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6 Financial Benefits of Downsizing Your Home

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These days, evidence of people downsizing is everywhere – in magazines, on television, and all over social media. Unless you live under a rock, you’ve probably seen it just about everywhere you look. Even in the small town where I live, the Mini Cooper can occasionally be seen, likely due to the spike in gas prices we had not all that long ago. Smaller homes and tiny houses have become more popular as people learn to live with less stuff. Having less certainly frees up your time, but there are also some major financial benefits of downsizing your home. Here are 6 financial benefits of downsizing your home. Time Since I already mentioned it, let’s talk briefly about the financial side of saving time. Having a smaller home means less time picking up, cleaning up, and maintaining your home. The extra time you save could be spent working a side hustle. This means extra income for you. Mortgage Payments It makes sense that a smaller home equals a lower cost, which also equals a lower mortgage. At the same time, if you go ahead and make a larger payment each month, as you would have on a larger home, you ...

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Renting vs Buying: The Financial Benefits of Each

renting vs buying

For years I was firmly planted on the side of thinking that buying was always better than renting. However after nearly four years as a homeowner, I’ve begun to question this line of thinking, especially now that I have the freedom to live anywhere I choose because I’m self employed and my business is entirely based online. However, there are financial benefits to both renting and buying that must be taken into consideration before you, or I, decide if renting or buying is best. Here are some financial benefits of both renting and buying a home. Length of Time The length of time you plan to live in a home or apartment should play into this decision. If you are only planning to live in the same home for a few years, it would probably be better for you to rent rather than buy a home. The financial cost of moving as well as closing costs, realtor fees, etc. need to be spread out over several years to make it worth purchasing a home. Compare the Payments When you compare the monthly rent payment you currently make to the mortgage payment you would be making on a home, don’t forgot there’s ...

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5 Questions to Ask Yourself before Buying a House

Buying a house is a very important decision and it is a life-changing phase in a person’s life. It could mean a fresh start for many people. However, this should not be taken very lightly. There are questions that you need to ask yourself and answer to know for sure that the decision that you are about to make is the best decision for you and your family. The thought about living in your dream house in Australia is indeed very exciting. And to help you decide if it is time for you to start choosing among the beautiful houses for sale in Melbourne and buy one for you and your family, here are first the five questions that you should be asking yourself. Do I need to? Need vs. want is the first consideration. And your first priority for this issue is the necessity – if you truly need to buy a house now. You should ask yourself if renting will not work any longer and you definitely need to buy a house now. Having a house you can call your own is a goal – a dream come true for so many people. However, you should be practical ...

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When Should You Spend Money on Remodeling?

spending money to remodel

Although it seems like no time since we moved in, next year marks twelve years spent in our current house. Aside from some DIY projects, changing out stained carpet, and having the exterior painted a few years back, we haven’t done any major remodeling. Now it seems several things need updating or repair, the biggest one being our master bathroom. How do you know when it’s time to spend money on remodeling? Three Questions Before a Major Purchase As with most big decisions, it’s best to make a list of pros and cons and ask yourself the three big questions everyone should consider before shelling out money. I’ve seen variations of the big three, but in a nutshell, 1) Is this something I need or will it add value to my life? In our case, we really don’t need to remodel. I’ve known many families who never update anything. It might not bother them to live continually in 1987, but remodeling our master bathroom would add tremendous value to my life. 2) Do I need it right now? No, we are not on any sort of time line, but if we did ever decide to list our house, remodeling would ...

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How Much Should You Anticipate in Hidden Homeownership Costs?

hidden costs with buying a home

This post is from Jennifer Riner at Zillow.  Making the switch from renting to owning? While historically low mortgage rates might mean your monthly mortgage costs are lower than what you paid while leasing, buyers must plan for more than a mortgage. Although you might factor in the high cost of a down payment, and the title and insurance fees you now face as a homeowner, it’s also important to consider the extra or hidden costs of homeownership. Courtesy of: Zillow   These extra costs can range from property taxes to minor landscaping fees to major roof repairs – depending on your region and the size of your property. According to a recent report from Zillow, the leading real estate marketplace and Thumbtack, a website that connects consumers with service professionals, homeowners might face $9,000 or more per year in hidden or extra homeownership costs. These include both unavoidable costs, such as utilities, and optional maintenance expenses like gutter cleaning. Unavoidable Hidden Costs The report identified three unavoidable hidden costs, which include homeowners insurance, property taxes and utilities. These are non-optional costs, meaning almost every homeowner is responsible for these dues – regardless of where they live. On average, homeowners ...

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