Don't downsize. Right-size!
There are many reasons to consider downsizing from a larger property to something a little more modest. Circumstances change. With children flying the nest, or retirement pending, these can be some of the reasons that trigger you to downsize. However, downsizing can often be seen as something of a negative, so instead look at "right-sizing". Right-sizing can be the perfect opportunity for those looking to save money whilst enjoying the equity made available from selling their property.
Moving to a smaller property might feel like a step down, but closer analysis reveals that it may have many advantages in the long term. Beginning with basics like saving money on bills and the opportunity to make household tasks more manageable, to the new living arrangements and style, through to the excitement of living in a new area, it can be a totally fantastic new start.
You may have been in your current home for a while and still paying off your mortgage. Almost certainly in this case, your property has increased in value. Downsizing to a smaller property could reduce both monthly mortgage payments and your household outgoings and will likely leave you with money left over to enjoy.
Maintenance, upkeep and cleaning of a home that has more space than required can be time consuming. Less responsibility and smaller workloads will increase your satisfaction with your home and you'll no longer be overwhelmed. Additionally, downsizing for older homeowners can make sense as it will alleviate the pressure that comes with maintaining a larger property.
Reduced cost bills:
It comes as no surprise that you will see a considerable saving in heating and water bills when downsizing. Typically, there are no unused areas, which means you get the additional benefit of reducing your carbon footprint, whilst enjoying lower overall energy consumption.
Beginning a new chapter:
For many who downsize, it can open a new chapter to do the things you’ve always dreamed about. With less responsibility and more money to spend, you could spend more time socialising with friends and family, going on magnificent holidays or perhaps investing in that sports car you've always had your eye on.
What to consider before downsizing
Once you've made the decision to downsize, the next important step is to do some research on your next property. Research a new location you’d like to move to or if you want to stay in the same area, decide in which exact locale. If you are thinking of moving to a different location, bear in mind that the cost of transport links and other amenities in these areas may affect your savings, so ensure you visit and establish the situation prior to taking any action.
Additionally, knowing the type of property you are looking for will help narrow down your search. Consider long term factors as these may help you decide whether to look at houses, flats or bungalows.
Get expert advice
Whatever your reason for rightsizing, I am always here to help. I can provide advice and expert guidance about the financial implications rightsizing can have and will help you find your perfect new home. Feel free to contact me for an informal chat about your plans.