Although home downsizing is often associated with retirees and the elder members of the population, it is becoming increasingly common for many younger people to also consider such a transition.
With the economy providing little signs of improvement un-employment is still relatively high, which in-turn has resulted in low confidence throughout the financial environment. Such fragility has resulted in thousands of people looking for ways to cut their monthly expenditure to a more manageable level, therefore leading many to believe that home downsizing may just be the answer as saving money is one of it’s major benefits.
The Benefits of Downsizing
- Saving Money – As already mentioned one of the most obvious advantages of moving into a smaller property is saving money. Any homeowner will tell you that it is expensive work maintaining a property, especially in such difficult financial times. However, with a smaller property your mortgage repayments are likely to be lower and depending on your level of equity in your old larger property you may potentially be able to buy outright with a cash purchase. Furthermore, savings could also be attained through reductions in utility bills such as electricity and gas due to the smaller property requiring less energy to power and heat.
- Lower Levels of Stress – By putting yourself in a better financial position it will ensure a reduction in stress and in-turn improved peace of mind. Secondly, increased levels of cash-flow will present fantastic opportunities to spend more on holidays or simply save more for retirement.
- Increased Amounts of Free Time – Downsizing your property will reduce the amount of time being spent on home maintenance and cleaning, therefore increasing the amount of quality time available to spend with loved ones.
What to Consider
- Less Space & Less Storage – Before any decisions are set in stone thought must first be given to the potential negatives of such a move. With a reduction in space comes a reduction in storage, therefore you maybe required to sell un-needed items and large pieces of furniture. In addition to this, if you are in a larger home it is probable that it will be full of items which have sentimental value but lack any real financial value. Trying to part with sentimental items can be very stressful, therefore taking advantage of temporary storage facilities will make the process far more smoother and less stressful.
- Planning is Key – For a successful transition to a smaller home it is vital that extensive thought, consultation and planning is conducted prior to any rushed decisions, especially if you are moving as a family. When looking for a smaller property one must always consider what they can and cannot live without, for example you may still want a house with two bathrooms or you may require a large dining room for family meals.