Question: I have a first (and only) and self occupied home. Mortgage is fully paid. Home is with four rooms.

Considering expenses I done on home so far including my share in mortgage, taxes so far, total interest paid etc. I will be in profit by 1000000.

Prices of property are not growing considerably anymore; growth rate is minimized.

1. I do not need this much big home. Three rooms should be enough for me.
2. By booking the profit, I can invest the amount (other than my share in new home) in some good investments.
3. New home will be self-occupied as well; it will not be rented.

I can clearly see the benefit, but I am not sure about other financial aspects involved here.

1. New home will start new mortgage.
2. Taxes will not be much different.
3. As new home will be self occupied as well, there is no benefit other than the one gained while selling current home.

Is it advised to sell current self occupied home and buy the other new one to book the profit? If yes, what are the financial loop-holes to be considered while doing this?

I am not doing this for cash as asked [here](https://money.stackexchange.com/q/79211/73868). I am doing this for booking the profit.

Answer: 
> 
> I do not need this much big home. Three rooms should be enough for me.
> 
> 
> 

This is the only real tick mark in favor of selling your current home.

> 
> By booking the profit, I can invest the amount (other than my share in new home) in some good investments.
> 
> 
> 

Any profit you make from the sell will either be taxed, or invested in the next home. Is there a reason you wouldn't roll that over to the next house which would be tax advantaged?

Unless you have another reason like being closer to family, shorter commute, or always wanting to live in the city/on the coast/etc, I'd stay put.

**Moving always has one very big potential downside, neighbors for hell.**
If i understand you correctly you are thinkinh to move from a big home to a small one, this usually reducing your living cost (less things which could broke, less cleaning and less air to cool down/heat etc.)
Also you gain profit (or luxory) from the free and possible working money, from the price difference from the houses/appartments.
So if you don't need a big house, such a shift makes sense. Especially when you don't think that you miss the space of your current house much.

You want the mortage only, because you can think that you can outperform your credit rates with your investment? You could do this usually too, when you get a new mortage for your current house.