Economical factors have changed the real estate landscape since the 2008 financial crisis and some people have had to resort to a downgrade in terms of housing so that their budget can cope with the daily living costs. On the other hand, currently, many are thinking of choosing a real estate downgrade once they realise they no longer need that much space or because their maintenance costs are too high.
No matter what the reason for your move, turn this change into a profitable one.
Smart real estate investments
In addition to the obvious lowered taxes and maintenance costs for the new apartment, a smaller space unlocks some money, for you to reinvest. You can use that amount to invest in a business or you can focus on the real estate rentals segment as well. Either way, your wallet will be relieved and, moreover, you will earn new revenue as a result of this change.
Cutting down costs on long-term
If you want to increase the profitability of owning a property and to reduce the long-term costs, a viable option is to build an eco house. If possible, reinvest the remaining amount that came from the sale of the apartment in a small house, possibly in a smaller town or on the outskirts of the city in which you live in. Take into account renewable energy resources and in a few years the return of investment for your property will level.
Moving over the technical and material aspects of our proposed solutions (which you will need to consider at the right time), take into account that time is often an omitted aspect. Whether you choose to invest in a business or a property, the results of your decisions will take time to show.
As such, we recommend you to prioritise. First, choose a smaller apartment that will maintain the level of comfort you desire, and then, after you relocate at your new home, plan further on how you can financially maximise this change.