Downsizing is a term often associated with the older generation whose children have long since flown the nest. But today, many people are considering downsizing to a smaller property for many different reasons. If you are thinking about moving to a smaller home but feel worried about doing so, you can be safe in the knowledge that you are not alone.
Here are some of the top reasons of why people of all ages are now considering downsizing.
A Simpler Life
As we move through life, we inevitably start to collect possessions and belongings. Our homes naturally become more and more cluttered as we get older. If you’ve had a family, you may find that you have collected all kinds of things which over the years haven’t been thrown away. Moving to a smaller home forces you to declutter, making you decide what can be thrown away and what you really want to keep. It’s a dramatic way to declutter but some people think that this really helps them free their mind and gives them more spare time to do the things they love.
If you need to declutter but don’t know where to start read this blog: https://www.goodhousekeeping.com/home/organizing/tips/g656/decluttering-tips/
If you have a large amount of capital tied up in your property but no available cash anywhere else, you may want to move to release some capital. For instance, if you have debts that you can’t afford to repay or maybe you’d like to fund your children’s education. Some people who have ill health and need capital to support their income also downsize so that they can invest their capital and have a regular monthly income.
Breakdown in Relationship
For couples who split up and neither party can afford or maybe doesn’t want to take the property on, will find themselves having to sell-up. An alternative is to rent the property out but where couples have not split up amicably, the thought of having to remain in contact is not a feasible option.
Second Property Purchase
This is becoming a much more common reason for people to downsize. Owning a second home for many of us is just a dream but releasing capital to fund the purchase of a second home either for sole use or as a rental for additional income is becoming more and more popular.
As we age and we become more and more aware of our advancing years, income can restrict our lifestyles. Selling up and moving to a smaller home can release money which can then either be used to increase a monthly income or put aside for big purchases or holidays. It can also help people to retire early. Moving to a smaller home will also reduce monthly bills, increasing the amount of disposable income.
Downsizing however is not a decision to be taken lightly. Any house move involves costs, and these must be factored into your sums before you take the plunge. There will be stamp duty to pay, estate agents fees, solicitor costs and removal bills.
You should also seek the advice of an independent financial advisor before making any financial decisions. If you do not have an IFA the Money Saving Expert website has some recommendations you may wish to consider.: https://www.moneysavingexpert.com/savings/best-financial-advisers/. You should also get at least two property valuations from local two estate agents. Many estate agents like Hyde & Rowe offer a free valuation service.