Downsizing your property is often described as the ideal solution to every homeowner's cash flow challenge once they retire. The instruction is simple: sell the family home, buy a smaller one and pocket the profit.
This basic strategy for downsizing is on the mind of an increasing number of homeowners in the current environment of rising living costs.
Money is not the only reason to downsize, of course. For many approaching or in retirement, their lifestyles have changed.
Their kids will have grown into adults and moved out, and careers and work may be winding down.
Rattling around in a large family home that still requires maintenance may become increasingly more arduous than imagined.
As an experienced local agency, we know that selling the family home has an emotional cost. Your home holds many memories, and letting it go to the highest bidder isn't easy.
Below, we've tried to capture the key features of downsizing. I hope it explains the concept more fully and inspires your thinking.
We also appreciate that downsizing is not for everyone. But if we can assist you in selling your home, please do not hesitate to contact us. We can discuss whether downsizing is right for you.
What is downsizing?
It's a term that addresses the need of “empty nesters” to find a smaller property once their children have flown the coop and are forging their own lives. Once alone, either as a single or couple, you have little need for big gardens, four bedrooms or even to sacrifice your preferred location to be near schools.
There are a lot of answers to this question, and most depend on your circumstances. Perhaps you want additional cash to spend in retirement. Alternatively, the maintenance of a large property may be too much, or the utility bills to run a half-empty home feel wasteful. In your heart, you'll know if and why you should downsize.
What are the benefits?
Consider this question in the context of your preferred lifestyle now and into the future. Some people love the idea of an over-55s complex with social programs, sports facilities and medical facilities. Others want the bright city lights. We recommend prioritising your lifestyle choices.
NOTE: The information in this article is general in nature and provided as a general overview only. Always consult your financial advisor or accountant for advice specific to your personal circumstances.