To Downsize or Not to Downsize..... When is the Right Time?
Updated: Jan 18
When it comes to life changes, downsizing your home can be one of the most liberating and beneficial decisions you can make. There can be several reasons for this decision, for example, the children have fled the nest, relocation, job change, change of scenery or retirement to name but a few. There can also be huge benefits to this, from reducing your expenses, to gaining more time for yourself. Here are some of the top advantages of downsizing your home.
If you’ve been in your current home for a while, it’s likely to have increased in value. You may be near to paying off your mortgage, if not having paid it off already. You could then buy a smaller, cheaper property which will give you a lot of equity left over to use for whatever you wish. It also means you can buy your new home as a cash buyer, giving you more options, a quicker chain and the ability to live mortgage free.
Lower monthly expenses
One of the greatest benefits of downsizing your home is the reduction of monthly expenses. By moving to a smaller home, you’ll be able to lower your utility bills, as well as save on property taxes and other related costs. As well as lower bills you will have more time to do the things you love. It’s an exercise in saving both money and time. Manageable: If you are downsizing in later life, it means you can choose a property that will be better suited to your needs as you get older. Instead of having to contend with your stairs, struggling to maintain a huge garden or home, you can pick a property that can work for you.
Freedom from clutter
Downsizing your home can also help you to get organized and get rid of clutter. This is the perfect time for that always planned clear out. By getting rid of unnecessary items, you’ll be able to create a more minimalistic and organized living space.
By downsizing your home, you’ll be able to free up more of your income, allowing you to save more money for your future, with lots of things to look forward to.
Simplify your life
You may want to move closer to friends or family members, or want to start a new phase in life. Whilst many people have been trying to upsize throughout their home-buying journey, downsizing can offer so many fantastic options too!
Why wouldn’t I downsize?
Downsizing your home can be a financially wise move, but it isn’t always the best decision for everyone. Whether you’ve lived in your current home for years or are just starting to consider a move, here are some reasons why you may want to hold off on downsizing your home.
Downsizing your home means trading in a larger space for a smaller one. This could mean sacrificing some of your favorite spaces, such as a large kitchen or a spacious master bedroom. If you’re not willing to part with these features, you may want to consider staying put.
Downsizing your home also means moving to a new home. This can be a stressful and time-consuming process, especially if you’re not sure where you want to move to. If you’re not ready to make a move, you may want to wait until the time is right for you.
If you’ve already paid off your mortgage, you may not be ready to take on a new one. Even if you’re downsizing, a smaller home will still require some cash upfront. If you’d rather not take on that additional financial burden, you may want to stay put.
Updating New Property
When you move into a new home, you’ll likely have to spend some money on upgrades and repairs. This can add up quickly and can be a major deterrent for those who are looking to downsize. If you’re not ready to spend the time and money that may be required, you should maybe wait until you are.
Lack of Availability
Bungalows, which were once hailed as the best option for those entering later life, or with accessibility issues, are harder to come by now. They are in short supply, as they take up a lot more space for one storey, compared to the multiple flats that could be bought on the same site. As such, appropriate homes can be hard to find.
These are just a few of the reasons why you may or may not want to downsize. No matter what your situation is, it’s important to weigh all of your options before making a final decision and only do what is right for you at the time.
If you have any questions regarding property related matters please do not hesitate to contact us.