Most of the homeowners think downgrading means moving to a smaller home. However, the truth is far from it. Even if you have to vacate your home when downgrading, you can still move to a new home of the same size in another locality.
There are several reasons why several homeowners are switching to downgrading. It is a useful tool for reinvestment purposes, helps you avoid paying for irrelevant amenities, reduces household maintenance issues, removes all school placement issues for your kids and assists you in relocating to a bigger house in a more exclusive locality.
With the crumbling real estate and housing market, downgrading your home has become a hassle. It has become even more difficult to sell a house, let alone fix a decent price for it. Nonetheless, downgrading is still possible without the need to sell your house. Here are 5 tips to make your downgrading process as stress-free as possible:
Rent out a Portion
If you’re living in a big house, there may be certain areas you’re not using. The garage or the basement can easily be put to some other use. There may be an extra bedroom. In such cases, it is best to rent out the house portion not in use.
In essence, such a move will house smaller (as you will not be able to utilize the extra space for your own purposes), it will generate a steady rental income and cover a large portion of your mortgage and utilities. The net impact is downgrading, without moving out. Make sure to check the credit worthiness of the potential tenant before making the final deal.
Get a Boarder
Another way to downgrade your home is to get a boarder (boarding school student). Decide which portion of your house you would like to offer to the boarder. Make considerations for the kitchen, bathroom, and parking space. Once again, the objective is to shrink the available space and reduce your mortgage obligations. The boarder can even be a friend or a relative.
Seal off Unused Areas
Sealing off all unused areas of your home ensures temporary downsizing. This can easily be done by sealing shut the doors and hanging up thick quilts along the doorways. In winters, do not heat the unused areas and save up on your utility bills. If you have a home that is zoned for heating, this strategy can work wonders. However, do not think of it as a long-term solution to downsizing.
Look for House Swaps
If you decide to move to a new house, you might want to consi1der an arrangement for a house swap. The effort may require time and patience, but the end result is definitely worth the wait. A house swap agreement is when you buy someone else’s house and they buy yours in return. This ensures downgrading and home sale simultaneously. Talk to the interested parties and work out the best deal.
Call for Help
Banks, financial institutions, realtors, mortgage lenders and independent valuations are some of the many channels you can use for downsizing. They offer consultation services, in respect of downsizing, keeping in mind your needs and requirements.
If you’re still wondering on how to reduce your mortgage and make extra money without moving out of your home, then downsizing is the best option for you!
Tips provided by the expert removalist team at www.walkmove.com.au