What to Consider When Downsizing
Is downsizing the family home on your mind?
When the kids have flown the coop you may no longer require the extra bedrooms, find the house is becoming too difficult to maintain and may need to live more centralised to have easy access to necessary amenities with greater dependency on the cards.
So here is a useful list of advantages and disadvantages to be considered before making any hasty, life-changing decisions.
Advantages of downsizing
- You could perhaps capitalise on a healthy real estate market
- You can release capital by selling a large family home and buying smaller and cheaper (perhaps subdividing is an option here)
- Mortgage repayments could be a thing of the past
- It’s an opportunity to de-clutter
- It gives you the chance to update you décor
- Less space to maintain, freeing up your spare time
- Smaller homes often lead to smaller annual household bills
- You have the opportunity to move closer to family and friends
- You can situate yourself closer to necessary amenities required for greater dependency.
Disadvantages of downsizing
- There is no guarantee your house will sell for the price you want it to
- Moving closer to the cityisn’t necessarily going to be cheaper buying
- You may find yourself battling with more complicated ownership structures i.e. cross lease titles and unit titles
- Having to part with years of belongings can be an emotional task
- You may have to sell old furniture and purchase new furniture to fit your new space
- You will have to adapt to new services in your area and new neighbours
- If you decide to rent there will always be uncertainty of price increases and changes in ownership
- Adapting to a smaller space can take some getting used to.
There are a range of options available to choose from if downsizing is playing on your mind, for example: moving into a smaller home in a subdivision, moving into a retirement village, buying an apartment or unit, or selling up and renting.
There are advantages and disadvantages for each; the key is to do your research.
Thankfully there are many professionals adept in this area who can lend timely advice to find which option is best for you.