Downsizing your property is often painted as the solution to every homeowner’s cash flow challenge once they retire.
And in the current environment of rising mortgages and living costs, downsizing is on the mind of an increasing number of homeowners.
Selling your home for a profit and purchasing smaller, more suitable accommodation may be the smartest move for you.
For many older homeowners, lifestyles have changed over the years. Their kids will have grown into adults and moved out, and careers and work may be winding down. Rattling around in a large family home that still requires maintenance may not be the joy you imagined a decade ago.
But selling the family property has an emotional cost. Your home holds many memories, and letting it go to the highest bidder isn’t easy.
Here are some things to consider if you are thinking of moving to a smaller place.
What is downsizing?
It’s a term that addresses the need of “empty nesters” to find a smaller property now their children have flown the coop and are forging their own lives. Once alone, either as a single or couple, you have little need for big gardens, four bedrooms or even to sacrifice your preferred location to be near schools.
Why downsize?
There are a lot of answers to this question, and most depend on your circumstances. Perhaps you want additional cash to spend in retirement. Alternatively, the maintenance of a large property may be too much, or the utility bills to run a half-empty home seem wasteful. In your heart, you will know if and why you should downsize.
What are the benefits?
Consider this question in the context of your preferred lifestyle now and into the future. Some folks love the idea of an over-55s complex with social programs, sports facilities and medical facilities. Others who’ve lived in the suburbs want the bright city lights. When deciding whether to downsize, I recommend prioritizing your lifestyle choices and being clear on how you wish to live.