There comes a point in most people’s lives when downsizing the family home makes good financial sense. Ongoing maintenance, empty bedrooms and costly monthly bills can make you seriously think about selling your existing home and finding something smaller or easier to maintain. Whether you’re an empty nester or just looking to get into a smaller apartment in the city, here are our tips for making those key downsizing decisions.
1. Start planning your move
Once you’ve made the decision to downsize your home, it’s time to start planning. Downsizing can be an emotional time, particularly if you’re selling the family home that you’ve lived in for years, so get your family involved in helping decide where your next home will be and in clearing out the clutter.
Inevitably some things will need to go as they simply won’t fit into your new smaller home. It’s a good time to declutter and re-organise your home, perhaps sell off some of those larger furniture items you no longer need. Most real estate agents will tell you, there’s a far better chance of getting your sale price with a clean, decluttered home, so paring down now is only going to benefit you when it comes time to sell.
2. Determine your lifestyle needs
Decide on the important things you’ll need for this next chapter of your life. Do you want to stay in the same area or move closer to family? Be near the seaside or a city? Is public transport important or access to a particular area? What about green spaces nearby or libraries, community centres, medical and so on?
How many rooms do you want in your new home? How much living space do you need? Do you need one bathroom or two, a garage or outdoor entertaining spaces? In most instances, the area you choose to live in will determine the type of property you’ll be buying.
Also factor in your budget and how much you have to spend – will you be able to pay off your mortgage on your new property if you sell your existing home?
3. A new mindset
Downsizing for financial reasons – because you can no longer afford to live in your current home – can easily lead to a negative mindset. To help you get through, focus on the things you’ll be gaining – a more affordable property, one that’s easier to maintain and keep tidy, perhaps a better location, closer to shopping centres, restaurants and cafes, or family.
If you’ve lived in your current home for a while, it may have increased in value. Buying a smaller, more affordable property means you could buy your new home as a cash buyer and live mortgage-free.
If you’re downsizing later in life, finding a property more suited to your changing needs – one that doesn’t have stairs or a huge garden requiring regular maintenance – could be a huge benefit.
Getting help downsizing
Downsizing can be stressful if you’re not looking forward to the change or have become accustomed to living in your existing home, but there are advantages and opportunities.
If you’re considering moving to a smaller property and you’d like to find out more about your financial options, talk to our team today. Our advisers can help you make an informed decision about your future living arrangements. Simply complete this online form and one of our advisers in your area will be in touch to discuss further.
The information contained in this article was prepared by Mortgage Express Limited. While every care has been taken to supply accurate information, errors and omissions may occur. Accordingly, Mortgage Express Limited accepts no responsibility for any loss caused as a result of any person relying on the information supplied in this article.
This article does not constitute regulated financial advice to retail clients. It may not be relevant to individual circumstances. Nothing in this article is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this article.
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