Beware of Over-Downsizing or Over-Upsizing

September 29, 2021

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Beware of Over-Downsizing or Over-Upsizing

Whether your intention is to upsize or downsize your home, figuring out the right size can be especially challenging. You are not buying a pair of shoes after all. Even with a pair of shoes, what seemed like a perfect fit at the store may start to feel tight after a day of running around doing errands.

Say for example, you’re downsizing from a large two-story home to a smaller bungalow. You don’t want to underestimate the space you need and end up in a place that feels tight. If you’re going the other way and upsizing, you don’t want to end up sinking extra money into a property that’s larger than you really need. It is not only the initial cost of buying the home, but also interest, maintenance, and taxes that add up over the years.

So how do you avoid these scenarios?

One of the best ways is to start by considering your current home. Do you use all the rooms in your home regularly? Is there a bedroom that’s rarely occupied? Has the recreation room become simply a storage area? If you’re downsizing, subtracting rooms you scarcely use can give you a better idea of what you need in a new home.

Also, think about your reasons to downsize. Are you hoping to extract equity out of your home to use for another purpose? Do you want to spend less time on housekeeping? A smaller house may not necessarily achieve the results you are hoping for, so clarify your reasons first.

Upsizing is a bit more challenging because you need to anticipate what you will need in the future. For example, if you have young children, and your place is feeling cramped, then a home with a recreation room or separate family and living rooms may be a good idea. You may also need a bigger kitchen with a spacious eating area in addition to a separate dining room. Think about the extra room you’ll need and how you’ll use that space.

As always, I am here to help you think through your goals and come up with creative ways to achieve them. Give me a call!