higher costs to move, as well as fewer options, more stress, and often a loss of money on the sale of their house.
So, even if you’re not quite ready to downsize, you should at least start planning ahead.