San Diego, California
Telephone - Cell:
(619) 300-8819
Facsimile:
(619) 229-0048
E-mail:
Click here to
email Bob
Copyright © 2006 by
Bob Schwartz
San Diego
real estate broker
Certified
Residential Specialist
Promotions Unlimited
All rights reserved.
You may reproduce materials available at this
site for your own personal use and for non-commercial distribution. All
copies must include this copyright statement. |
|
Real Estate - Downsizing can save you money
Large houses = Large expenses. It’s as simple as that. As utility bills
rise to heat bigger homes just as wear and tear on the house increases with
the houses size. All homeowners are looking for ways to save money nowadays
with the crazy expenditures we have every month. If you stop and think about
it, downsizing can save you money.
There are four things a house costs. The mortgage, the insurance, the taxes,
and the utilities. By starting with the mortgage, you can save money just by
moving to a smaller home with less of a payment. The larger home usually
costs more so the mortgage will be larger. By opting to sell and buy a
smaller home, you can save some money on the monthly mortgage payment. Not
to mention if you have equity built up in the larger home, you can really
have a good down payment on the new place. This would enable you to pay it
off earlier than the larger home, saving you even more money in interest
charges.
With the smaller home, the insurance premiums would be less. Again a savings
you would be able to recognize. This can really add up over the years. The
reason the premiums are lower is because it would take less money to rebuild
or repair if something were to go wrong.
Usually the taxes are based on the considerable value or sales price of a
home. They can also take into consideration the square footage and the road
frontage of the yard. The taxes in some areas are astronomical. By
downsizing you can save money because the taxes on the new property will be
significantly less. The square footage will be lower. The appraised value
will be less. Generally in a smaller home the yard is smaller too. This is
not always the case, but it can be true in some areas. Either way the lower
taxes will definitely be an advantage for downsizing to a smaller home.
Downsizing can save you money with the utilities just because the home is
smaller. You do need to make sure the property is weather tight. This means
you will want to insulate where you need to, caulk any leaky windows, or
even replace them, and make sure weather stripping is in place. The furnace
or heat pump should also be checked to make sure it is operating at full
efficiency. This will ensure you will save money on the fuel bills in the
winter. The electrical system should be up to code and as efficient as
possible. If you have fuses instead of breakers you may want to convert.
When you have completely weather proofed your home you will see a
significant difference in the utility bills.
Many people have started to downsize due to a loss of income or illness in
the family. This is becoming more and more common with the economy the way
it is right now. If downsizing can save you money it may be worth looking
into. Sit down and calculate how much you could save over the next five
years if you lived in a smaller home. The figures may surprise you.
Back To San Diego Information |
 |
