Often, the thought of downsizing has negative connotations, but when you consider most people’s motivation for moving into a smaller home, it’s usually to upgrade their quality of life.
Among my customers, more often than not I hear one of the following as a reason to downsize:
- Looking to minimise the amount of upkeep around the house
- Children have flown the coup, and left too many empty rooms
- Getting close to retirement and dreaming of simplifying
In the grand scheme of things, these aren’t bad problems to have!
What can downsizing mean?
If you’ve got too much space or are looking for something with less maintenance, this could mean offloading the family homestead and hitting the market for something smaller and more modern, or moving to a better area.
When you downsize, you usually end up buying an apartment, townhouse, or smaller house near where you currently live, or making the switch to the good life in the country or by the water.
If you’re thinking of staying in the same town, downsizing can have its advantages. You’ll be able to rely less on your car to get around, and will be able to rely on public transport. And with more time on your hands due to reduced maintenance requirements, you’ll be able to take full advantage of the local culture, with cafes, restaurants, museums, etc at your fingertips.
Making a sea or tree-change from the city when downsizing will usually mean that although you may still have some level of maintenance, and will have to go without the mod-cons you get in town, you’ll be able to enjoy the lifestyle of your choice, and the property prices on offer will be more attractive.
What will it mean financially?
If you’re lucky, you might even have some money left over from the sale to afford yourself some creature comforts or make a canny investment or two.
Chances are you haven’t had cause to touch base with the property market for a while, so doing your research is key. You may even want to think about pre-approval so you can snap up your new place when you find it.
If you’re looking to downsize in terms of property size and maintenance, but move to a property with a higher value, make sure you speak to a trusted lender with a reputation for responsible practices like The Greater.
If you find yourself in the position of having downsized to a property with a lower dollar value than your previous home, you may be sitting on a nice little nest egg. If you’ve ever considered investing, whether in property or other income streams, this may be the perfect time to act. Get the right advice and use your equity to your advantage – The Greater can arrange industry leading Financial Planning at a time and place that suits you.
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