Is Downsizing Right for You?

Are too many rooms in your home unused? Then you might be considering downsizing. Moving to a smaller home can be a great way to ensure you have money for your retirement – but it’s not always an easy thing to do.Look at your circumstances and h ...

Are too many rooms in your home unused? Then you might be considering downsizing. Moving to a smaller home can be a great way to ensure you have money for your retirement – but it’s not always an easy thing to do.

Look at your circumstances and how the move may affect you – because once you’ve taken the plunge, it will be difficult to reverse it. Below we list some things to think about before putting your home to market.

The right reasons

Look at what you’ll gain from the move. Downsizing will mean you’ll have less upkeep, your bills will be lower, maintaining your home will be easier and you’ll have more time to do the things you enjoy. It will save you both time and money. If you’re downsizing later in your life, you may want to look at properties that will suit your needs as you grow older.

Cost

Moving costs can mount up. So, look at the extra costs involved – stamp duty, legal fees, estate agent/surveyor fees. The average cost to move in the UK is about £12,000. For many people, this is equivalent to a yearly retirement income.

Also, look at the costs of living in the new property – will most of your outgoing be less? Things like house insurance, council tax, and energy costs. It’s possible that you will save money in some or all of these areas, so despite the initial moving costs, in the long run, will you be saving money?

Locations

When looking at suitable locations, make sure you do your homework. Remember, this could be somewhere you’ll be for many years or even a forever home. Ask the important questions – will family be able to visit easily? Can you build a good social life in the area? Will it suit if you are less mobile? And so forth.

Think about what you’re leaving behind

This can be a hard part when downsizing especially if you’re relocating. You have built up a good network of friends and know the area well. Discuss your plans with your friends and family and get their thoughts. Hopefully, you’ll have their full support and make plans together for the future.

Less is more

You’ve probably built-up years’ worth of possessions in your current home – will they all fit you’re your new home? Probably not. Try to plan in advance. Ask your children if they would like any keepsakes or consider doing a house-clearance sale, especially if you’re downsizing to a much smaller home or moving far away. Paying for storage is another option, but it means you’ll need to sort it down the line.

Look at it as an adventure

You need to have a positive mindset when downsizing. It doesn’t have to be a step backward it can be a step forwards to a new adventure full of new opportunities that you’ve not had time for before.

If you think downsizing is still for you, then go for it. However, if all you can focus on is what you’ll be leaving behind, you may want to look at other ways to release equity from your home. Keep in mind that you’ll have time to change your mind if you hold off for a while. If you jump in too quickly, it will be more difficult to backtrack.

If you’d like to discuss the pros and cons of downsizing – our team will be happy to help.

Do feel free to get in touch here.