If your home is no longer serving you the same purpose as it did when you first bought it, then you may want to consider downsizing.
Downsizing is simply deciding to move into a smaller property.
A third of homeowners over 65 may be considering downsizing in the next five years. However, downsizing is not a decision reserved only for older homeowners. There are several reasons why people may want to downsize their homes.
Read on for reasons why people want to downsize and the benefits and disadvantages.
Reasons for downsizing
- Size
One reason for downsizing might be the size of your current property. Perhaps you brought your current home when you were starting a family and now all of your children have flown the nest. So, you have extra space that you no longer need and want something a little smaller to suit your new needs.
- Health
You or a family member may need a house that is more accessible if you develop a long term illness. Perhaps your current home has too many stairs to climb or turning the living room into a bedroom is not an option. Moving to a smaller property such as a bungalow might be a good choice for you to consider.
- Costs
You may wish to downsize due to living costs. Maybe your current property costs too much to maintain or the mortgage is too expensive. A bigger home means more rooms to light and heat, especially during the winter months.
- Retirement
The most common reason for downsizing is retirement. Once you retire you may find that your pension doesn’t cover the costs of your current property. Or you may wish to move somewhere smaller but closer to your loved ones.
- More suitable area
As you move through life your choices will change depending on circumstances. For example, you may have started a family or chosen to live in a busy town or city in your 20s and 30s. But as you get older you may which to downsize to a place in the countryside or a smaller, quieter town. So you may find that your current property doesn’t suit your new needs and it’s time for a change of scenery.
- Reduce maintenance
From having to clean more rooms to maintaining a garden, a larger home can often mean spending a lot more time and effort on its upkeep. Hiring help can be expensive and doing it by yourself can become tiresome and harder to keep on top of as you get older. Downsizing to a smaller property means there’s less to maintain. Which in the long run can only be beneficial.
- Release equity
Some downsize to release money or equity that’s tied up in their property. If you’ve lived in your current home for a while you may benefit from a growth in the price of your property.
Equity release schemes will allow you to release some of that equity that has built up over time. You can do this by selling either all or part of your property.
Some find this a helpful option to help out their children or as a way of dealing with their own financial situations.
This option is only available to those who are 55 or older and live in a property that is worth at least £70,000
Things to consider
- Location
Are there any suitable properties in the area(s) that you’re looking at moving to? Do you want to move to another town or the countryside? Take some time to study potential locations as it will play a big part in where you finally settle.
- Type of property
As well as thinking about your new location, you may also want to take time to consider the type of property you want to downsize to. These properties include:
-A smaller house
– Bungalow
– Park home (also known as a mobile home)
– Ground floor flat
-Accessible home
-Retirement complex
- Future needs
You may be near retirement or some way off it. But thinking about your future needs will be key to your downsizing process.
In the past, you may have been looking for a home that has great transport links, or one that’s near to great schools.
However, in the future, these things may not matter to you. So take some time to think about what criteria you’ll want in the future. This could be that your property is within walking distance of shops and local amenities.
Downsizing your home quickly
Moving to a new home is always stressful. There’s a lot of admin involved and it can be a lengthy process.
However, there are a few things that you can do to speed up the process.
–Rent a property This option is great if you’ve sold your previous property and have yet to find your perfect downsized solution. You could even look to try out the location and property you were thinking of without the long term commitment of buying.
–Part-exchange There is a scheme in which downsizers can trade in their house against the value of a new build property. This is a great option if you are looking to downsize quickly. There are often bonuses from the developer. They may be able to cover the cost of stamp duty, moving costs or even offer you incentives such as free white goods.
Downsizing your home for retirement
As mentioned before, take some time to think about your needs and how these may change over time.
You may need to have a more accessible home in your future, so a ground floor flat, bungalow or even a retirement complex may be your best choice. Also, take into consideration the level of maintenance your new property may need. And the proximity to friends and family.
You may also want to consider your possessions as well. No doubt you will have a lot of sentimental items within your home. However, if you’re moving into a smaller property you may not have room for everything, so now might be a good time for a clear-out or handing over some of the bigger items to family members to keep safe.
There is a lot to consider when you’re selling your home to downsize, it’s a new chapter in your life that can be both exciting and stressful.
We can help take the pressure off and give you some peace of mind. Sell House Fast Liverpool helps with everything from the valuation of your home to appointing a solicitor. It has worked for plenty of people across Liverpool, and we can help you, too.
