When short of cash it is natural to look at one of your largest expenditures and in some cases your best asset.
Your accommodation be it home, house or flat costs in revenue expenditures and ties up capital when you most need it.
Downsize your Revenue Costs
- The bigger your home generally the higher the costs. Utilities, rents, mortgages and other costs are related to the space you occupy.
- Moving to a smaller apartment, flat or bed sit may help with the bills.
- Owning a smaller home may put you into a cheaper council tax band
- The location of your home can affect the costs of commuting and even your food shopping
- Share your space with a flat mate or lodger.
Downsize your Capital Cost
- If you own your home and have equity in the property value (ie it is worth more than your mortgage) you could realise some cash.
- Change home in a downsize to renting change.
- A further advance or second mortgage would exchange cash now for bigger revenue payments later.
- Moving to a more downmarket location may offer similar facilities at a lower capital outlay.
- Before you sell up to buy a smaller home check out the issues on downsizing, rightsizing and wrongsizing on this link.
- Check you are on the best mortgage deal.
- Read ‘The Upside of Downsizing’ from Amazon