Downsizing… it’s a word that is often mentioned when it comes to selling a house, particularly when the sellers in question happen to be ‘of a certain age’. Their children may have grown up and moved out, for example, and the house could be too big for one or two people. Not only that, but with the property market as it is, there could be a large amount of equity in that house – ideal for enjoying a long and happy retirement with, and that includes buying a smaller house outright so there won’t be any mortgage to worry about.
It’s a big decision to take, however. Here are some pros and cons for downsizing and what you should do about it if you think it’s the right thing for you.
Pros
As mentioned above, this is the one and only way to release the equity in your property without getting another mortgage on it. And what could you do with that money? Treat your family? Buy yourself another property, this time somewhere hot and sunny? Travel around the world? All this and more, depending on how much your home is worth, could be possible.
As well as making money, you could be saving money too. A larger house costs more to heat, to insure, and the council tax will generally be higher too. If you most to a smaller property you will be saving money each month on these utilities, so even if you didn’t make as much out of your old property as you had hoped, you can still add to your savings quickly and easily.
There will be less to do around the house in a smaller home; less time spent on housework means more time for the finer things in life such as day trips and hobbies. If you’re a gardener you can still opt for a smaller home with a large garden (there are plenty out there), or if you don’t have green thumbs you can pick somewhere with a lovely courtyard garden instead. There is so much choice and you’re in control when you’re downsizing.
Cons
Moving from the family home, the place in which you spent many happy years and brought your children up, is always going to be hard. That’s why downsizing isn’t a decision to be taken lightly. Only do it if you feel it’s the right thing to do; no one wants regrets. One option to consider if you’re not ready to move just yet is to use the equity in your home to buy a property to rent out. You’ll gain an income, plus, if you choose wisely, you can move into it at a later date when you are ready. Alternatively, you can move out straight away and rent your old place out. We can help with all of this, so please do get in touch for advice.
A smaller house necessarily means less space, and if you have a lot of belongings you’re going to need to work out what to do with them all. What are you prepared to part with? What just has to go with you no matter what?
Finally, moving home, no matter whether you go for a smaller place or a larger one, is always going to be a little unsettling. Not necessarily in a bad way, but still… it’s something to think about, especially if you are really comfortable where you are.
Ready?
If you do feel ready to move, whether that’s downsizing, upsizing, or moving across to somewhere new, please get in touch with us at The Good Estate Agent. You can call on 0330 223 0670 or email property@thegood.co.uk.