How to Know if it’s Time to Downsize Your Home

Model House Being CarriedOwning a home that you can call your own is a dream by everyone, but these days, far too many hopeful homeowners are driving themselves too hard to achieve it. Although finding land for sale here in Melbourne, VIC can be easy, knowing the right time to downsize your home can be a challenge.

So, here are a few tips on how to know the perfect time to downsize your home.

Your home loan, property taxes, and insurance go over 30%

Taking on too much financial responsibility for a house can easily set you up for a disaster. Overspending on housing can make it harder for you to save money, and it can give you little chance to pay for any unplanned expenses once it arises.

So, try not to exceed the 30% of your take-home pay. Doing so will give you enough space to save money and even free-up a few rooms for your savings.

Maintenance costs continue to rise

If you find yourself paying for expensive maintenance and repair costs exceeding your monthly pay, then you might want to consider downsizing your property. Review your credit card and bank statements and see how much you spend for home maintenance and see if it is still reasonable.

The housing costs do not give you enough room for savings

Although your housing costs do not go over 30% and your maintenance is minimal. But if you find yourself having difficulty saving money each month, and housing takes a huge chunk of your monthly expense, then you may want to see if you can somehow minimize the figures.

These are just a few of the things that you may want to consider when thinking of downsizing your home. It is always best to work with a real estate agent to get the best location of all the possible areas where you can buy a property to downsize your home.