What to consider before downsizing?
For many people it’s a big decision financially and emotionally. Moving to a smaller and/or cheaper property could have significant benefits, but before you jump in at the deep end, take the time to investigate what downsizing will really mean for you. In this article we will help you with what to consider when downsizing your home.
If you are looking at downsizing for financial reasons, moving could reduce your mortgage payments or provide a cash lump sum. It could also reduce your utility bills and reduce the cost of running a home.
But don’t forget that downsizing costs money too! How much will it cost to sell your existing property and buy a new one? Remember estate agents and solicitors fees, stamp duty etc. all need to be included. This will give you a realistic idea of what the purchase price of your new property can be, and what your options really are. Remember as well to consider whether a new property will require extensive decoration or renovation?
If the sums add up, don’t rush into buying something just because it saves you money. How much space do you really need? Don’t make the mistake of thinking you could make do with a tiny flat if you have hobbies and interests that require a spare room or a garden. If you like to entertain family and friends, will you still be able to do this? If these things are important to you, then you need to carefully consider them alongside the financial benefits of downsizing.
Logistically, if you are moving to a smaller property consider whether you will be able to take everything with you. It is unlikely that the contents of a four bed house will fit comfortable in a two bed bungalow. Will your furniture fit? If it doesn’t will you be able to afford to replace it? Are you happy to let it go?
What to consider when downsizing
If you are downsizing as a family, consider the impact on everyone individually. How will it affect your children’s schooling? Will it impact on journey times? Will these changes to your daily life be acceptable?
Still unsure? At this point a pros and cons list will be really help. Remember to look at downsizing from a personal lifestyle perspective as well as a financial one. At the end of the day, deciding whether to downsize comes down to two questions:
1) Does it improve your financial situation?
2) Will you be happy with the move?
If you can answer YES to both of these, then you’re ready to start looking for your new downsized home.
