Putin
New member
Are you thinking of moving to a smaller or less expensive home? Maybe you want to lower your expenses, or just have an easier lifestyle. In this video I’ll share the process I created to help decide if we should downsize, and by how much, so we could make the best decision about this important lifestyle and wealth element of our lives.
1. Calculate how much lower your expenses would be after downsizing
4. Determine the size home you want.
Create a spreadsheet or Write down the approximate square footage of each room in your home. In the next column, write the size room you could be happy with.
5. Consider how much money you’ll make on the sale.
For Location, Make a note of the places you want to be near. Lifestyle:
8. In summary Financial considerations are:
1. Calculate how much lower your expenses would be after downsizing
- Put all your current home related expenses on a spreadsheet.
- In the next column, put the amount by which you think you could lower that expense.
- Examples are Lawn, property taxes, utilities, HOA, mortage
- See Positive cash Flow vs overall cost
- Note Low interest rate
4. Determine the size home you want.
Create a spreadsheet or Write down the approximate square footage of each room in your home. In the next column, write the size room you could be happy with.
5. Consider how much money you’ll make on the sale.
- Sales price less fees and fix up costs.
- Less cost of new home
- Maybe rare and beautiful tax free capital gain.
For Location, Make a note of the places you want to be near. Lifestyle:
- Asthetics:
- Are there certain deal kilelrs or deal makers,
- Construction - We love limestone and would
- Lot size - space. Or low maintenance.
- Style- grey with a very modern feel. Flipper?
- Pay $50K for someone else’s style?
- Next, explore what’s for sale on online real estate sites. attend open houses. Traffic?
8. In summary Financial considerations are:
- The monthly increase in cash flow
- The amount of capital you’ll make
- The amount you can make from investing the money you’ll make from both the sale and the increase monthly savings
- Consider that if you buy back into the real estate market after a correction when prices are super cheap, you have an extra opportunity to build wealth.